x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 95‑4431352 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
333 THREE D SYSTEMS CIRCLE ROCK HILL, SOUTH CAROLINA | 29730 |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | (Do not check if smaller reporting company) | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
| |
Exhibit 31.1 | |
Exhibit 31.2 | |
Exhibit 32.1 | |
Exhibit 32.2 |
(In thousands, except par value) | September 30, 2018 (unaudited) | December 31, 2017 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 92,093 | $ | 136,344 | |||
Accounts receivable, net of reserves — $11,029 (2018) and $10,258 (2017) | 127,092 | 129,879 | |||||
Inventories | 128,164 | 103,903 | |||||
Insurance proceeds receivable | — | 50,000 | |||||
Prepaid expenses and other current assets | 27,028 | 18,296 | |||||
Total current assets | 374,377 | 438,422 | |||||
Property and equipment, net | 104,780 | 97,521 | |||||
Intangible assets, net | 74,459 | 98,783 | |||||
Goodwill | 224,040 | 230,882 | |||||
Deferred income tax asset | 7,171 | 4,020 | |||||
Other assets, net | 26,143 | 27,136 | |||||
Total assets | $ | 810,970 | $ | 896,764 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current portion of capitalized lease obligations | $ | 651 | $ | 644 | |||
Accounts payable | 61,556 | 55,607 | |||||
Accrued and other liabilities | 61,676 | 65,899 | |||||
Accrued litigation settlement | — | 50,000 | |||||
Customer deposits | 4,934 | 5,765 | |||||
Deferred revenue | 34,899 | 29,214 | |||||
Total current liabilities | 163,716 | 207,129 | |||||
Long term portion of capitalized lease obligations | 6,563 | 7,078 | |||||
Deferred income tax liability | 9,002 | 8,983 | |||||
Other liabilities | 44,622 | 48,754 | |||||
Total liabilities | 223,903 | 271,944 | |||||
Redeemable noncontrolling interests | 8,872 | 8,872 | |||||
Commitments and contingencies (Note 13) | |||||||
Stockholders’ equity: | |||||||
Common stock, $0.001 par value, authorized 220,000 shares; issued 118,452 (2018) and 117,025 (2017) | 117 | 115 | |||||
Additional paid-in capital | 1,347,332 | 1,326,250 | |||||
Treasury stock, at cost — 2,769 shares (2018) and 2,219 shares (2017) | (13,926 | ) | (8,203 | ) | |||
Accumulated deficit | (718,565 | ) | (677,772 | ) | |||
Accumulated other comprehensive loss | (34,422 | ) | (21,536 | ) | |||
Total 3D Systems Corporation stockholders' equity | 580,536 | 618,854 | |||||
Noncontrolling interests | (2,341 | ) | (2,906 | ) | |||
Total stockholders’ equity | 578,195 | 615,948 | |||||
Total liabilities, redeemable noncontrolling interests and stockholders’ equity | $ | 810,970 | $ | 896,764 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenue: | |||||||||||||||
Products | $ | 99,922 | $ | 90,730 | $ | 316,153 | $ | 286,249 | |||||||
Services | 64,589 | 62,177 | 190,795 | 182,556 | |||||||||||
Total revenue | 164,511 | 152,907 | 506,948 | 468,805 | |||||||||||
Cost of sales: | |||||||||||||||
Products | 54,444 | 62,662 | 168,062 | 160,610 | |||||||||||
Services | 32,257 | 31,723 | 97,045 | 88,814 | |||||||||||
Total cost of sales | 86,701 | 94,385 | 265,107 | 249,424 | |||||||||||
Gross profit | 77,810 | 58,522 | 241,841 | 219,381 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 65,600 | 66,497 | 206,225 | 195,990 | |||||||||||
Research and development | 23,194 | 24,360 | 71,788 | 71,661 | |||||||||||
Total operating expenses | 88,794 | 90,857 | 278,013 | 267,651 | |||||||||||
Loss from operations | (10,984 | ) | (32,335 | ) | (36,172 | ) | (48,270 | ) | |||||||
Interest and other income (expense), net | 1,027 | (1,257 | ) | 1,135 | (123 | ) | |||||||||
Loss before income taxes | (9,957 | ) | (33,592 | ) | (35,037 | ) | (48,393 | ) | |||||||
Provision for income taxes | 1,593 | 3,723 | 6,086 | 6,831 | |||||||||||
Net loss | (11,550 | ) | (37,315 | ) | (41,123 | ) | (55,224 | ) | |||||||
Less: net income attributable to noncontrolling interests | — | 355 | 246 | 833 | |||||||||||
Net loss attributable to 3D Systems Corporation | $ | (11,550 | ) | $ | (37,670 | ) | $ | (41,369 | ) | $ | (56,057 | ) | |||
Net loss per share available to 3D Systems Corporation common stockholders - basic and diluted | $ | (0.10 | ) | $ | (0.34 | ) | $ | (0.37 | ) | $ | (0.50 | ) |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net loss | $ | (11,550 | ) | $ | (37,315 | ) | $ | (41,123 | ) | $ | (55,224 | ) | |||
Other comprehensive income (loss), net of taxes: | |||||||||||||||
Pension adjustments | 57 | (24 | ) | 204 | (105 | ) | |||||||||
Foreign currency translation | (1,894 | ) | 4,904 | (13,090 | ) | 25,785 | |||||||||
Total other comprehensive income (loss), net of taxes: | (1,837 | ) | 4,880 | (12,886 | ) | 25,680 | |||||||||
Total comprehensive loss, net of taxes | (13,387 | ) | (32,435 | ) | (54,009 | ) | (29,544 | ) | |||||||
Comprehensive income attributable to noncontrolling interests | 26 | 381 | 565 | 994 | |||||||||||
Comprehensive loss attributable to 3D Systems Corporation | $ | (13,413 | ) | $ | (32,816 | ) | $ | (54,574 | ) | $ | (30,538 | ) |
Nine Months Ended September 30, | |||||||
(In thousands) | 2018 | 2017 | |||||
Cash flows from operating activities: | |||||||
Net loss | $ | (41,123 | ) | $ | (55,224 | ) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 44,986 | 46,146 | |||||
Stock-based compensation | 21,082 | 21,084 | |||||
Lower of cost or market adjustment | — | 12,883 | |||||
Provision for bad debts | 2,522 | 1,297 | |||||
Provision for deferred income taxes | (3,132 | ) | 1,674 | ||||
Impairment of assets | 1,411 | 324 | |||||
Changes in operating accounts, net of acquisitions: | |||||||
Accounts receivable | (1,509 | ) | 10,777 | ||||
Inventories | (29,502 | ) | (13,959 | ) | |||
Prepaid expenses and other current assets | 41,589 | (2,939 | ) | ||||
Accounts payable | 6,261 | 3,463 | |||||
Accrued and other current liabilities | (45,346 | ) | (1,865 | ) | |||
All other operating activities | (170 | ) | (5,985 | ) | |||
Net cash (used in) provided by operating activities | (2,931 | ) | 17,676 | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (28,323 | ) | (21,072 | ) | |||
Additions to license and patent costs | (740 | ) | (875 | ) | |||
Cash paid for acquisitions, net of cash assumed | — | (36,541 | ) | ||||
Other investing activities | (496 | ) | (2,350 | ) | |||
Proceeds from disposition of property and equipment | 9 | 271 | |||||
Net cash used in investing activities | (29,550 | ) | (60,567 | ) | |||
Cash flows from financing activities: | |||||||
Payments on earnout consideration | (2,675 | ) | (3,206 | ) | |||
Payments related to net-share settlement of stock-based compensation | (5,723 | ) | (4,494 | ) | |||
Repayment of capital lease obligations | (508 | ) | (297 | ) | |||
Net cash used in financing activities | (8,906 | ) | (7,997 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,417 | ) | 4,273 | ||||
Net decrease in cash, cash equivalents and restricted cash | (43,804 | ) | (46,615 | ) | |||
Cash, cash equivalents and restricted cash at the beginning of the period (a) | 136,831 | 184,947 | |||||
Cash, cash equivalents and restricted cash at the end of the period (a) | $ | 93,027 | $ | 138,332 |
Cash interest payments | $ | 353 | $ | 378 | |||
Cash income tax payments, net | $ | 7,119 | $ | 4,715 | |||
Transfer of equipment from inventory to property and equipment, net (b) | $ | 4,638 | $ | 8,964 | |||
Transfer of equipment to inventory from property and equipment, net (c) | $ | 628 | $ | 364 | |||
Stock issued for acquisitions | $ | — | $ | 3,208 |
(a) | The amounts for cash and cash equivalents shown above include restricted cash of $934 and $482 as of September 30, 2018 and 2017, respectively, and $487 and $301 as of December 31, 2017, and 2016, respectively, which were included in other assets, net, in the condensed consolidated balance sheets. |
(b) | Inventory is transferred from inventory to property and equipment at cost when the Company requires additional machines for training or demonstration or for placement into on demand manufacturing services locations. |
(c) | In general, an asset is transferred from property and equipment, net, into inventory at its net book value when the Company has identified a potential sale for a used machine. |
Common Stock | |||||||||||||||||||||||||||||||
(in thousands, except par value) | Par Value $0.001 | Additional Paid In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total 3D Systems Corporation Stockholders' Equity | Equity Attributable to Noncontrolling Interests | Total Stockholders' Equity | |||||||||||||||||||||||
Balance at December 31, 2017 | $ | 115 | $ | 1,326,250 | $ | (8,203 | ) | $ | (677,772 | ) | $ | (21,536 | ) | $ | 618,854 | $ | (2,906 | ) | $ | 615,948 | |||||||||||
Issuance (repurchase) of stock | 2 | — | (5,723 | ) | — | — | (5,721 | ) | — | (5,721 | ) | ||||||||||||||||||||
Cumulative impact of change in accounting policy | — | — | — | 576 | — | 576 | — | 576 | |||||||||||||||||||||||
Stock-based compensation expense | — | 21,082 | — | — | — | 21,082 | — | 21,082 | |||||||||||||||||||||||
Net income (loss) | — | — | — | (41,369 | ) | — | (41,369 | ) | 246 | (41,123 | ) | ||||||||||||||||||||
Pension adjustment | — | — | — | — | 204 | 204 | — | 204 | |||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (13,090 | ) | (13,090 | ) | 319 | (12,771 | ) | ||||||||||||||||||||
Balance at September 30, 2018 | $ | 117 | $ | 1,347,332 | $ | (13,926 | ) | $ | (718,565 | ) | $ | (34,422 | ) | $ | 580,536 | $ | (2,341 | ) | $ | 578,195 |
Common Stock | |||||||||||||||||||||||||||||||
(in thousands, except par value) | Par Value $0.001 | Additional Paid In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total 3D Systems Corporation Stockholders' Equity | Equity Attributable to Noncontrolling Interests | Total Stockholders' Equity | |||||||||||||||||||||||
Balance at December 31, 2016 | $ | 115 | $ | 1,307,428 | $ | (2,658 | ) | $ | (621,787 | ) | $ | (53,225 | ) | $ | 629,873 | $ | (3,173 | ) | $ | 626,700 | |||||||||||
Issuance (repurchase) of stock | — | — | (4,495 | ) | — | — | (4,495 | ) | — | (4,495 | ) | ||||||||||||||||||||
Issuance of stock for acquisitions | — | 3,208 | — | — | — | 3,208 | — | 3,208 | |||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | — | (1,440 | ) | — | — | 50 | (1,390 | ) | (860 | ) | (2,250 | ) | |||||||||||||||||||
Cumulative impact of change in accounting policy | — | (10,206 | ) | — | 10,206 | — | — | — | — | ||||||||||||||||||||||
Stock-based compensation expense | — | 21,084 | — | — | — | 21,084 | — | 21,084 | |||||||||||||||||||||||
Net income (loss) | — | — | — | (56,057 | ) | — | (56,057 | ) | 833 | (55,224 | ) | ||||||||||||||||||||
Pension adjustment | — | — | — | — | (105 | ) | (105 | ) | — | (105 | ) | ||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 25,574 | 25,574 | 161 | 25,735 | |||||||||||||||||||||||
Balance at September 30, 2017 | $ | 115 | $ | 1,320,074 | $ | (7,153 | ) | $ | (667,638 | ) | $ | (27,706 | ) | $ | 617,692 | $ | (3,039 | ) | $ | 614,653 |
(in thousands) | 2018 | 2017 | |||||
Raw materials | $ | 50,533 | $ | 37,660 | |||
Work in process | 4,318 | 3,906 | |||||
Finished goods and parts | 73,313 | 62,337 | |||||
Inventories | $ | 128,164 | $ | 103,903 |
| 2018 | 2017 | |||||||||||||||||||||||
(in thousands) | Gross (a) | Accumulated Amortization | Net | Gross (a) | Accumulated Amortization | Net | Weighted Average Useful Life Remaining (in years) | ||||||||||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||||
Customer relationships | $ | 103,833 | $ | (64,853 | ) | $ | 38,980 | $ | 105,505 | $ | (57,796 | ) | $ | 47,709 | 6 | ||||||||||
Acquired technology | 49,032 | (42,677 | ) | 6,355 | 54,716 | (39,644 | ) | 15,072 | 2 | ||||||||||||||||
Trade names | 25,200 | (17,111 | ) | 8,089 | 25,813 | (15,552 | ) | 10,261 | 6 | ||||||||||||||||
Patent costs | 18,061 | (8,086 | ) | 9,975 | 17,909 | (7,338 | ) | 10,571 | 15 | ||||||||||||||||
Trade secrets | 19,393 | (13,066 | ) | 6,327 | 19,431 | (11,530 | ) | 7,901 | 4 | ||||||||||||||||
Acquired patents | 16,220 | (12,761 | ) | 3,459 | 16,661 | (11,969 | ) | 4,692 | 8 | ||||||||||||||||
Other | 19,624 | (18,350 | ) | 1,274 | 20,012 | (17,435 | ) | 2,577 | 2 | ||||||||||||||||
Total intangible assets | $ | 251,363 | $ | (176,904 | ) | $ | 74,459 | $ | 260,047 | $ | (161,264 | ) | $ | 98,783 | 6 |
(in thousands) | 2018 | 2017 | |||||
Compensation and benefits | $ | 22,086 | $ | 20,432 | |||
Accrued taxes | 17,832 | 13,861 | |||||
Vendor accruals | 7,378 | 7,044 | |||||
Product warranty liability | 5,802 | 5,564 | |||||
Arbitration awards | 2,256 | 11,282 | |||||
Accrued professional fees | 2,222 | 742 | |||||
Accrued other | 1,445 | 2,485 | |||||
Royalties payable | 1,469 | 1,679 | |||||
Accrued earnouts related to acquisitions | 1,073 | 2,772 | |||||
Accrued interest | 113 | 38 | |||||
Total | $ | 61,676 | $ | 65,899 |
(in thousands) | 2018 | 2017 | |||||
Long term employee indemnity | $ | 13,748 | $ | 13,887 | |||
Long term tax liability | 9,030 | 9,340 | |||||
Defined benefit pension obligation | 8,006 | 8,290 | |||||
Long term deferred revenue | 7,637 | 7,298 | |||||
Other long term liabilities | 6,201 | 7,596 | |||||
Long term earnouts related to acquisitions | — | 2,343 | |||||
Total | $ | 44,622 | $ | 48,754 |
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Service cost | $ | 49 | $ | 75 | $ | 151 | $ | 212 | |||||||
Interest cost | 69 | 72 | 212 | 205 | |||||||||||
Amortization of actuarial loss | 44 | 64 | 134 | 182 | |||||||||||
Total periodic cost | $ | 162 | $ | 211 | $ | 497 | $ | 599 |
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Numerator for basic and diluted net loss per share: | |||||||||||||||
Net loss attributable to 3D Systems Corporation | $ | (11,550 | ) | $ | (37,670 | ) | $ | (41,369 | ) | $ | (56,057 | ) | |||
Denominator for basic and diluted net loss per share: | |||||||||||||||
Weighted average shares | 112,534 | 111,697 | 112,095 | 111,467 | |||||||||||
Net loss per share - basic and diluted | $ | (0.10 | ) | $ | (0.34 | ) | $ | (0.37 | ) | $ | (0.50 | ) |
Fair Value Measurements as of September 30, 2018 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Description | |||||||||||||||
Cash equivalents (a) | $ | 8,920 | $ | — | $ | — | $ | 8,920 | |||||||
Earnout consideration (b) | $ | — | $ | — | $ | 1,073 | $ | 1,073 | |||||||
| |||||||||||||||
Fair Value Measurements as of December 31, 2017 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Description | |||||||||||||||
Cash equivalents (a) | $ | 20,244 | $ | — | $ | — | $ | 20,244 | |||||||
Earnout consideration (b) | $ | — | $ | — | $ | 5,115 | $ | 5,115 |
(a) | Cash equivalents include funds held in money market instruments and are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in the consolidated balance sheet. |
(b) | The fair value of the earnout consideration, which is based on the present value of the expected future payments to be made to the sellers of the acquired businesses, was derived by analyzing the future performance of the acquired businesses using the earnout formula and performance targets specified in each purchase agreement and adjusting those amounts to reflect the ability of the acquired entities to achieve the stated targets. Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. The change in earnout consideration reflects a $2,675 payment, partially offset by $248 of accretion and adjustments of $1,615. |
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenue from unaffiliated customers: | |||||||||||||||
United States | $ | 81,282 | $ | 75,402 | $ | 250,023 | $ | 234,195 | |||||||
Other Americas | 873 | 3,534 | 4,918 | 8,300 | |||||||||||
EMEA | 55,020 | 52,457 | 169,300 | 158,864 | |||||||||||
Asia Pacific | 27,336 | 21,514 | 82,707 | 67,446 | |||||||||||
Total revenue | $ | 164,511 | $ | 152,907 | $ | 506,948 | $ | 468,805 |
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenue by class of product and service: | |||||||||||||||
Products | $ | 59,648 | $ | 51,331 | $ | 188,016 | $ | 160,153 | |||||||
Materials | 40,274 | 39,399 | 128,137 | 126,096 | |||||||||||
Services | 64,589 | 62,177 | 190,795 | 182,556 | |||||||||||
Total revenue | $ | 164,511 | $ | 152,907 | $ | 506,948 | $ | 468,805 |
Quarter Ended September 30, 2018 | |||||||||||||||
Intercompany Sales to | |||||||||||||||
(in thousands) | Americas | EMEA | Asia Pacific | Total | |||||||||||
Americas | $ | 499 | $ | 15,540 | $ | 4,888 | $ | 20,927 | |||||||
EMEA | 18,259 | 6,939 | 1,551 | 26,749 | |||||||||||
Asia Pacific | 1,134 | 15 | 923 | 2,072 | |||||||||||
Total intercompany sales | $ | 19,892 | $ | 22,494 | $ | 7,362 | $ | 49,748 |
Quarter Ended September 30, 2017 | |||||||||||||||
Intercompany Sales to | |||||||||||||||
(in thousands) | Americas | EMEA | Asia Pacific | Total | |||||||||||
Americas | $ | 554 | $ | 11,764 | $ | 5,390 | $ | 17,708 | |||||||
EMEA | 16,057 | 4,286 | 985 | 21,328 | |||||||||||
Asia Pacific | 613 | 8 | 772 | 1,393 | |||||||||||
Total intercompany sales | $ | 17,224 | $ | 16,058 | $ | 7,147 | $ | 40,429 |
Nine Months Ended September 30, 2018 | |||||||||||||||
Intercompany Sales to | |||||||||||||||
(in thousands) | Americas | EMEA | Asia Pacific | Total | |||||||||||
Americas | $ | 1,521 | $ | 45,764 | $ | 17,303 | $ | 64,588 | |||||||
EMEA | 51,471 | 18,691 | 4,687 | 74,849 | |||||||||||
Asia Pacific | 3,779 | 16 | 2,696 | 6,491 | |||||||||||
Total intercompany sales | $ | 56,771 | $ | 64,471 | $ | 24,686 | $ | 145,928 |
Nine Months Ended September 30, 2017 | |||||||||||||||
Intercompany Sales to | |||||||||||||||
(in thousands) | Americas | EMEA | Asia Pacific | Total | |||||||||||
Americas | $ | 1,452 | $ | 34,414 | $ | 14,243 | $ | 50,109 | |||||||
EMEA | 50,761 | 13,014 | 2,900 | 66,675 | |||||||||||
Asia Pacific | 1,492 | 165 | 2,921 | 4,578 | |||||||||||
Total intercompany sales | $ | 53,705 | $ | 47,593 | $ | 20,064 | $ | 121,362 |
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
(Loss) income from operations: | |||||||||||||||
Americas | $ | (16,599 | ) | $ | (32,749 | ) | $ | (50,122 | ) | $ | (65,897 | ) | |||
EMEA | 386 | (3,272 | ) | (2,948 | ) | 4,474 | |||||||||
Asia Pacific | 5,229 | 3,686 | 16,898 | 13,153 | |||||||||||
Total | $ | (10,984 | ) | $ | (32,335 | ) | $ | (36,172 | ) | $ | (48,270 | ) |
(in thousands) | Foreign currency translation adjustment | Defined benefit pension plan | Liquidation of non-US entity and purchase of non-controlling interests | Total | |||||||||||
Balance at December 31, 2017 | $ | (19,319 | ) | $ | (2,555 | ) | $ | 338 | $ | (21,536 | ) | ||||
Other comprehensive income (loss) | (14,491 | ) | 204 | — | (14,287 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,401 | — | — | 1,401 | |||||||||||
Balance at September 30, 2018 | $ | (32,409 | ) | $ | (2,351 | ) | $ | 338 | $ | (34,422 | ) |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | Statement of Operations Caption | ||||||||||||
Currency translation adjustments: | |||||||||||||||||
Gain on dissolution | $ | 1,401 | $ | — | $ | 1,401 | $ | — | Interest and other income (expense), net |
(Dollars in thousands) | Americas | EMEA | Asia Pacific | Total | |||||||||||||||||||||||
Revenue — third quarter 2017 | $ | 78,936 | 51.6 | % | $ | 52,457 | 34.3 | % | $ | 21,514 | 14.1 | % | $ | 152,907 | 100.0 | % | |||||||||||
Change in revenue: | |||||||||||||||||||||||||||
Volume | 5,546 | 7.0 | % | 4,624 | 8.8 | % | 5,813 | 27.0 | % | 15,983 | 10.5 | % | |||||||||||||||
Price/Mix | (2,006 | ) | (2.5 | )% | (1,301 | ) | (2.5 | )% | 514 | 2.4 | % | (2,793 | ) | (1.8 | )% | ||||||||||||
Foreign currency translation | (321 | ) | (0.4 | )% | (760 | ) | (1.4 | )% | (505 | ) | (2.3 | )% | (1,586 | ) | (1.1 | )% | |||||||||||
Net change | 3,219 | 4.1 | % | 2,563 | 4.9 | % | 5,822 | 27.1 | % | 11,604 | 7.6 | % | |||||||||||||||
Revenue — third quarter 2018 | $ | 82,155 | 49.9 | % | $ | 55,020 | 33.4 | % | $ | 27,336 | 16.6 | % | $ | 164,511 | 100.0 | % |
(Dollars in thousands) | Americas | EMEA | Asia Pacific | Total | |||||||||||||||||||||||
Revenue — nine months 2017 | $ | 242,495 | 51.7 | % | $ | 158,864 | 33.9 | % | $ | 67,446 | 14.4 | % | $ | 468,805 | 100.0 | % | |||||||||||
Change in revenue: | |||||||||||||||||||||||||||
Volume | 28,458 | 11.7 | % | 8,640 | 5.4 | % | 10,239 | 15.2 | % | 47,337 | 10.1 | % | |||||||||||||||
Price/Mix | (15,539 | ) | (6.4 | )% | (7,517 | ) | (4.7 | )% | 2,868 | 4.3 | % | (20,188 | ) | (4.3 | )% | ||||||||||||
Foreign currency translation | (473 | ) | (0.2 | )% | 9,313 | 5.9 | % | 2,154 | 3.2 | % | 10,994 | 2.3 | % | ||||||||||||||
Net change | 12,446 | 5.1 | % | 10,436 | 6.6 | % | 15,261 | 22.7 | % | 38,143 | 8.1 | % | |||||||||||||||
Revenue — nine months 2018 | $ | 254,941 | 50.3 | % | $ | 169,300 | 33.4 | % | $ | 82,707 | 16.3 | % | $ | 506,948 | 100.0 | % |
(Dollars in thousands) | Products | Materials | Services | Total | |||||||||||||||||||||||
Revenue — third quarter 2017 | $ | 51,331 | 33.5 | % | $ | 39,399 | 25.8 | % | $ | 62,177 | 40.7 | % | $ | 152,907 | 100.0 | % | |||||||||||
Change in revenue: | |||||||||||||||||||||||||||
Volume | 10,843 | 21.1 | % | 2,176 | 5.5 | % | 2,964 | 4.8 | % | 15,983 | 10.5 | % | |||||||||||||||
Price/Mix | (1,764 | ) | (3.4 | )% | (1,029 | ) | (2.6 | )% | — | — | % | (2,793 | ) | (1.8 | )% | ||||||||||||
Foreign currency translation | (762 | ) | (1.5 | )% | (272 | ) | (0.7 | )% | (552 | ) | (0.9 | )% | (1,586 | ) | (1.1 | )% | |||||||||||
Net change | 8,317 | 16.2 | % | 875 | 2.2 | % | 2,412 | 3.9 | % | 11,604 | 7.6 | % | |||||||||||||||
Revenue — third quarter 2018 | $ | 59,648 | 36.3 | % | $ | 40,274 | 24.5 | % | $ | 64,589 | 39.3 | % | $ | 164,511 | 100.0 | % |
(Dollars in thousands) | Products | Materials | Services | Total | |||||||||||||||||||||||
Revenue — nine months 2017 | $ | 160,153 | 34.2 | % | $ | 126,096 | 26.9 | % | $ | 182,556 | 38.9 | % | $ | 468,805 | 100.0 | % | |||||||||||
Change in revenue: | |||||||||||||||||||||||||||
Volume | 32,823 | 20.5 | % | 10,176 | 8.1 | % | 4,338 | 2.4 | % | 47,337 | 10.1 | % | |||||||||||||||
Price/Mix | (8,567 | ) | (5.3 | )% | (11,621 | ) | (9.2 | )% | — | — | % | (20,188 | ) | (4.3 | )% | ||||||||||||
Foreign currency translation | 3,607 | 2.3 | % | 3,486 | 2.8 | % | 3,901 | 2.1 | % | 10,994 | 2.3 | % | |||||||||||||||
Net change | 27,863 | 17.5 | % | 2,041 | 1.7 | % | 8,239 | 4.5 | % | 38,143 | 8.1 | % | |||||||||||||||
Revenue — nine months 2018 | $ | 188,016 | 37.1 | % | $ | 128,137 | 25.3 | % | $ | 190,795 | 37.6 | % | $ | 506,948 | 100.0 | % |
Quarter Ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | Change in Gross Profit | Change in Gross Profit Margin | |||||||||||||||||||||||
(Dollars in thousands) | Gross Profit | Gross Profit Margin | Gross Profit | Gross Profit Margin | $ | % | Percentage Points | % | ||||||||||||||||||
Products | 17,522 | 29.4 | % | (451 | ) | (0.9 | )% | 17,973 | 3985 | % | 30.3 | 3443 | % | |||||||||||||
Materials | 27,956 | 69.4 | % | 28,519 | 72.4 | % | (563 | ) | (2.0 | )% | (3.0 | ) | (4.1 | )% | ||||||||||||
Services | 32,332 | 50.1 | % | 30,454 | 49.0 | % | 1,878 | 6.2 | % | 1.1 | 2.2 | % | ||||||||||||||
Total | $ | 77,810 | 47.3 | % | $ | 58,522 | 38.3 | % | $ | 19,288 | 33.0 | % | 9.0 | 23.6 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | Change in Gross Profit | Change in Gross Profit Margin | |||||||||||||||||||||||
(Dollars in thousands) | Gross Profit | Gross Profit Margin | Gross Profit | Gross Profit Margin | $ | % | Percentage Points | % | ||||||||||||||||||
Products | 57,239 | 30.4 | % | 33,886 | 21.2 | % | 23,353 | 68.9 | % | 9.3 | 43.9 | % | ||||||||||||||
Materials | 90,852 | 70.9 | % | 91,753 | 72.8 | % | (901 | ) | (1.0 | )% | (1.9 | ) | (2.6 | )% | ||||||||||||
Services | 93,750 | 49.1 | % | 93,742 | 51.3 | % | 8 | — | % | (2.2 | ) | (4.3 | )% | |||||||||||||
Total | $ | 241,841 | 47.7 | % | $ | 219,381 | 46.8 | % | $ | 22,460 | 10.2 | % | 0.9 | 1.9 | % |
Quarter Ended September 30, | ||||||||||||||||||||
2018 | 2017 | Change | ||||||||||||||||||
(Dollars in thousands) | Amount | % Revenue | Amount | % Revenue | $ | % | ||||||||||||||
Selling, general and administrative expenses | 65,600 | 39.9 | % | 66,497 | 43.5 | % | (897 | ) | (1.3 | )% | ||||||||||
Research and development expenses | 23,194 | 14.1 | % | 24,360 | 15.9 | % | (1,166 | ) | (4.8 | )% | ||||||||||
Total operating expenses | $ | 88,794 | 54.0 | % | $ | 90,857 | 59.4 | % | $ | (2,063 | ) | (2.3 | )% |
Nine Months Ended September 30, | ||||||||||||||||||||
2018 | 2017 | Change | ||||||||||||||||||
(Dollars in thousands) | Amount | % Revenue | Amount | % Revenue | $ | % | ||||||||||||||
Selling, general and administrative expenses | 206,225 | 40.7 | % | 195,990 | 41.8 | % | 10,235 | 5.2 | % | |||||||||||
Research and development expenses | 71,788 | 14.2 | % | 71,661 | 15.3 | % | 127 | 0.2 | % | |||||||||||
Total operating expenses | $ | 278,013 | 54.8 | % | $ | 267,651 | 57.1 | % | $ | 10,362 | 3.9 | % |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
(Loss) income from operations: | |||||||||||||||
Americas | (16,599 | ) | (32,749 | ) | (50,122 | ) | (65,897 | ) | |||||||
EMEA | 386 | (3,272 | ) | (2,948 | ) | 4,474 | |||||||||
Asia Pacific | 5,229 | 3,686 | 16,898 | 13,153 | |||||||||||
Total | $ | (10,984 | ) | $ | (32,335 | ) | $ | (36,172 | ) | $ | (48,270 | ) |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Interest and other income (expense), net: | |||||||||||||||
Interest income | 180 | 227 | 633 | 555 | |||||||||||
Foreign exchange gain (loss) | 1,035 | (822 | ) | 2,888 | 712 | ||||||||||
Interest expense | (220 | ) | (237 | ) | (668 | ) | (699 | ) | |||||||
Other income (expense), net | 32 | (425 | ) | (1,718 | ) | (691 | ) | ||||||||
Total interest and other income (expense), net | $ | 1,027 | $ | (1,257 | ) | $ | 1,135 | $ | (123 | ) |
Quarter Ended September 30, 2018 | |||||||||||
(Dollars in thousands) | 2018 | 2017 | Change | ||||||||
Operating loss | $ | (10,984 | ) | $ | (32,335 | ) | $ | 21,351 | |||
Other non-operating items: | |||||||||||
Interest and other income (expense), net | 1,027 | (1,257 | ) | 2,284 | |||||||
Benefit (provision) for income taxes | (1,593 | ) | (3,723 | ) | 2,130 | ||||||
Net loss | (11,550 | ) | (37,315 | ) | 25,765 | ||||||
Less: net income attributable to noncontrolling interests | — | 355 | (355 | ) | |||||||
Net loss attributable to 3D Systems | $ | (11,550 | ) | $ | (37,670 | ) | $ | 26,120 |
Nine Months Ended September 30, | |||||||||||
(Dollars in thousands) | 2018 | 2017 | Change | ||||||||
Operating loss | $ | (36,172 | ) | $ | (48,270 | ) | $ | 12,098 | |||
Other non-operating items: | |||||||||||
Interest and other income (expense), net | 1,135 | (123 | ) | 1,258 | |||||||
Benefit (provision) for income taxes | (6,086 | ) | (6,831 | ) | 745 | ||||||
Net loss | (41,123 | ) | (55,224 | ) | 14,101 | ||||||
Less: net income attributable to noncontrolling interests | 246 | 833 | (587 | ) | |||||||
Net loss attributable to 3D Systems | $ | (41,369 | ) | $ | (56,057 | ) | $ | 14,688 |
Change | ||||||||||||||
(Dollars in thousands) | September 30, 2018 | December 31, 2017 | $ | % | ||||||||||
Cash and cash equivalents | $ | 92,093 | $ | 136,344 | $ | (44,251 | ) | (32.5 | )% | |||||
Accounts receivable, net | 127,092 | 129,879 | (2,787 | ) | (2.1 | )% | ||||||||
Inventories | 128,164 | 103,903 | 24,261 | 23.3 | % | |||||||||
347,349 | 370,126 | (22,777 | ) | |||||||||||
Less: | ||||||||||||||
Current portion of capitalized lease obligations | 651 | 644 | 7 | 1.1 | % | |||||||||
Accounts payable | 61,556 | 55,607 | 5,949 | 10.7 | % | |||||||||
Accrued and other liabilities | 61,676 | 65,899 | (4,223 | ) | (6.4 | )% | ||||||||
123,883 | 122,150 | 1,733 | ||||||||||||
Operating working capital | $ | 223,466 | $ | 247,976 | $ | (24,510 | ) | (9.9 | )% |
| Nine Months Ended September 30, | ||||||
(Dollars in thousands) | 2018 | 2017 | |||||
Net cash (used in) provided by operating activities | $ | (2,931 | ) | $ | 17,676 | ||
Net cash used in investing activities | (29,550 | ) | (60,567 | ) | |||
Net cash used in financing activities | (8,906 | ) | (7,997 | ) | |||
Effect of exchange rate changes on cash | (2,417 | ) | 4,273 | ||||
Net decrease in cash, cash equivalents and restricted cash | $ | (43,804 | ) | $ | (46,615 | ) |
| Nine Months Ended September 30, | ||||||
(Dollars in thousands) | 2018 | 2017 | |||||
Net loss | $ | (41,123 | ) | $ | (55,224 | ) | |
Non-cash charges | 66,869 | 83,408 | |||||
Changes in working capital and all other operating assets | (28,677 | ) | (10,508 | ) | |||
Net cash (used in) provided by operating activities | $ | (2,931 | ) | $ | 17,676 |
Nine Months Ended September 30, | |||||||
(Dollars in thousands) | 2018 | 2017 | |||||
Purchases of property and equipment | $ | (28,323 | ) | $ | (21,072 | ) | |
Additions to license and patent costs | (740 | ) | (875 | ) | |||
Cash paid for acquisitions, net of cash assumed | — | (36,541 | ) | ||||
Other investing activities | (500 | ) | (2,350 | ) | |||
Proceeds from disposition of property and equipment | 9 | 271 | |||||
Net cash used in investing activities | $ | (29,550 | ) | $ | (60,567 | ) |
Nine Months Ended September 30, | |||||||
(Dollars in thousands) | 2018 | 2017 | |||||
Payments on earnout consideration | $ | (2,675 | ) | $ | (3,206 | ) | |
Payments related to net-share settlement of stock-based compensation | (5,723 | ) | (4,494 | ) | |||
Repayment of capital lease obligations | (508 | ) | (297 | ) | |||
Net cash used in financing activities | $ | (8,906 | ) | $ | (7,997 | ) |
• | competitive industry pressures; |
• | our ability to deliver products that meet changing technology and customer needs; |
• | our ability to identify strategic acquisitions, to integrate such acquisitions into our business without disruption and to realize the anticipated benefits of such acquisitions; |
• | impact of future write-off or write-downs of intangible assets; |
• | our ability to acquire and enforce intellectual property rights and defend such rights against third party claims; |
• | our ability to protect our intellectual property rights and confidential information, including our digital content, from third-party infringers or unauthorized copying, use or disclosure; |
• | failure of our information technology infrastructure or inability to protect against cyber-attack; |
• | our ability to generate net cash flow from operations; |
• | our ability to obtain additional financing on acceptable terms; |
• | impact of global economic, political and social conditions and financial markets on our business; |
• | fluctuations in our gross profit margins, operating income or loss and/or net income or loss; |
• | our ability to efficiently conduct business outside the U.S.; |
• | our dependence on our supply chain for components and sub-assemblies used in our 3D printers and other products and for raw materials used in our print materials; |
• | our ability to manage the costs and effects of litigation, investigations or similar matters involving us or our subsidiaries; |
• | product quality problems that result in decreased sales and operating margin, product returns, product liability, warranty or other claims; |
• | our ability to retain our key employees and to attract and retain new qualified employees, while controlling our labor costs; |
• | our exposure to product liability claims and other claims and legal proceedings; |
• | disruption in our management information systems for inventory management, distribution, and other key functions; |
• | compliance with U.S. and other anti-corruption laws, data privacy laws, trade controls, economic sanctions, and similar laws and regulations; |
• | changes in, or interpretation of, tax rules and regulations; and |
• | compliance with, and related expenses and challenges concerning, conflict-free minerals regulations; and |
• | the other factors discussed in the reports we file with or furnishes to the SEC from time to time, including the risks and important factors set forth in additional detail in “Risk Factors” in Part I, Item 1A of our Form 10-K filed with the SEC. |
Total number of shares (or units) purchased | Average price paid per share (or unit) | Total number of shares (or units) purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs | ||||||||
January 1, 2018 - January 31, 2018 | 12,433 | 9.69 | — | — | |||||||
February 1, 2018 - February 28, 2018 | 98,456 | 9.11 | — | — | |||||||
March 1, 2018 - March 31, 2018 | 3,966 | 11.51 | — | — | |||||||
April 1, 2018 - April 30, 2018 | 29,165 | 11.14 | — | — | |||||||
May 1, 2018 - May 31, 2018 | 48,711 | 12.66 | — | — | |||||||
June 1, 2018 - June 30, 2018 | 1,990 | 13.60 | — | — | |||||||
July 1, 2018 - July 31, 2018 | 113,978 | 13.09 | — | — | |||||||
August 1, 2018 - August 31, 2018 | 121,424 | 18.93 | — | — | |||||||
September 1, 2018 - September 30, 2018 | 6,449 | 18.69 | — | — | |||||||
436,572 | (a) | 13.61 | (b) | — | — |
(a) | Reflects shares of common stock surrendered to the Company for payment of tax withholding obligations in connection with the vesting of restricted stock. |
(b) | The average price paid reflects the average market value of shares withheld for tax purposes. |
3.1 | Certificate of Incorporation of Registrant. (Incorporated by reference to Exhibit 3.1 to Form 8-B filed on August 16, 1993, and the amendment thereto, filed on Form 8-B/A on February 4, 1994.) |
3.2 | Amendment to Certificate of Incorporation filed on May 23, 1995. (Incorporated by reference to Exhibit 3.2 to Registrant’s Registration Statement on Form S-2/A, filed on May 25, 1995.) |
Certificate of Amendment of Certificate of Incorporation filed with Secretary of State of Delaware on May 19, 2004. (Incorporated by reference to Exhibit 3.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, filed on August 5, 2004.) | |
Certificate of Amendment of Certificate of Incorporation filed with Secretary of State of Delaware on May 17, 2005. (Incorporated by reference to Exhibit 3.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2005, filed on August 1, 2005.) | |
Certificate of Amendment of Certificate of Incorporation filed with the Secretary of State of Delaware on October 7, 2011. (Incorporated by reference to Exhibit 3.1 to Form 8-K filed on October 7, 2011.) | |
Certificate of Amendment of Certificate of Incorporation filed with the Secretary of State of Delaware on May 21, 2013. (Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K, filed on May 22, 2013.) | |
Amended and Restated By-Laws of 3D Systems Corporation. (Incorporated by reference to Exhibit 3.1 of Registrant’s Current Report on Form 8-K filed on March 15, 2018.) | |
Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated October 30, 2018. | |
Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated October 30, 2018. | |
Certification of Principal Executive Officer filed pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated October 30, 2018. | |
Certification of Principal Financial Officer filed pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated October 30, 2018. | |
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. |
| 3D Systems Corporation | |
| ||
| By | /s/ John N. McMullen |
| John N. McMullen | |
| Executive Vice President and Chief Financial Officer | |
| (principal financial and accounting officer) | |
| (duly authorized officer) |
1. | I have reviewed this report on Form 10-Q of 3D Systems Corporation; |
2. | Based on my knowledge, this 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(s) 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 evaluation; 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the 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. |
| |
By: | /s/ Vyomesh I. Joshi |
Vyomesh I. Joshi | |
Title: | President & Chief Executive Officer |
| (principal executive officer) |
1. | I have reviewed this report on Form 10-Q of 3D Systems Corporation; |
2. | Based on my knowledge, this 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(s) 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 evaluation; 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the 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. |
| |
By: | /s/ John N. McMullen |
John N. McMullen | |
Title: | Executive Vice President and Chief Financial Officer |
| (principal financial and accounting officer) |
(i) | the Form 10-Q fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(ii) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Issuer. |
Date: October 30, 2018 |
/s/ Vyomesh I. Joshi |
Name: Vyomesh I. Joshi |
(principal executive officer) |
(i) | the Form 10-Q fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(ii) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Issuer. |
Date: October 30, 2018 |
/s/ John N. McMullen |
Name: John N. McMullen |
(principal financial and accounting officer) |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 23, 2018 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | 3D SYSTEMS CORPORATION | |
Entity Filer Category | Large Accelerated Filer | |
Entity Central Index Key | 0000910638 | |
Trading Symbol | ddd | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Period Focus | Q3 | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Current Fiscal Year End Date | --12-31 | |
Entity Emerging Growth Company | false | |
Entity Small Business Company | false | |
Entity Common Stock, Shares Outstanding | 114,180,543 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 11,029 | $ 10,258 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 220,000 | 220,000 |
Common stock, shares issued (in shares) | 118,452 | 117,025 |
Treasury stock, at cost, shares (in shares) | 2,769 | 2,219 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenue: | ||||
Total revenue | $ 164,511 | $ 152,907 | $ 506,948 | $ 468,805 |
Cost of sales: | ||||
Total cost of sales | 86,701 | 94,385 | 265,107 | 249,424 |
Gross profit | 77,810 | 58,522 | 241,841 | 219,381 |
Operating expenses: | ||||
Selling, general and administrative | 65,600 | 66,497 | 206,225 | 195,990 |
Research and development | 23,194 | 24,360 | 71,788 | 71,661 |
Total operating expenses | 88,794 | 90,857 | 278,013 | 267,651 |
Loss from operations | (10,984) | (32,335) | (36,172) | (48,270) |
Interest and other income (expense), net | 1,027 | (1,257) | 1,135 | (123) |
Loss before income taxes | (9,957) | (33,592) | (35,037) | (48,393) |
Provision for income taxes | 1,593 | 3,723 | 6,086 | 6,831 |
Net loss | (11,550) | (37,315) | (41,123) | (55,224) |
Less: net income attributable to noncontrolling interests | 0 | 355 | 246 | 833 |
Net loss attributable to 3D Systems Corporation | $ (11,550) | $ (37,670) | $ (41,369) | $ (56,057) |
Net loss per share available to 3D Systems Corporation common stockholders - basic and diluted | $ (0.10) | $ (0.34) | $ (0.37) | $ (0.50) |
Products | ||||
Revenue: | ||||
Total revenue | $ 99,922 | $ 90,730 | $ 316,153 | $ 286,249 |
Cost of sales: | ||||
Total cost of sales | 54,444 | 62,662 | 168,062 | 160,610 |
Services | ||||
Revenue: | ||||
Total revenue | 64,589 | 62,177 | 190,795 | 182,556 |
Cost of sales: | ||||
Total cost of sales | $ 32,257 | $ 31,723 | $ 97,045 | $ 88,814 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (11,550) | $ (37,315) | $ (41,123) | $ (55,224) |
Other comprehensive income (loss), net of taxes: | ||||
Pension adjustments | 57 | (24) | 204 | (105) |
Foreign currency translation | (1,894) | 4,904 | (13,090) | 25,785 |
Total other comprehensive income (loss), net of taxes: | (1,837) | 4,880 | (12,886) | 25,680 |
Total comprehensive loss, net of taxes | (13,387) | (32,435) | (54,009) | (29,544) |
Comprehensive income attributable to noncontrolling interests | 26 | 381 | 565 | 994 |
Comprehensive loss attributable to 3D Systems Corporation | $ (13,413) | $ (32,816) | $ (54,574) | $ (30,538) |
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid In Capital |
Treasury Stock |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total 3D Systems Corporation Stockholders' Equity |
Equity Attributable to Noncontrolling Interests |
---|---|---|---|---|---|---|---|---|
Cumulative impact of change in accounting policy | $ 0 | $ (10,206) | $ 10,206 | |||||
Beginning Balance at Dec. 31, 2016 | 626,700 | $ 115 | 1,307,428 | $ (2,658) | (621,787) | $ (53,225) | $ 629,873 | $ (3,173) |
Issuance (repurchase) of stock | (4,495) | (4,495) | (4,495) | |||||
Stock-based compensation expense | 21,084 | 21,084 | 21,084 | |||||
Net income (loss) | (55,224) | (56,057) | (56,057) | 833 | ||||
Pension adjustment | (105) | (105) | (105) | |||||
Foreign currency translation adjustment | 25,735 | 25,574 | 25,574 | 161 | ||||
Issuance of stock for acquisitions | 3,208 | 3,208 | 3,208 | |||||
Purchase of subsidiary shares from noncontrolling interest | (2,250) | (1,440) | 0 | 0 | 50 | (1,390) | (860) | |
Ending Balance at Sep. 30, 2017 | 614,653 | 115 | 1,320,074 | (7,153) | (667,638) | (27,706) | 617,692 | (3,039) |
Cumulative impact of change in accounting policy | 576 | 576 | 576 | |||||
Beginning Balance at Dec. 31, 2017 | 615,948 | 115 | 1,326,250 | (8,203) | (677,772) | (21,536) | 618,854 | (2,906) |
Issuance (repurchase) of stock | (5,721) | 2 | (5,723) | (5,721) | ||||
Stock-based compensation expense | 21,082 | 21,082 | 21,082 | |||||
Net income (loss) | (41,123) | (41,369) | (41,369) | 246 | ||||
Pension adjustment | 204 | 204 | 204 | |||||
Foreign currency translation adjustment | (12,771) | (13,090) | (13,090) | 319 | ||||
Issuance of stock for acquisitions | 0 | |||||||
Ending Balance at Sep. 30, 2018 | $ 578,195 | $ 117 | $ 1,347,332 | $ (13,926) | $ (718,565) | $ (34,422) | $ 580,536 | $ (2,341) |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of 3D Systems Corporation and all majority-owned subsidiaries and entities in which a controlling interest is maintained (the “Company”). A non-controlling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. The Company includes noncontrolling interests as a component of total equity in the condensed consolidated balance sheets and the net income attributable to noncontrolling interests are presented as an adjustment from net loss used to arrive at net loss attributable to 3D Systems Corporation in the condensed consolidated statements of operations and comprehensive loss. All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim reports. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements and should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“Form 10-K”). In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments, consisting of adjustments of a normal recurring nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The results of operations for the quarter and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from those estimates and assumptions. Certain prior period amounts presented in the condensed consolidated financial statements and accompanying footnotes have been reclassified to conform to current year presentation. Beginning in 2018, the Company classifies product warranty revenue and related expenses within the "Products" line items of the Consolidated Statements of Operations. All dollar amounts presented in the accompanying footnotes are presented in thousands, except for per share information. Recently Adopted Accounting Standards In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”), in an effort to reduce diversity and clarify what constitutes a modification, as it relates to the change in terms or conditions of a share-based payment award. According to ASU 2017-09, the Company should account for the effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments in ASU 2017-09 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted ASU 2017-09 beginning January 1, 2018 and the implementation of this guidance did not have a material effect on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which standardizes the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. ASU 2017-07 is effective for fiscal years beginning after December 15, 2017, including interim periods within those annual periods. The amendments in ASU 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company adopted ASU 2017-07 in the first quarter of 2018 and the implementation of this guidance did not have a material effect on its consolidated financial statements. On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") Topic 606, “Revenue from Contracts with Customers.” The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. The standard also requires new, expanded disclosures regarding revenue recognition. The Company adopted the standard using the modified retrospective transition method and applied its guidance to contracts not completed at the adoption date. The cumulative effect of initial adoption was recorded as a $576 decrease to the January 1, 2018 opening Accumulated Deficit balance and driven primarily by the timing of recognition related to marketing incentives. The effect of this adoption was immaterial to the Consolidated Financial Statements, and the Company does not expect a material effect to its Consolidated Financial Statements on an ongoing basis. Information for comparative periods has not been restated and continues to be reported under the previously applicable revenue accounting guidance ("ASC 605"). Had ASC 605 been applied to the first nine months of 2018, the Consolidated Statements of Operations and Comprehensive Loss would have shown increased Revenue and a decrease in Net Loss Attributable to 3D Systems Corporation of $327. On the Consolidated Balance Sheets, Other Assets would have been $466 lower, Deferred Revenues would have been $217 lower and the Accumulated Deficit would have increased by $249. Accounting Standards Issued But Not Yet Adopted In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" (ASU 2018-02), which provides companies with an option to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating when it will adopt ASU 2018-02 and its impact on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”), in order to create more transparency around how economic results are presented within both the financial statements and in the footnotes and to better align the results of cash flow and fair value hedge accounting with risk management activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating when it will adopt ASU 2017-12 and its impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which eliminates the performance of Step 2 from the goodwill impairment test. In performing its annual or interim impairment testing, an entity will instead compare the fair value of the reporting unit with its carrying amount and recognize any impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating when it will adopt ASU 2017-04 and its impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize assets and liabilities on the balance sheet for all leases with terms longer than twelve months. The ASU also requires disclosure of key information about leasing arrangements. ASU 2016-02 is effective on January 1, 2019, using a modified retrospective method of adoption. In August 2018, the FASB issued ASU 2018-11, “Targeted Improvements to ASC 842”, which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC Topic 842, “Leases," as the date of initial application of transition. Based on the effective date, this guidance will apply and the Company will adopt this ASU beginning on January 1, 2019 and plans to elect the transition option provided under ASU 2018-11 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to apply the package of practical expedients that allows it to avoid the reassessment of: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company also expects to use the practical expedient that allows it to treat the lease and non-lease components of its leases as a single component for its real estate leases. The Company is reviewing its population of leased assets to determine potential impacts on its consolidated financial statements. The Company is also in the process of evaluating adjustments to business processes, systems and controls to support lease accounting and disclosures under ASC Topic 842. Though its evaluation is ongoing, the Company expects a significant change to the balance sheet due to the recognition of right-of-use assets and lease liabilities primarily related to its real estate leases, but it does not anticipate material impacts to its results of operations or liquidity. No other new accounting pronouncements, issued or effective during 2018, have had or are expected to have a significant impact on the Company’s consolidated financial statements. |
Revenue |
9 Months Ended |
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Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue | Revenue The Company accounts for revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers,” which it adopted on January 1, 2018, using the modified-retrospective method. See Note 1 for further discussion of the adoption. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. At September 30, 2018, the Company had $110,210 of outstanding performance obligations. The Company expects to recognize approximately 91 percent of its remaining performance obligations as revenue within the next twelve months, an additional 3 percent by the end of 2019 and the balance thereafter. Revenue Recognition Revenue is recognized when control of the promised products or services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Many of its contracts with customers include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price (“SSP”). Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The amount of consideration received and revenue recognized may vary based on changes in marketing incentive programs offered to our customers. The Company's marketing incentive programs take many forms, including volume discounts, trade-in allowances, rebates and other discounts. A majority of the Company’s revenue is recognized at the point in time when products are shipped or services are delivered to customers. Please see below for further discussion. Hardware and Materials Revenue from hardware and material sales is recognized when control has transferred to the customer which typically occurs when the goods have been shipped to the customer, risk of loss has transferred to the customer and the Company has a present right to payment for the hardware. In limited circumstances when a printer or other hardware sales include substantive customer acceptance provisions, revenue is recognized either when customer acceptance has been obtained, customer acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. Software The Company also markets and sells software tools that enable our customers to capture and customize content using our printers, as well as reverse engineering and inspection software. Software does not require significant modification or customization and the license provides the customer with a right to use the software as it exists when made available. Revenue from these software licenses is recognized either upon delivery of the product or of a key code which allows the customer to download the software. Customers may purchase post-sale support. Generally, the first year is included but subsequent years are optional. This optional support is considered a separate obligation from the software and is deferred at the time of sale and subsequently recognized ratably over future periods. Services The Company offers training, installation and non-contract maintenance services for its products. Additionally, the Company offers maintenance contracts customers can purchase at their option. For maintenance contracts, revenue is deferred at the time of sale based on the stand-alone selling prices of these services and costs are expensed as incurred. Deferred revenue is recognized ratably over the term of the maintenance period on a straight-line basis. Revenue from training, installation and non-contract maintenance services is recognized at the time of performance of the service. On demand manufacturing and healthcare service sales are included within services revenue and revenue is recognized upon shipment or delivery of the parts or performance of the service, based on the terms of the arrangement. Terms of sale Shipping and handling activities are treated as fulfillment costs rather than as an additional promised service. The Company accrues the costs of shipping and handling when the related revenue is recognized. Costs incurred by the Company associated with shipping and handling are included in product cost of sales. Credit is extended, and creditworthiness is determined, based on an evaluation of each customer’s financial condition. New customers are generally required to complete a credit application and provide references and bank information to facilitate an analysis of creditworthiness. Customers with a favorable profile may receive credit terms that differ from the Company’s general credit terms. Creditworthiness is considered, among other things, in evaluating the Company’s relationship with customers with past due balances. The Company’s terms of sale generally provide payment terms that are customary in the countries where it transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. For maintenance services, the Company either bills customers on a time-and-materials basis or sells maintenance contracts that provide for payment in advance on either an annual or other periodic basis. See Note 12 for additional information related to revenue by reportable segment and major lines of business. Significant Judgments The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. For such arrangements, the Company allocates revenues to each performance obligation based on its relative SSP. Judgment is required to determine the SSP for each distinct performance obligation in a contract. For the majority of items, the Company estimates SSP using historical transaction data. The Company uses a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when the product or service is not sold separately, the Company determines the SSP using information that may include market conditions and other observable inputs. In some circumstances, the Company has more than one SSP for individual products and services due to the stratification of those products and services by customers, geographic region or other factors. In these instances, it may use information such as the size of the customer and geographic region in determining the SSP. The determination of SSP is an ongoing process and information is reviewed regularly in order to ensure SSP reflects the most current information or trends. The nature of the Company’s marketing incentives may lead to consideration that is variable. Judgment is exercised at contract inception to determine the most likely outcome of the contract and resulting transaction price. Ongoing assessments are performed to determine if updates are needed to the original estimates. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer deposits and deferred revenues (contract liabilities) on the Consolidated Balance Sheets. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized at the time of invoicing, or unbilled receivables when revenue is recognized prior to invoicing. For most of the Company’s contracts, customers are invoiced when products are shipped or when services are performed resulting in billed accounts receivables for the remainder of the owed contract price. Unbilled receivables generally result from items being shipped where the customer has not been charged, but for which revenue had been recognized. In the Company’s on demand manufacturing business, customers may be required to pay in full before work begins on their orders, resulting in customer deposits. The Company typically bills in advance for installation, training and maintenance contracts as well as extended warranties, resulting in deferred revenue. Changes in contract asset and liability balances were not materially impacted by any other factors for the period ended September 30, 2018. Through September 30, 2018, the Company recognized revenue of $33,596 related to our contract liabilities at January 1, 2018. Practical Expedients and Exemptions The Company generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling, general and administrative expenses. |
Inventories |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Components of inventories at September 30, 2018 and December 31, 2017 are summarized as follows:
During the quarter ended September 30, 2018, the Company took efforts to increase inventory levels as it prepares to deliver on current backlog and anticipated orders. Additionally, during the quarter ended September 30, 2017 the Company recorded inventory adjustments totaling $12.9 million resulting from its lower of cost or market analysis. The charge was effected because of ongoing efforts to focus and prioritize the Company’s portfolio based on year-to-date demand, market trends and a better understanding of where the Company’s offerings meet and will continue to meet customers’ needs and demand. The inventory adjustments related primarily to legacy plastics printers, refurbished and used metals printers and parts which have shown little to no use over extended periods. |
Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets, net, other than goodwill, at September 30, 2018 and December 31, 2017 are summarized as follows:
(a) Change in gross carrying amounts consists primarily of charges for license and patent costs and foreign currency translation. Amortization expense related to intangible assets was $7,811 and $23,714 for the quarter and nine months ended September 30, 2018, respectively, compared to $8,845 and $26,661 for the quarter and nine months ended September 30, 2017, respectively. |
Accrued And Other Liabilities |
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Accrued And Other Liabilities | Accrued and Other Liabilities Accrued liabilities at September 30, 2018 and December 31, 2017 are summarized as follows:
Other liabilities at September 30, 2018 and December 31, 2017 are summarized as follows:
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Hedging Activities and Financial Instruments |
9 Months Ended |
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Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities and Financial Instruments | Hedging Activities and Financial Instruments The Company conducts business in various countries using both the functional currencies of those countries and other currencies to effect cross border transactions. As a result, the Company is subject to the risk that fluctuations in foreign exchange rates between the dates that those transactions are entered into and their respective settlement dates will result in a foreign exchange gain or loss. When practicable, the Company endeavors to match assets and liabilities in the same currency on its balance sheet and those of its subsidiaries in order to reduce these risks. When appropriate, the Company enters into foreign currency contracts to hedge exposures arising from those transactions. The Company has elected not to prepare and maintain the documentation to qualify for hedge accounting treatment under ASC 815, “Derivatives and Hedging,” and therefore, all gains and losses (realized or unrealized) are recognized in “Interest and other expense, net” in the condensed consolidated statements of operations and comprehensive loss. Depending on their fair value at the end of the reporting period, derivatives are recorded either in prepaid expenses and other current assets or in accrued liabilities on the condensed consolidated balance sheet. The Company had $75,483 and $39,600 in notional foreign exchange contracts outstanding as of September 30, 2018 and December 31, 2017, respectively. The fair values of these contracts were not material. The Company translates foreign currency balance sheets from each international businesses' functional currency (generally the respective local currency) to U.S. dollars at end-of-period exchange rates, and statements of earnings at average exchange rates for each period. The resulting foreign currency translation adjustments are a component of other comprehensive income (loss). The Company does not hedge the fluctuation in reported revenue and earnings resulting from the translation of these international operations' results into U.S. dollars. |
Borrowings |
9 Months Ended |
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Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Credit Facility As of September 30, 2018, the Company had a $150,000 revolving, unsecured credit facility (the “Credit Agreement”) with a syndicate of banks, to be used for general corporate purposes and working capital needs. The Credit Agreement is scheduled to expire in October 2019. The Credit Agreement includes provisions for the issuance of letters of credit and swingline loans and contains certain restrictive covenants, which include the maintenance of a maximum consolidated total leverage ratio. The Company was in compliance with those covenants at September 30, 2018 and December 31, 2017. There were no outstanding borrowings as of September 30, 2018. Capitalized Lease Obligations The Company’s capitalized lease obligations primarily include a lease agreement that was entered into during 2006 with respect to the Company’s corporate headquarters located in Rock Hill, SC. The change in capitalized lease obligations, as presented in the Condensed Consolidated Balance Sheets, was due to the normal scheduled timing of payments. |
Pension Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Pension Benefits The components of the Company’s pension cost recognized in the condensed consolidated statements of operations and comprehensive loss for the quarter and nine months ended September 30, 2018 and 2017 were as follows:
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Net Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss Per Share The Company computes basic loss per share using net loss attributable to 3D Systems Corporation and the weighted average number of common shares outstanding during the applicable period. Diluted loss per share incorporates the additional shares issuable upon assumed exercise of stock options and the release of restricted stock and restricted stock units, except in such case when their inclusion would be anti-dilutive.
For the quarters and nine months ended September 30, 2018 and 2017, the effect of dilutive securities, including non-vested stock options and restricted stock awards/units, was excluded from the denominator for the calculation of diluted net loss per share because the Company recognized a net loss for the period and their inclusion would be anti-dilutive. Dilutive securities excluded were 5,770 and 5,455 for the quarter and nine months ended September 30, 2018, respectively, compared to 2,909 and 2,712 for the quarter and nine months ended September 30, 2017, respectively. |
Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements ASC 820, “Fair Value Measurements and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, the above standard applies to cash equivalents and earnout consideration. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Assets and liabilities measured at fair value on a recurring basis are summarized below:
The Company did not have any transfers of assets and liabilities between Level 1, Level 2 and Level 3 of the fair value measurement hierarchy during the quarter and nine months ended September 30, 2018. In addition to the assets and liabilities included in the above table, certain of our assets and liabilities are to be initially measured at fair value on a non-recurring basis. This includes goodwill and other intangible assets measured at fair value for impairment assessment, in addition to redeemable noncontrolling interests. For additional discussion, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Significant Estimates” in the Company’s Form 10-K. |
Income Taxes |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the quarter and nine months ended September 30, 2018, the Company recorded expense of $1,593 and $6,086, respectively, resulting in effective tax rates of 16.0% and 17.4%, respectively. For the quarter and nine months ended September 30, 2017, the Company recorded expense of $3,723 and $6,831, respectively, resulting in effective tax rates of 11.1% and 14.1%, respectively. The difference between the statutory rate and the effective tax rate is driven from the impact of the change in valuation allowances that the Company has recorded in the US and other foreign jurisdictions for both quarters and nine months ended September 30, 2018 and 2017. Additionally, for 2018, the Company settled a tax audit with the French tax authorities, which resulted in additional tax expense and also contributed to the difference between the statutory rate and the effective tax rate for the nine months ended September 30, 2018. In December 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings, as of December 31, 2017. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. As of December 31, 2017, the Company recorded provisional amounts, and additional work is still necessary for a more detailed analysis of the Company’s deferred tax assets and liabilities and its historical foreign earnings as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded in the fourth quarter of 2018 when the analysis is complete. As the Company’s previously unremitted earnings have now been subjected to U.S. federal income tax, any repatriation of these earnings to the U.S. would not be expected to incur significant additional taxes related to such amounts. The Company continues to assert that its foreign earnings are indefinitely reinvested in our overseas operations, but in light of the Act, the Company is continuing to evaluate its position on that assertion. Tax years 2003 through 2017 remain subject to examination by the U.S. Internal Revenue Service, with most of the years open to examination due to the generation and utilization of various tax credits. The Company files income tax returns (which are open to examination beginning in the year shown in parentheses) in Australia (2013), Belgium (2014), Brazil (2012), China (2015), France (2014), Germany (2014), India (2013), Israel (2013), Italy (2012), Japan (2012), Korea (2012), Mexico (2012), Netherlands (2012), Switzerland (2012), the United Kingdom (2016) and Uruguay (2012). |
Segment Information |
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Segment Information | Segment Information The Company operates as one segment and conducts its business through various offices and facilities located throughout the Americas region (United States, Canada, Brazil, Mexico and Uruguay), EMEA region (Belgium, France, Germany, Israel, Italy, the Netherlands, Switzerland and the United Kingdom), and Asia Pacific region (Australia, China, India, Japan and Korea). The Company has historically disclosed summarized financial information for the geographic areas of operations as if they were segments in accordance with ASC 280, “Segment Reporting.” Financial information concerning the Company’s geographical locations is based on the location of the selling entity. Such summarized financial information concerning the Company’s geographical operations is shown in the following tables:
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Commitments And Contingencies |
9 Months Ended |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases certain of its facilities and equipment under non-cancelable operating leases. For the quarter and nine months ended September 30, 2018, rent expense under operating leases was $3,788 and $12,288, respectively, compared to $4,009 and $11,461 for the quarter and nine months ended September 30, 2017, respectively. Certain of the Company’s acquisition agreements contain earnout provisions under which the sellers of the acquired businesses can earn additional amounts. The total liability recorded for these earnouts at September 30, 2018 and December 31, 2017 was $1,073 and $5,115, respectively. See Note 5. Put Options Owners of interests in a certain subsidiary have the right in certain circumstances to require the Company to acquire either a portion of or all of the remaining ownership interests held by them. The owners’ ability to exercise any such “put option” right is subject to the satisfaction of certain conditions, including conditions requiring notice in advance of exercise. In addition, these rights cannot be exercised prior to a specified exercise date. The exercise of these rights at their earliest contractual date would result in obligations of the Company to fund the related amounts in 2019. Management estimates, assuming that the subsidiary owned by the Company at September 30, 2018, performs over the relevant future periods at its forecasted earnings levels, that these rights, if exercised, could require the Company, in future periods, to pay approximately $8,872 to the owners of such rights to acquire such ownership interests in the relevant subsidiary. This amount has been recorded as redeemable noncontrolling interests on the Consolidated Balance Sheet at September 30, 2018 and December 31, 2017. The ultimate amount payable relating to this transaction will vary because it is dependent on the future results of operations of the subject business. Litigation Securities and Derivative Litigation The Company and certain of its former executive officers have been named as defendants in a consolidated putative stockholder class action lawsuit pending in the United States District Court for the District of South Carolina. The consolidated action is styled KBC Asset Management NV v. 3D Systems Corporation, et al., Case No. 0:15-cv-02393-MGL. The Amended Consolidated Complaint (the “Complaint”), which was filed on December 9, 2015, alleges that defendants violated the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder by making false and misleading statements and omissions and that the former officers are control persons under Section 20(a) of the Exchange Act. The Complaint was filed on behalf of stockholders who purchased shares of the Company’s common stock between October 29, 2013, and May 5, 2015 and seeks monetary damages on behalf of the purported class. On February 14, 2018, following mediation, the parties entered into a Stipulation of Settlement that provided for, among other things, payment of $50,000 by the Company’s insurance carriers and a mutual exchange of releases. The Stipulation of Settlement called for a dismissal of all claims against the Company and the individual defendants with prejudice following Court approval, a denial by defendants of any wrongdoing, and no admission of liability. On February 15, 2018, Lead Plaintiff filed an Unopposed Motion for Preliminary Approval of Class Action Settlement. On February 21, 2018, the Court entered an Order Preliminarily Approving Settlement and Providing for Notice. The Court held a final fairness hearing on June 25, 2018, and entered the Order and Final Judgment and Order Awarding Attorneys’ Fees on the same day. The Company's insurance carriers have funded the entire settlement amount. The time for any party to appeal expired on July 25, 2018 and no appeals were filed. The matter is now concluded. At December 31, 2017 the Company's balance sheet reflected the entire settlement as a current liability with an offsetting receivable for related insurance proceeds. Nine related derivative complaints have been filed by purported Company stockholders against certain of the Company’s former executive officers and members of its Board of Directors. The Company is named as a nominal defendant in all nine actions. The derivative complaints are styled as follows: (1) Steyn v. Reichental, et al., Case No. 2015-CP-46-2225, filed on July 27, 2015 in the Court of Common Pleas for the 16th Judicial Circuit, County of York, South Carolina (“Steyn”); (2) Piguing v. Reichental, et al., Case No. 2015-CP-46-2396, filed on August 7, 2015 in the Court of Common Pleas for the 16th Judicial Circuit, County of York, South Carolina (“Piguing”); (3) Booth v. Reichental, et al., Case No. 15-692-RGA, filed on August 6, 2015 in the United States District Court for the District of Delaware; (4) Nally v. Reichental, et al., Case No. 15-cv-03756-MGL, filed on September 18, 2015 in the United States District Court for the District of South Carolina (“Nally”); (5) Gee v. Hull, et al., Case No. BC-610319, filed on February 17, 2016 in the Superior Court for the State of California, County of Los Angeles (“Gee”); (6) Foster v. Reichental, et al., Case No. 0:16-cv-01016-MGL, filed on April 1, 2016 in the United States District Court for the District of South Carolina (“Foster”); (7) Lu v. Hull, et al., Case No. BC629730, filed on August 5, 2016 in the Superior Court for the State of California, County of Los Angeles (“Lu”); (8) Howes v. Reichental, et al., Case No. 0:16-cv-2810-MGL, filed on August 11, 2016 in the United States District Court for the District of South Carolina (“Howes”); and (9) Ameduri v. Reichental, et al., Case No. 0:16-cv-02995-MGL, filed on September 1, 2016 in the United States District Court for the District of South Carolina (“Ameduri”). Steyn and Piguing were consolidated into one action styled as In re 3D Systems Corp. Shareholder Derivative Litig., Lead Case No. 2015-CP-46-2225 in the Court of Common Pleas for the 16th Judicial Circuit, County of York, South Carolina. Gee and Lu were consolidated into one action styled as Gee v. Hull, et al., Case No. BC610319 in the Superior Court for the State of California, County of Los Angeles. Nally, Foster, Howes, and Ameduri were consolidated into one action in the United States District Court for the District of South Carolina with Nally as the lead consolidated case. The derivative complaints allege claims for breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment and seek, among other things, monetary damages and certain corporate governance actions. All of the derivative complaints listed above have been stayed. The Company believes the claims alleged in the derivative lawsuits are without merit and intends to defend the Company and its officers and directors vigorously. Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, et. al. On August 23, 2013, Ronald Barranco, a former Company employee, filed two lawsuits against the Company and certain officers in the United States District Court for the District of Hawaii. The first lawsuit (“Barranco I”) is captioned Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, 3D Systems, Inc., and Damon Gregoire, Case No. CV 13-411 LEK RLP, and alleges seven causes of action relating to the Company’s acquisition of Print3D Corporation (of which Mr. Barranco was a 50% shareholder) and the subsequent employment of Mr. Barranco by the Company. The second lawsuit (“Barranco II”) is captioned Ronald Barranco v. 3D Systems Corporation, 3D Systems, Inc., Abraham Reichental, and Damon Gregoire, Case No. CV 13-412 LEK RLP, and alleges the same seven causes of action relating to the Company’s acquisition of certain website domains from Barranco and the subsequent employment of Barranco by the Company. Both Barranco I and Barranco II allege the Company breached certain purchase agreements in order to avoid paying Barranco additional monies pursuant to royalty and earn out provisions in the agreements. The Company and its officers timely filed responsive pleadings on October 22, 2013 seeking, inter alia, to dismiss Barranco I due to a mandatory arbitration agreement and for lack of personal jurisdiction and to dismiss Barranco II for lack of personal jurisdiction. With regard to Barranco I, the Hawaii district court, on February 28, 2014, denied the Company’s motion to dismiss and its motion to transfer venue to South Carolina for the convenience of the parties. However, the Hawaii court recognized that the plaintiff’s claims are all subject to mandatory and binding arbitration in Charlotte, North Carolina. Because the Hawaii court was without authority to compel arbitration outside of Hawaii, the court ordered that the case be transferred to the district court encompassing Charlotte (the United States District Court for the Western District of North Carolina) so that court could compel arbitration in Charlotte. On April 17, 2014, Barranco I was transferred to the United States District Court for the Western District of North Carolina. Barranco filed a demand for arbitration on October 29, 2014. On December 9, 2014, the Company filed its answer to Barranco’s demand for arbitration. On February 2, 2015, Barranco filed an amended demand that removed Mr. Gregoire as a defendant from the matter, and on February 4, 2015 the Company filed its amended answer. The parties selected an arbitrator and arbitration took place in September 2015 in Charlotte, North Carolina. On September 28, 2015, the arbitrator issued a final award in favor of Barranco with respect to two alleged breaches of contract and implied covenants arising out of the contract. The arbitrator found that the Company did not commit fraud or make any negligent misrepresentations to Barranco. Pursuant to the award, the Company was directed to pay approximately $11,282, which includes alleged actual damages of $7,254, fees and expenses of $2,318 and prejudgment interest of $1,710. The Company disagrees with the single arbitrator’s findings and conclusions and believes the arbitrator’s decision exceeds his authority and disregards the applicable law. As an initial response, the Company filed a motion for modification on September 30, 2015, based on mathematical errors in the computation of damages and fees. On October 16, 2015, the arbitrator issued an order denying the Company’s motion and sua sponte issuing a modified final award in favor of Barranco in the same above-referenced amounts, but making certain substantive changes to the award, which changes the Company believes were improper and outside the scope of his authority and the American Arbitration Association rules. On November 20, 2015, the Company filed a motion to vacate the arbitration award in the federal court in the United States District Court for the Western District of North Carolina. Claimants also filed a motion to confirm the arbitration award. A hearing was held on the motions on September 29, 2016 in federal court in the Western District of North Carolina. The court requested supplemental briefing by the parties, which briefs were filed on July 11, 2016. On August 31, 2016, the court issued an order granting in part and denying in part Barranco’s motion to confirm the arbitration award and for judgment, entering judgment in the principal amount of the arbitration award and denying Barranco’s motion for fees and costs. The court denied the Company’s motion to vacate. On September 7, 2016, Barranco filed a motion to amend the judgment to include prejudgment interest. The Company opposed that motion and the parties submitted briefing. On September 28, 2016 the Company filed a motion to alter or amend the judgment. Barranco opposed the motion and the parties submitted briefing. On May 18, 2017, the court issued an opinion and order denying the Company’s motion to alter or amend and denying Barranco’s motion for prejudgment interest. On September 16, 2017, the Company filed a notice of appeal with the United States Court of Appeals for the Fourth Circuit. The Company filed its Opening Brief and the Joint Appendix on August 28, 2017. Barranco filed its Opening Brief on September 11, 2017. The Company filed its Reply Brief on September 25, 2017. On May 31, 2018, the Fourth Circuit affirmed the decision by unpublished per curiam opinion. On June 14, 2018, the Company timely filed Appellants’ Petition for Rehearing and Rehearing En Banc. On June 15, 2018 the Fourth Circuit issued a Stay of Mandate Under Fed. R. App. P. 41(d)(1). The Petition for Rehearing and Rehearing En Banc was subsequently denied and on August 1, 2018, the Fourth Circuit issued its mandate, thereby returning jurisdiction to the District Court and ending the stay. On August 2, 2018, the Company filed its Motion for Setoff of Judgment and Memorandum in Support of Motion for Setoff of Judgment. Barranco filed a response agreeing that setoff was appropriate, but contested the amount. On August 3, 2018, the Company paid $9,127 of the Judgment, net setoff. On August 7, 2018, Barranco filed a Notice of Motion and Motion to Enforce Surety Liability Against Berkley Insurance Co. ("Berkley") in the United States District Court for the Northern District of California, Barranco v. Berkley Insurance Co., Misc. Case No. 4:18-mc-80131-PJH, seeking entry of an order directing Berkley to pay Barranco $1,720, which was the portion of the Requested Setoff that Barranco disputed. On September 5, 2018, Berkley filed a Motion to Dismiss for Improper Venue in the California Action, seeking dismissal and/or transfer of the Surety Motion to the North Carolina Action. On September 28, 2018, the parties filed a Consent Stipulation Resolving Motion for Setoff of Judgment, stipulating that subject only to vacatur or amendment reducing the Amended 3D Systems Judgment in Barranco’s appeal to the 9th Circuit of the Hawaii action discussed below, the Amended 3D Systems Judgment in the amount of $2,182 was setoff against the Barranco Judgment (“Stipulated Setoff”). The Stipulated Setoff was deemed to resolve the North Carolina Setoff Motion and the California Surety Motion. On September 28, Barranco withdrew the California Surety Motion, which was rendered moot by the agreed setoff made under the provisions of this Stipulation. On October 1, 2018, Berkley withdrew its Motion to Dismiss for Improper Venue pending in the California Action. The Company paid Barranco the $101 balance remaining due on the North Carolina Judgment after the Stipulated Setoff. With regard to Barranco II, the Hawaii district court, on March 17, 2014, denied the Company’s motion to dismiss and its motion to transfer venue to South Carolina. However, the Hawaii court dismissed Count II in Barranco’s complaint alleging breach of the employment agreement. The Company filed an answer to the complaint in the Hawaii district court on March 31, 2014. On November 19, 2014, the Company filed a motion for summary judgment on all claims which was heard on January 20, 2015. On January 30, 2015, the court entered an order granting in part and denying in part the Company’s motion for summary judgment. The Order narrowed Barranco's claim for breach of contract and dismissed the claims for fraud and negligent misrepresentation. As a result, Messrs. Reichental and Gregoire were dismissed from the lawsuit. The case was tried to a jury in May 2016, and on May 27, 2016 the jury found that the Company was not liable for either breach of contract or breach of the implied covenant of good faith and fair dealing. Additionally, the jury found in favor of the Company on its counterclaim against Barranco and determined that Barranco violated his non-competition covenant with the Company. On July 5, 2017, the Court ordered a bench trial regarding causation and damages with respect to the equitable accounting on the Company’s prevailing counterclaim against Barranco. The bench trial took place on November 20, 2017. The Court ordered the submission of proposed findings of fact and conclusions of law. The Company submitted its proposed Findings of Fact and Conclusions of Law on January 12, 2018. Barranco submitted his proposed findings on February 2, 2018. The Company submitted its Reply on February 16, 2018. On March 30, 2018, the Court entered Findings of Fact and Conclusions of Law and Order requiring Barranco to disgorge, and the Company recover, $523, representing all but four months of the full amount paid to Barranco as salary during his employment with the Company as well as a portion of the up front and buyout payments made to Barranco in connection with the purchase of certain web domains. In addition, the Court ordered Barranco to pay pre-judgment interest to the Company to be calculated beginning as of his first breach of the non-competition covenant in August 2011. Judgment entered thereafter on April 2, 2018. As the prevailing party, the Company moved for recovery of its fees and costs. On June 15, 2018, the federal magistrate judge entered Findings and Recommendation to Grant in Part and Deny in Part Defendants 3D Systems Corporation and 3D System Inc.’s Motion for an Award of Attorneys’ Fees, whereby it recommended that 3D Systems be awarded $1,299 in attorneys’ fees, $349 for the amount of the prejudgment interest, and $72 in non-taxable costs. On April 19, 2018, Barranco filed a post-trial motion seeking to amend the findings and judgment. The Company opposed that motion. On April 30, 2018, Barranco filed a combined Rule 50 Motion for Judgment as a Matter of Law on the Company’s counterclaim and Rule 59 Motion for a New Trial. The Company also opposed that Motion. On June 29, 2018, Barranco filed partial objections to the Fee Award Report and Recommendation. On July 9, 2018, the Company filed its Response opposing those partial objections. All post-trial motions are currently pending before the Court. On May 10, 2018, the Company put Barranco on notice that it intended to exercise its right of setoff in regard to any liability it may be determined to have to Barranco. More specifically, the Company notified Barranco that it intended to set off the amounts determined due to it in the Hawaii litigation against any liability 3D Systems was determined to have in the North Carolina arbitration on appeal. As discussed above, the Company filed a Motion and Memo for Setoff on August 2, 2018 with the North Carolina court and exercised its right of setoff on August 3, 2018. On September 5, 2018, Barranco filed a Notice of Appeal of the Hawaii Action to the United States Court of Appeals for the Ninth Circuit. On September 13, 2018, the Hawaii District Court entered its Amended Judgment in a Civil Case, awarding 3D Systems a final amended judgment of $2,182. On September 19, 2018, Barranco filed an Amended Notice of Appeal. The Setoff Motion was resolved by consent stipulation on September 28 as discussed above. Appellants’ opening brief is due December 14. Appellee’s Answering Brief is due January 14. The Company intends to defend the appeal vigorously. Export Controls and Government Contracts Compliance Matter In October 2017 the Company received an administrative subpoena from the Bureau of Industry and Security of the Department of Commerce (“BIS”) requesting the production of records in connection with possible violations of U.S. export control laws, including with regard to its Quickparts.com, Inc. subsidiary. In addition, while collecting information responsive to the above referenced subpoena, the Company identified potential violations of the International Traffic in Arms Regulations (“ITAR”) administered by the Directorate of Defense Trade Controls of the Department of State (“DDTC”) and potential violations of the Export Administration Regulations administered by BIS. On June 8, 2018, the Company submitted voluntary disclosures to BIS and DDTC identifying numerous potentially unauthorized exports of technical data, which supplemented an initial notice of voluntary disclosure that the Company submitted to DDTC in February 2018. The Company is conducting an internal review of its export control, trade sanctions, and government contracting compliance risks and potential violations; implementing associated compliance enhancements; and cooperating with DDTC and BIS, as well as the U.S. Departments of Justice, Defense and Homeland Security. Although the Company cannot predict the ultimate resolution of these matters, the Company expects to incur significant legal costs and other expenses in connection with responding to the U.S. government agencies. Throughout 2018, the Company has implemented and will continue to implement new compliance procedures to identify and prevent potential violations of export control laws, trade sanctions, and government contracting laws. As a result of these compliance enhancements, the Company has identified additional potential violations of the ITAR, and has submitted related voluntary disclosures to DDTC. As the Company continues to implement additional compliance enhancements, it may discover potential violations of export control laws, trade sanctions, and/or government contracting laws in the future, which may require disclosure to relevant agencies. If the Company identifies any additional potential violations, the Company will submit voluntary disclosures to the relevant agencies and cooperate with such agencies on any related investigations. If the U.S. government finds that the Company has violated one or more export control laws, trade sanctions, or government contracting laws, the Company could be subject to various civil or criminal penalties. By statute, these penalties can include but are not limited to fines, which by statute may be significant, denial of export privileges, and suspension or debarment from participation in U.S. government contracts. The Company may also be subject to contract claims based upon such violations. Any assessment of penalties or other liabilities incurred in connection with these matters could harm the Company’s reputation and customer relationships, create negative investor sentiment, and affect the Company’s share value. In connection with any resolution, the Company may also be required to undertake additional remedial compliance measures and program monitoring. The Company cannot at this time predict when the U.S. government agencies will conclude their investigations or determine an estimated cost, if any, or range of costs, for any penalties, fines or other liabilities to third parties that may be incurred in connection with these matters. Indemnification In the normal course of business, the Company periodically enters into agreements to indemnify customers or suppliers against claims of intellectual property infringement made by third parties arising from the use of the Company’s products. Historically, costs related to these indemnification provisions have not been significant, and the Company is unable to estimate the maximum potential impact of these indemnification provisions on its future results of operations. To the extent permitted under Delaware law, the Company indemnifies its directors and officers for certain events or occurrences while the director or officer is, or was, serving at the Company’s request in such capacity, subject to limited exceptions. The maximum potential amount of future payments the Company could be required to make under these indemnification obligations is unlimited; however, the Company has directors and officers insurance coverage that may enable the Company to recover future amounts paid, subject to a deductible and the policy limits. There is no assurance that the policy limits will be sufficient to cover all damages, if any. |
Accumulated Other Comprehensive Loss |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in the balances of accumulated other comprehensive loss by component are as follows:
Amounts reclassified out of accumulated other comprehensive loss are as follows:
The amounts presented in the tables above are in other comprehensive loss and are net of taxes. For additional information about foreign currency translation, see Note 6. |
Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests As of September 30, 2018, the Company owned approximately 70% of the capital and voting rights of Robtec, a service bureau and distributor of 3D printing and scanning products in Brazil. Robtec was acquired on November 25, 2014. As of September 30, 2018, the Company owned approximately 70% of the capital and voting rights of Easyway, a service bureau and distributor of 3D printing and scanning products in China. Approximately 65% of the capital and voting rights of Easyway were acquired on April 2, 2015, and an additional 5% of the capital and voting rights of Easyway were acquired on July 19, 2017 for $2.3 million. |
Basis of Presentation (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”), in an effort to reduce diversity and clarify what constitutes a modification, as it relates to the change in terms or conditions of a share-based payment award. According to ASU 2017-09, the Company should account for the effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments in ASU 2017-09 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted ASU 2017-09 beginning January 1, 2018 and the implementation of this guidance did not have a material effect on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which standardizes the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. ASU 2017-07 is effective for fiscal years beginning after December 15, 2017, including interim periods within those annual periods. The amendments in ASU 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company adopted ASU 2017-07 in the first quarter of 2018 and the implementation of this guidance did not have a material effect on its consolidated financial statements. On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") Topic 606, “Revenue from Contracts with Customers.” The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. The standard also requires new, expanded disclosures regarding revenue recognition. The Company adopted the standard using the modified retrospective transition method and applied its guidance to contracts not completed at the adoption date. The cumulative effect of initial adoption was recorded as a $576 decrease to the January 1, 2018 opening Accumulated Deficit balance and driven primarily by the timing of recognition related to marketing incentives. The effect of this adoption was immaterial to the Consolidated Financial Statements, and the Company does not expect a material effect to its Consolidated Financial Statements on an ongoing basis. Information for comparative periods has not been restated and continues to be reported under the previously applicable revenue accounting guidance ("ASC 605"). Had ASC 605 been applied to the first nine months of 2018, the Consolidated Statements of Operations and Comprehensive Loss would have shown increased Revenue and a decrease in Net Loss Attributable to 3D Systems Corporation of $327. On the Consolidated Balance Sheets, Other Assets would have been $466 lower, Deferred Revenues would have been $217 lower and the Accumulated Deficit would have increased by $249. Accounting Standards Issued But Not Yet Adopted In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" (ASU 2018-02), which provides companies with an option to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating when it will adopt ASU 2018-02 and its impact on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”), in order to create more transparency around how economic results are presented within both the financial statements and in the footnotes and to better align the results of cash flow and fair value hedge accounting with risk management activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating when it will adopt ASU 2017-12 and its impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which eliminates the performance of Step 2 from the goodwill impairment test. In performing its annual or interim impairment testing, an entity will instead compare the fair value of the reporting unit with its carrying amount and recognize any impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating when it will adopt ASU 2017-04 and its impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize assets and liabilities on the balance sheet for all leases with terms longer than twelve months. The ASU also requires disclosure of key information about leasing arrangements. ASU 2016-02 is effective on January 1, 2019, using a modified retrospective method of adoption. In August 2018, the FASB issued ASU 2018-11, “Targeted Improvements to ASC 842”, which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC Topic 842, “Leases," as the date of initial application of transition. Based on the effective date, this guidance will apply and the Company will adopt this ASU beginning on January 1, 2019 and plans to elect the transition option provided under ASU 2018-11 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to apply the package of practical expedients that allows it to avoid the reassessment of: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company also expects to use the practical expedient that allows it to treat the lease and non-lease components of its leases as a single component for its real estate leases. The Company is reviewing its population of leased assets to determine potential impacts on its consolidated financial statements. The Company is also in the process of evaluating adjustments to business processes, systems and controls to support lease accounting and disclosures under ASC Topic 842. Though its evaluation is ongoing, the Company expects a significant change to the balance sheet due to the recognition of right-of-use assets and lease liabilities primarily related to its real estate leases, but it does not anticipate material impacts to its results of operations or liquidity. No other new accounting pronouncements, issued or effective during 2018, have had or are expected to have a significant impact on the Company’s consolidated financial statements. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised products or services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Many of its contracts with customers include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price (“SSP”). Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The amount of consideration received and revenue recognized may vary based on changes in marketing incentive programs offered to our customers. The Company's marketing incentive programs take many forms, including volume discounts, trade-in allowances, rebates and other discounts. A majority of the Company’s revenue is recognized at the point in time when products are shipped or services are delivered to customers. Please see below for further discussion. Hardware and Materials Revenue from hardware and material sales is recognized when control has transferred to the customer which typically occurs when the goods have been shipped to the customer, risk of loss has transferred to the customer and the Company has a present right to payment for the hardware. In limited circumstances when a printer or other hardware sales include substantive customer acceptance provisions, revenue is recognized either when customer acceptance has been obtained, customer acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. Software The Company also markets and sells software tools that enable our customers to capture and customize content using our printers, as well as reverse engineering and inspection software. Software does not require significant modification or customization and the license provides the customer with a right to use the software as it exists when made available. Revenue from these software licenses is recognized either upon delivery of the product or of a key code which allows the customer to download the software. Customers may purchase post-sale support. Generally, the first year is included but subsequent years are optional. This optional support is considered a separate obligation from the software and is deferred at the time of sale and subsequently recognized ratably over future periods. Services The Company offers training, installation and non-contract maintenance services for its products. Additionally, the Company offers maintenance contracts customers can purchase at their option. For maintenance contracts, revenue is deferred at the time of sale based on the stand-alone selling prices of these services and costs are expensed as incurred. Deferred revenue is recognized ratably over the term of the maintenance period on a straight-line basis. Revenue from training, installation and non-contract maintenance services is recognized at the time of performance of the service. On demand manufacturing and healthcare service sales are included within services revenue and revenue is recognized upon shipment or delivery of the parts or performance of the service, based on the terms of the arrangement. Terms of sale Shipping and handling activities are treated as fulfillment costs rather than as an additional promised service. The Company accrues the costs of shipping and handling when the related revenue is recognized. Costs incurred by the Company associated with shipping and handling are included in product cost of sales. Credit is extended, and creditworthiness is determined, based on an evaluation of each customer’s financial condition. New customers are generally required to complete a credit application and provide references and bank information to facilitate an analysis of creditworthiness. Customers with a favorable profile may receive credit terms that differ from the Company’s general credit terms. Creditworthiness is considered, among other things, in evaluating the Company’s relationship with customers with past due balances. The Company’s terms of sale generally provide payment terms that are customary in the countries where it transacts business. To reduce credit risk in connection with certain sales, the Company may, depending upon the circumstances, require significant deposits or payment in full prior to shipment. For maintenance services, the Company either bills customers on a time-and-materials basis or sells maintenance contracts that provide for payment in advance on either an annual or other periodic basis. See Note 12 for additional information related to revenue by reportable segment and major lines of business. Significant Judgments The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. For such arrangements, the Company allocates revenues to each performance obligation based on its relative SSP. Judgment is required to determine the SSP for each distinct performance obligation in a contract. For the majority of items, the Company estimates SSP using historical transaction data. The Company uses a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when the product or service is not sold separately, the Company determines the SSP using information that may include market conditions and other observable inputs. In some circumstances, the Company has more than one SSP for individual products and services due to the stratification of those products and services by customers, geographic region or other factors. In these instances, it may use information such as the size of the customer and geographic region in determining the SSP. The determination of SSP is an ongoing process and information is reviewed regularly in order to ensure SSP reflects the most current information or trends. The nature of the Company’s marketing incentives may lead to consideration that is variable. Judgment is exercised at contract inception to determine the most likely outcome of the contract and resulting transaction price. Ongoing assessments are performed to determine if updates are needed to the original estimates. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer deposits and deferred revenues (contract liabilities) on the Consolidated Balance Sheets. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized at the time of invoicing, or unbilled receivables when revenue is recognized prior to invoicing. For most of the Company’s contracts, customers are invoiced when products are shipped or when services are performed resulting in billed accounts receivables for the remainder of the owed contract price. Unbilled receivables generally result from items being shipped where the customer has not been charged, but for which revenue had been recognized. In the Company’s on demand manufacturing business, customers may be required to pay in full before work begins on their orders, resulting in customer deposits. The Company typically bills in advance for installation, training and maintenance contracts as well as extended warranties, resulting in deferred revenue. Changes in contract asset and liability balances were not materially impacted by any other factors for the period ended September 30, 2018. Through September 30, 2018, the Company recognized revenue of $33,596 related to our contract liabilities at January 1, 2018. Practical Expedients and Exemptions The Company generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling, general and administrative expenses. |
Fair Value Measurements | ASC 820, “Fair Value Measurements and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, the above standard applies to cash equivalents and earnout consideration. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. |
Inventories (Tables) |
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Components Of Inventories | Components of inventories at September 30, 2018 and December 31, 2017 are summarized as follows:
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Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Other Than Goodwill | Intangible assets, net, other than goodwill, at September 30, 2018 and December 31, 2017 are summarized as follows:
(a) Change in gross carrying amounts consists primarily of charges for license and patent costs and foreign currency translation. |
Accrued And Other Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Accrued Liabilities | Accrued liabilities at September 30, 2018 and December 31, 2017 are summarized as follows:
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Schedule Of Other Liabilities | Other liabilities at September 30, 2018 and December 31, 2017 are summarized as follows:
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Pension Benefits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Components Of Pension Cost | The components of the Company’s pension cost recognized in the condensed consolidated statements of operations and comprehensive loss for the quarter and nine months ended September 30, 2018 and 2017 were as follows:
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Net Loss Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Net Loss Per Share Reconciliation |
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Revenue From Unaffiliated Customers By Product And Service | Such summarized financial information concerning the Company’s geographical operations is shown in the following tables:
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Schedule Of Intercompany Sales By Geographic Area |
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Schedule Of Income (Loss) From Operations By Geographic Area) |
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Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The changes in the balances of accumulated other comprehensive loss by component are as follows:
Amounts reclassified out of accumulated other comprehensive loss are as follows:
|
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit | $ (718,565) | $ (718,565) | $ (677,772) | ||
Total revenue | 164,511 | $ 152,907 | 506,948 | $ 468,805 | |
Prepaid expenses and other current assets | 27,028 | 27,028 | 18,296 | ||
Decrease in net loss attributable to 3D Systems Corporation | (11,550) | $ (37,670) | (41,369) | $ (56,057) | |
Other assets | (26,143) | (26,143) | (27,136) | ||
Difference Between Revenue Guidance In Effect Before And After Topic 606 | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit | $ 576 | ||||
Decrease in net loss attributable to 3D Systems Corporation | 327 | ||||
Calculated Under Revenue Guidance In Effect Before Topic 606 | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit | (249) | (249) | |||
Total revenue | 327 | ||||
Other assets | 466 | 466 | |||
Deferred revenue | $ 217 | $ 217 |
Revenue - Narrative (Details) $ in Thousands |
9 Months Ended |
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Sep. 30, 2018
USD ($)
| |
Revenue Recognition [Abstract] | |
Outstanding performance obligation | $ 110,210 |
Amounts included in contract liability at the beginning of period | $ 33,596 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 12 months |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a precentage) | 91.00% |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 3 months |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a precentage) | 3.00% |
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials | $ 50,533 | $ 37,660 | |
Work in process | 4,318 | 3,906 | |
Finished goods and parts | 73,313 | 62,337 | |
Inventories | $ 128,164 | $ 103,903 | |
Inventory adjustments | $ 12,900 |
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 7,811 | $ 8,845 | $ 23,714 | $ 26,661 |
Intangible Assets (Intangible Assets Other Than Goodwill) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 251,363 | $ 260,047 |
Intangible assets with finite lives: Accumulated Amortization | (176,904) | (161,264) |
Intangible assets with finite lives: Net | $ 74,459 | 98,783 |
Weighted average useful life remaining (in years) | 6 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 103,833 | 105,505 |
Intangible assets with finite lives: Accumulated Amortization | (64,853) | (57,796) |
Intangible assets with finite lives: Net | $ 38,980 | 47,709 |
Weighted average useful life remaining (in years) | 6 years | |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 49,032 | 54,716 |
Intangible assets with finite lives: Accumulated Amortization | (42,677) | (39,644) |
Intangible assets with finite lives: Net | $ 6,355 | 15,072 |
Weighted average useful life remaining (in years) | 2 years | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 25,200 | 25,813 |
Intangible assets with finite lives: Accumulated Amortization | (17,111) | (15,552) |
Intangible assets with finite lives: Net | $ 8,089 | 10,261 |
Weighted average useful life remaining (in years) | 6 years | |
Patent costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 18,061 | 17,909 |
Intangible assets with finite lives: Accumulated Amortization | (8,086) | (7,338) |
Intangible assets with finite lives: Net | $ 9,975 | 10,571 |
Weighted average useful life remaining (in years) | 15 years | |
Trade secrets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 19,393 | 19,431 |
Intangible assets with finite lives: Accumulated Amortization | (13,066) | (11,530) |
Intangible assets with finite lives: Net | $ 6,327 | 7,901 |
Weighted average useful life remaining (in years) | 4 years | |
Acquired patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 16,220 | 16,661 |
Intangible assets with finite lives: Accumulated Amortization | (12,761) | (11,969) |
Intangible assets with finite lives: Net | $ 3,459 | 4,692 |
Weighted average useful life remaining (in years) | 8 years | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 19,624 | 20,012 |
Intangible assets with finite lives: Accumulated Amortization | (18,350) | (17,435) |
Intangible assets with finite lives: Net | $ 1,274 | $ 2,577 |
Weighted average useful life remaining (in years) | 2 years |
Accrued And Other Liabilities (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 22,086 | $ 20,432 |
Accrued taxes | 17,832 | 13,861 |
Vendor accruals | 7,378 | 7,044 |
Product warranty liability | 5,802 | 5,564 |
Arbitration awards | 2,256 | 11,282 |
Accrued professional fees | 2,222 | 742 |
Accrued other | 1,445 | 2,485 |
Royalties payable | 1,469 | 1,679 |
Accrued earnouts related to acquisitions | 1,073 | 2,772 |
Accrued interest | 113 | 38 |
Total | $ 61,676 | $ 65,899 |
Accrued And Other Liabilities (Schedule Of Other Liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Long term employee indemnity | $ 13,748 | $ 13,887 |
Long term tax liability | 9,030 | 9,340 |
Defined benefit pension obligation | 8,006 | 8,290 |
Long term deferred revenue | 7,637 | 7,298 |
Other long term liabilities | 6,201 | 7,596 |
Long term earnouts related to acquisitions | 0 | 2,343 |
Total | $ 44,622 | $ 48,754 |
Hedging Activities And Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Foreign currency contracts | $ 75,483 | $ 39,600 |
Borrowings (Narrative) (Details) - Revolving Credit Facility |
Sep. 30, 2018
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Credit Agreement, maximum borrowing capacity | $ 150,000,000 |
Outstanding borrowings | $ 0 |
Pension Benefits (Schedule Of Components Of Pension Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 49 | $ 75 | $ 151 | $ 212 |
Interest cost | 69 | 72 | 212 | 205 |
Amortization of actuarial loss | 44 | 64 | 134 | 182 |
Total periodic cost | $ 162 | $ 211 | $ 497 | $ 599 |
Net Loss Per Share (Schedule Of Net Loss Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net loss attributable to 3D Systems Corporation | $ (11,550) | $ (37,670) | $ (41,369) | $ (56,057) |
Weighted average shares (in shares) | 112,534 | 111,697 | 112,095 | 111,467 |
Net loss per share — basic and diluted (in dollars per share) | $ (0.10) | $ (0.34) | $ (0.37) | $ (0.50) |
Net Loss Per Share (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Effect of dilutive securities excluded | $ 5,770 | $ 2,909 | $ 5,455 | $ 2,712 |
Fair Value Measurements (Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 8,920 | $ 20,244 |
Earnout consideration | 1,073 | 5,115 |
Deferred purchase payment provision | 2,675 | |
Earnout accretion | 248 | |
Earnout adjustment | 1,615 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 8,920 | 20,244 |
Earnout consideration | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Earnout consideration | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Earnout consideration | $ 1,073 | $ 5,115 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 1,593 | $ 3,723 | $ 6,086 | $ 6,831 |
Effective income tax rate (as a percentage) | 16.00% | 11.10% | 17.40% | 14.10% |
Segment Information (Schedule Of Revenue From Unaffiliated Customers By Geographic Area) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
segment
|
Sep. 30, 2017
USD ($)
|
|
Number of reportable segments | segment | 1 | |||
Revenue from unaffiliated customers | $ 164,511 | $ 152,907 | $ 506,948 | $ 468,805 |
United States | ||||
Revenue from unaffiliated customers | 81,282 | 75,402 | 250,023 | 234,195 |
Other Americas | ||||
Revenue from unaffiliated customers | 873 | 3,534 | 4,918 | 8,300 |
EMEA | ||||
Revenue from unaffiliated customers | 55,020 | 52,457 | 169,300 | 158,864 |
Asia Pacific | ||||
Revenue from unaffiliated customers | $ 27,336 | $ 21,514 | $ 82,707 | $ 67,446 |
Segment Information (Schedule Of Revenue From Unaffiliated Customers By Product And Service) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Total revenue | $ 164,511 | $ 152,907 | $ 506,948 | $ 468,805 |
Products | ||||
Total revenue | 59,648 | 51,331 | 188,016 | 160,153 |
Materials | ||||
Total revenue | 40,274 | 39,399 | 128,137 | 126,096 |
Services | ||||
Total revenue | $ 64,589 | $ 62,177 | $ 190,795 | $ 182,556 |
Segment Information (Schedule Of Intercompany Sales By Geographic Area) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Total revenue | $ 164,511 | $ 152,907 | $ 506,948 | $ 468,805 |
Intercompany Sales | ||||
Total revenue | 49,748 | 40,429 | 145,928 | 121,362 |
Americas | Intercompany Sales | ||||
Total revenue | 19,892 | 17,224 | 56,771 | 53,705 |
EMEA | Intercompany Sales | ||||
Total revenue | 22,494 | 16,058 | 64,471 | 47,593 |
Asia Pacific | Intercompany Sales | ||||
Total revenue | 7,362 | 7,147 | 24,686 | 20,064 |
Americas | Intercompany Sales | ||||
Total revenue | 20,927 | 17,708 | 64,588 | 50,109 |
Americas | Americas | Operating Segments | ||||
Total revenue | 499 | 554 | 1,521 | 1,452 |
Americas | EMEA | Operating Segments | ||||
Total revenue | 15,540 | 11,764 | 45,764 | 34,414 |
Americas | Asia Pacific | Operating Segments | ||||
Total revenue | 4,888 | 5,390 | 17,303 | 14,243 |
EMEA | ||||
Total revenue | 55,020 | 52,457 | 169,300 | 158,864 |
EMEA | Intercompany Sales | ||||
Total revenue | 26,749 | 21,328 | 74,849 | 66,675 |
EMEA | Americas | Operating Segments | ||||
Total revenue | 18,259 | 16,057 | 51,471 | 50,761 |
EMEA | EMEA | Operating Segments | ||||
Total revenue | 6,939 | 4,286 | 18,691 | 13,014 |
EMEA | Asia Pacific | Operating Segments | ||||
Total revenue | 1,551 | 985 | 4,687 | 2,900 |
Asia Pacific | ||||
Total revenue | 27,336 | 21,514 | 82,707 | 67,446 |
Asia Pacific | Intercompany Sales | ||||
Total revenue | 2,072 | 1,393 | 6,491 | 4,578 |
Asia Pacific | Americas | Operating Segments | ||||
Total revenue | 1,134 | 613 | 3,779 | 1,492 |
Asia Pacific | EMEA | Operating Segments | ||||
Total revenue | 15 | 8 | 16 | 165 |
Asia Pacific | Asia Pacific | Operating Segments | ||||
Total revenue | 923 | 772 | 2,696 | 2,921 |
United States | ||||
Total revenue | $ 81,282 | $ 75,402 | $ 250,023 | $ 234,195 |
Segment Information (Schedule Of Income (Loss) From Operations By Geographic Area) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Loss from operations | $ (10,984) | $ (32,335) | $ (36,172) | $ (48,270) |
Reportable Geographical Components | ||||
Loss from operations | (10,984) | (32,335) | (36,172) | (48,270) |
Americas | Operating Segments | ||||
Loss from operations | (16,599) | (32,749) | (50,122) | (65,897) |
EMEA | Operating Segments | ||||
Loss from operations | 386 | (3,272) | (2,948) | 4,474 |
Asia Pacific | Operating Segments | ||||
Loss from operations | $ 5,229 | $ 3,686 | $ 16,898 | $ 13,153 |
Commitments And Contingencies (Narrative) (Details) |
3 Months Ended | 9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2018
USD ($)
|
Sep. 05, 2018
USD ($)
|
Aug. 07, 2018
USD ($)
|
Aug. 03, 2018
USD ($)
|
Jun. 15, 2018
USD ($)
|
Mar. 30, 2018
USD ($)
|
Sep. 28, 2015
USD ($)
|
Aug. 23, 2013
lawsuit
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
lawsuit
|
Sep. 30, 2017
USD ($)
|
Feb. 15, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Loss Contingencies [Line Items] | ||||||||||||||
Rent expense under operating leases | $ 3,788,000 | $ 4,009,000 | $ 12,288,000 | $ 11,461,000 | ||||||||||
Total liabilities recorded for earnouts | 1,073,000 | 1,073,000 | $ 5,115,000 | |||||||||||
Redeemable noncontrolling interests | 8,872,000 | 8,872,000 | 8,872,000 | |||||||||||
Estimate of possible loss | $ 50,000,000 | |||||||||||||
Accrued litigation settlement | 0 | 0 | 50,000,000 | |||||||||||
Insurance proceeds receivable | $ 0 | $ 0 | $ 50,000,000 | |||||||||||
Number of stockholder class action lawsuits | lawsuit | 9 | |||||||||||||
Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, et. al. | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of stockholder class action lawsuits | lawsuit | 2 | |||||||||||||
Provision for arbitration award | $ 11,282,000 | |||||||||||||
Amount awarded | $ 2,182,000 | 7,254,000 | ||||||||||||
Fees and expenses | 2,318,000 | |||||||||||||
Prejudgment interest | $ 349,000 | $ 1,710,000 | ||||||||||||
Settlement paid | $ 9,127,000 | |||||||||||||
Damages sought | $ 1,720,000 | |||||||||||||
Damages awarded to 3D Systems | $ 523,000 | |||||||||||||
Attorney fee | 1,299,000 | |||||||||||||
Non-taxable costs | $ 72,000 | |||||||||||||
Judicial Ruling | Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, et. al. | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Amount awarded | $ 2,181,719.78 | |||||||||||||
Subsequent Event | Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, et. al. | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Settlement paid | $ 101,000 |
Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss By Component) (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 615,948 |
Ending Balance | 578,195 |
Foreign currency translation adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (19,319) |
Other comprehensive income (loss) | (14,491) |
Amounts reclassified from accumulated other comprehensive loss | 1,401 |
Ending Balance | (32,409) |
Defined benefit pension plan | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (2,555) |
Other comprehensive income (loss) | 204 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Ending Balance | (2,351) |
Liquidation of non-US entity and purchase of non-controlling interests | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 338 |
Other comprehensive income (loss) | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Ending Balance | 338 |
Accumulated Other Comprehensive Income (Loss) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (21,536) |
Other comprehensive income (loss) | (14,287) |
Amounts reclassified from accumulated other comprehensive loss | 1,401 |
Ending Balance | $ (34,422) |
Accumulated Other Comprehensive Loss (Schedule of Amounts Reclassified From AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on dissolution | $ (1,027) | $ 1,257 | $ (1,135) | $ 123 |
Reclassification from AOCI | Accumulated Net Gain (Loss) from Cash Flow Hedges | Currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on dissolution | $ 1,401 | $ 0 | $ 1,401 | $ 0 |
Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Millions |
Jul. 19, 2017 |
Sep. 30, 2018 |
Apr. 02, 2015 |
---|---|---|---|
Robtec | |||
Business Acquisition [Line Items] | |||
Acquired ownership percentage | 70.00% | ||
Easyway | |||
Business Acquisition [Line Items] | |||
Acquired ownership percentage | 5.00% | 70.00% | 65.00% |
Value of voting rights acquired | $ 2.3 |
Label | Element | Value |
---|---|---|
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 301,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 487,000 |
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