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125 - Disclosure - Summary of Significant Accounting Policies (Tables)
(http://www.cynosure.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000885306 (http://www.sec.gov/CIK)
Accounting Policies [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Accounting Policies [Abstract]
 
Accounts Receivable Allowance Activity

Accounts receivable allowance activity consisted of the following for the years ended December 31:

 

     2016      2015      2014  
     (In thousands)  

Balance at beginning of year

    $ 3,181      $ 2,949      $ 1,803  

Additions

      1,606        2,599        2,373  

Deductions

      (1,486 )       (2,367 )       (1,227 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 3,301      $ 3,181      $ 2,949  
  

 

 

     

 

 

     

 

 

  
  
Inventories

Cynosure states all inventories at the lower of cost or market, determined on a first-in, first-out method. Inventory includes material, labor and overhead and consists of the following:

 

     December 31,  
     2016      2015  
     (In thousands)  

Raw materials

    $ 19,448      $ 22,569  

Work in process

      3,258        3,317  

Finished goods

      53,266        53,882  
  

 

 

     

 

 

  
   $ 75,972      $ 79,768  
  

 

 

     

 

 

  
  
Activity in the Accrued Warranty Account

The following table sets forth activity in the accrued warranty account, which is a component of accrued expenses in the consolidated balance sheets:

 

     Years Ended December 31,  
     2016      2015      2014  
     (In thousands)  

Balance at beginning of year

    $ 8,841      $ 8,118      $ 6,651  

Warranty provision related to new sales

      18,603        13,754        15,104  

Costs incurred

      (16,004 )       (13,031 )       (13,637 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 11,440      $ 8,841      $ 8,118  
  

 

 

     

 

 

     

 

 

  
  
Changes to Accumulated Other Comprehensive Loss

Changes to accumulated other comprehensive loss during the year ended December 31, 2016 were as follows (in thousands):

 

     Unrealized
Loss on
Marketable
Securities, net
of taxes		      Translation
Adjustment		      Accumulated
Other
Comprehensive
Loss		  

Balance—December 31, 2015

    $ (49 )     $ (5,411 )     $ (5,460 ) 

Current period other comprehensive loss

      (81 )       (1,882 )       (1,963 ) 
  

 

 

     

 

 

     

 

 

  

Balance—December 31, 2016

    $ (130 )     $ (7,293 )     $ (7,423 ) 
  

 

 

     

 

 

     

 

 

  
  
Summary of Stock-Based Compensation Expenses

Total stock-based compensation expense was recorded to cost of revenues and operating expenses based upon the functional responsibilities of the individual holding the respective share-based payments, as follows:

 

     Years Ended December 31,  
     2016      2015      2014  
     (In thousands)  

Cost of revenues

    $ 463      $ 344      $ 292  

Sales and marketing

      2,774        2,059        1,934  

Research and development

      1,356        1,167        1,007  

General and administrative

      5,517        4,076        3,880  
  

 

 

     

 

 

     

 

 

  

Total stock-based compensation expense

    $ 10,110      $ 7,646      $ 7,113  
  

 

 

     

 

 

     

 

 

  
  
Summary of Share-Based compensation Arrangement Fair Value Assumptions

The weighted average fair value of the options granted during the years ended December 31, 2015 and 2014 was $12.42 and $10.50, respectively, using the following assumptions:

 

     Years Ended December 31,
     2015    2014

Risk-free interest rate

    1.39% - 1.75%    1.41% - 1.80%

Expected dividend yield

    —      —  

Expected term

    4.8 years    4.6 years

Expected volatility

    41% - 43%    43% - 44%
  
Schedule of Reconciliation of Basic and Diluted Shares

The reconciliation of basic and diluted weighted average shares outstanding for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands, except per share data):

 

     Years Ended December 31,  
     2016      2015      2014  

Net income

    $ 14,201      $ 15,807      $ 31,338  
  

 

 

     

 

 

     

 

 

  

Basic weighted average common shares outstanding

      23,304        22,286        21,824  

Weighted average common stock equivalents

      402        372        371  
  

 

 

     

 

 

     

 

 

  

Diluted weighted average common shares outstanding

      23,706        22,658        22,195  
  

 

 

     

 

 

     

 

 

  

Basic net income per share

    $ 0.61      $ 0.71      $ 1.44  
  

 

 

     

 

 

     

 

 

  

Diluted net income per share

    $ 0.60      $ 0.70      $ 1.41