Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 28, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 28-Sep-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Trading Symbol | 'COHU |
Entity Registrant Name | 'COHU INC |
Entity Central Index Key | '0000021535 |
Current Fiscal Year End Date | '--12-28 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 24,942,083 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $46,248 | $102,808 | [1] |
Short-term investments | 6,609 | 7,421 | [1] |
Accounts receivable, net | 58,167 | 36,986 | [1] |
Inventories: | ' | ' | |
Raw materials and purchased parts | 30,981 | 37,140 | [1] |
Work in process | 17,864 | 14,958 | [1] |
Finished goods | 11,516 | 10,234 | [1] |
Total inventories | 60,361 | 62,332 | [1] |
Deferred income taxes | 5,908 | 4,746 | [1] |
Other current assets | 6,565 | 6,790 | [1] |
Total current assets | 183,858 | 221,083 | [1] |
Property, plant and equipment, at cost: | ' | ' | |
Land and land improvements | 12,210 | 12,106 | [1] |
Buildings and building improvements | 31,813 | 31,209 | [1] |
Machinery and equipment | 43,311 | 40,108 | [1] |
Property plant and equipment, gross | 87,334 | 83,423 | [1] |
Less accumulated depreciation and amortization | -51,419 | -47,959 | [1] |
Net property, plant and equipment | 35,915 | 35,464 | [1] |
Goodwill | 70,895 | 58,756 | [1] |
Intangible assets, net | 46,682 | 18,977 | [1] |
Other assets | 3,770 | 593 | [1] |
Total consolidated assets | 341,120 | 334,873 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 18,760 | 13,217 | [1] |
Accrued compensation and benefits | 15,993 | 10,271 | [1] |
Accrued warranty | 5,106 | 4,692 | [1] |
Deferred profit | 5,482 | 2,139 | [1] |
Income taxes payable | 1,515 | 1,109 | [1] |
Other accrued liabilities | 8,301 | 4,952 | [1] |
Total current liabilities | 55,157 | 36,380 | [1] |
Other accrued liabilities | 17,495 | 5,847 | [1] |
Deferred income taxes | 12,283 | 11,747 | [1] |
Commitments and contingencies | ' | ' | [1] |
Stockholders' equity: | ' | ' | |
Preferred stock, $1 par value; 1,000 shares authorized, none issued | ' | ' | [1] |
Common stock, $1 par value; 60,000 shares authorized, 24,942 shares issued and outstanding in 2013 and 24,632 shares in 2012 | 24,942 | 24,632 | [1] |
Paid-in capital | 88,099 | 83,547 | [1] |
Retained earnings | 139,500 | 170,937 | [1] |
Accumulated other comprehensive income | 3,644 | 1,783 | [1] |
Total stockholders' equity | 256,185 | 280,899 | [1] |
Total liabilities and stockholders' equity | $341,120 | $334,873 | [1] |
[1] | Derived from December 29, 2012 audited financial statements |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Thousands, except Per Share data, unless otherwise specified | |||
Statement Of Financial Position [Abstract] | ' | ' | |
Preferred stock, par value | $1 | $1 | [1] |
Preferred stock, shares authorized | 1,000 | 1,000 | [1] |
Preferred stock, shares issued | 0 | 0 | [1] |
Common stock, par value | $1 | $1 | [1] |
Common stock, shares authorized | 60,000 | 60,000 | [1] |
Common stock, shares issued | 24,942 | 24,632 | [1] |
Common stock, shares outstanding | 24,942 | 24,632 | [1] |
[1] | Derived from December 29, 2012 audited financial statements |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $59,962 | $57,748 | $182,630 | $170,448 |
Cost and expenses: | ' | ' | ' | ' |
Cost of sales | 45,441 | 39,622 | 131,052 | 119,119 |
Research and development | 11,636 | 9,136 | 36,814 | 26,194 |
Selling, general and administrative | 14,845 | 11,597 | 44,098 | 33,514 |
Total cost and expenses | 71,922 | 60,355 | 211,964 | 178,827 |
Loss from operations | -11,960 | -2,607 | -29,334 | -8,379 |
Interest and other, net | 16 | 739 | 42 | 920 |
Loss before income taxes | -11,944 | -1,868 | -29,292 | -7,459 |
Income tax benefit | -1,124 | -119 | -2,324 | -377 |
Net loss | ($10,820) | ($1,749) | ($26,968) | ($7,082) |
Loss per share: | ' | ' | ' | ' |
Basic | ($0.43) | ($0.07) | ($1.09) | ($0.29) |
Diluted | ($0.43) | ($0.07) | ($1.09) | ($0.29) |
Weighted average shares used in computing loss per share: | ' | ' | ' | ' |
Basic | 24,929 | 24,479 | 24,801 | 24,421 |
Diluted | 24,929 | 24,479 | 24,801 | 24,421 |
Cash dividends declared per share | $0.06 | $0.06 | $0.18 | $0.18 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($10,820) | ($1,749) | ($26,968) | ($7,082) |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 4,635 | 2,132 | 1,763 | -280 |
Adjustments related to postretirement benefits | 18 | 33 | 108 | 109 |
Change in unrealized gain/loss on investments | -3 | 13 | -10 | 12 |
Other comprehensive income (loss), net of tax | 4,650 | 2,178 | 1,861 | -159 |
Comprehensive income (loss) | ($6,170) | $429 | ($25,107) | ($7,241) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | |
Cash flows from operating activities: | ' | ' | |
Net loss | ($26,968) | ($7,082) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' | |
Gain on sale of facility | ' | -677 | |
Depreciation and amortization | 10,077 | 7,088 | |
Share-based compensation expense | 3,962 | 3,254 | |
Deferred income taxes | -1,090 | -262 | |
Other accrued liabilities | 431 | 158 | |
Changes in current assets and liabilities, excluding effects from acquisitions: | ' | ' | |
Accounts receivable | 88 | -1,656 | |
Inventories | 11,702 | 13,468 | |
Other current assets | 1,589 | 1,455 | |
Accounts payable | -605 | -245 | |
Deferred profit | 3,249 | -1,019 | |
Income taxes payable, including excess stock option exercise benefit | 406 | -33 | |
Accrued compensation, warranty and other liabilities | -963 | -3,662 | |
Net cash provided by operating activities | 1,878 | 10,787 | |
Cash flows from investing activities, excluding effects from acquisitions: | ' | ' | |
Payment for purchase of Ismeca, net of cash received | -53,463 | ' | |
Purchases of short-term investments | ' | -40,461 | |
Sales and maturities of short-term investments | 812 | 57,720 | |
Purchases of property, plant and equipment | -2,513 | -2,416 | |
Cash received from facility sale | ' | 1,080 | |
Cash paid for Duma Video, Inc. | ' | -900 | |
Other assets | -151 | -44 | |
Net cash provided by (used in) investing activities | -55,315 | 14,979 | |
Cash flows from financing activities: | ' | ' | |
Cash dividends | -2,972 | -4,388 | |
Issuance of stock, net of repurchases | 900 | 1,048 | |
Net cash used in financing activities | -2,072 | -3,340 | |
Effect of exchange rate changes on cash and cash equivalents | -1,051 | -58 | |
Net increase (decrease) in cash and cash equivalents | -56,560 | 22,368 | |
Cash and cash equivalents at beginning of period | 102,808 | [1] | 53,262 |
Cash and cash equivalents at end of period | 46,248 | 75,630 | |
Supplemental disclosure of cash flow information: | ' | ' | |
Cash (refunded) paid for income taxes | -1,135 | 833 | |
Inventory capitalized as property, plant and equipment | 572 | 567 | |
Dividends declared but not yet paid | $1,496 | $1,468 | |
[1] | Derived from December 29, 2012 audited financial statements |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
1 | Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
Our fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. The condensed consolidated balance sheet at December 29, 2012 has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of September 28, 2013 (also referred to as “the third quarter of fiscal 2013” and “the first nine months of fiscal 2013”) and September 29, 2012 (also referred to as “the third quarter of fiscal 2012” and “the first nine months of fiscal 2012”) are unaudited. However, in management’s opinion, these financial statements reflect all adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. The nine-month periods ended September 28, 2013 and September 29, 2012 were each comprised of 13 and 39 weeks, respectively. | |||||||||||||||||
Our interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended December 29, 2012, which are included in our 2012 Annual Report on Form 10-K, filed with the U. S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”. | |||||||||||||||||
Risks and Uncertainties | |||||||||||||||||
We are subject to a number of risks and uncertainties that may significantly impact our future operating results. These risks and uncertainties are discussed under Item 1A. “Risk Factors” included in this Form 10-Q. Understanding these risks and uncertainties is integral to the review of our interim condensed consolidated financial statements. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one issuer. | |||||||||||||||||
Trade accounts receivable are presented net of allowance for doubtful accounts of $0.8 million and $0.3 million at September 28, 2013 and December 29, 2012, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors and other customers located throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at September 28, 2013, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding collectability. | |||||||||||||||||
Goodwill, Other Intangible Assets and Long-lived Assets | |||||||||||||||||
We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimated the fair values of our reporting units primarily using the income approach valuation methodology that includes the discounted cash flow method, taking into consideration the market approach and certain market multiples as a validation of the values derived using the discounted cash flow methodology. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on customer forecasts, industry trade organization data and general economic conditions. | |||||||||||||||||
We conduct our annual impairment test as of October 1st of each year. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below their carrying value. The financial and credit market volatility directly impacts our fair value measurement through our stock price that we use to determine our market capitalization. During times of volatility, significant judgment must be applied to determine whether credit or stock price changes are a short-term swing or a longer-term trend. As of September 28, 2013 we do not believe there have been any events or circumstances that would require us to perform an interim goodwill impairment review, however, a sustained decline in Cohu’s market capitalization below its book value could lead us to determine, in a future period, that an interim goodwill impairment review is required and may result in an impairment charge which would have a negative impact on our results of operations. | |||||||||||||||||
Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the assets carrying amount and estimated fair value. | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Share-based compensation expense related to stock options is recorded based on the fair value of the award on its grant date which we estimate using the Black-Scholes valuation model. Share-based compensation expense related to restricted stock unit awards is calculated based on the market price of our common stock on the grant date, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit. | |||||||||||||||||
Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of sales | $ | 50 | $ | 49 | $ | 250 | $ | 279 | |||||||||
Research and development | 355 | 291 | 1,236 | 951 | |||||||||||||
Selling, general and administrative | 781 | 619 | 2,476 | 2,024 | |||||||||||||
Total share-based compensation | $ | 1,186 | $ | 959 | $ | 3,962 | $ | 3,254 | |||||||||
Income (Loss) Per Share | |||||||||||||||||
Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. The following table reconciles the denominators used in computing basic and diluted income (loss) per share (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average common shares | 24,929 | 24,479 | 24,801 | 24,421 | |||||||||||||
Effect of dilutive stock options | — | — | — | — | |||||||||||||
24,929 | 24,479 | 24,801 | 24,421 | ||||||||||||||
Revenue Recognition | |||||||||||||||||
Our revenue recognition policy is disclosed in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 29, 2012. As more fully described in that policy, revenue from products that have not previously satisfied customer acceptance requirements is recognized upon customer acceptance. The gross profit on sales that are not recognized is generally recorded as deferred profit and reflected as a current liability in our consolidated balance sheet. | |||||||||||||||||
At September 28, 2013, we had deferred revenue totaling approximately $7.2 million and deferred profit of $5.5 million. At December 29, 2012, we had deferred revenue totaling approximately $3.6 million and deferred profit of $2.1 million. | |||||||||||||||||
Comprehensive Income | |||||||||||||||||
Our accumulated other comprehensive income balance totaled approximately $3.6 million and $1.8 million at September 28, 2013 and December 29, 2012, respectively, and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain accounts into U.S. dollars where the functional currency is the Euro or the Swiss Franc, unrealized gains and losses on investments and adjustments related to postretirement benefits. Reclassification adjustments to accumulated other comprehensive income during the first nine months of fiscal 2013 and 2012 were not significant. | |||||||||||||||||
Retiree Medical Benefits | |||||||||||||||||
We provide post-retirement health benefits to certain executives and directors under a noncontributory plan. The net periodic benefit cost incurred during the first nine months of fiscal 2013 and 2012 was not significant. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
Recently Adopted Accounting Pronouncements – In July 2012, the Financial Accounting Standards Board (“FASB”) issued guidance to simplify the testing for a drop in value of intangible assets such as trademarks, patents, and distribution rights. The amended standard reduces the cost of accounting for indefinite-lived intangible assets, especially in cases where the likelihood of impairment is low. The changes permit businesses and other organizations to first use subjective criteria to determine if an intangible asset has lost value. The amendments will be effective for fiscal years starting after September 15, 2012 with early adoption permitted. The adoption of this new guidance in the first quarter of fiscal 2013 did not have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
In February 2013, the FASB issued authoritative guidance that will require a public entity to present in its annual and interim financial statements information about reclassification adjustments from accumulated other comprehensive income in a single note or on the face of the financial statements. The adoption of this new guidance in the first quarter of fiscal 2013 did not have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
Recently Issued Accounting Pronouncements – In July 2013, the FASB issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This amendment to previous income tax guidance clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We are currently evaluating the impact our adoption of this new guidance in the first quarter of fiscal 2014 will have on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
In March 2013, the FASB issued guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The amendments will be effective for fiscal years and interim periods starting after December 15, 2013 with early adoption permitted. We do not believe our adoption of the new guidance in the first quarter of fiscal 2014 will have an impact on our consolidated financial position, results of operations or cash flows. |
Strategic_Technology_Transacti
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets | ' | ||||||||||||||||
2 | Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets | ||||||||||||||||
Ismeca | |||||||||||||||||
On December 31, 2012, we acquired all of the outstanding share capital of Ismeca Semiconductor Holding SA (“Ismeca”). Ismeca, headquartered in La Chaux-de-Fonds, Switzerland, and with major operations in Malacca, Malaysia and Suzhou, China, designs, manufactures and sells turret-based test handling and back-end finishing equipment for integrated circuits, light emitting diodes (LEDs) and discrete components. | |||||||||||||||||
The acquisition has been accounted for in conformity with FASB Accounting Standards Codification 805, Business Combinations. The purchase price of this acquisition was approximately $88.8 million, and was funded primarily by cash reserves ($57.1 million) and certain liabilities assumed ($31.7 million). Total consideration has been allocated to the assets acquired and liabilities assumed based on their estimated respective fair values as of the completion of the acquisition. Amounts allocated to intangible assets are being amortized on a straight-line basis over their useful lives as noted in the table below. | |||||||||||||||||
Management’s preliminary allocation of purchase price as noted in the Original Values column below was based on an initial internal estimate of fair values. During the third fiscal quarter of 2013, with the assistance of a third party and using information as of the acquisition date, we updated the valuation of acquired intangible assets which resulted in adjustments to our initial allocation. We also received certain income tax information which resulted in adjustments to increase other assets and liabilities assumed but had no impact on net tangible assets acquired. The changes described above are noted in the Revised Values column below (in thousands): | |||||||||||||||||
Original | Revised | ||||||||||||||||
Values | Values | ||||||||||||||||
Current assets | $ | 36,510 | $ | 36,510 | |||||||||||||
Fixed assets | 1,314 | 1,314 | |||||||||||||||
Other assets | 2,427 | 6,607 | |||||||||||||||
Intangible assets | 25,365 | 33,138 | |||||||||||||||
Goodwill | 19,273 | 11,245 | |||||||||||||||
Total assets acquired | 84,889 | 88,814 | |||||||||||||||
Liabilities assumed | (27,746 | ) | (31,671 | ) | |||||||||||||
Net assets acquired | $ | 57,143 | $ | 57,143 | |||||||||||||
The preliminary and updated allocation of the intangible assets is as follows (in thousands): | |||||||||||||||||
Original | Revised | Average | |||||||||||||||
Value | Value | Useful Life | |||||||||||||||
Complete technology | $ | 16,827 | $ | 21,399 | 8 years | ||||||||||||
Customer relationships | 3,631 | 7,475 | 8 years | ||||||||||||||
Covenants not-to-compete | — | 325 | 3 years | ||||||||||||||
Trade name | 4,907 | 3,939 | Indefinite | ||||||||||||||
$ | 25,365 | $ | 33,138 | ||||||||||||||
The updated value assigned to Ismeca’s complete technology was determined by discounting the estimated future cash flows associated with the existing developed and core technologies to their present value. Developed and core technology, which comprise products that have reached technological feasibility, includes the products in Ismeca’s product line. The revenue estimates used to value the complete technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by Ismeca and its competitors. The rates utilized to discount the net cash flows of complete technology to their present value are based on the risks associated with the respective cash flows taking into consideration the weighted average cost of capital of Cohu’s semiconductor equipment segment. | |||||||||||||||||
The updated value assigned to Ismeca’s customer relationships was determined by discounting the estimated cash flows associated with the existing customers as of the acquisition date taking into consideration expected attrition of the existing customer base. The estimated cash flows were based on revenues for those existing customers net of operating expenses and net contributory asset charges associated with servicing those customers. The estimated revenues were based on revenue growth rates for the back-end semiconductor equipment industry. Operating expenses were estimated based on the supporting infrastructure expected to sustain the assumed revenue growth rates. Net contributory asset charges were based on the estimated fair value of those assets that contribute to the generation of the estimated cash flows. | |||||||||||||||||
During the third quarter of fiscal 2013, management updated its valuation of certain purchased intangible assets, however, certain tax issues are pending. Upon completion of the tax items, Cohu anticipates that the ultimate purchase price allocation may differ from the assessment outlined above. Any additional changes to the estimates of the fair value of the assets and liabilities will be allocated primarily to goodwill. | |||||||||||||||||
Duma | |||||||||||||||||
In August 2012, our microwave communication equipment segment acquired the intellectual property and certain other assets of Duma Video, Inc. (“Duma”), a distributor of low latency compression video encoding and decoding devices. The purchase price of these assets was approximately $1.0 million and the amount allocated to intangible assets is being amortized on a straight-line basis over three years. Under the terms of the purchase agreement, in addition to the up-front cash payment, we may be required to make future payments to the seller totaling a maximum of approximately $0.5 million, contingent upon the completion of certain milestone events. | |||||||||||||||||
Goodwill | |||||||||||||||||
Changes in the carrying value of goodwill by reportable segment during the year ended December 29, 2012 and the nine-month period ended September 28, 2013 were as follows (in thousands): | |||||||||||||||||
Semiconductor | Microwave | Total Goodwill | |||||||||||||||
Equipment | Communications | ||||||||||||||||
Balance, December 31, 2011 | $ | 54,872 | $ | 3,188 | $ | 58,060 | |||||||||||
Impact of currency exchange | 648 | 48 | 696 | ||||||||||||||
Balance, December 29, 2012 | 55,520 | 3,236 | 58,756 | ||||||||||||||
Additions net of adjustments | 11,245 | — | 11,245 | ||||||||||||||
Impact of currency exchange | 840 | 54 | 894 | ||||||||||||||
Balance, September 28, 2013 | $ | 67,605 | $ | 3,290 | $ | 70,895 | |||||||||||
Purchased Intangible Assets | |||||||||||||||||
Purchased intangible assets, subject to amortization are as follows (in thousands): | |||||||||||||||||
September 28, 2013 | December 29, 2012 | ||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Rasco technology | $ | 33,140 | $ | 19,936 | $ | 32,399 | $ | 16,452 | |||||||||
Ismeca technology | 29,450 | 2,812 | — | — | |||||||||||||
Duma technology | 864 | 336 | 864 | 120 | |||||||||||||
$ | 63,454 | $ | 23,084 | $ | 33,263 | $ | 16,572 | ||||||||||
Amortization expense related to intangible assets was approximately $2.6 million in the third quarter of fiscal 2013 and $6.0 million in the first nine months of fiscal 2013. During the third quarter of fiscal 2013, management updated its valuation of certain intangible assets acquired from Ismeca and we recorded additional amortization expense of approximately $0.6 million based on the revised amounts. Amortization expense related to intangible assets was approximately $1.0 million in the third quarter of fiscal 2012 and $3.0 million in the first nine months of fiscal 2012. The amounts included in the table above for the period ended September 28, 2013 exclude approximately $2.3 million and $4.0 million, related to the trade names of Rasco and Ismeca, respectively, and for the period ended December 29, 2012 exclude approximately $2.3 million related to the Rasco trade name which have indefinite lives and are not being amortized. Changes in the carrying values of purchased intangible assets include the impact of fluctuations in currency exchange rates. |
Financial_Instruments_Measured
Financial Instruments Measured at Fair Value | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Financial Instruments Measured at Fair Value | ' | ||||||||||||||||
3 | Financial Instruments Measured at Fair Value | ||||||||||||||||
Our financial instruments measured at fair value consisted primarily of cash, government and government agency securities, state and municipal securities, money market funds, forward exchange contracts and structured option transactions. We do not hold investment securities for trading purposes. All short-term investments are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk and we monitor credit risk and attempt to mitigate exposure by making high-quality investments and through investment diversification. | |||||||||||||||||
Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not limited to: earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. Gross realized gains and losses on sales of short-term investments are included in interest income. Realized gains and losses for the periods presented were not significant. | |||||||||||||||||
Investments that we have classified as short-term, by security type, are as follows (in thousands): | |||||||||||||||||
September 28, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
Municipal securities | $ | 1,200 | $ | — | $ | — | $ | 1,200 | |||||||||
Government-sponsored enterprise securities | 5,405 | 4 | — | 5,409 | |||||||||||||
$ | 6,605 | $ | 4 | $ | — | $ | 6,609 | ||||||||||
December 29, 2012 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
Municipal securities | $ | 1,470 | $ | — | $ | — | $ | 1,470 | |||||||||
Government-sponsored enterprise securities | 5,937 | 14 | — | 5,951 | |||||||||||||
$ | 7,407 | $ | 14 | $ | — | $ | 7,421 | ||||||||||
Effective maturities of short-term investments at September 28, 2013 and December 29, 2012, were as follows (in thousands): | |||||||||||||||||
September 28, 2013 | December 29, 2012 | ||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||
Due in one year or less | $ | 6,605 | $ | 6,609 | $ | 7,407 | $ | 7,421 | |||||||||
Our municipal securities include variable rate demand notes which can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week and have varying contractual maturities through 2037. These securities can be used for short-term liquidity needs and are held for limited periods of time. At September 28, 2013 and December 29, 2012 these securities had amortized cost and fair value of $1.2 million and $1.5 million, respectively, and are included in “Due in one year or less” in the table above. | |||||||||||||||||
Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. When available, we use quoted market prices to determine the fair value of our investments, and they are included in Level 1. When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information, and they are included in Level 2. | |||||||||||||||||
The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): | |||||||||||||||||
Fair value measurements at September 28, 2013 using: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total estimated | ||||||||||||||
fair value | |||||||||||||||||
Cash | $ | 44,167 | $ | — | $ | — | $ | 44,167 | |||||||||
Municipal securities | — | 1,200 | — | 1,200 | |||||||||||||
Government-sponsored enterprise securities | — | 5,409 | — | 5,409 | |||||||||||||
Money market funds | — | 2,081 | — | 2,081 | |||||||||||||
$ | 44,167 | $ | 8,690 | $ | — | $ | 52,857 | ||||||||||
Fair value measurements at December 29, 2012 using: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total estimated | ||||||||||||||
fair value | |||||||||||||||||
Cash | $ | 101,054 | $ | — | $ | — | $ | 101,054 | |||||||||
Municipal securities | — | 1,470 | — | 1,470 | |||||||||||||
Government-sponsored enterprise securities | — | 5,951 | — | 5,951 | |||||||||||||
Money market funds | — | 1,754 | — | 1,754 | |||||||||||||
$ | 101,054 | $ | 9,175 | $ | — | $ | 110,229 | ||||||||||
In connection with our purchase of Ismeca on December 31, 2012, we acquired forward exchange contracts and currency option contracts which are used to hedge forecasted foreign currency balances and to mitigate the effect of exchange rate fluctuations of the Swiss Franc. The maturity of the option contracts range from one week to eight months. We do not use these instruments for trading or speculative purposes and have determined these contracts fall within Level 2 of the fair value hierarchy. During the nine-month period ended September 28, 2013, there were no transfers between Level 1 and Level 2 or into or out of Level 3 related to these instruments. | |||||||||||||||||
We have recorded these derivative instruments on the balance sheet at their fair value with all realized and unrealized gains and losses recognized in the statement of operations. In the third quarter of fiscal 2013 a net gain of approximately $44,000 and for the first nine months of fiscal 2013 a net loss of approximately $0.3 million was recognized. |
Employee_Stock_Benefit_Plans
Employee Stock Benefit Plans | 9 Months Ended | |
Sep. 28, 2013 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |
Employee Stock Benefit Plans | ' | |
4 | Employee Stock Benefit Plans | |
Employee Stock Purchase Plan | ||
The Cohu, Inc. 1997 Employee Stock Purchase Plan (“the Plan”) provides for the issuance of shares of our common stock. Under the Plan, eligible employees may purchase shares of Cohu common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Cohu common stock at the beginning or end of each 6-month purchase period, subject to certain limits. A total of 81,230 shares were issued under the Plan during the nine-month period ended September 28, 2013 and there were 404,312 shares available for future issuance. | ||
Stock Options | ||
Under our equity incentive plans, stock options may be granted to employees, consultants and directors to purchase a fixed number of shares of our common stock. The exercise prices of options granted are at least equal to the fair market value of our common stock on the dates of grant. Options generally vest and become exercisable after one year or in four annual increments beginning one year after the grant date and expire ten years from the grant date. At September 28, 2013, there were 1,010,720 shares available for future equity grants under the 2005 Equity Plan. We have historically issued new shares of our common stock upon share option exercise. | ||
Subsequent to December 29, 2012, we awarded stock options covering 470,346 shares of our common stock to employees and at September 28, 2013, we had 3,283,105 stock options outstanding. These options had a weighted-average exercise price of $12.26 per share, an aggregate intrinsic value of approximately $3.5 million and the weighted average remaining contractual term was approximately 5.2 years. | ||
At September 28, 2013, we had 2,308,726 stock options outstanding that were exercisable. These options had a weighted-average exercise price of $12.86 per share, an aggregate intrinsic value of $2.8 million and the weighted average remaining contractual term was approximately 3.9 years. | ||
Restricted Stock Units | ||
We issue restricted stock units to certain employees, consultants and directors. Restricted stock units vest over either a one-year or a four-year period from the date of grant. Prior to vesting, restricted stock units do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted stock units are not considered issued and outstanding. Shares of our common stock will be issued on the date the restricted stock units vest. | ||
Subsequent to December 29, 2012, we awarded restricted stock units covering 523,813 shares of our common stock to employees and at September 28, 2013, we had 960,035 restricted stock units outstanding with an aggregate intrinsic value of approximately $10.5 million and the weighted average remaining vesting period was approximately 2.7 years. | ||
Equity-Based Performance Stock Units | ||
We issue equity-based performance stock units to certain employees to reward achievement of financial performance goals set by the Board of Directors. Equity-based performance stock units vest over a three-year period from the date of grant. Prior to vesting, equity-based performance stock units do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted stock units are not considered issued and outstanding. The number of shares of stock ultimately issued to participants will depend upon the extent to which goals are met. The award measurement period is one fiscal year. Based upon the level of goal achievement, the number of shares we will issue can range from 0% up to 150% of the granted units. These outstanding units will vest over three years from the date of initial grant and upon final Board of Directors approval, shares of our common stock will be considered issued as of that date. | ||
In March 2013, we awarded equity-based performance units covering 158,365 shares of our common stock to certain employees. |
Income_Taxes
Income Taxes | 9 Months Ended | |
Sep. 28, 2013 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
5 | Income Taxes | |
Ordinarily, interim tax provisions are calculated using the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year. However, when a reliable estimate of the annual ETR cannot be made, the actual ETR for the year-to-date period may be the best estimate of the annual ETR. For the three and nine months ended September 28, 2013 and September 29, 2012 we used the actual year-to-date ETR in computing our tax benefit as a reliable estimate of the annual ETR cannot be made as relatively small changes in our projected income or loss produce a significant variance in our ETR. The actual year-to-date ETR for the three months ended September 28, 2013 and September 29, 2012, was 9.4% and 6.4%, respectively, and for the nine months ended September 28, 2013 and September 29, 2012 was 7.9% and 5.1%, respectively. The tax benefit in 2013 and 2012 differs from the U.S. federal statutory rate primarily due to the inability to benefit our domestic losses, foreign income taxed at lower rates, changes in our deferred tax asset valuation allowance, state taxes and changes and interest related to unrecognized tax benefits. | ||
During the third quarter of fiscal 2013 we increased our liability for unrecognized tax benefits by approximately $3.0 million in conjunction with the Ismeca purchase price allocation. |
Industry_Segments
Industry Segments | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Industry Segments | ' | ||||||||||||||||
6 | Industry Segments | ||||||||||||||||
Our reportable segments are business units that offer different products and are managed separately because each business requires different technology and marketing strategies. Our reportable segments are: semiconductor equipment, microwave communications and video cameras. As discussed in Note 2, on December 31, 2012 we purchased Ismeca, which is included in our semiconductor equipment segment. | |||||||||||||||||
We allocate resources and evaluate the performance of segments based on profit or loss from operations, excluding interest, corporate expenses and unusual gains or losses. Intersegment sales were not significant for any period. | |||||||||||||||||
Financial information by industry segment is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net sales by segment: | |||||||||||||||||
Semiconductor equipment | $ | 52,403 | $ | 47,002 | $ | 160,326 | $ | 139,279 | |||||||||
Microwave communications | 3,574 | 7,051 | 10,112 | 19,663 | |||||||||||||
Video cameras | 3,985 | 3,695 | 12,192 | 11,506 | |||||||||||||
Total consolidated net sales and net sales for reportable segments | $ | 59,962 | $ | 57,748 | $ | 182,630 | $ | 170,448 | |||||||||
Segment profit (loss): | |||||||||||||||||
Semiconductor equipment | $ | (9,391 | ) | $ | (1,006 | ) | $ | (18,857 | ) | $ | (2,345 | ) | |||||
Microwave communications | (1,511 | ) | 53 | (6,524 | ) | (810 | ) | ||||||||||
Video cameras | 458 | 133 | 1,116 | (49 | ) | ||||||||||||
Loss for reportable segments | (10,444 | ) | (820 | ) | (24,265 | ) | (3,204 | ) | |||||||||
Other unallocated amounts: | |||||||||||||||||
Corporate expenses | (1,516 | ) | (1,787 | ) | (5,069 | ) | (5,175 | ) | |||||||||
Interest and other, net | 16 | 739 | 42 | 920 | |||||||||||||
Loss before income taxes | $ | (11,944 | ) | $ | (1,868 | ) | $ | (29,292 | ) | $ | (7,459 | ) | |||||
A small number of customers of our semiconductor equipment segment historically have been responsible for a significant portion of our consolidated net sales. Significant customer concentration information is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Customers individually accounting for more than 10% of consolidated net sales | one | one | one | one | |||||||||||||
Percentage of consolidated net sales | 17% | 39% | 18% | 41% |
Contingencies
Contingencies | 9 Months Ended | |
Sep. 28, 2013 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Contingencies | ' | |
7 | Contingencies | |
From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our businesses. | ||
During the period from February through May 2013, Cohu’s subsidiary Delta Design, Inc. (“Delta”) made several inquiries of Essai, Inc. (“Essai”) asking it to confirm that it had not incorporated any of the technology covered by Delta’s patents in its current product offerings. On May 23, 2013 Essai filed a complaint against Delta in the U.S. District Court for the Northern District of California (the “Court”) seeking a declaratory judgment of non-infringement and invalidity of one Delta U. S. patent that issued in 1998. On July 19, 2013 Delta filed a motion with the Court to dismiss Essai’s complaint and Essai filed its opposition to Delta’s motion to dismiss on August 2, 2013. Delta intends to vigorously defend its intellectual property rights. | ||
The outcome of any litigation is inherently uncertain. While there can be no assurance, we do not believe at the present time that the resolution of the matters described above will have a material adverse effect on our assets, financial position or results of operations. |
Guarantees
Guarantees | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Guarantees | ' | ||||||||||||||||
8 | Guarantees | ||||||||||||||||
Our products are generally sold with warranty periods that range from 12 to 36 months following sale or acceptance. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical and projected experience by product and configuration. | |||||||||||||||||
Changes in accrued warranty were as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | 5,811 | $ | 6,134 | $ | 4,692 | $ | 6,801 | |||||||||
Warranty expense accruals | 697 | 1,006 | 2,865 | 3,819 | |||||||||||||
Warranty payments | (1,402 | ) | (1,540 | ) | (4,268 | ) | (5,020 | ) | |||||||||
Warranty liability assumed | — | — | 1,817 | — | |||||||||||||
Balance at end of period | $ | 5,106 | $ | 5,600 | $ | 5,106 | $ | 5,600 | |||||||||
From time-to-time, during the ordinary course of business, we provide standby letters of credit for certain contingent liabilities under contractual arrangements, including customer contracts. As of September 28, 2013, the maximum potential amount of future payments that Cohu could be required to make under these standby letters of credit was approximately $1.0 million. We have not recorded any liability in connection with these guarantee arrangements beyond that required to appropriately account for the underlying transaction being guaranteed. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these arrangements. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
Our fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. The condensed consolidated balance sheet at December 29, 2012 has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of September 28, 2013 (also referred to as “the third quarter of fiscal 2013” and “the first nine months of fiscal 2013”) and September 29, 2012 (also referred to as “the third quarter of fiscal 2012” and “the first nine months of fiscal 2012”) are unaudited. However, in management’s opinion, these financial statements reflect all adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. The nine-month periods ended September 28, 2013 and September 29, 2012 were each comprised of 13 and 39 weeks, respectively. | |||||||||||||||||
Our interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended December 29, 2012, which are included in our 2012 Annual Report on Form 10-K, filed with the U. S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”. | |||||||||||||||||
Risks and Uncertainties | ' | ||||||||||||||||
Risks and Uncertainties | |||||||||||||||||
We are subject to a number of risks and uncertainties that may significantly impact our future operating results. These risks and uncertainties are discussed under Item 1A. “Risk Factors” included in this Form 10-Q. Understanding these risks and uncertainties is integral to the review of our interim condensed consolidated financial statements. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one issuer. | |||||||||||||||||
Trade accounts receivable are presented net of allowance for doubtful accounts of $0.8 million and $0.3 million at September 28, 2013 and December 29, 2012, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors and other customers located throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at September 28, 2013, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding collectability. | |||||||||||||||||
Goodwill, Other Intangible Assets and Long-lived Assets | ' | ||||||||||||||||
Goodwill, Other Intangible Assets and Long-lived Assets | |||||||||||||||||
We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimated the fair values of our reporting units primarily using the income approach valuation methodology that includes the discounted cash flow method, taking into consideration the market approach and certain market multiples as a validation of the values derived using the discounted cash flow methodology. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on customer forecasts, industry trade organization data and general economic conditions. | |||||||||||||||||
We conduct our annual impairment test as of October 1st of each year. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below their carrying value. The financial and credit market volatility directly impacts our fair value measurement through our stock price that we use to determine our market capitalization. During times of volatility, significant judgment must be applied to determine whether credit or stock price changes are a short-term swing or a longer-term trend. As of September 28, 2013 we do not believe there have been any events or circumstances that would require us to perform an interim goodwill impairment review, however, a sustained decline in Cohu’s market capitalization below its book value could lead us to determine, in a future period, that an interim goodwill impairment review is required and may result in an impairment charge which would have a negative impact on our results of operations. | |||||||||||||||||
Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the assets carrying amount and estimated fair value. | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Share-based compensation expense related to stock options is recorded based on the fair value of the award on its grant date which we estimate using the Black-Scholes valuation model. Share-based compensation expense related to restricted stock unit awards is calculated based on the market price of our common stock on the grant date, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit. | |||||||||||||||||
Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of sales | $ | 50 | $ | 49 | $ | 250 | $ | 279 | |||||||||
Research and development | 355 | 291 | 1,236 | 951 | |||||||||||||
Selling, general and administrative | 781 | 619 | 2,476 | 2,024 | |||||||||||||
Total share-based compensation | $ | 1,186 | $ | 959 | $ | 3,962 | $ | 3,254 | |||||||||
Income (Loss) Per Share | ' | ||||||||||||||||
Income (Loss) Per Share | |||||||||||||||||
Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. The following table reconciles the denominators used in computing basic and diluted income (loss) per share (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average common shares | 24,929 | 24,479 | 24,801 | 24,421 | |||||||||||||
Effect of dilutive stock options | — | — | — | — | |||||||||||||
24,929 | 24,479 | 24,801 | 24,421 | ||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Our revenue recognition policy is disclosed in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 29, 2012. As more fully described in that policy, revenue from products that have not previously satisfied customer acceptance requirements is recognized upon customer acceptance. The gross profit on sales that are not recognized is generally recorded as deferred profit and reflected as a current liability in our consolidated balance sheet. | |||||||||||||||||
At September 28, 2013, we had deferred revenue totaling approximately $7.2 million and deferred profit of $5.5 million. At December 29, 2012, we had deferred revenue totaling approximately $3.6 million and deferred profit of $2.1 million. | |||||||||||||||||
Comprehensive Income | ' | ||||||||||||||||
Comprehensive Income | |||||||||||||||||
Our accumulated other comprehensive income balance totaled approximately $3.6 million and $1.8 million at September 28, 2013 and December 29, 2012, respectively, and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain accounts into U.S. dollars where the functional currency is the Euro or the Swiss Franc, unrealized gains and losses on investments and adjustments related to postretirement benefits. Reclassification adjustments to accumulated other comprehensive income during the first nine months of fiscal 2013 and 2012 were not significant. | |||||||||||||||||
Retiree Medical Benefits | ' | ||||||||||||||||
Retiree Medical Benefits | |||||||||||||||||
We provide post-retirement health benefits to certain executives and directors under a noncontributory plan. The net periodic benefit cost incurred during the first nine months of fiscal 2013 and 2012 was not significant. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
Recently Adopted Accounting Pronouncements – In July 2012, the Financial Accounting Standards Board (“FASB”) issued guidance to simplify the testing for a drop in value of intangible assets such as trademarks, patents, and distribution rights. The amended standard reduces the cost of accounting for indefinite-lived intangible assets, especially in cases where the likelihood of impairment is low. The changes permit businesses and other organizations to first use subjective criteria to determine if an intangible asset has lost value. The amendments will be effective for fiscal years starting after September 15, 2012 with early adoption permitted. The adoption of this new guidance in the first quarter of fiscal 2013 did not have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
In February 2013, the FASB issued authoritative guidance that will require a public entity to present in its annual and interim financial statements information about reclassification adjustments from accumulated other comprehensive income in a single note or on the face of the financial statements. The adoption of this new guidance in the first quarter of fiscal 2013 did not have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
Recently Issued Accounting Pronouncements – In July 2013, the FASB issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This amendment to previous income tax guidance clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We are currently evaluating the impact our adoption of this new guidance in the first quarter of fiscal 2014 will have on our consolidated financial position, results of operations or cash flows. | |||||||||||||||||
In March 2013, the FASB issued guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The amendments will be effective for fiscal years and interim periods starting after December 15, 2013 with early adoption permitted. We do not believe our adoption of the new guidance in the first quarter of fiscal 2014 will have an impact on our consolidated financial position, results of operations or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Reported Share-Based Compensation in Condensed Consolidated Interim Financial Statements | ' | ||||||||||||||||
Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of sales | $ | 50 | $ | 49 | $ | 250 | $ | 279 | |||||||||
Research and development | 355 | 291 | 1,236 | 951 | |||||||||||||
Selling, general and administrative | 781 | 619 | 2,476 | 2,024 | |||||||||||||
Total share-based compensation | $ | 1,186 | $ | 959 | $ | 3,962 | $ | 3,254 | |||||||||
Computation of Basic and Diluted Income (Loss) Per Share | ' | ||||||||||||||||
The following table reconciles the denominators used in computing basic and diluted income (loss) per share (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average common shares | 24,929 | 24,479 | 24,801 | 24,421 | |||||||||||||
Effect of dilutive stock options | — | — | — | — | |||||||||||||
24,929 | 24,479 | 24,801 | 24,421 | ||||||||||||||
Strategic_Technology_Transacti1
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Allocation of Purchase Price | ' | ||||||||||||||||
During the third fiscal quarter of 2013, with the assistance of a third party and using information as of the acquisition date, we updated the valuation of acquired intangible assets which resulted in adjustments to our initial allocation. We also received certain income tax information which resulted in adjustments to increase other assets and liabilities assumed but had no impact on net tangible assets acquired. The changes described above are noted in the Revised Values column below (in thousands): | |||||||||||||||||
Original | Revised | ||||||||||||||||
Values | Values | ||||||||||||||||
Current assets | $ | 36,510 | $ | 36,510 | |||||||||||||
Fixed assets | 1,314 | 1,314 | |||||||||||||||
Other assets | 2,427 | 6,607 | |||||||||||||||
Intangible assets | 25,365 | 33,138 | |||||||||||||||
Goodwill | 19,273 | 11,245 | |||||||||||||||
Total assets acquired | 84,889 | 88,814 | |||||||||||||||
Liabilities assumed | (27,746 | ) | (31,671 | ) | |||||||||||||
Net assets acquired | $ | 57,143 | $ | 57,143 | |||||||||||||
Allocation of Intangible Assets | ' | ||||||||||||||||
The preliminary and updated allocation of the intangible assets is as follows (in thousands): | |||||||||||||||||
Original | Revised | Average | |||||||||||||||
Value | Value | Useful Life | |||||||||||||||
Complete technology | $ | 16,827 | $ | 21,399 | 8 years | ||||||||||||
Customer relationships | 3,631 | 7,475 | 8 years | ||||||||||||||
Covenants not-to-compete | — | 325 | 3 years | ||||||||||||||
Trade name | 4,907 | 3,939 | Indefinite | ||||||||||||||
$ | 25,365 | $ | 33,138 | ||||||||||||||
Changes in Carrying Value of Goodwill by Reportable Segment | ' | ||||||||||||||||
Changes in the carrying value of goodwill by reportable segment during the year ended December 29, 2012 and the nine-month period ended September 28, 2013 were as follows (in thousands): | |||||||||||||||||
Semiconductor | Microwave | Total Goodwill | |||||||||||||||
Equipment | Communications | ||||||||||||||||
Balance, December 31, 2011 | $ | 54,872 | $ | 3,188 | $ | 58,060 | |||||||||||
Impact of currency exchange | 648 | 48 | 696 | ||||||||||||||
Balance, December 29, 2012 | 55,520 | 3,236 | 58,756 | ||||||||||||||
Additions net of adjustments | 11,245 | — | 11,245 | ||||||||||||||
Impact of currency exchange | 840 | 54 | 894 | ||||||||||||||
Balance, September 28, 2013 | $ | 67,605 | $ | 3,290 | $ | 70,895 | |||||||||||
Purchased Intangible Assets, Subject to Amortization | ' | ||||||||||||||||
Purchased intangible assets, subject to amortization are as follows (in thousands): | |||||||||||||||||
September 28, 2013 | December 29, 2012 | ||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Rasco technology | $ | 33,140 | $ | 19,936 | $ | 32,399 | $ | 16,452 | |||||||||
Ismeca technology | 29,450 | 2,812 | — | — | |||||||||||||
Duma technology | 864 | 336 | 864 | 120 | |||||||||||||
$ | 63,454 | $ | 23,084 | $ | 33,263 | $ | 16,572 | ||||||||||
Financial_Instruments_Measured1
Financial Instruments Measured at Fair Value (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Short-Term Investments by Security Type | ' | ||||||||||||||||
Investments that we have classified as short-term, by security type, are as follows (in thousands): | |||||||||||||||||
September 28, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
Municipal securities | $ | 1,200 | $ | — | $ | — | $ | 1,200 | |||||||||
Government-sponsored enterprise securities | 5,405 | 4 | — | 5,409 | |||||||||||||
$ | 6,605 | $ | 4 | $ | — | $ | 6,609 | ||||||||||
December 29, 2012 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
Municipal securities | $ | 1,470 | $ | — | $ | — | $ | 1,470 | |||||||||
Government-sponsored enterprise securities | 5,937 | 14 | — | 5,951 | |||||||||||||
$ | 7,407 | $ | 14 | $ | — | $ | 7,421 | ||||||||||
Effective Maturities of Short-Term Investments | ' | ||||||||||||||||
Effective maturities of short-term investments at September 28, 2013 and December 29, 2012, were as follows (in thousands): | |||||||||||||||||
September 28, 2013 | December 29, 2012 | ||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||
Due in one year or less | $ | 6,605 | $ | 6,609 | $ | 7,407 | $ | 7,421 | |||||||||
Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): | |||||||||||||||||
Fair value measurements at September 28, 2013 using: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total estimated | ||||||||||||||
fair value | |||||||||||||||||
Cash | $ | 44,167 | $ | — | $ | — | $ | 44,167 | |||||||||
Municipal securities | — | 1,200 | — | 1,200 | |||||||||||||
Government-sponsored enterprise securities | — | 5,409 | — | 5,409 | |||||||||||||
Money market funds | — | 2,081 | — | 2,081 | |||||||||||||
$ | 44,167 | $ | 8,690 | $ | — | $ | 52,857 | ||||||||||
Fair value measurements at December 29, 2012 using: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total estimated | ||||||||||||||
fair value | |||||||||||||||||
Cash | $ | 101,054 | $ | — | $ | — | $ | 101,054 | |||||||||
Municipal securities | — | 1,470 | — | 1,470 | |||||||||||||
Government-sponsored enterprise securities | — | 5,951 | — | 5,951 | |||||||||||||
Money market funds | — | 1,754 | — | 1,754 | |||||||||||||
$ | 101,054 | $ | 9,175 | $ | — | $ | 110,229 | ||||||||||
Industry_Segments_Tables
Industry Segments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Financial Information by Industry Segment | ' | ||||||||||||||||
Financial information by industry segment is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net sales by segment: | |||||||||||||||||
Semiconductor equipment | $ | 52,403 | $ | 47,002 | $ | 160,326 | $ | 139,279 | |||||||||
Microwave communications | 3,574 | 7,051 | 10,112 | 19,663 | |||||||||||||
Video cameras | 3,985 | 3,695 | 12,192 | 11,506 | |||||||||||||
Total consolidated net sales and net sales for reportable segments | $ | 59,962 | $ | 57,748 | $ | 182,630 | $ | 170,448 | |||||||||
Segment profit (loss): | |||||||||||||||||
Semiconductor equipment | $ | (9,391 | ) | $ | (1,006 | ) | $ | (18,857 | ) | $ | (2,345 | ) | |||||
Microwave communications | (1,511 | ) | 53 | (6,524 | ) | (810 | ) | ||||||||||
Video cameras | 458 | 133 | 1,116 | (49 | ) | ||||||||||||
Loss for reportable segments | (10,444 | ) | (820 | ) | (24,265 | ) | (3,204 | ) | |||||||||
Other unallocated amounts: | |||||||||||||||||
Corporate expenses | (1,516 | ) | (1,787 | ) | (5,069 | ) | (5,175 | ) | |||||||||
Interest and other, net | 16 | 739 | 42 | 920 | |||||||||||||
Loss before income taxes | $ | (11,944 | ) | $ | (1,868 | ) | $ | (29,292 | ) | $ | (7,459 | ) | |||||
Schedule of Customer Concentration to Consolidated Net Sales | ' | ||||||||||||||||
Significant customer concentration information is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Customers individually accounting for more than 10% of consolidated net sales | one | one | one | one | |||||||||||||
Percentage of consolidated net sales | 17% | 39% | 18% | 41% |
Guarantees_Tables
Guarantees (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Changes in Accrued Warranty | ' | ||||||||||||||||
Changes in accrued warranty were as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | 5,811 | $ | 6,134 | $ | 4,692 | $ | 6,801 | |||||||||
Warranty expense accruals | 697 | 1,006 | 2,865 | 3,819 | |||||||||||||
Warranty payments | (1,402 | ) | (1,540 | ) | (4,268 | ) | (5,020 | ) | |||||||||
Warranty liability assumed | — | — | 1,817 | — | |||||||||||||
Balance at end of period | $ | 5,106 | $ | 5,600 | $ | 5,106 | $ | 5,600 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
Equity [Abstract] | ' | ' | |
Net of allowance for doubtful accounts | $800,000 | $300,000 | |
Deferred revenue | 7,200,000 | 3,600,000 | |
Deferred profit | 5,482,000 | 2,139,000 | [1] |
Accumulated other comprehensive income (loss) | $3,644,000 | $1,783,000 | [1] |
[1] | Derived from December 29, 2012 audited financial statements |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Reported Share-Based Compensation in Condensed Consolidated Interim Financial Statements (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $1,186 | $959 | $3,962 | $3,254 |
Cost of sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 50 | 49 | 250 | 279 |
Research and development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 355 | 291 | 1,236 | 951 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $781 | $619 | $2,476 | $2,024 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted average common shares | 24,929 | 24,479 | 24,801 | 24,421 |
Effect of dilutive stock options | ' | ' | ' | ' |
Weighted average diluted shares used in computing income (loss) per share | 24,929 | 24,479 | 24,801 | 24,421 |
Strategic_Technology_Transacti2
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Aug. 31, 2012 | Sep. 28, 2013 | Dec. 31, 2012 | |
Rasco technology [Member] | Rasco technology [Member] | Duma technology [Member] | Ismeca technology [Member] | Ismeca technology [Member] | |||||
Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of acquisition | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | $88,800,000 |
Purchase price of acquisition, cash reserves | ' | ' | ' | ' | ' | ' | ' | ' | 57,100,000 |
Purchase price of acquisition, liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | 31,700,000 |
Amortization of intangible assets on straight-line basis | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Maximum future payments required | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Amortization expenses related to intangible assets | 2,600,000 | 1,000,000 | 6,000,000 | 3,000,000 | ' | ' | ' | ' | ' |
Additional amortization expense | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts excluded related to trade name | ' | ' | ' | ' | $2,300,000 | $2,300,000 | ' | $4,000,000 | ' |
Strategic_Technology_Transacti3
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets - Allocation of Purchase Price (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | |
In Thousands, unless otherwise specified | Ismeca technology [Member] | Original Values [Member] | Revised Values [Member] | ||||
Ismeca technology [Member] | Ismeca technology [Member] | ||||||
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items] | ' | ' | ' | ' | ' | ' | |
Current assets | ' | ' | ' | ' | $36,510 | $36,510 | |
Fixed assets | ' | ' | ' | ' | 1,314 | 1,314 | |
Other assets | ' | ' | ' | ' | 2,427 | 6,607 | |
Intangible assets | ' | ' | ' | ' | 25,365 | 33,138 | |
Goodwill | 70,895 | 58,756 | [1] | 58,060 | ' | 19,273 | 11,245 |
Total assets acquired | ' | ' | ' | 88,800 | 84,889 | 88,814 | |
Liabilities assumed | ' | ' | ' | -31,700 | -27,746 | -31,671 | |
Net assets acquired | ' | ' | ' | $57,100 | $57,143 | $57,143 | |
[1] | Derived from December 29, 2012 audited financial statements |
Strategic_Technology_Transacti4
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets - Allocation of Intangible Assets (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | $33,138 |
Complete technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | 21,399 |
Estimated Average Remaining Useful Life | '8 years |
Customer relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | 7,475 |
Estimated Average Remaining Useful Life | '8 years |
Covenants not-to-compete [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | 325 |
Estimated Average Remaining Useful Life | '3 years |
Original Values [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | 25,365 |
Original Values [Member] | Complete technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | 16,827 |
Original Values [Member] | Customer relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | 3,631 |
Original Values [Member] | Covenants not-to-compete [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | ' |
Trade name [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | 3,939 |
Estimated Average Remaining Useful Life | 'Indefinite |
Trade name [Member] | Original Values [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value of intangible assets | $4,907 |
Strategic_Technology_Transacti5
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets - Changes in Carrying Value of Goodwill by Reportable Segment (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Goodwill | $58,756 | [1] | $58,060 | |
Additions net of adjustments | 11,245 | ' | ||
Impact of currency exchange | 894 | 696 | ||
Goodwill | 70,895 | 58,756 | [1] | |
Semiconductor Equipment [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Goodwill | 55,520 | 54,872 | ||
Additions net of adjustments | 11,245 | ' | ||
Impact of currency exchange | 840 | 648 | ||
Goodwill | 67,605 | 55,520 | ||
Microwave Communications [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Goodwill | 3,236 | 3,188 | ||
Additions net of adjustments | ' | ' | ||
Impact of currency exchange | 54 | 48 | ||
Goodwill | $3,290 | $3,236 | ||
[1] | Derived from December 29, 2012 audited financial statements |
Strategic_Technology_Transacti6
Strategic Technology Transactions, Goodwill and Other Purchased Intangible Assets - Purchased Intangible Assets, Subject to Amortization (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $63,454 | $33,263 |
Accumulated Amortization | 23,084 | 16,572 |
Rasco technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 33,140 | 32,399 |
Accumulated Amortization | 19,936 | 16,452 |
Ismeca technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 29,450 | ' |
Accumulated Amortization | 2,812 | ' |
Duma technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 864 | 864 |
Accumulated Amortization | $336 | $120 |
Financial_Instruments_Measured2
Financial Instruments Measured at Fair Value - Short-Term Investments by Security Type (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | $6,605 | $7,407 | |
Gross Unrealized Gains | 4 | 14 | |
Gross Unrealized Losses | ' | ' | |
Estimated Fair Value | 6,609 | 7,421 | [1] |
Municipal securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 1,200 | 1,470 | |
Gross Unrealized Gains | ' | ' | |
Gross Unrealized Losses | ' | ' | |
Estimated Fair Value | 1,200 | 1,470 | |
Government-sponsored enterprise securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 5,405 | 5,937 | |
Gross Unrealized Gains | 4 | 14 | |
Gross Unrealized Losses | ' | ' | |
Estimated Fair Value | $5,409 | $5,951 | |
[1] | Derived from December 29, 2012 audited financial statements |
Financial_Instruments_Measured3
Financial Instruments Measured at Fair Value - Effective Maturities of Short-Term Investments (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Estimated Fair Value [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due in one year or less | $6,609 | $7,421 |
Amortized Cost [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due in one year or less | $6,605 | $7,407 |
Financial_Instruments_Measured4
Financial Instruments Measured at Fair Value - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | |
Variable rate demand notes [Member] | Variable rate demand notes [Member] | |||
Investment [Line Items] | ' | ' | ' | ' |
Variable rate demand notes maturity year | '2037 | '2037 | ' | ' |
Securities amortized cost, Due in one year or less | ' | ' | $1,200,000 | $1,200,000 |
Securities fair value, Due in one year or less | ' | ' | 1,500,000 | 1,500,000 |
Derivative instrument gain (loss), current net income | $44,000 | ($300,000) | ' | ' |
Financial_Instruments_Measured5
Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | $52,857 | $110,229 |
Cash [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 44,167 | 101,054 |
Municipal securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 1,200 | 1,470 |
Government-sponsored enterprise securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 5,409 | 5,951 |
Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 2,081 | 1,754 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 44,167 | 101,054 |
Level 1 [Member] | Cash [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 44,167 | 101,054 |
Level 1 [Member] | Municipal securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 1 [Member] | Government-sponsored enterprise securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 1 [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 8,690 | 9,175 |
Level 2 [Member] | Cash [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 2 [Member] | Municipal securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 1,200 | 1,470 |
Level 2 [Member] | Government-sponsored enterprise securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 5,409 | 5,951 |
Level 2 [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | 2,081 | 1,754 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 3 [Member] | Cash [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 3 [Member] | Municipal securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 3 [Member] | Government-sponsored enterprise securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Level 3 [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total estimated fair value | ' | ' |
Employee_Stock_Benefit_Plans_A
Employee Stock Benefit Plans - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2013 | Sep. 28, 2013 |
Employee Stock Purchase Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage of fair value of common stock, common stock price | ' | 85.00% |
Shares issued under Employee Stock Purchase Plan | ' | 81,230 |
Shares available for equity grants | ' | 404,312 |
Employee Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares available for equity grants | ' | 1,010,720 |
Range of period in which vested stock expire | ' | '10 years |
Number of common share granted | ' | 470,346 |
Stock options outstanding | ' | 3,283,105 |
Weighted-average exercise price of stock options | ' | 12.26 |
Aggregate intrinsic value of stock options | ' | 3.5 |
Weighted average remaining contractual term stock options | ' | '5 years 2 months 12 days |
Stock options outstanding, Exercisable | ' | 2,308,726 |
Weighted-average exercise price of stock options, Exercisable | ' | 12.86 |
Aggregate intrinsic value of stock options, Exercisable | ' | 2.8 |
Weighted average remaining contractual term stock options, Exercisable | ' | '3 years 10 months 24 days |
Employee Stock Options [Member] | Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Maximum period in which vested stock become exercisable | ' | '1 year |
Employee Stock Options [Member] | Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Maximum period in which vested stock become exercisable | ' | '4 years |
Restricted Stock Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of common share granted | ' | 523,813 |
Aggregate intrinsic value of stock options | ' | 10.5 |
Restricted stock units outstanding | ' | 960,035 |
Restricted stock units weighted average remaining vesting period | ' | '2 years 8 months 12 days |
Restricted Stock Units [Member] | Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Maximum period in which vested stock become exercisable | ' | '1 year |
Restricted Stock Units [Member] | Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Maximum period in which vested stock become exercisable | ' | '4 years |
Equity-Based Performance Stock Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Maximum period in which vested stock become exercisable | ' | '3 years |
Number of common share granted | 158,365 | ' |
Award measurement period | ' | '1 year |
Equity-Based Performance Stock Units [Member] | Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock granted on achievement of performance goals | ' | 0.00% |
Equity-Based Performance Stock Units [Member] | Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock granted on achievement of performance goals | ' | 150.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective tax rate benefit | 9.40% | 6.40% | 7.90% | 5.10% |
Unrecognized tax benefits | $3 | ' | ' | ' |
Industry_Segments_Financial_In
Industry Segments - Financial Information by Industry Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Net sales by segment: | ' | ' | ' | ' |
Total consolidated net sales and net sales for reportable segments | $59,962 | $57,748 | $182,630 | $170,448 |
Segment profit (loss): | ' | ' | ' | ' |
Loss for reportable segments | -11,960 | -2,607 | -29,334 | -8,379 |
Other unallocated amounts: | ' | ' | ' | ' |
Corporate expenses | -1,516 | -1,787 | -5,069 | -5,175 |
Interest and other, net | 16 | 739 | 42 | 920 |
Loss before income taxes | -11,944 | -1,868 | -29,292 | -7,459 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment profit (loss): | ' | ' | ' | ' |
Loss for reportable segments | -10,444 | -820 | -24,265 | -3,204 |
Operating Segments [Member] | Semiconductor Equipment [Member] | ' | ' | ' | ' |
Net sales by segment: | ' | ' | ' | ' |
Total consolidated net sales and net sales for reportable segments | 52,403 | 47,002 | 160,326 | 139,279 |
Segment profit (loss): | ' | ' | ' | ' |
Loss for reportable segments | -9,391 | -1,006 | -18,857 | -2,345 |
Operating Segments [Member] | Microwave Communications [Member] | ' | ' | ' | ' |
Net sales by segment: | ' | ' | ' | ' |
Total consolidated net sales and net sales for reportable segments | 3,574 | 7,051 | 10,112 | 19,663 |
Segment profit (loss): | ' | ' | ' | ' |
Loss for reportable segments | -1,511 | 53 | -6,524 | -810 |
Operating Segments [Member] | Video Cameras [Member] | ' | ' | ' | ' |
Net sales by segment: | ' | ' | ' | ' |
Total consolidated net sales and net sales for reportable segments | 3,985 | 3,695 | 12,192 | 11,506 |
Segment profit (loss): | ' | ' | ' | ' |
Loss for reportable segments | $458 | $133 | $1,116 | ($49) |
Industry_Segments_Schedule_of_
Industry Segments - Schedule of Customer Concentration to Consolidated Net Sales (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Customer | Customer | Customer | Customer | |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Customers individually accounting for more than 10% of consolidated net sales | 1 | 1 | 1 | 1 |
Percentage of consolidated net sales | 17.00% | 39.00% | 18.00% | 41.00% |
Guarantees_Additional_Informat
Guarantees - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 |
Guarantees [Abstract] | ' |
Product warranty period | '12 to 36 months |
Maximum potential amount of future payments under standby letters of credit | $1 |
Guarantees_Changes_in_Accrued_
Guarantees - Changes in Accrued Warranty (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Product Warranties Disclosures [Abstract] | ' | ' | ' | ' | |
Balance at beginning of period | $5,811 | $6,134 | $4,692 | [1] | $6,801 |
Warranty expense accruals | 697 | 1,006 | 2,865 | 3,819 | |
Warranty payments | -1,402 | -1,540 | -4,268 | -5,020 | |
Warranty liability assumed | ' | ' | 1,817 | ' | |
Balance at end of period | $5,106 | $5,600 | $5,106 | $5,600 | |
[1] | Derived from December 29, 2012 audited financial statements |