Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 26, 2015shares | |
Entity Registrant Name | COHU INC |
Entity Central Index Key | 21,535 |
Trading Symbol | cohu |
Current Fiscal Year End Date | --12-26 |
Entity Filer Category | Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding (in shares) | 26,128,118 |
Document Type | 10-Q |
Document Period End Date | Sep. 26, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 89,260 | $ 70,885 | [1] |
Short-term investments | 1,467 | 1,155 | [1] |
Accounts receivable, net | 56,020 | 70,490 | [1] |
Inventories: | |||
Raw materials and purchased parts | 25,465 | 26,239 | [1] |
Work in process | 18,105 | 19,044 | [1] |
Finished goods | 7,300 | 3,917 | [1] |
Net inventory | 50,870 | 49,200 | [1] |
Refundable income taxes | 157 | 1,012 | [1] |
Deferred income taxes | 3,254 | 4,406 | [1] |
Other current assets | $ 5,667 | 7,351 | [1] |
Current assets of discontinued operations (Note 2) | 10,318 | [1] | |
Total current assets | $ 206,695 | 214,817 | [1] |
Property, plant and equipment, at cost: | |||
Land and land improvements | 11,442 | 11,762 | [1] |
Buildings and building improvements | 31,169 | 31,065 | [1] |
Machinery and equipment | 30,705 | 32,356 | [1] |
Net property, plant and equipment | 73,316 | 75,183 | [1] |
Less accumulated depreciation and amortization | (41,372) | (43,329) | [1] |
Net property, plant and equipment | 31,944 | 31,854 | [1] |
Goodwill | 60,860 | 63,132 | [1] |
Intangible assets, net | 27,367 | 33,087 | [1] |
Other assets | 5,620 | 5,928 | [1] |
Assets | 332,486 | 348,818 | [1] |
Current liabilities: | |||
Accounts payable | 25,848 | 25,119 | [1] |
Accrued compensation and benefits | 16,502 | 18,687 | [1] |
Accrued warranty | 3,991 | 4,846 | [1] |
Deferred profit | 5,732 | 6,941 | |
Income taxes payable | 4,960 | 3,133 | [1] |
Other accrued liabilities | $ 6,134 | 6,969 | [1] |
Current liabilities of discontinued operations (Note 2) | 2,783 | [1] | |
Total current liabilities | $ 63,167 | 68,478 | [1] |
Accrued retirement benefits | 14,793 | 13,180 | [1] |
Deferred income taxes | 9,793 | 11,062 | [1] |
Noncurrent income tax liabilities | 6,542 | 7,321 | [1] |
Other accrued liabilities | $ 1,865 | 1,003 | [1] |
Noncurrent liabilities of discontinued operations (Note 2) | $ 706 | [1] | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, $1 par value; 1,000 shares authorized, none issued | [1] | ||
Common stock, $1 par value; 60,000 shares authorized, 26,128 shares issued and outstanding in 2015 and 25,692 shares in 2014 | $ 26,128 | $ 25,692 | |
Paid-in capital | 102,922 | 97,938 | [1] |
Retained earnings | 127,777 | 134,152 | [1] |
Accumulated other comprehensive loss | (20,501) | (10,714) | |
Total stockholders' equity | 236,326 | 247,068 | [1] |
Total Liabilities and Stockholders Equity | $ 332,486 | $ 348,818 | |
[1] | Derived from December 27, 2014 audited financial statements |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 26, 2015 | Dec. 27, 2014 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 26,128,000 | 25,692,000 |
Common stock, shares outstanding (in shares) | 26,128,000 | 25,692,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Net sales | $ 67,512 | $ 91,573 | $ 206,170 | $ 226,042 |
Cost and expenses: | ||||
Cost of sales | 44,718 | 58,621 | 137,529 | 148,797 |
Research and development | 8,605 | 8,587 | 24,901 | 26,935 |
Selling, general and administrative | 11,923 | 12,358 | 38,006 | 38,218 |
Cost and expenses | 65,246 | 79,566 | 200,436 | 213,950 |
Income from operations | 2,266 | 12,007 | 5,734 | 12,092 |
Interest and other, net | 9 | 6 | 19 | 25 |
Income from continuing operations before taxes | 2,275 | 12,013 | 5,753 | 12,117 |
Income tax provision | 940 | 2,001 | 2,251 | 2,612 |
Income from continuing operations | 1,335 | 10,012 | 3,502 | 9,505 |
Loss from discontinued operations, net of tax (Note 2) | (222) | (2,493) | (5,201) | (1,171) |
Net income (loss) | $ 1,113 | $ 7,519 | $ (1,699) | $ 8,334 |
Basic: | ||||
Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.39 | $ 0.13 | $ 0.38 |
Loss from discontinued operations (in dollars per share) | (0.01) | (0.09) | (0.20) | (0.05) |
Net income (loss) (in dollars per share) | 0.04 | 0.30 | (0.07) | 0.33 |
Diluted: | ||||
Income from continuing operations (in dollars per share) | 0.05 | 0.38 | 0.13 | 0.37 |
Loss from discontinued operations (in dollars per share) | (0.01) | (0.09) | (0.19) | (0.05) |
Net income (loss) (in dollars per share) | $ 0.04 | $ 0.29 | $ (0.06) | $ 0.32 |
Weighted average shares used in computing Income (loss) per share: | ||||
Weighted average common shares (in shares) | 26,175 | 25,481 | 25,995 | 25,309 |
Diluted (in shares) | 26,796 | 26,174 | 26,679 | 25,698 |
Cash dividends declared per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Net income (loss) | $ 1,113 | $ 7,519 | $ (1,699) | $ 8,334 |
Other comprehensive loss, net of tax | ||||
Foreign currency translation adjustments | (4,221) | (8,537) | (9,754) | (8,632) |
Adjustments related to postretirement benefits | 99 | (92) | (33) | (172) |
Other comprehensive loss, net of tax | (4,122) | (8,629) | (9,787) | (8,804) |
Comprehensive loss | $ (3,009) | $ (1,110) | $ (11,486) | $ (470) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | ||
Broadcast Microwave Services, Inc. (“BMS”) [Member] | |||
Reconciliation of net income (loss) to net cash provided by operating activities: | |||
Gain (loss) on disposal of segment | $ 3,232,000 | ||
Cash flows from investing activities, excluding effects from divestitures: | |||
Cash received from sale of segment | $ 5,339,000 | ||
Cohu Electronics [Member] | |||
Reconciliation of net income (loss) to net cash provided by operating activities: | |||
Gain (loss) on disposal of segment | $ (4,133,000) | ||
Cash flows from investing activities, excluding effects from divestitures: | |||
Cash received from sale of segment | 9,886,000 | ||
Net income (loss) | $ (1,699,000) | 8,334,000 | |
Operating cash flows of discontinued operations | (1,039,000) | 3,377,000 | |
Depreciation and amortization | 8,533,000 | 9,659,000 | |
Share-based compensation expense | 5,081,000 | 4,633,000 | |
Deferred income taxes | (1,086,000) | $ (1,306,000) | |
Asset impairment charge | 279,000 | ||
Other accrued liabilities | 1,624,000 | $ (268,000) | |
Changes in other assets | (522,000) | ||
Accounts receivable | 12,860,000 | $ (30,593,000) | |
Inventories | (5,273,000) | (6,860,000) | |
Other current assets | 2,891,000 | 340,000 | |
Accounts payable | 2,219,000 | 8,642,000 | |
Deferred profit | (1,127,000) | 5,689,000 | |
Income taxes payable, including excess stock option exercise benefit | 1,804,000 | 1,168,000 | |
Accrued compensation, warranty and other liabilities | (3,217,000) | 6,337,000 | |
Net cash provided by operating activities | 24,560,000 | $ 5,019,000 | |
Purchases of short-term investments | (453,000) | ||
Purchases of property, plant and equipment | (3,687,000) | $ (1,226,000) | |
Sales and maturities of short-term investments | $ 155,000 | 45,000 | |
Changes in other assets | (62,000) | ||
Investing cash flows of discontinued operations | $ (74,000) | (21,000) | |
Net cash provided by investing activities | 1,280,000 | 8,622,000 | |
Cash flows from financing activities: | |||
Cash dividends paid | (4,648,000) | (4,535,000) | |
Issuance of stock, net of repurchases | 201,000 | 1,222,000 | |
Net cash used in financing activities | (4,447,000) | (3,313,000) | |
Effect of exchange rate changes on cash and cash equivalents | (3,018,000) | (1,418,000) | |
Net increase in cash and cash equivalents | 18,375,000 | 8,910,000 | |
Cash and cash equivalents at beginning of period | 70,885,000 | [1] | 51,668,000 |
Cash and cash equivalents at end of period | 89,260,000 | 60,578,000 | |
Supplemental disclosure of cash flow information: | |||
Cash paid (refunded) for income taxes | (414,000) | 976,000 | |
Inventory capitalized as property, plant and equipment | 220,000 | 1,059,000 | |
Dividends declared but not yet paid | 1,567,000 | $ 1,532,000 | |
Facility capitalized under build-to-suit lease | $ 682,000 | ||
[1] | Derived from December 27, 2014 audited financial statements |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 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 27, 2014 has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of September 26, 2015 (also referred to as “the third quarter of fiscal 2015” and “the first nine months of fiscal 2015”) and September 27, 2014 (also referred to as “the third quarter of fiscal 2014” and “the first nine months of fiscal 2014”) 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 26, 2015 and September 27, 2014 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 27, 2014, which are included in our 2014 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”. Certain prior-period amounts in our condensed consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have no effect on previously reported net income. 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. Discontinued Operations On June 10, 2015, we sold all of the outstanding stock of our mobile microwave communications equipment business, Broadcast Microwave Services, Inc. (“BMS”) and on June 6, 2014, we completed the sale of our video camera business, Cohu Electronics. The operating results of BMS and Cohu Electronics are being presented as discontinued operations and all prior period amounts have been reclassified accordingly. See Note 2, “Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations. 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 $0.1 million and $0.2 million at September 26, 2015 and December 27, 2014, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at September 26, 2015, 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 goodwill impairment test as of October 1st of each year. As of October 1, 2014, we concluded there was no impairment as the estimated fair value of our reporting unit exceeded its carrying values by approximately 35%. 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 asset’s carrying amount and estimated fair value. Foreign Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are translated using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are translated using historical exchange rates. Revenues and costs are translated using average exchange rates for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. Certain of our foreign subsidiaries have designated the local currency as their functional currency and, as a result, their assets and liabilities are translated at the rate of exchange at the balance sheet date, while revenue and expenses are translated using the average exchange rate for the period. During the three- and nine-month periods ended September 26, 2015, we recognized approximately $1.5 million and $1.1 million of foreign exchange gains in our consolidated statement of operations, respectively. During the three- and nine-month periods ended September 27, 2014, we recognized approximately $1.0 million and $0.9 million of foreign exchange gains in our consolidated statement of operations, respectively. Cumulative translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity. 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 26, September 27, September 26, September 27, 2015 2014 2015 2014 Cost of sales $ 100 $ 85 $ 413 $ 350 Research and development 256 453 841 1,364 Selling, general and administrative 1,281 1,047 3,827 2,919 Total share-based compensation 1,637 1,585 5,081 4,633 Income tax benefit (70 ) (60 ) (181 ) (157 ) Total share-based compensation, net $ 1,567 $ 1,525 $ 4,900 $ 4,476 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 (loss) 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 (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three and nine months ended September 26, 2015, options to issue approximately 857,000 and 912,000 shares of common stock were excluded from the computation, respectively. For the three and nine months ended September 27, 2014, options to issue approximately 1,346,000 and 1,953,000 shares of common stock were excluded from the computation, respectively. 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 26, September 27, September 26, September 27, 2015 2014 2015 2014 Weighted average common shares 26,175 25,481 25,995 25,309 Effect of dilutive stock options 621 693 684 389 26,796 26,174 26,679 25,698 Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. 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 27, 2014. 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 26, 2015, we had deferred revenue totaling approximately $8.6 million and deferred profit of $5.7 million. At December 27, 2014, we had deferred revenue totaling approximately $10.7 million and deferred profit of $6.9 million. The periodic increase is primarily a result of deferrals of revenue associated with product shipments made to our customers in accordance with our revenue recognition policy. A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information is as follows : Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Customers individually accounting for more than 10% of net sales two two one two Percentage of net sales 29% 26% 17% 27% Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $20.5 million and $10.7 million at September 26, 2015 and December 27, 2014, 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 of our subsidiary accounts where the functional currency is not the U.S. Dollar and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive income during the first nine months of fiscal 2015 and 2014 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 2015 and 2014 was not significant. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about an entity’s ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The Company does not believe that the adoption of this guidance will have any material impact on its financial position or results of operations. In April 2015, the FASB issued ASU 2015-04, “Compensation - Retirement Benefits (Subtopic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets.” This update provides a practical expedient that permits a company to measure defined benefit plan assets and obligations using the month-end date that is closest to the company's fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if the company has more than one plan. This ASU is effective prospectively for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory” (ASU 2015-11). ASU 2015-11 simplifies the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, in scope inventory should be measured at the lower of cost and net realizable value. The new standard is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We are evaluating the impact of the new standard on our consolidated financial statements and our timing for adoption. In September 2015, the FASB issued ASU 2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16). ASU 2015-16 requires an entity to: recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined; record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date; and present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new standard is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted for financial statements that have not been issued. We do not expect the new standard to have a significant impact on our consolidated financial statements upon adoption. |
Note 2 - Discontinued Operation
Note 2 - Discontinued Operations | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. Discontinued Operations In June 2015, we sold all of the outstanding stock of BMS for $8.0 million, comprised of a $5.5 million in cash and up to $2.5 million of contingent consideration. The sales price is subject to a working capital adjustment and, as a result, adjustments to the loss from sale reported below are possible. In June 2014, we sold substantially all the assets of our video camera business, Cohu Electronics for $9.5 million in cash and $0.5 million in contingent consideration. Our decision to sell these two non-core businesses resulted from management’s determination that they were no longer a strategic fit within our organization. As part of the divestiture of BMS we recorded a long-term contingent consideration receivable that has been classified as Level 3 in the fair value hierarchy. See Note 4, “Financial Instruments Measured at Fair Value” for additional information on the three-tier fair value hierarchy. The contingent consideration represents the estimated fair value of future payments we are due based on BMS achieving annual revenue targets in certain years as specified in the sale agreement. We determined the initial value of the contingent consideration by using the Monte Carlo simulation model and any future changes to the fair value of the contingent consideration will be recognized in earnings. Balance sheet information for BMS presented as discontinued operations is summarized as follows (in thousands) December 27, 2014 Assets: Accounts receivable, net $ 3,156 Inventories 6,345 Other current assets 817 Total assets $ 10,318 Liabilities: Deferred Profit $ 504 Other accrued current liabilities 2,279 Total current liabilities 2,783 Noncurrent liabilities 706 Total liabilities $ 3,489 Operating results of our discontinued operations is summarized as follows (in thousands) Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Net sales: Mobile microwave equipment segment $ - $ 2,868 $ 6,965 $ 11,113 Video camera segment - - - 5,460 $ - $ 2,868 $ 6,965 $ 16,573 Operating loss before income taxes: Mobile microwave equipment segment - (2,598 ) (1,963 ) (5,062 ) Video camera segment - - - (242 ) - (2,598 ) (1,963 ) (5,304 ) Loss from sale of BMS (222 ) - (3,232 ) - Gain from sale of Cohu Electronics - - - 4,133 Loss before taxes (222 ) (2,598 ) (5,195 ) (1,171 ) Income tax provision - (105 ) 6 - Loss, net of tax $ (222 ) $ (2,493 ) $ (5,201 ) $ (1,171 ) During the third quarter of 2015, we recognized $0.2 million in additional loss from the disposal of BMS resulting from current period adjustments to contingent consideration and working capital as referenced above. We are still working to finalize the final working capital adjustment and additional adjustments may be required. In connection with the disposal of our two business segments we incurred divestiture-related costs that would not have been incurred otherwise. These costs consist of legal and investment banking advisory services, success based compensation arrangements and certain other items that are incremental to normal operating charges and were expensed as incurred. These costs are included in the gain (loss) from sale amounts presented above. Divestiture-related costs associated with the sale of BMS incurred in the first six months of 2015 totaled $1.0 million and similar costs associated with the sale of Cohu Electronics incurred in the first six months of 2014 totaled $0.8 million. There were no divestiture-related costs incurred during the third quarter of 2015 or 2014. |
Note 3 - Goodwill and Other Pur
Note 3 - Goodwill and Other Purchased Intangible Assets | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 3. Goodwill and Other Purchased Intangible Assets Changes in the carrying value of goodwill during the year ended December 27, 2014 and the nine-month period ended September 26, 2015 were as follows ( in thousands Goodwill Balance, December 28, 2013 $ 67,983 Impact of currency exchange (4,851 ) Balance, December 27, 2014 63,132 Impact of currency exchange (2,272 ) Balance, September 26, 2015 $ 60,860 Purchased intangible assets, subject to amortization are as follows ( in thousands : September 26, 2015 December 27, 2014 Remaining Gross Carrying Accumulated Useful Life Gross Carrying Accumulated Amount Amortization (years) Amount Amortization Rasco technology $ 27,435 $ 23,388 1.3 $ 29,845 $ 22,616 Ismeca technology 27,248 9,540 5.3 27,014 6,879 $ 54,683 $ 32,928 $ 56,859 $ 29,495 Amortization expense related to intangible assets was approximately $1.7 million in the third quarter of fiscal 2015 and $5.3 million in the first nine months of fiscal 2015. Amortization expense related to intangible assets was approximately $2.0 million in the third quarter of fiscal 2014 and $6.0 million in the first nine months of fiscal 2014. The amounts included in the table above for the period ended September 26, 2015 exclude approximately $1.9 million and $3.7 million, for trade names of Rasco and Ismeca, respectively. For the period ended December 27, 2014 these amounts were approximately $2.1 million and $3.6 million for Rasco and Ismeca, respectively. Changes in the carrying values of these intangible assets are a result of the impact of fluctuations in currency exchange rates. Previously, it has been our determination that the Rasco and Ismeca trade names had an indefinite life. On September 24, 2015, we introduced a rebranding initiative and unveiled a new “Cohu” logo. The primary goal of the change was to improve the cohesiveness of our organization and come to the market as one brand. We review the assessment of indefinite life for our trade names each period to determine whether the indefinite life assumption continues to be supportable. If it is deemed unsupportable the change in useful life from indefinite to finite is made and amortization is recognized on a prospective basis. As a result of the rebranding initiative, we determined that the classification of the useful life of our trade names as indefinite was no longer appropriate based on our expectations of the future period over which they will provide economic benefit to Cohu. When an intangible asset that is not being amortized is subsequently determined to have a finite useful life there is a requirement for the asset to be tested for impairment in accordance with ASC 350, “Intangibles - Goodwill and Other”. We have completed an interim impairment assessment that indicates the fair value of the Rasco and Ismeca trade names, as of September 24, 2015, exceed their carrying values by 4% and 17%, respectively. We believe the assumptions used in the interim impairment analysis are reasonable. However, the analysis is sensitive to adverse changes in the assumptions used in the valuations. In particular, changes in the projected cash flows, discount rates, royalty rates and other market based assumptions could produce significantly different results for the impairment analysis which could result in future impairment charges. |
Note 4 - Financial Instruments
Note 4 - Financial Instruments Measured at Fair Value | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 4. Financial Instruments Measured at Fair Value Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. 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 26, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Foreign government security $ 465 $ - $ - $ 465 Bank certificates of deposit 1,002 - - 1,002 $ 1,467 $ - $ - $ 1,467 December 27, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ 155 $ - $ - $ 155 Bank certificates of deposit 1,000 - - 1,000 $ 1,155 $ - $ - $ 1,155 Effective maturities of short-term investments are as follows (in thousands) : September 26, 2015 December 27, 2014 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 1,467 $ 1,467 $ 1,155 $ 1,155 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 financial instruments 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 26, 2015 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 84,642 $ - $ - $ 84,642 Money market funds - 4,618 - 4,618 Bank certificates of deposit - 1,002 - 1,002 Foreign government security - 465 - 465 $ 84,642 $ 6,085 $ - $ 90,727 Fair value measurements at December 27, 2014 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 66,467 $ - $ - $ 66,467 Municipal securities - 155 - 155 Money market funds - 4,418 - 4,418 Bank certificates of deposit - 1,000 - 1,000 $ 66,467 $ 5,573 $ - $ 72,040 |
Note 5 - Employee Stock Benefit
Note 5 - Employee Stock Benefit Plans | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 5. Employee Stock Benefit Plans Our 2005 Equity Incentive Plan (the “2005 Plan”) is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. Awards that may be granted under the program include, but are not limited to, non-qualified and incentive stock options, restricted stock units, and performance-based stock units. We settle employee stock option exercises, employee stock purchase plan purchases, and the vesting of restricted stock units, and performance-based stock units with newly issued common shares. On May 12, 2015, our stockholders approved an amendment to the 2005 Plan which increased the number of shares that may be issued under the 2005 Plan by 1,500,000 shares. Subsequent to this amendment, at September 26, 2015, there were 2,257,363 shares available for future equity grants under the 2005 Equity Incentive Plan. Stock Options 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 and options generally vest and become exercisable after one year or in four annual increments beginning one year after the date of grant. Stock options granted under the program have a maximum contractual term of ten years. At September 26, 2015, we had 2,031,539 stock options outstanding. These options had a weighted-average exercise price of $11.20 per share, an aggregate intrinsic value of approximately $1.3 million and the weighted average remaining contractual term was approximately 4.7 years. At September 26, 2015, we had 1,720,111 stock options outstanding that were exercisable. These options had a weighted-average exercise price of $11.43 per share, an aggregate intrinsic value of $1.2 million and the weighted average remaining contractual term was approximately 4.2 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. In the nine months ended September 26, 2015 , we awarded restricted stock units covering 482,101 shares of our common stock to employees and at September 26, 2015, we had 1,097,429 restricted stock units outstanding with an aggregate intrinsic value of approximately $10.6 million and the weighted average remaining vesting period was approximately 1.4 years. Equity-Based Performance Stock Units In March 2012, we began granting equity-based performance units covering shares of our common stock to certain employees. The number of shares of stock ultimately issued will depend upon the extent to which certain financial performance goals set by our Board of Directors are met during the one-year award measurement period. Based upon the level of achievement of performance goals the number of shares we ultimately issue can range from 0% up to 150% of the number of shares under each grant which vest over 3 years from the date of initial grant. In 2014, we began awarding equity-based performance stock units to senior executives with vesting that is contingent on the level of achievement of certain performance goals, market return and continued service (“market-based PSUs”) and in 2015, the market-based PSUs granted are only subject to certain adjustments resulting from performance of Cohu’s Relative Total Shareholder Return (“TSR”) to a selected peer group over a two-year measurement period following the date of grant based on the percentage by which our TSR exceeds or falls below the selected peer group. Market-based PSUs earned will vest at the rate of 50% on the second and third anniversary of their grant. We estimated the fair value of market-based PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the measurement period of each vesting tranche based on our current assessment of achievement of the performance goals. New shares of our common stock will be issued on the date the equity-based performance units vest. In the nine months ended September 26, 2015 , we awarded 156,370 market-based performance stock units to senior executives, and at September 26, 2015, we had 376,374 PSUs and market based PSUs outstanding with an aggregate intrinsic value of approximately $3.6 million and the weighted average remaining vesting period was approximately 1.3 years. Employee Stock Purchase Plan (ESPP) 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. On May 12, 2015 our stockholders approved an amendment to the Plan which increased the number of shares that may be issued under the Plan by 750,000 shares. During the three-month period ended September 26, 2015, no shares of our common stock were sold to our employees under the Plan leaving 864,321 shares available for future issuance. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. 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 26, 2015 and September 27, 2014, we used the actual year-to-date ETR in computing our tax provision, as a reliable estimate of the annual ETR cannot be made, since relatively small changes in our projected income produce a significant variation in our ETR. The actual year-to-date ETR on income from continuing operations for the three months ended September 26, 2015 and September 27, 2014 , was 41.3% and 16.7%, respectively, and for the nine months ended September 26, 2015 and September 27, 2014 was 39.1% and 21.6%, respectively. The tax provision on income from continuing operations in 2015 and 2014 differs from the U.S. federal statutory rate primarily due to the lack of a provision (benefit) on our domestic income (losses) as a result of our valuation allowance on deferred tax assets, foreign income taxed at lower rates, changes in our deferred tax asset valuation allowance, state taxes and interest related to unrecognized tax benefits. Other than for foreign currency exchange rate changes, there was no material change to our unrecognized tax benefits and interest accrued related to unrecognized tax benefits during the three or nine month periods ended September 26, 2015 and September 27, 2014. |
Note 7 - Contingencies
Note 7 - Contingencies | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 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. 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 such matters will have a material adverse effect on our assets, financial position or results of operations. |
Note 8 - Guarantees and Obligat
Note 8 - Guarantees and Obligations | 9 Months Ended |
Sep. 26, 2015 | |
Notes to Financial Statements | |
Commitments Contingencies and Guarantees [Text Block] | 8. Guarantees and Other Obligations Product Warranty 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 26, September 27, September 26, September 27, 2015 2014 2015 2014 Balance at beginning of period $ 5,212 $ 4,244 $ 5,848 $ 4,673 Warranty expense accruals 1,867 1,590 5,062 3,832 Warranty payments (1,905 ) (1,152 ) (5,736 ) (3,823 ) Balance at end of period $ 5,174 $ 4,682 $ 5,174 $ 4,682 Accrued warranty amounts expected to be incurred after one year are included in non-current other accrued liabilities in the condensed consolidated balance sheet. These amounts total $1.2 million at September 26, 2015 and $1.0 million at December 27, 2014. Prior-period long-term accrued warranty amounts have been reclassified to a long term liability in the December 31, 2014 balance sheet to conform to the current period presentation. This reclassification had no effect on previously reported net income and is considered immaterial. Standby Letters of Credit 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 26, 2015, the maximum potential amount of future payments that Cohu could be required to make under these standby letters of credit was approximately $0.2 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. |
Note 9 - Facility Sale
Note 9 - Facility Sale | 9 Months Ended |
Sep. 26, 2015 | |
Poway Facility [Member] | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 9. Facility Sale On September 21, 2015, we entered into an agreement and opened escrow for the sale of our headquarters facility located in Poway, California (the "Poway Facility") for $34.3 million. The transaction is subject to completion of customary closing conditions and is expected to be completed in the fourth quarter of 2015. |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. Discontinued Operations In June 2015, we sold all of the outstanding stock of BMS for $8.0 million, comprised of a $5.5 million in cash and up to $2.5 million of contingent consideration. The sales price is subject to a working capital adjustment and, as a result, adjustments to the loss from sale reported below are possible. In June 2014, we sold substantially all the assets of our video camera business, Cohu Electronics for $9.5 million in cash and $0.5 million in contingent consideration. Our decision to sell these two non-core businesses resulted from management’s determination that they were no longer a strategic fit within our organization. As part of the divestiture of BMS we recorded a long-term contingent consideration receivable that has been classified as Level 3 in the fair value hierarchy. See Note 4, “Financial Instruments Measured at Fair Value” for additional information on the three-tier fair value hierarchy. The contingent consideration represents the estimated fair value of future payments we are due based on BMS achieving annual revenue targets in certain years as specified in the sale agreement. We determined the initial value of the contingent consideration by using the Monte Carlo simulation model and any future changes to the fair value of the contingent consideration will be recognized in earnings. Balance sheet information for BMS presented as discontinued operations is summarized as follows (in thousands) December 27, 2014 Assets: Accounts receivable, net $ 3,156 Inventories 6,345 Other current assets 817 Total assets $ 10,318 Liabilities: Deferred Profit $ 504 Other accrued current liabilities 2,279 Total current liabilities 2,783 Noncurrent liabilities 706 Total liabilities $ 3,489 Operating results of our discontinued operations is summarized as follows (in thousands) Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Net sales: Mobile microwave equipment segment $ - $ 2,868 $ 6,965 $ 11,113 Video camera segment - - - 5,460 $ - $ 2,868 $ 6,965 $ 16,573 Operating loss before income taxes: Mobile microwave equipment segment - (2,598 ) (1,963 ) (5,062 ) Video camera segment - - - (242 ) - (2,598 ) (1,963 ) (5,304 ) Loss from sale of BMS (222 ) - (3,232 ) - Gain from sale of Cohu Electronics - - - 4,133 Loss before taxes (222 ) (2,598 ) (5,195 ) (1,171 ) Income tax provision - (105 ) 6 - Loss, net of tax $ (222 ) $ (2,493 ) $ (5,201 ) $ (1,171 ) During the third quarter of 2015, we recognized $0.2 million in additional loss from the disposal of BMS resulting from current period adjustments to contingent consideration and working capital as referenced above. We are still working to finalize the final working capital adjustment and additional adjustments may be required. In connection with the disposal of our two business segments we incurred divestiture-related costs that would not have been incurred otherwise. These costs consist of legal and investment banking advisory services, success based compensation arrangements and certain other items that are incremental to normal operating charges and were expensed as incurred. These costs are included in the gain (loss) from sale amounts presented above. Divestiture-related costs associated with the sale of BMS incurred in the first six months of 2015 totaled $1.0 million and similar costs associated with the sale of Cohu Electronics incurred in the first six months of 2014 totaled $0.8 million. There were no divestiture-related costs incurred during the third quarter of 2015 or 2014. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 26, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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 27, 2014 has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of September 26, 2015 (also referred to as “the third quarter of fiscal 2015” and “the first nine months of fiscal 2015”) and September 27, 2014 (also referred to as “the third quarter of fiscal 2014” and “the first nine months of fiscal 2014”) 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 26, 2015 and September 27, 2014 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 27, 2014, which are included in our 2014 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”. Certain prior-period amounts in our condensed consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have no effect on previously reported net income. |
Risks and Uncertainties [Policy Text Block] | 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. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations On June 10, 2015, we sold all of the outstanding stock of our mobile microwave communications equipment business, Broadcast Microwave Services, Inc. (“BMS”) and on June 6, 2014, we completed the sale of our video camera business, Cohu Electronics. The operating results of BMS and Cohu Electronics are being presented as discontinued operations and all prior period amounts have been reclassified accordingly. See Note 2, “Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 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 $0.1 million and $0.2 million at September 26, 2015 and December 27, 2014, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at September 26, 2015, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding collectability. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | 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 goodwill impairment test as of October 1st of each year. As of October 1, 2014, we concluded there was no impairment as the estimated fair value of our reporting unit exceeded its carrying values by approximately 35%. 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 asset’s carrying amount and estimated fair value. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are translated using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are translated using historical exchange rates. Revenues and costs are translated using average exchange rates for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. Certain of our foreign subsidiaries have designated the local currency as their functional currency and, as a result, their assets and liabilities are translated at the rate of exchange at the balance sheet date, while revenue and expenses are translated using the average exchange rate for the period. During the three- and nine-month periods ended September 26, 2015, we recognized approximately $1.5 million and $1.1 million of foreign exchange gains in our consolidated statement of operations, respectively. During the three- and nine-month periods ended September 27, 2014, we recognized approximately $1.0 million and $0.9 million of foreign exchange gains in our consolidated statement of operations, respectively. Cumulative translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 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 26, September 27, September 26, September 27, 2015 2014 2015 2014 Cost of sales $ 100 $ 85 $ 413 $ 350 Research and development 256 453 841 1,364 Selling, general and administrative 1,282 1,048 3,828 2,920 Total share-based compensation 1,638 1,586 5,082 4,634 Income tax benefit (70 ) (60 ) (181 ) (157 ) Total share-based compensation, net $ 1,568 $ 1,526 $ 4,901 $ 4,477 |
Earnings Per Share, Policy [Policy Text Block] | 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 (loss) 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 (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three and nine months ended September 26, 2015, options to issue approximately 857,000 and 912,000 shares of common stock were excluded from the computation, respectively. For the three and nine months ended September 27, 2014, options to issue approximately 1,346,000 and 1,953,000 shares of common stock were excluded from the computation, respectively. 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 26, September 27, September 26, September 27, 2015 2014 2015 2014 Weighted average common shares 26,175 25,481 25,995 25,309 Effect of dilutive stock options 621 693 684 389 26,796 26,174 26,679 25,698 Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. |
Revenue Recognition, Policy [Policy Text Block] | 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 27, 2014. 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 26, 2015, we had deferred revenue totaling approximately $8.6 million and deferred profit of $5.7 million. At December 27, 2014, we had deferred revenue totaling approximately $10.7 million and deferred profit of $6.9 million. The periodic increase is primarily a result of deferrals of revenue associated with product shipments made to our customers in accordance with our revenue recognition policy. A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information is as follows : Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Customers individually accounting for more than 10% of net sales two two one two Percentage of net sales 29% 26% 17% 27% |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $20.5 million and $10.7 million at September 26, 2015 and December 27, 2014, 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 of our subsidiary accounts where the functional currency is not the U.S. Dollar and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive income during the first nine months of fiscal 2015 and 2014 were not significant. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | 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 2015 and 2014 was not significant. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about an entity’s ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The Company does not believe that the adoption of this guidance will have any material impact on its financial position or results of operations. In April 2015, the FASB issued ASU 2015-04, “Compensation - Retirement Benefits (Subtopic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets.” This update provides a practical expedient that permits a company to measure defined benefit plan assets and obligations using the month-end date that is closest to the company's fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if the company has more than one plan. This ASU is effective prospectively for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory” (ASU 2015-11). ASU 2015-11 simplifies the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, in scope inventory should be measured at the lower of cost and net realizable value. The new standard is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We are evaluating the impact of the new standard on our consolidated financial statements and our timing for adoption. In September 2015, the FASB issued ASU 2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16). ASU 2015-16 requires an entity to: recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined; record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date; and present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new standard is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted for financial statements that have not been issued. We do not expect the new standard to have a significant impact on our consolidated financial statements upon adoption. |
Note 1 - Summary of Significa17
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Cost of sales $ 100 $ 85 $ 413 $ 350 Research and development 256 453 841 1,364 Selling, general and administrative 1,281 1,047 3,827 2,919 Total share-based compensation 1,637 1,585 5,081 4,633 Income tax benefit (70 ) (60 ) (181 ) (157 ) Total share-based compensation, net $ 1,567 $ 1,525 $ 4,900 $ 4,476 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Weighted average common shares 26,175 25,481 25,995 25,309 Effect of dilutive stock options 621 693 684 389 26,796 26,174 26,679 25,698 |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Customers individually accounting for more than 10% of net sales two two one two Percentage of net sales 29% 26% 17% 27% |
Note 2 - Discontinued Operati18
Note 2 - Discontinued Operations (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Income Statement Information [Member] | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Net sales: Mobile microwave equipment segment $ - $ 2,868 $ 6,965 $ 11,113 Video camera segment - - - 5,460 $ - $ 2,868 $ 6,965 $ 16,573 Operating loss before income taxes: Mobile microwave equipment segment - (2,598 ) (1,963 ) (5,062 ) Video camera segment - - - (242 ) - (2,598 ) (1,963 ) (5,304 ) Loss from sale of BMS (222 ) - (3,232 ) - Gain from sale of Cohu Electronics - - - 4,133 Loss before taxes (222 ) (2,598 ) (5,195 ) (1,171 ) Income tax provision - (105 ) 6 - Loss, net of tax $ (222 ) $ (2,493 ) $ (5,201 ) $ (1,171 ) |
Balance Sheet Information [Member] | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | December 27, 2014 Assets: Accounts receivable, net $ 3,156 Inventories 6,345 Other current assets 817 Total assets $ 10,318 Liabilities: Deferred Profit $ 504 Other accrued current liabilities 2,279 Total current liabilities 2,783 Noncurrent liabilities 706 Total liabilities $ 3,489 |
Note 3 - Goodwill and Other P19
Note 3 - Goodwill and Other Purchased Intangible Assets (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Goodwill Balance, December 28, 2013 $ 67,983 Impact of currency exchange (4,851 ) Balance, December 27, 2014 63,132 Impact of currency exchange (2,272 ) Balance, September 26, 2015 $ 60,860 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 26, 2015 December 27, 2014 Remaining Gross Carrying Accumulated Useful Life Gross Carrying Accumulated Amount Amortization (years) Amount Amortization Rasco technology $ 27,435 $ 23,388 1.3 $ 29,845 $ 22,616 Ismeca technology 27,248 9,540 5.3 27,014 6,879 $ 54,683 $ 32,928 $ 56,859 $ 29,495 |
Note 4 - Financial Instrument20
Note 4 - Financial Instruments Measured at Fair Value (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | September 26, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Foreign government security $ 465 $ - $ - $ 465 Bank certificates of deposit 1,002 - - 1,002 $ 1,467 $ - $ - $ 1,467 December 27, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ 155 $ - $ - $ 155 Bank certificates of deposit 1,000 - - 1,000 $ 1,155 $ - $ - $ 1,155 |
Investments Classified by Contractual Maturity Date [Table Text Block] | September 26, 2015 December 27, 2014 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 1,467 $ 1,467 $ 1,155 $ 1,155 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair value measurements at September 26, 2015 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 84,642 $ - $ - $ 84,642 Money market funds - 4,618 - 4,618 Bank certificates of deposit - 1,002 - 1,002 Foreign government security - 465 - 465 $ 84,642 $ 6,085 $ - $ 90,727 Fair value measurements at December 27, 2014 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 66,467 $ - $ - $ 66,467 Municipal securities - 155 - 155 Money market funds - 4,418 - 4,418 Bank certificates of deposit - 1,000 - 1,000 $ 66,467 $ 5,573 $ - $ 72,040 |
Note 8 - Guarantees and Oblig21
Note 8 - Guarantees and Obligations (Tables) | 9 Months Ended |
Sep. 26, 2015 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, 2015 2014 2015 2014 Balance at beginning of period $ 5,212 $ 4,244 $ 5,848 $ 4,673 Warranty expense accruals 1,867 1,590 5,062 3,832 Warranty payments (1,905 ) (1,152 ) (5,736 ) (3,823 ) Balance at end of period $ 5,174 $ 4,682 $ 5,174 $ 4,682 |
Note 1 - Summary of Significa22
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Oct. 01, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Oct. 01, 2015 | Dec. 27, 2014 |
Semiconductor Equipment [Member] | |||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 35.00% | ||||||
Goodwill, Impairment Loss | $ 0 | ||||||
Allowance for Doubtful Accounts Receivable, Current | $ 100,000 | $ 100,000 | $ 200,000 | ||||
Foreign Currency Transaction Gain (Loss), Realized | $ 1,500,000 | $ 1,000,000 | $ 1,100,000 | $ 900,000 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 857,000 | 1,346,000 | 912,000 | 1,953,000 | |||
Deferred Revenue | $ 8,600,000 | $ 8,600,000 | 10,700,000 | ||||
Deferred Profit | 5,732,000 | 5,732,000 | 6,941,000 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (20,501,000) | $ (20,501,000) | $ (10,714,000) |
Note 1 - Summary of Significa23
Note 1 - Summary of Significant Accounting Policies - Schedule of Reported Share-based Compensation in Condensed Consolidated Interim Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Cost of Sales [Member] | ||||
Allocated share-based compensation | $ 100 | $ 85 | $ 413 | $ 350 |
Research and Development Expense [Member] | ||||
Allocated share-based compensation | 256 | 453 | 841 | 1,364 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated share-based compensation | 1,281 | 1,047 | 3,827 | 2,919 |
Allocated share-based compensation | 1,637 | 1,585 | 5,081 | 4,633 |
Income tax benefit | (70) | (60) | (181) | (157) |
Total share-based compensation, net | $ 1,567 | $ 1,525 | $ 4,900 | $ 4,476 |
Note 1 - Summary of Significa24
Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Weighted average common shares (in shares) | 26,175 | 25,481 | 25,995 | 25,309 |
Effect of dilutive stock options (in shares) | 621 | 693 | 684 | 389 |
(in shares) | 26,796 | 26,174 | 26,679 | 25,698 |
Note 1 - Summary of Significa25
Note 1 - Summary of Significant Accounting Policies - Schedule of Customer Concentration to Consolidated Net Sales (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Customers individually accounting for more than 10% of net sales | 2 | 2 | 1 | 2 |
Percentage of net sales | 29.00% | 26.00% | 17.00% | 27.00% |
Note 2 - Discontinued Operati26
Note 2 - Discontinued Operations (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Sep. 26, 2015USD ($) | Sep. 27, 2014USD ($) | Jun. 28, 2014USD ($) | Sep. 26, 2015USD ($) | Sep. 27, 2014USD ($) | |
Divestiture-related Costs [Member] | Broadcast Microwave Services, Inc. (“BMS”) and Cohu Electronics [Member] | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | ||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 0 | ||||||
Divestiture-related Costs [Member] | Cohu Electronics [Member] | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | $ (800,000) | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | 800,000 | |||||
Divestiture-related Costs [Member] | Broadcast Microwave Services, Inc. (“BMS”) [Member] | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (1,000,000) | ||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 1,000,000 | ||||||
Contingent Consideration [Member] | Broadcast Microwave Services, Inc. (“BMS”) and Cohu Electronics [Member] | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 200,000 | ||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (200,000) | ||||||
Broadcast Microwave Services, Inc. (“BMS”) and Cohu Electronics [Member] | |||||||
Number of Non-core Business Segments Sold | 2 | ||||||
Cohu Electronics [Member] | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 4,133,000 | ||||||
Proceeds from Divestiture of Businesses | $ 9,500,000 | 9,886,000 | |||||
Disposal Group, Including Discontinued Operation, Contingent Consideration | $ 500,000 | $ 500,000 | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (4,133,000) | ||||||
Broadcast Microwave Services, Inc. (“BMS”) [Member] | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (222,000) | $ (3,232,000) | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 8,000,000 | ||||||
Proceeds from Divestiture of Businesses | 5,500,000 | 5,339,000 | |||||
Disposal Group, Including Discontinued Operation, Contingent Consideration | $ 2,500,000 | ||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 222,000 | 3,232,000 | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (222,000) | $ (2,598,000) | (5,195,000) | $ (1,171,000) | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 222,000 | $ 2,598,000 | $ 5,195,000 | $ 1,171,000 |
Note 2 - Discontinued Operati27
Note 2 - Discontinued Operations - Balance Sheet Information for Discontinued Operations (Details) $ in Thousands | Dec. 27, 2014USD ($) | |
Broadcast Microwave Services, Inc. (“BMS”) [Member] | ||
Assets: | ||
Accounts receivable, net | $ 3,156 | |
Inventories | 6,345 | |
Other current assets | 817 | |
Total assets | 10,318 | |
Liabilities: | ||
Deferred Profit | 504 | |
Other accrued current liabilities | 2,279 | |
Total current liabilities | 2,783 | |
Noncurrent liabilities | 706 | |
Total liabilities | 3,489 | |
Total current liabilities | 2,783 | [1] |
Noncurrent liabilities | $ 706 | [1] |
[1] | Derived from December 27, 2014 audited financial statements |
Note 2 - Discontinued Operati28
Note 2 - Discontinued Operations - Summary of Operating Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Broadcast Microwave Services, Inc. (“BMS”) [Member] | ||||
Net sales | $ 2,868 | $ 6,965 | $ 11,113 | |
Operating loss before income taxes | $ (2,598) | (1,963) | $ (5,062) | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (222) | $ (3,232) | ||
Cohu Electronics [Member] | ||||
Net sales | $ 5,460 | |||
Operating loss before income taxes | (242) | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 4,133 | |||
Net sales | $ 2,868 | $ 6,965 | 16,573 | |
Operating loss before income taxes | (2,598) | (1,963) | (5,304) | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (222) | (2,598) | (5,195) | $ (1,171) |
Income tax provision | (105) | 6 | ||
Loss, net of tax | $ (222) | $ (2,493) | $ (5,201) | $ (1,171) |
Note 3 - Goodwill and Other P29
Note 3 - Goodwill and Other Purchased Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | Dec. 27, 2014 | |
Rasco Technology [Member] | Trade Names [Member] | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 1.9 | $ 1.9 | $ 2.1 | ||
Intangible Assets, Percentage of Fair Value in Excess of Carrying Amount | 4.00% | 4.00% | |||
Ismeca Semiconductor Holding Sa [Member] | Trade Names [Member] | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 3.7 | $ 3.7 | $ 3.6 | ||
Intangible Assets, Percentage of Fair Value in Excess of Carrying Amount | 17.00% | 17.00% | |||
Amortization of Intangible Assets | $ 1.7 | $ 2 | $ 5.3 | $ 6 |
Note 3 - Goodwill and Other P30
Note 3 - Goodwill and Other Purchased Intangible Assets - Changes in Carrying Value of Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 26, 2015 | Dec. 27, 2014 | |||
Semiconductor Equipment [Member] | ||||
Balance | $ 63,132 | $ 67,983 | ||
Impact of currency exchange | (2,272) | (4,851) | ||
Balance | 60,860 | 63,132 | ||
Balance | [1] | 63,132 | ||
Balance | $ 60,860 | $ 63,132 | [1] | |
[1] | Derived from December 27, 2014 audited financial statements |
Note 3 - Goodwill and Other P31
Note 3 - Goodwill and Other Purchased Intangible Assets - Purchased Intangible Assets, Subject to Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2015 | Dec. 27, 2014 | |
Rasco Technology [Member] | ||
Intangible assets, gross | $ 27,435 | $ 29,845 |
Intangible assets, accumulated amortization | $ 23,388 | 22,616 |
Intangible assets, useful life | 1 year 109 days | |
Ismeca Technology [Member] | ||
Intangible assets, gross | $ 27,248 | 27,014 |
Intangible assets, accumulated amortization | $ 9,540 | 6,879 |
Intangible assets, useful life | 5 years 109 days | |
Intangible assets, gross | $ 54,683 | 56,859 |
Intangible assets, accumulated amortization | $ 32,928 | $ 29,495 |
Note 4 - Financial Instrument32
Note 4 - Financial Instruments Measured at Fair Value - Short-Term Investments by Security Type (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 | |
Foreign Government Debt Securities [Member] | |||
Investments, Amortized Cost | $ 465 | ||
Investments, Estimated Fair Value | 465 | ||
Municipal Bonds [Member] | |||
Investments, Amortized Cost | $ 155 | ||
Investments, Estimated Fair Value | 155 | ||
Certificates of Deposit [Member] | |||
Investments, Amortized Cost | 1,002 | 1,000 | |
Investments, Estimated Fair Value | 1,002 | 1,000 | |
Investments, Amortized Cost | 1,467 | 1,155 | |
Investments, Estimated Fair Value | $ 1,467 | $ 1,155 | [1] |
[1] | Derived from December 27, 2014 audited financial statements |
Note 4 - Financial Instrument33
Note 4 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-Term Investments (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 |
Amortized cost | $ 1,467 | $ 1,155 |
Estimated fair value | $ 1,467 | $ 1,155 |
Note 4 - Financial Instrument34
Note 4 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 26, 2015 | Dec. 27, 2014 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | $ 84,642 | $ 66,467 |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Cash [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Cash [Member] | ||
Assets | $ 84,642 | $ 66,467 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | $ 4,618 | $ 4,418 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Money Market Funds [Member] | ||
Assets | $ 4,618 | $ 4,418 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | $ 1,002 | $ 1,000 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Certificates of Deposit [Member] | ||
Assets | $ 1,002 | $ 1,000 |
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ||
Assets | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Corporate Debt Securities [Member] | ||
Assets | ||
Fair Value, Inputs, Level 1 [Member] | ||
Assets | $ 84,642 | $ 66,467 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Assets | 155 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Corporate Debt Securities [Member] | ||
Assets | 465 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | $ 6,085 | $ 5,573 |
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ||
Assets | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Corporate Debt Securities [Member] | ||
Assets | ||
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Municipal Bonds [Member] | ||
Assets | $ 155 | |
Foreign Corporate Debt Securities [Member] | ||
Assets | $ 465 | |
Assets | $ 90,727 | $ 72,040 |
Note 5 - Employee Stock Benef35
Note 5 - Employee Stock Benefit Plans (Details Textual) - USD ($) $ / shares in Units, $ in Millions | May. 13, 2015 | May. 12, 2015 | Sep. 26, 2015 |
Employee Stock Purchase Plan [Member] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 750,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 864,321 | ||
Two Thousand Five Equity Incentive Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,257,363 | ||
Minimum [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Minimum [Member] | Equity Based Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 0.00% | ||
Maximum [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Maximum [Member] | Equity Based Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 150.00% | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,031,539 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 11.20 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1.3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 255 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,720,111 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 11.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 1.2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 73 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 10.6 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 482,101 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,097,429 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 146 days | ||
Equity Based Performance Stock Units [Member] | Vest on Second and Third Anniversary Grant Date [Member] | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Equity Based Performance Stock Units [Member] | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 156,370 | ||
Equity Based Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 3.6 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 376,374 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 109 days | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Effective Income Tax Rate Reconciliation, Percent | 41.30% | 16.70% | 39.10% | 21.60% |
Note 8 - Guarantees and Oblig37
Note 8 - Guarantees and Obligations (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 26, 2015 | Dec. 27, 2014 | |
Minimum [Member] | ||
Standard Product Warranty Term | 1 year | |
Maximum [Member] | ||
Standard Product Warranty Term | 3 years | |
Non-current Other Accrued Liabilities [Member] | ||
Product Warranty Accrual, Noncurrent | $ 1,200,000 | |
Guarantor Obligations, Current Carrying Value | 0 | |
Product Warranty Accrual, Noncurrent | $ 1,000,000 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 200,000 |
Note 8 - Guarantees - Changes i
Note 8 - Guarantees - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2015 | Sep. 27, 2014 | Sep. 26, 2015 | Sep. 27, 2014 | |
Balance at beginning of period | $ 5,212 | $ 4,244 | $ 5,848 | $ 4,673 |
Warranty expense accruals | 1,867 | 1,590 | 5,062 | 3,832 |
Warranty payments | (1,905) | (1,152) | (5,736) | (3,823) |
Balance at end of period | $ 5,174 | $ 4,682 | $ 5,174 | $ 4,682 |
Note 9 - Facility Sale (Details
Note 9 - Facility Sale (Details Textual) $ in Millions | Sep. 21, 2015USD ($) |
Poway Facility [Member] | |
Disposal Group, Not Discontinued Operation, Consideration | $ 34.3 |