Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 26, 2020 | Oct. 28, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000021535 | |
Entity Registrant Name | COHU INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-26 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 26, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-04298 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-1934119 | |
Entity Address, Address Line One | 12367 Crosthwaite Circle | |
Entity Address, City or Town | Poway | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92064-6817 | |
City Area Code | 858 | |
Local Phone Number | 848-8100 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | COHU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,965,802 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 169,926 | $ 155,194 | |
Short-term investments | 949 | 904 | |
Accounts receivable, net | 116,805 | 127,921 | |
Inventories | 137,879 | 130,706 | |
Assets held for sale | 0 | 827 | |
Prepaid expenses | 17,986 | 17,483 | |
Other current assets | 1,273 | 3,158 | |
Current assets of discontinued operations (Note 10) | 0 | 3,503 | |
Total current assets | 444,818 | 439,696 | |
Property, plant and equipment, net | 64,546 | 70,912 | |
Goodwill | 244,341 | 238,669 | |
Intangible assets, net | 238,832 | 275,019 | |
Other assets | 23,717 | 20,030 | |
Operating lease right of use assets | 30,099 | 33,269 | |
Noncurrent assets of discontinued operations (Note 10) | 0 | 115 | |
Assets, Total | 1,046,353 | 1,077,710 | |
Current liabilities: | |||
Short-term borrowings | 5,209 | 3,195 | |
Current installments of long-term debt | 2,990 | 3,322 | |
Accounts payable | 49,366 | 48,697 | |
Customer advances | 11,116 | 12,160 | |
Accrued compensation and benefits | 32,524 | 23,741 | |
Deferred profit | 11,859 | 7,645 | |
Accrued warranty | 5,674 | 5,893 | |
Income taxes payable | 4,795 | 3,894 | |
Other accrued liabilities | 23,370 | 39,739 | |
Current liabilities of discontinued operations (Note 10) | 0 | 599 | |
Total current liabilities | 146,903 | 148,885 | |
Accrued retirement benefits | 22,909 | 21,930 | |
Deferred income taxes | 28,842 | 31,310 | |
Noncurrent income tax liabilities | 6,966 | 8,438 | |
Long-term debt | 331,469 | 346,518 | |
Long-term lease liabilities | 26,532 | 28,877 | |
Other accrued liabilities | 8,123 | 8,656 | |
Noncurrent liabilities of discontinued operations (Note 10) | 0 | 24 | |
Stockholders' equity: | |||
Preferred stock, $1 par value; 1,000 shares authorized, none issued | 0 | 0 | |
Common stock, $1 par value; 60,000 shares authorized, 41,962 shares issued and outstanding in 2020 and 41,395 shares in 2019 | 41,962 | 41,395 | |
Paid-in capital | 442,648 | 433,190 | |
Retained earnings | 11,369 | 42,517 | |
Accumulated other comprehensive loss | (21,370) | (34,030) | |
Total stockholders’ equity | 474,609 | 483,072 | |
Liabilities and Equity, Total | $ 1,046,353 | $ 1,077,710 | |
[1] | Derived from December 28, 2019 audited financial statements |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | [1] |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 | |
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 | 60,000 | |
Common stock, shares issued (in shares) | 41,962 | 41,395 | |
Common stock, shares outstanding (in shares) | 41,962 | 41,395 | |
[1] | Derived from December 28, 2019 audited financial statements |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | ||
Net sales | $ 150,647 | $ 143,498 | $ 433,652 | $ 441,318 | |
Cost and expenses: | |||||
Cost of sales (1) | [1] | 87,147 | 84,565 | 253,111 | 265,564 |
Research and development | 20,497 | 20,483 | 63,389 | 65,324 | |
Selling, general and administrative | 31,336 | 33,690 | 95,664 | 108,404 | |
Amortization of purchased intangible assets | 9,783 | 9,969 | 28,848 | 29,975 | |
Restructuring charges | 412 | 814 | 1,400 | 10,720 | |
Impairment charges related to indefinite lived intangibles | 7,300 | 0 | 11,249 | 0 | |
Gain on sale of facilities | (4,468) | 0 | (4,495) | 0 | |
Costs and Expenses, Total | 152,007 | 149,521 | 449,166 | 479,987 | |
Loss from operations | (1,360) | (6,023) | (15,514) | (38,669) | |
Other (expense) income: | |||||
Interest expense | (3,021) | (5,000) | (10,904) | (15,789) | |
Interest income | 42 | 190 | 210 | 603 | |
Foreign transaction gain (loss) | (1,484) | 1,630 | (2,528) | 1,302 | |
Gain on extinguishment of debt | 293 | 0 | 293 | 0 | |
Loss from continuing operations before taxes | (5,530) | (9,203) | (28,443) | (52,553) | |
Income tax provision | 1,116 | 1,277 | 261 | 161 | |
Loss from continuing operations | (6,646) | (10,480) | (28,704) | (52,714) | |
Income from discontinued operations | 0 | 154 | 42 | 342 | |
Net loss | (6,646) | (10,326) | (28,662) | (52,372) | |
Net income attributable to noncontrolling interest | 0 | 142 | 0 | 62 | |
Net loss attributable to Cohu | $ (6,646) | $ (10,468) | $ (28,662) | $ (52,434) | |
Basic: | |||||
Loss from continuing operations before noncontrolling interest (in dollars per share) | $ (0.16) | $ (0.25) | $ (0.69) | $ (1.28) | |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income attributable to noncontrolling interest (in dollars per share) | 0 | 0 | 0 | 0 | |
Net loss attributable to Cohu (in dollars per share) | (0.16) | (0.25) | (0.69) | (1.28) | |
Diluted: | |||||
Loss from continuing operations before noncontrolling interest (in dollars per share) | (0.16) | (0.25) | (0.69) | (1.28) | |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income attributable to noncontrolling interest (in dollars per share) | 0 | 0 | 0 | 0 | |
Net loss attributable to Cohu (in dollars per share) | $ (0.16) | $ (0.25) | $ (0.69) | $ (1.28) | |
Weighted average shares used in computing loss per share: | |||||
Basic (in shares) | 41,947 | 41,229 | 41,764 | 41,075 | |
Diluted (in shares) | 41,947 | 41,229 | 41,764 | 41,075 | |
Cash dividends declared per share (in dollars per share) | $ 0 | $ 0.06 | $ 0.06 | $ 0.18 | |
[1] | Excludes amortization of $7,447 and $7,597 for the three months ended September 26, 2020 and September 28, 2019, respectively, and $21,969 and $22,863 for the nine months ended September 26, 2020 and September 28, 2019, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Amortization of cost | $ 7,447 | $ 7,597 | $ 21,969 | $ 22,863 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Net loss | $ (6,646) | $ (10,326) | $ (28,662) | $ (52,372) |
Net income attributable to noncontrolling interest | 0 | 142 | 0 | 62 |
Net loss attributable to Cohu | (6,646) | (10,468) | (28,662) | (52,434) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 11,692 | (13,276) | 12,660 | (14,854) |
Adjustments related to postretirement benefits | 0 | 35 | 0 | 470 |
Other comprehensive income (loss), net of tax | 11,692 | (13,241) | 12,660 | (14,384) |
Other comprehensive loss attributable to noncontrolling interest | 0 | 0 | 0 | (4) |
Other comprehensive income (loss) attributable to Cohu | 11,692 | (13,241) | 12,660 | (14,380) |
Comprehensive income (loss) | 5,046 | (23,567) | (16,002) | (66,756) |
Comprehensive income attributable to noncontrolling interest | 0 | 142 | 0 | 58 |
Comprehensive income (loss) attributable to Cohu | $ 5,046 | $ (23,709) | $ (16,002) | $ (66,814) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | |
Balance (Accounting Standards Update 2016-02 [Member]) at Dec. 29, 2018 | [1] | $ 0 | $ 0 | $ 10,352 | $ 0 | $ 0 | $ 10,352 | ||||||
Balance at Dec. 29, 2018 | $ 40,763 | $ 419,690 | $ 111,670 | $ (25,880) | $ (299) | $ 545,944 | |||||||
Net income (loss) | 0 | 0 | (52,372) | 0 | 0 | (52,372) | |||||||
Changes in cumulative translation adjustment | 0 | 0 | 0 | (14,854) | |||||||||
Changes in cumulative translation adjustment, attributable to parent | (14,850) | (14,854) | |||||||||||
Changes in cumulative translation adjustment, attributable to non-controlling interest | (4) | ||||||||||||
Exercise of stock options | 37 | 293 | 0 | 0 | 0 | 330 | |||||||
Shares issued for restricted stock units vested | 597 | (597) | 0 | 0 | 0 | 0 | |||||||
Repurchase and retirement of stock | (196) | (2,562) | 0 | 0 | 0 | (2,758) | |||||||
Share-based compensation expense | 0 | 10,861 | 0 | 0 | 0 | 10,861 | |||||||
Cash dividends | 0 | 0 | (7,383) | 0 | 0 | (7,383) | |||||||
Shares issued under ESPP | 64 | 743 | 0 | 0 | 0 | 807 | |||||||
Adjustments related to postretirement benefits, net of tax | 0 | 0 | 0 | 470 | 0 | 470 | |||||||
Noncontrolling interest | 0 | 0 | 53 | 0 | (53) | 0 | |||||||
Balance at Sep. 28, 2019 | 41,265 | 428,428 | 62,320 | (40,260) | (356) | 491,397 | |||||||
Balance at Jun. 29, 2019 | 41,100 | 425,609 | 75,115 | (27,019) | (356) | 514,449 | |||||||
Net income (loss) | 0 | 0 | (10,326) | 0 | 0 | (10,326) | |||||||
Changes in cumulative translation adjustment | 0 | 0 | 0 | (13,276) | |||||||||
Changes in cumulative translation adjustment, attributable to parent | (13,276) | (13,276) | |||||||||||
Changes in cumulative translation adjustment, attributable to non-controlling interest | 0 | ||||||||||||
Exercise of stock options | 22 | 186 | 0 | 0 | 0 | 208 | |||||||
Shares issued for restricted stock units vested | 203 | (203) | 0 | 0 | 0 | 0 | |||||||
Repurchase and retirement of stock | (60) | (670) | 0 | 0 | 0 | (730) | |||||||
Share-based compensation expense | 0 | 3,506 | 0 | 0 | 0 | 3,506 | |||||||
Cash dividends | 0 | 0 | (2,469) | 0 | 0 | (2,469) | |||||||
Adjustments related to postretirement benefits, net of tax | 0 | 0 | 0 | 35 | 0 | 35 | |||||||
Balance at Sep. 28, 2019 | 41,265 | 428,428 | 62,320 | (40,260) | (356) | 491,397 | |||||||
Balance at Dec. 28, 2019 | 41,395 | 433,190 | 42,517 | (34,030) | 0 | 483,072 | |||||||
Net income (loss) | 0 | 0 | (28,662) | 0 | 0 | (28,662) | |||||||
Changes in cumulative translation adjustment | 0 | 0 | 0 | 12,660 | |||||||||
Changes in cumulative translation adjustment, attributable to parent | 12,660 | 12,660 | |||||||||||
Changes in cumulative translation adjustment, attributable to non-controlling interest | 0 | ||||||||||||
Exercise of stock options | 28 | 347 | 0 | 0 | 0 | 375 | |||||||
Shares issued for restricted stock units vested | 614 | (614) | 0 | 0 | 0 | 0 | |||||||
Repurchase and retirement of stock | (189) | (2,076) | 0 | 0 | 0 | (2,265) | |||||||
Share-based compensation expense | 0 | 10,313 | 0 | 0 | 0 | 10,313 | |||||||
Cash dividends | 0 | 0 | (2,486) | 0 | 0 | (2,486) | |||||||
Shares issued under ESPP | 114 | 1,488 | 0 | 0 | 0 | 1,602 | |||||||
Adjustments related to postretirement benefits, net of tax | 0 | ||||||||||||
Balance at Sep. 26, 2020 | 41,962 | 442,648 | 11,369 | (21,370) | 0 | 474,609 | |||||||
Balance at Jun. 27, 2020 | 41,862 | 439,943 | 18,015 | (33,062) | 0 | 466,758 | |||||||
Net income (loss) | 0 | 0 | (6,646) | 0 | 0 | (6,646) | |||||||
Changes in cumulative translation adjustment | 0 | 0 | 0 | 11,692 | |||||||||
Changes in cumulative translation adjustment, attributable to parent | 11,692 | 11,692 | |||||||||||
Changes in cumulative translation adjustment, attributable to non-controlling interest | 0 | ||||||||||||
Exercise of stock options | 6 | 80 | 0 | 0 | 0 | 86 | |||||||
Shares issued for restricted stock units vested | 127 | (127) | 0 | 0 | 0 | 0 | |||||||
Repurchase and retirement of stock | (33) | (547) | 0 | 0 | 0 | (580) | |||||||
Share-based compensation expense | 0 | 3,299 | 0 | 0 | 0 | 3,299 | |||||||
Adjustments related to postretirement benefits, net of tax | 0 | ||||||||||||
Balance at Sep. 26, 2020 | $ 41,962 | $ 442,648 | $ 11,369 | $ (21,370) | $ 0 | $ 474,609 | |||||||
[1] | Cumulative effect of accounting change relates to our adoption of ASU 2016-02. Please refer to Note 1 of the Condensed Consolidated Financial Statements for further detail on the adoption of this accounting standard. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Cash dividend, per share (in dollars per share) | $ 0 | $ 0.06 | $ 0.06 | $ 0.18 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Cash flows from operating activities: | ||
Net loss attributable to Cohu | $ (28,662) | $ (52,434) |
Net income attributable to noncontrolling interest | 0 | 62 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Gain on disposal of discontinued operation | (35) | 0 |
Gain on extinguishment of debt | (293) | 0 |
Impairment charges related to indefinite lived intangibles | 11,249 | 0 |
Gain from sale of property, plant and equipment | (4,328) | (350) |
Depreciation and amortization | 39,283 | 45,353 |
Share-based compensation expense | 10,313 | 10,861 |
Amortization of inventory step-up and inventory related charges | 4,281 | 5,939 |
Deferred income taxes | (5,194) | (7,698) |
Increase in accrued retiree medical benefits | 757 | 281 |
Changes in other accrued liabilities | (601) | 3,999 |
Changes in other assets | 144 | (2,853) |
Amortization of cloud-based software implementation costs | 830 | 0 |
Interest capitalized associated with cloud computing implementation | (95) | (68) |
Amortization of debt discounts and issuance costs | 892 | 826 |
Changes in assets and liabilities: | ||
Customer advances | (988) | 1,480 |
Accounts receivable | 13,028 | 21,757 |
Inventories | (11,399) | (660) |
Other current assets | 2,241 | (7,304) |
Accounts payable | (3,475) | (2,804) |
Deferred profit | 4,170 | 1,096 |
Income taxes payable | (1,245) | (3,747) |
Accrued compensation, warranty and other liabilities | (2,631) | (10,298) |
Operating lease right-of-use assets | 5,237 | 0 |
Current and long-term operating lease liabilities | (5,459) | 0 |
Net cash provided by operating activities | 28,020 | 3,438 |
Cash flows from investing activities: | ||
Net cash received from sale of fixtures services business | 2,975 | 0 |
Cash received from sale of property, plant and equipment | 16,982 | 1,519 |
Purchases of property, plant and equipment | (13,559) | (13,347) |
Net cash provided by (used in) investing activities | 6,398 | (11,828) |
Cash flows from financing activities: | ||
Cash dividends paid | (4,971) | (7,359) |
Repurchases of common stock, net | (220) | (1,212) |
Proceeds from revolving line of credit and construction loans | 5,878 | 3,720 |
Repayments of long-term debt | (20,246) | (3,598) |
Net cash used in financing activities | (19,559) | (8,449) |
Effect of exchange rate changes on cash and cash equivalents | (863) | (1,812) |
Net increase (decrease) in cash and cash equivalents | 13,996 | (18,651) |
Cash and cash equivalents including discontinued operations at beginning of period | 155,930 | 164,921 |
Cash and cash equivalents including discontinued operations at end of period | 169,926 | 146,270 |
Cash held by discontinued operations at end of period | 0 | (1,176) |
Cash and cash equivalents from continuing operations at end of period | 169,926 | 145,094 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 5,122 | 13,275 |
Inventory capitalized as property, plant and equipment | 827 | 261 |
Dividends declared but not yet paid | 0 | 2,468 |
Property, plant and equipment purchases included in accounts payable | 1,635 | 853 |
Capitalized cloud computing service costs included in accounts payable | 1,923 | 2,185 |
Cash paid for interest | $ 13,615 | $ 14,820 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 26, 2020 | |
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 53 December. December 28, 2019, September 26, 2020, ( third 2020” first nine 2020” September 28, 2019, ( third 2019” first nine 2019” three nine September 26, 2020 September 28, 2019, 13 39 Our interim results are not September 26, 2020 nine September 26, 2020. December 28, 2019, 2019 10 On December 28, 2019, no no All significant consolidated transitions and balances have been eliminated in consolidation. Reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no 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 We adopted ASU 2016 13 , Financial Instruments-Credit Losses (Topic 326 December 29, 2019 first 2020. not 326 September 26, 2020 December 28, 2019. September 26, 2020, 19 may Inventories Inventories are stated at the lower of cost, determined on a first first Inventories by category were as follows ( in thousands September 26, December 28, 2020 2019 Raw materials and purchased parts $ 74,639 $ 69,665 Work in process 47,936 46,591 Finished goods 15,304 14,450 Total inventories $ 137,879 $ 130,706 Gain on Sale of Facilities As part of our previously announced Xcerra integration plan we implemented certain facility consolidation actions. See Note 4, third 2020, second 2020, nine September 26, 2020. Property, Plant and Equipment Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of thirty forty five fifteen three ten not Property, plant and equipment, at cost, consisted of the following (in thousands) September 26, December 28, 2020 2019 Land and land improvements $ 7,881 $ 11,659 Buildings and building improvements 41,624 41,474 Machinery and equipment 63,577 61,006 113,082 114,139 Less accumulated depreciation and amortization (48,536 ) (43,227 ) Property, plant and equipment, net $ 64,546 $ 70,912 Segment Information We applied the provisions of ASC Topic 280 Segment Reporting 280” four 280 two Goodwill and Indefinite-Lived Intangibles, Other Intangible Assets and Long-lived Assets We evaluate goodwill and other indefinite-lived intangible assets, which are solely comprised of in-process research and development (“IPR&D”), for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not first second not We conduct our annual impairment test as of October 1st October 1, 2019 may 2, 2020. 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 may not not March 28, 2020 no third 2020, no Product Warranty Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 12- to 36-months. Parts and labor are typically covered under the terms of the warranty agreement. Our warranty expense accruals are based on historical and estimated costs by product and configuration. From time-to-time we offer customers extended warranties beyond the standard warranty period. In those situations, the revenue relating to the extended warranty is deferred at its estimated relative standalone selling price and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred. Restructuring Costs We record restructuring activities including costs for one 420 420” Exit or Disposal Cost Obligations. 420 712, Nonretirement Postemployment Benefits. Debt Issuance Costs We capitalized costs related to the issuance of debt. Debt issuance costs directly related to our Term B Loan are presented within noncurrent liabilities as a reduction of long-term debt in our condensed consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 million and $0.9 million for the three nine September 26, 2020, three nine September 28, 2019, Foreign Remeasurement and Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured 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 re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During the three nine September 26, 2020, three nine September 28, 2019, Foreign Exchange Derivative Contracts We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. Subsequent to the third 2020 October 2, 2020, We do not not Share-Based Compensation We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results. Reported share-based compensation is classified, in our condensed consolidated financial statements, as follows (in thousands) Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Cost of sales $ 218 $ 212 $ 641 $ 545 Research and development 782 820 2,443 2,234 Selling, general and administrative 2,299 2,474 7,229 8,082 Total share-based compensation 3,299 3,506 10,313 10,861 Income tax benefit (215 ) (67 ) (610 ) (426 ) Total share-based compensation, net $ 3,084 $ 3,439 $ 9,703 $ 10,435 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 and performance 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 nine September 26, 2020, three nine September 28, 2019, 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 28, September 26, September 28, 2020 2019 2020 2019 Weighted average common shares 41,947 41,229 41,764 41,075 Effect of dilutive securities - - - - 41,947 41,229 41,764 41,075 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. Leases We adopted ASU 2016 02 Leases (Topic 842 December 30, 2018, 840 840 We determine if a contract contains a lease at inception. Operating leases are included in operating lease right of use (“ROU”) assets, current other accrued liabilities, and long-term lease liabilities on our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, other current accrued liabilities, and long-term lease liabilities on our condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments, as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may Leases with an initial term of 12 not We sublease certain leased assets to third None Revenue Recognition Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations may Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At September 26, 2020, one 606, not one We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees 460 not The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may not not Our contracts are typically less than one 606 one Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not one not no no On shipments where sales are not September 26, 2020, one December 28, 2019, one Net sales of our reportable segments, by type, are as follows (in thousands): Three Months Ended Nine Months Ended Disaggregated Net Sales September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Systems: Semiconductor Test & Inspection $ 70,360 $ 70,654 $ 214,910 $ 226,749 PCB Test 8,990 6,853 23,939 22,232 Non-systems: Semiconductor Test & Inspection 66,865 62,166 181,756 180,343 PCB Test 4,432 3,825 13,047 11,994 $ 150,647 $ 143,498 $ 433,652 $ 441,318 Revenue by geographic area based upon product shipment destination ( in thousands Three Months Ended Nine Months Ended Disaggregated Net Sales September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 China $ 30,423 $ 31,076 $ 92,367 $ 87,365 United States 32,111 21,918 71,739 58,427 Malaysia 11,435 12,991 38,451 47,698 Taiwan 22,689 20,341 59,060 52,513 Philippines 11,860 12,330 35,170 38,266 Rest of the World 42,129 44,842 136,865 157,049 Total net sales $ 150,647 $ 143,498 $ 433,652 $ 441,318 A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows: Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Semiconductor Test & Inspection Customers individually accounting for more than 10% of net sales * * one one Percentage of net sales * * 11% 11% PCB Test Customers individually accounting for more than 10% of net sales * * * * Percentage of net sales * * * * * No 10% Accumulated Other Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $21.4 million and $34.0 million at September 26, 2020 December 28, 2019, not first nine 2020 2019 not Retiree Medical Benefits We provide post-retirement health benefits to certain retired executives, one no first nine 2020 2019 not Discontinued Operations Management determined that the fixtures services business, that was acquired as part of Xcerra, did not February 2020. December 28, 2019. 10, Recently Adopted Accounting Pronouncements In June 2016, 2016 13 , Financial Instruments-Credit Losses (Topic 326 2016 13 2019 04 , Codification Improvements 326, 2019 05 , Financial Instruments-Credit Losses (Topic 326 2019 10, Financial Instruments—Credit Losses (Topic 326 815 842 2019 11 , Codification Improvements to Topic 326, 2016 13, not 2016 13 not In August 2018, 2018 13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement not December 15, 2019. 3 2018 13 not In December 2019, No. 2019 12 , Simplifying the Accounting for Income Taxes not December 29, 2019. not Recently Issued Accounting Pronouncements In August 2018, 2018 14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans not December 15, 2020 not 2018 14 In March 2020, 2020 04 , Reference Rate Reform (Topic 848 may 2020 04 may December 31, 2022. not All other newly issued accounting pronouncements not not |
Note 2 - Goodwill and Purchased
Note 2 - Goodwill and Purchased Intangible Assets | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 2. Goodwill and Purchased Intangible Assets Goodwill and Intangible Assets Changes in the carrying value of goodwill during the year ended December 28, 2019, nine September 26, 2020, in thousands Semiconductor Test & Inspection PCB Test Total Balance, December 30, 2018 $ 220,808 $ 21,319 $ 242,127 Adjustments 2,117 (983 ) 1,134 Impairments (715 ) - (715 ) Impact of currency exchange (3,435 ) (442 ) (3,877 ) Balance, December 28, 2019 218,775 19,894 238,669 Impact of currency exchange 4,953 719 5,672 Balance, September 26, 2020 $ 223,728 $ 20,613 $ 244,341 Purchased intangible assets, subject to amortization are as follows ( in thousands September 26, 2020 December 28, 2019 Remaining Weighted Average Gross Amort. Gross Carrying Amount Accum. Amort. Period (in years) Carrying Amount Accum. Amort. Developed technology $ 233,442 $ 73,584 6 $ 227,619 $ 49,805 Customer relationships 73,165 20,282 8.7 72,251 14,824 Trade names 23,154 5,591 8.9 22,612 3,892 Covenant not-to-compete 334 125 6.3 322 96 Total intangible assets $ 330,095 $ 99,582 $ 322,804 $ 68,617 The table above excludes $8.3 million and $20.8 million of IPR&D, at September 26, 2020 December 28, 2019, nine September 26, 2020, We evaluate goodwill and other indefinite-lived intangible assets for impairment annually and when an event occurs, or circumstances change that indicate that the carrying value may not October 1, 2019, first fourth no Other events and changes in circumstances may first 2020, 19 March 28, 2020 no 19 third 2020, nine September 26, 2020 first no September 26, 2020. The forecasts utilized in the interim impairment tests were based on known facts and circumstances. We evaluate and consider recent events and uncertain items, as well as related potential implications, as part of our annual and interim assessments and incorporate them into the analyses as appropriate. These facts and circumstances are subject to change and may not may Amortization expense related to intangible assets was approximately $9.8 million in the third 2020 first nine 2020. third 2019 first nine 2019. |
Note 3 - Borrowings and Credit
Note 3 - Borrowings and Credit Agreements | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 3. Borrowings and Credit Agreements The following table is a summary of our borrowings as of September 26, 2020 December 28, 2019 ( in thousands) September 26, December 28, 2020 2019 Bank Term Loan under Credit Agreement $ 327,485 $ 346,500 Bank Term Loans-Kita 3,655 3,830 Bank Term Loan-Xcerra - 1,475 Construction Loan- Cohu GmbH 9,544 5,476 Lines of Credit 5,209 3,195 Total debt 345,893 360,476 Less: financing fees and discount (6,225 ) (7,441 ) Less: current portion (8,199 ) (6,517 ) Total long-term debt $ 331,469 $ 346,518 Credit Agreement On October 1, 2018, October 1, 2025. September 26, 2020, December 28, 2019, $2.3 September 26, 2020, September 26, 2020 2 Under the terms of the Credit Agreement, the lender may September 26, 2020, no In August 2020, September 26, 2020. Kita Term Loans As a result of our acquisition of Kita, we assumed term loans from a series of Japanese financial institutions primarily related to the expansion of Kita’s facility in Osaka, Japan. The loans are collateralized by the facility and land, carry interest rates ranging from 0.05% to 0.40%, and expire at various dates through 2036. September 26, 2020, December 28, 2019, September 26, 2020. The term loans are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Xcerra Term Loan As a result of our acquisition of Xcerra, we assumed a term loan related to the purchase of Xcerra’s facility in Rosenheim, Germany. The loan was payable over 10 years at an annual interest rate of 2.35%. Principal plus accrued interest was due quarterly over the duration of the term loan ending in March 2024. December 28, 2019, third 2020 Construction Loans On July 26, 2019, one two €8.6 August 1, 2019, June 16, 2020, third €1.5 not one €3.4 €5.2 €1.5 On August 1, 2019, €3.4 first September 2019 December 2021. 2021. Through September 26, 2020, €4.8 second December 2019 May 2020. May 2020. September 26, 2020, €0.4 not second 2020. Through September 26, 2020, no third first May 2021. 10 May 2021. At September 26, 2020 December 28, 2019, September 26, 2020. Lines of Credit As a result of our acquisition of Kita, we assumed a series of revolving credit facilities with various financial institutions in Japan. The credit facilities renew monthly and provide Kita with access to working capital totaling up to $9.1 million. At September 26, 2020, The revolving lines of credit are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Our wholly owned Ismeca subsidiary has one September 26, 2020 December 28, 2019 |
Note 4 - Restructuring Charges
Note 4 - Restructuring Charges | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 4. Subsequent to the acquisition of Xcerra on October 1, 2018, fourth 2018, 2019. second 2019, As a result of the activities described above, we recognized total pretax charges of $1.4 million and $10.7 million for the first nine September 26, 2020 September 28, 2019, 420, Exit or Disposal Cost Obligations 420” Costs associated with restructuring activities are presented in our condensed consolidated statements of operations as restructuring charges, except for certain costs associated with inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products, which are classified within cost of sales. Other restructuring costs include expenses for professional fees associated with employee severance and impairments of fixed assets. The following table summarizes the activity within the restructuring related accounts for the Integration Program during the first nine September 26, 2020 September 28, 2019 (in thousands) Severance and Other Exit Other Payroll Costs Total Balance, December 29, 2018 $ 4,026 $ - $ 4,026 Costs accrued 10,167 553 10,720 Amounts paid or charged (9,251 ) (553 ) (9,804 ) Impact of currency exchange (137 ) - (137 ) Balance, September 28, 2019 $ 4,805 $ - $ 4,805 Balance, December 28, 2019 $ 1,236 $ - $ 1,236 Costs accrued 287 1,113 1,400 Amounts paid or charged (1,516 ) (1,113 ) (2,629 ) Impact of currency exchange - - - Balance, September 26, 2020 $ 7 $ - $ 7 At September 26, 2020, |
Note 5 - Financial Instruments
Note 5 - Financial Instruments Measured at Fair Value | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 5. 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 We assess whether unrealized loss positions on available-for-sale debt securities are due to credit-related factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in earnings through an allowance account. Unrealized gains and losses that are not not not Investments that we have classified as short-term, by security type, are as follows ( in thousands ) September 26, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 949 $ - $ - $ 949 December 28, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 904 $ - $ - $ 904 ( 1 As of September 26, 2020 December 28, 2019, Effective maturities of short-term investments are as follows (in thousands) September 26, 2020 December 28, 2019 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 949 $ 949 $ - $ - Due after one year through three years - - 904 904 $ 949 $ 949 $ 904 $ 904 Accounting standards pertaining to fair value measurements establish a three 1, 2, 3, no 1. 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, 2020 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 144,727 $ - $ - $ 144,727 Money market funds - 25,199 - 25,199 Foreign government security - 949 - 949 $ 144,727 $ 26,148 $ - $ 170,875 Fair value measurements at December 28, 2019 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 147,523 $ - $ - $ 147,523 Money market funds - 7,671 - 7,671 Foreign government security - 904 - 904 $ 147,523 $ 8,575 $ - $ 156,098 |
Note 6 - Employee Stock Benefit
Note 6 - Employee Stock Benefit Plans | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 6. Our 2005 “2005 may not September 26, 2020, 2005 Stock Options Stock options may one four 2005 ten first nine 2020 not At September 26, 2020, 2.1 Restricted Stock Units We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from one four not not not September 26, 2020. In the first nine 2020 September 26, 2020, 1.5 Performance Stock Units We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted ranges from 25% to 200% of the number granted and is determined based on certain performance criteria over a three third We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. In the first nine 2020, September 26, 2020, Employee Stock Purchase Plan The Cohu, Inc. 1997 may 6 first nine 2020, |
Note 7 - Income Taxes
Note 7 - Income Taxes | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. 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 three nine September 26, 2020, 2020 three September 26, 2020 September 28, 2019 nine September 26, 2020 September 28, 2019, 2020 2019 Our German subsidiaries income tax returns for 2015 2017, 2017 2018 During the three September 26, 2020, nine September 26, 2020, no three nine September 26, 2020. In response to the COVID- 19 March 2020. 2017 2017 may 2018 2020 five not 2017 80% 2018, 2019 2020. may 50% 30% 2017 January 1, 2019 2020. 2020 2017 In addition, the CARES Act raises the corporate charitable deduction limit to 25% 15 100% not three nine September 26, 2020, September 26, 2020. |
Note 8 - Segment and Geographic
Note 8 - Segment and Geographic Information | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 8. Segment and Geographic Information The summary below presents our current segments, Semiconductor Test & Inspection and PCB Test, for the three nine September 26, 2020 September 28, 2019. Financial information by reportable segment is as follows (in thousands) Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, Net sales by segment: 2020 2019 2020 2019 Semiconductor Test & Inspection $ 137,225 $ 132,820 $ 396,666 $ 407,092 PCB Test 13,422 10,678 36,986 34,226 Total consolidated net sales for reportable segments $ 150,647 $ 143,498 $ 433,652 $ 441,318 Segment profit (loss) before tax: Semiconductor Test & Inspection $ (4,093 ) $ (2,929 ) $ (17,997 ) $ (32,373 ) PCB Test 1,709 612 4,714 2,371 Profit (loss) for reportable segments (2,384 ) (2,317 ) (13,283 ) (30,002 ) Other unallocated amounts: Corporate expenses (460 ) (2,076 ) (4,759 ) (7,365 ) Interest expense (3,021 ) (5,000 ) (10,904 ) (15,789 ) Interest income 42 190 210 603 Gain on extinguishment of debt 293 - 293 - Loss from continuing operations before taxes $ (5,530 ) $ (9,203 ) $ (28,443 ) $ (52,553 ) The following table summarizes our total assets by reportable business segment (in thousands) September 26, December 28, 2020 2019 Semiconductor Test & Inspection $ 941,086 $ 998,756 PCB Test 61,629 56,938 Total assets for reportable segments 1,002,715 1,055,694 Corporate, principally cash and investments 43,638 18,398 Discontinued operations - 3,618 Total consolidated assets $ 1,046,353 $ 1,077,710 For revenues by geography and information on customer concentration, see Note 1, |
Note 9 - Leases
Note 9 - Leases | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | 9. We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms with 12 not Our leases have remaining lease terms of 1 year to 37 years, some of which include one We sublease certain leased assets to third (in thousands) Classification September 26, 2020 December 28, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 30,099 $ 33,269 Finance lease assets Property, plant and equipment, net (1) 463 2,515 Total lease assets $ 30,562 $ 35,784 Liabilities Current Operating Other accrued liabilities $ 5,099 $ 5,458 Finance Other accrued liabilities 164 2,574 Noncurrent Operating Long-term lease liabilities 26,293 28,877 Finance Long-term lease liabilities 239 - Total lease liabilities $ 31,795 $ 36,909 Weighted-average remaining lease term (years) Operating leases 7.5 7.9 Finance leases 2.5 0.5 Weighted-average discount rate Operating leases 6.3 % 6.3 % Finance leases 0.0 % 4.5 % ( 1 Finance lease assets are recorded net of accumulated amortization of $26,000 and $0.1 million as of September 26, 2020 December 28, 2019 The components of lease expense were as follows: Three Months Ended Nine Months Ended (in thousands) September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating leases $ 2,074 $ 2,142 $ 6,337 $ 6,381 Variable lease expense 523 570 1,602 1,765 Short-term operating leases 15 80 53 224 Finance leases Amortization of leased assets 17 20 65 82 Interest on lease liabilities - 29 57 117 Sublease income (31 ) (31 ) (94 ) (101 ) Net lease cost $ 2,598 $ 2,810 $ 8,020 $ 8,468 Future minimum lease payments at September 26, 2020, Operating Finance (in thousands) leases (1) leases Total 2020 $ 1,709 $ 41 $ 1,750 2021 6,733 164 6,897 2022 5,932 164 6,096 2023 5,158 34 5,192 2024 4,750 - 4,750 Thereafter 16,295 - 16,295 Total lease payments 40,577 403 40,980 Less: Interest (9,185 ) - (9,185 ) Present value of lease liabilities $ 31,392 $ 403 $ 31,795 ( 1 Excludes sublease income of $0.1 million in 2021. Supplemental cash flow information related to leases was as follows: Nine Months Ended (in thousands) September 26, 2020 September 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,207 $ 5,153 Operating cash flows from finance leases $ 57 $ 109 Financing cash flows from finance leases $ 104 $ 25 Leased assets obtained in exchange for new finance lease liabilities $ 468 $ - Leased assets obtained in exchange for new operating lease liabilities $ 1,830 $ 39,815 |
Note 10 - Discontinued Operatio
Note 10 - Discontinued Operations | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 10. On October 1, 2018, fourth 2018, not not October 1, 2018 During the fourth 2019, February 2020, three March 28, 2020. Balance sheet information for our fixtures services business presented as discontinued operations is summarized as follows (in thousands) December 28, 2019 Assets: Cash and cash equivalents $ 736 Accounts receivable, net 1,316 Inventories 1,411 Other current assets 40 Total current assets 3,503 Property, plant and equipment, net 33 Other noncurrent assets 82 Total assets $ 3,618 Liabilities: Other accrued current liabilities $ 599 Total current liabilities 599 Noncurrent liabilities 24 Total liabilities $ 623 Operating results of our discontinued segment are summarized as follows (in thousands) Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Net sales $ - $ 1,720 $ 432 $ 5,020 Operating income before income taxes $ - 173 $ 11 400 Gain on sale of Fixtures business - - 35 - Income before taxes - 173 46 400 Income tax provision - 19 4 58 Income, net of tax $ - $ 154 $ 42 $ 342 |
Note 11 - Contingencies
Note 11 - Contingencies | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 11. 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 business. The outcome of any litigation is inherently uncertain. While there can be no not |
Note 12 - Guarantees
Note 12 - Guarantees | 9 Months Ended |
Sep. 26, 2020 | |
Notes to Financial Statements | |
Commitments Contingencies and Guarantees [Text Block] | 12. Guarantees Product Warranty Our products are generally sold with warranty periods that range from 12 to 36 months following sale or acceptance. The product warranty promises customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, not Changes in accrued warranty were as follows ( in thousands Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Balance at beginning of period $ 5,996 $ 6,852 $ 6,155 $ 8,014 Warranty expense accruals 911 1,137 3,846 4,695 Warranty payments (1,169 ) (2,071 ) (4,263 ) (6,791 ) Balance at end of period $ 5,738 $ 5,918 $ 5,738 $ 5,918 Accrued warranty amounts expected to be incurred after one September 26, 2020 December 28, 2019, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 26, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation Our fiscal years are based on a 52 53 December. December 28, 2019, September 26, 2020, ( third 2020” first nine 2020” September 28, 2019, ( third 2019” first nine 2019” three nine September 26, 2020 September 28, 2019, 13 39 Our interim results are not September 26, 2020 nine September 26, 2020. December 28, 2019, 2019 10 On December 28, 2019, no no All significant consolidated transitions and balances have been eliminated in consolidation. |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no |
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 We adopted ASU 2016 13 , Financial Instruments-Credit Losses (Topic 326 December 29, 2019 first 2020. not 326 September 26, 2020 December 28, 2019. September 26, 2020, 19 may |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined on a first first Inventories by category were as follows ( in thousands September 26, December 28, 2020 2019 Raw materials and purchased parts $ 74,639 $ 69,665 Work in process 47,936 46,591 Finished goods 15,304 14,450 Total inventories $ 137,879 $ 130,706 |
Assets Held-for-sale [Policy Text Block] | Gain on Sale of Facilities As part of our previously announced Xcerra integration plan we implemented certain facility consolidation actions. See Note 4, third 2020, second 2020, nine September 26, 2020. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of thirty forty five fifteen three ten not Property, plant and equipment, at cost, consisted of the following (in thousands) September 26, December 28, 2020 2019 Land and land improvements $ 7,881 $ 11,659 Buildings and building improvements 41,624 41,474 Machinery and equipment 63,577 61,006 113,082 114,139 Less accumulated depreciation and amortization (48,536 ) (43,227 ) Property, plant and equipment, net $ 64,546 $ 70,912 |
Segment Reporting, Policy [Policy Text Block] | Segment Information We applied the provisions of ASC Topic 280 Segment Reporting 280” four 280 two |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Indefinite-Lived Intangibles, Other Intangible Assets and Long-lived Assets We evaluate goodwill and other indefinite-lived intangible assets, which are solely comprised of in-process research and development (“IPR&D”), for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not first second not We conduct our annual impairment test as of October 1st October 1, 2019 may 2, 2020. 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 may not not March 28, 2020 no third 2020, no |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 12- to 36-months. Parts and labor are typically covered under the terms of the warranty agreement. Our warranty expense accruals are based on historical and estimated costs by product and configuration. From time-to-time we offer customers extended warranties beyond the standard warranty period. In those situations, the revenue relating to the extended warranty is deferred at its estimated relative standalone selling price and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring Costs We record restructuring activities including costs for one 420 420” Exit or Disposal Cost Obligations. 420 712, Nonretirement Postemployment Benefits. |
Debt, Policy [Policy Text Block] | Debt Issuance Costs We capitalized costs related to the issuance of debt. Debt issuance costs directly related to our Term B Loan are presented within noncurrent liabilities as a reduction of long-term debt in our condensed consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 million and $0.9 million for the three nine September 26, 2020, three nine September 28, 2019, |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Remeasurement and Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured 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 re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During the three nine September 26, 2020, three nine September 28, 2019, |
Derivatives, Policy [Policy Text Block] | Foreign Exchange Derivative Contracts We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. Subsequent to the third 2020 October 2, 2020, We do not not |
Share-based Payment Arrangement [Policy Text Block] | Share-Based Compensation We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results. Reported share-based compensation is classified, in our condensed consolidated financial statements, as follows (in thousands) Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Cost of sales $ 218 $ 212 $ 641 $ 545 Research and development 782 820 2,443 2,234 Selling, general and administrative 2,299 2,474 7,229 8,082 Total share-based compensation 3,299 3,506 10,313 10,861 Income tax benefit (215 ) (67 ) (610 ) (426 ) Total share-based compensation, net $ 3,084 $ 3,439 $ 9,703 $ 10,435 |
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 and performance 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 nine September 26, 2020, three nine September 28, 2019, 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 28, September 26, September 28, 2020 2019 2020 2019 Weighted average common shares 41,947 41,229 41,764 41,075 Effect of dilutive securities - - - - 41,947 41,229 41,764 41,075 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. |
Lessee, Leases [Policy Text Block] | Leases We adopted ASU 2016 02 Leases (Topic 842 December 30, 2018, 840 840 We determine if a contract contains a lease at inception. Operating leases are included in operating lease right of use (“ROU”) assets, current other accrued liabilities, and long-term lease liabilities on our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, other current accrued liabilities, and long-term lease liabilities on our condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments, as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may Leases with an initial term of 12 not We sublease certain leased assets to third None |
Revenue [Policy Text Block] | Revenue Recognition Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations may Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At September 26, 2020, one 606, not one We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees 460 not The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may not not Our contracts are typically less than one 606 one Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not one not no no On shipments where sales are not September 26, 2020, one December 28, 2019, one Net sales of our reportable segments, by type, are as follows (in thousands): Three Months Ended Nine Months Ended Disaggregated Net Sales September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Systems: Semiconductor Test & Inspection $ 70,360 $ 70,654 $ 214,910 $ 226,749 PCB Test 8,990 6,853 23,939 22,232 Non-systems: Semiconductor Test & Inspection 66,865 62,166 181,756 180,343 PCB Test 4,432 3,825 13,047 11,994 $ 150,647 $ 143,498 $ 433,652 $ 441,318 Revenue by geographic area based upon product shipment destination ( in thousands Three Months Ended Nine Months Ended Disaggregated Net Sales September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 China $ 30,423 $ 31,076 $ 92,367 $ 87,365 United States 32,111 21,918 71,739 58,427 Malaysia 11,435 12,991 38,451 47,698 Taiwan 22,689 20,341 59,060 52,513 Philippines 11,860 12,330 35,170 38,266 Rest of the World 42,129 44,842 136,865 157,049 Total net sales $ 150,647 $ 143,498 $ 433,652 $ 441,318 A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows: Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Semiconductor Test & Inspection Customers individually accounting for more than 10% of net sales * * one one Percentage of net sales * * 11% 11% PCB Test Customers individually accounting for more than 10% of net sales * * * * Percentage of net sales * * * * * No 10% |
Comprehensive Income, Policy [Policy Text Block] | Accumulated Other Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $21.4 million and $34.0 million at September 26, 2020 December 28, 2019, not first nine 2020 2019 not |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Retiree Medical Benefits We provide post-retirement health benefits to certain retired executives, one no first nine 2020 2019 not |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations Management determined that the fixtures services business, that was acquired as part of Xcerra, did not February 2020. December 28, 2019. 10, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In June 2016, 2016 13 , Financial Instruments-Credit Losses (Topic 326 2016 13 2019 04 , Codification Improvements 326, 2019 05 , Financial Instruments-Credit Losses (Topic 326 2019 10, Financial Instruments—Credit Losses (Topic 326 815 842 2019 11 , Codification Improvements to Topic 326, 2016 13, not 2016 13 not In August 2018, 2018 13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement not December 15, 2019. 3 2018 13 not In December 2019, No. 2019 12 , Simplifying the Accounting for Income Taxes not December 29, 2019. not Recently Issued Accounting Pronouncements In August 2018, 2018 14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans not December 15, 2020 not 2018 14 In March 2020, 2020 04 , Reference Rate Reform (Topic 848 may 2020 04 may December 31, 2022. not All other newly issued accounting pronouncements not not |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 26, December 28, 2020 2019 Raw materials and purchased parts $ 74,639 $ 69,665 Work in process 47,936 46,591 Finished goods 15,304 14,450 Total inventories $ 137,879 $ 130,706 |
Property, Plant and Equipment [Table Text Block] | September 26, December 28, 2020 2019 Land and land improvements $ 7,881 $ 11,659 Buildings and building improvements 41,624 41,474 Machinery and equipment 63,577 61,006 113,082 114,139 Less accumulated depreciation and amortization (48,536 ) (43,227 ) Property, plant and equipment, net $ 64,546 $ 70,912 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Cost of sales $ 218 $ 212 $ 641 $ 545 Research and development 782 820 2,443 2,234 Selling, general and administrative 2,299 2,474 7,229 8,082 Total share-based compensation 3,299 3,506 10,313 10,861 Income tax benefit (215 ) (67 ) (610 ) (426 ) Total share-based compensation, net $ 3,084 $ 3,439 $ 9,703 $ 10,435 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Weighted average common shares 41,947 41,229 41,764 41,075 Effect of dilutive securities - - - - 41,947 41,229 41,764 41,075 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Nine Months Ended Disaggregated Net Sales September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Systems: Semiconductor Test & Inspection $ 70,360 $ 70,654 $ 214,910 $ 226,749 PCB Test 8,990 6,853 23,939 22,232 Non-systems: Semiconductor Test & Inspection 66,865 62,166 181,756 180,343 PCB Test 4,432 3,825 13,047 11,994 $ 150,647 $ 143,498 $ 433,652 $ 441,318 Three Months Ended Nine Months Ended Disaggregated Net Sales September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 China $ 30,423 $ 31,076 $ 92,367 $ 87,365 United States 32,111 21,918 71,739 58,427 Malaysia 11,435 12,991 38,451 47,698 Taiwan 22,689 20,341 59,060 52,513 Philippines 11,860 12,330 35,170 38,266 Rest of the World 42,129 44,842 136,865 157,049 Total net sales $ 150,647 $ 143,498 $ 433,652 $ 441,318 |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Semiconductor Test & Inspection Customers individually accounting for more than 10% of net sales * * one one Percentage of net sales * * 11% 11% PCB Test Customers individually accounting for more than 10% of net sales * * * * Percentage of net sales * * * * |
Note 2 - Goodwill and Purchas_2
Note 2 - Goodwill and Purchased Intangible Assets (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Semiconductor Test & Inspection PCB Test Total Balance, December 30, 2018 $ 220,808 $ 21,319 $ 242,127 Adjustments 2,117 (983 ) 1,134 Impairments (715 ) - (715 ) Impact of currency exchange (3,435 ) (442 ) (3,877 ) Balance, December 28, 2019 218,775 19,894 238,669 Impact of currency exchange 4,953 719 5,672 Balance, September 26, 2020 $ 223,728 $ 20,613 $ 244,341 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Table Text Block] | September 26, 2020 December 28, 2019 Remaining Weighted Average Gross Amort. Gross Carrying Amount Accum. Amort. Period (in years) Carrying Amount Accum. Amort. Developed technology $ 233,442 $ 73,584 6 $ 227,619 $ 49,805 Customer relationships 73,165 20,282 8.7 72,251 14,824 Trade names 23,154 5,591 8.9 22,612 3,892 Covenant not-to-compete 334 125 6.3 322 96 Total intangible assets $ 330,095 $ 99,582 $ 322,804 $ 68,617 |
Note 3 - Borrowings and Credi_2
Note 3 - Borrowings and Credit Agreements (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 26, December 28, 2020 2019 Bank Term Loan under Credit Agreement $ 327,485 $ 346,500 Bank Term Loans-Kita 3,655 3,830 Bank Term Loan-Xcerra - 1,475 Construction Loan- Cohu GmbH 9,544 5,476 Lines of Credit 5,209 3,195 Total debt 345,893 360,476 Less: financing fees and discount (6,225 ) (7,441 ) Less: current portion (8,199 ) (6,517 ) Total long-term debt $ 331,469 $ 346,518 |
Note 4 - Restructuring Charges
Note 4 - Restructuring Charges (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Severance and Other Exit Other Payroll Costs Total Balance, December 29, 2018 $ 4,026 $ - $ 4,026 Costs accrued 10,167 553 10,720 Amounts paid or charged (9,251 ) (553 ) (9,804 ) Impact of currency exchange (137 ) - (137 ) Balance, September 28, 2019 $ 4,805 $ - $ 4,805 Balance, December 28, 2019 $ 1,236 $ - $ 1,236 Costs accrued 287 1,113 1,400 Amounts paid or charged (1,516 ) (1,113 ) (2,629 ) Impact of currency exchange - - - Balance, September 26, 2020 $ 7 $ - $ 7 |
Note 5 - Financial Instrument_2
Note 5 - Financial Instruments Measured at Fair Value (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | September 26, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 949 $ - $ - $ 949 December 28, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 904 $ - $ - $ 904 |
Investments Classified by Contractual Maturity Date [Table Text Block] | September 26, 2020 December 28, 2019 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 949 $ 949 $ - $ - Due after one year through three years - - 904 904 $ 949 $ 949 $ 904 $ 904 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair value measurements at September 26, 2020 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 144,727 $ - $ - $ 144,727 Money market funds - 25,199 - 25,199 Foreign government security - 949 - 949 $ 144,727 $ 26,148 $ - $ 170,875 Fair value measurements at December 28, 2019 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 147,523 $ - $ - $ 147,523 Money market funds - 7,671 - 7,671 Foreign government security - 904 - 904 $ 147,523 $ 8,575 $ - $ 156,098 |
Note 8 - Segment and Geograph_2
Note 8 - Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, Net sales by segment: 2020 2019 2020 2019 Semiconductor Test & Inspection $ 137,225 $ 132,820 $ 396,666 $ 407,092 PCB Test 13,422 10,678 36,986 34,226 Total consolidated net sales for reportable segments $ 150,647 $ 143,498 $ 433,652 $ 441,318 Segment profit (loss) before tax: Semiconductor Test & Inspection $ (4,093 ) $ (2,929 ) $ (17,997 ) $ (32,373 ) PCB Test 1,709 612 4,714 2,371 Profit (loss) for reportable segments (2,384 ) (2,317 ) (13,283 ) (30,002 ) Other unallocated amounts: Corporate expenses (460 ) (2,076 ) (4,759 ) (7,365 ) Interest expense (3,021 ) (5,000 ) (10,904 ) (15,789 ) Interest income 42 190 210 603 Gain on extinguishment of debt 293 - 293 - Loss from continuing operations before taxes $ (5,530 ) $ (9,203 ) $ (28,443 ) $ (52,553 ) September 26, December 28, 2020 2019 Semiconductor Test & Inspection $ 941,086 $ 998,756 PCB Test 61,629 56,938 Total assets for reportable segments 1,002,715 1,055,694 Corporate, principally cash and investments 43,638 18,398 Discontinued operations - 3,618 Total consolidated assets $ 1,046,353 $ 1,077,710 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Leases, Balance Sheet Information [Table Text Block] | (in thousands) Classification September 26, 2020 December 28, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 30,099 $ 33,269 Finance lease assets Property, plant and equipment, net (1) 463 2,515 Total lease assets $ 30,562 $ 35,784 Liabilities Current Operating Other accrued liabilities $ 5,099 $ 5,458 Finance Other accrued liabilities 164 2,574 Noncurrent Operating Long-term lease liabilities 26,293 28,877 Finance Long-term lease liabilities 239 - Total lease liabilities $ 31,795 $ 36,909 Weighted-average remaining lease term (years) Operating leases 7.5 7.9 Finance leases 2.5 0.5 Weighted-average discount rate Operating leases 6.3 % 6.3 % Finance leases 0.0 % 4.5 % |
Lease, Cost [Table Text Block] | Three Months Ended Nine Months Ended (in thousands) September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating leases $ 2,074 $ 2,142 $ 6,337 $ 6,381 Variable lease expense 523 570 1,602 1,765 Short-term operating leases 15 80 53 224 Finance leases Amortization of leased assets 17 20 65 82 Interest on lease liabilities - 29 57 117 Sublease income (31 ) (31 ) (94 ) (101 ) Net lease cost $ 2,598 $ 2,810 $ 8,020 $ 8,468 |
Lessee, Lease, Liability, Maturity [Table Text Block] | Operating Finance (in thousands) leases (1) leases Total 2020 $ 1,709 $ 41 $ 1,750 2021 6,733 164 6,897 2022 5,932 164 6,096 2023 5,158 34 5,192 2024 4,750 - 4,750 Thereafter 16,295 - 16,295 Total lease payments 40,577 403 40,980 Less: Interest (9,185 ) - (9,185 ) Present value of lease liabilities $ 31,392 $ 403 $ 31,795 |
Lease, Cash Flow Information [Table Text Block] | Nine Months Ended (in thousands) September 26, 2020 September 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,207 $ 5,153 Operating cash flows from finance leases $ 57 $ 109 Financing cash flows from finance leases $ 104 $ 25 Leased assets obtained in exchange for new finance lease liabilities $ 468 $ - Leased assets obtained in exchange for new operating lease liabilities $ 1,830 $ 39,815 |
Note 10 - Discontinued Operat_2
Note 10 - Discontinued Operations (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Net sales $ - $ 1,720 $ 432 $ 5,020 Operating income before income taxes $ - 173 $ 11 400 Gain on sale of Fixtures business - - 35 - Income before taxes - 173 46 400 Income tax provision - 19 4 58 Income, net of tax $ - $ 154 $ 42 $ 342 |
Fixtures Services Business FSG [Member] | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | December 28, 2019 Assets: Cash and cash equivalents $ 736 Accounts receivable, net 1,316 Inventories 1,411 Other current assets 40 Total current assets 3,503 Property, plant and equipment, net 33 Other noncurrent assets 82 Total assets $ 3,618 Liabilities: Other accrued current liabilities $ 599 Total current liabilities 599 Noncurrent liabilities 24 Total liabilities $ 623 |
Note 12 - Guarantees (Tables)
Note 12 - Guarantees (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Balance at beginning of period $ 5,996 $ 6,852 $ 6,155 $ 8,014 Warranty expense accruals 911 1,137 3,846 4,695 Warranty payments (1,169 ) (2,071 ) (4,263 ) (6,791 ) Balance at end of period $ 5,738 $ 5,918 $ 5,738 $ 5,918 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) | Dec. 28, 2019USD ($) | Oct. 01, 2019USD ($) | Sep. 26, 2020USD ($)shares | Jun. 27, 2020USD ($) | Sep. 28, 2019USD ($)shares | Sep. 26, 2020USD ($)shares | Sep. 28, 2019USD ($)shares | Jun. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Dec. 29, 2018USD ($) | |||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 4,468,000 | $ 0 | $ 4,495,000 | $ 0 | |||||||||
Number of Operating Segments | 4 | ||||||||||||
Number of Reportable Segments | 2 | ||||||||||||
Goodwill and Intangible Asset Impairment, Total | $ 0 | ||||||||||||
Amortization of Debt Issuance Costs | 300,000 | 300,000 | $ 900,000 | 800,000 | |||||||||
Foreign Currency Transaction Gain (Loss), Realized | $ (1,500,000) | $ 1,600,000 | $ (2,500,000) | $ 1,300,000 | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares | 109,000 | 459,000 | 151,000 | 487,000 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 483,072,000 | $ 474,609,000 | $ 466,758,000 | $ 491,397,000 | $ 474,609,000 | $ 491,397,000 | $ 514,449,000 | $ 545,944,000 | |||||
Assets, Total | 1,077,710,000 | [1] | 1,046,353,000 | 1,046,353,000 | |||||||||
Revenue, Remaining Performance Obligation, Amount | 8,700,000 | 8,700,000 | |||||||||||
Deferred Income | 16,100,000 | 21,900,000 | 21,900,000 | ||||||||||
Deferred Profit | 7,645,000 | [1] | 11,859,000 | 11,859,000 | |||||||||
Deferred Profit Long-term | 7,200,000 | 6,800,000 | 6,800,000 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | (34,030,000) | [1] | (21,370,000) | (21,370,000) | |||||||||
Retained Earnings [Member] | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 42,517,000 | 11,369,000 | 18,015,000 | $ 62,320,000 | $ 11,369,000 | $ 62,320,000 | $ 75,115,000 | 111,670,000 | |||||
Accounting Standards Update 2016-02 [Member] | |||||||||||||
Assets, Total | $ (500,000) | ||||||||||||
Liabilities, Total | (600,000) | ||||||||||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | [2] | 10,352,000 | |||||||||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 10,200,000 | $ 10,352,000 | [2] | ||||||||||
Minimum [Member] | |||||||||||||
Standard Product Warranty Term (Month) | 12 months | ||||||||||||
Maximum [Member] | |||||||||||||
Standard Product Warranty Term (Month) | 36 months | ||||||||||||
Building [Member] | Minimum [Member] | |||||||||||||
Property, Plant and Equipment, Useful Life (Year) | 30 years | ||||||||||||
Building [Member] | Maximum [Member] | |||||||||||||
Property, Plant and Equipment, Useful Life (Year) | 40 years | ||||||||||||
Building Improvements [Member] | Minimum [Member] | |||||||||||||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||||||||||||
Building Improvements [Member] | Maximum [Member] | |||||||||||||
Property, Plant and Equipment, Useful Life (Year) | 15 years | ||||||||||||
Machinery, Equipment and Software [Member] | Minimum [Member] | |||||||||||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||||||||||||
Machinery, Equipment and Software [Member] | Maximum [Member] | |||||||||||||
Property, Plant and Equipment, Useful Life (Year) | 10 years | ||||||||||||
Facility in Rosenheim, Germany [Member] | |||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 4,500,000 | ||||||||||||
Facility in Penang Malaysia [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 27,000 | ||||||||||||
ALBS [Member] | |||||||||||||
Variable Interest Entity, Ownership Percentage Sold | 20.00% | ||||||||||||
[1] | Derived from December 28, 2019 audited financial statements | ||||||||||||
[2] | Cumulative effect of accounting change relates to our adoption of ASU 2016-02. Please refer to Note 1 of the Condensed Consolidated Financial Statements for further detail on the adoption of this accounting standard. |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | |
Raw materials and purchased parts | $ 74,639 | $ 69,665 | |
Work in process | 47,936 | 46,591 | |
Finished goods | 15,304 | 14,450 | |
Total inventories | $ 137,879 | $ 130,706 | [1] |
[1] | Derived from December 28, 2019 audited financial statements |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | |
Property, plant and equipment | $ 113,082 | $ 114,139 | |
Less accumulated depreciation and amortization | (48,536) | (43,227) | |
Property, plant and equipment, net | 64,546 | 70,912 | [1] |
Land and Land Improvements [Member] | |||
Property, plant and equipment | 7,881 | 11,659 | |
Building and Building Improvements [Member] | |||
Property, plant and equipment | 41,624 | 41,474 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment | $ 63,577 | $ 61,006 | |
[1] | Derived from December 28, 2019 audited financial statements |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Allocated share-based compensation | $ 3,299 | $ 3,506 | $ 10,313 | $ 10,861 |
Income tax benefit | (215) | (67) | (610) | (426) |
Total share-based compensation, net | 3,084 | 3,439 | 9,703 | 10,435 |
Cost of Sales [Member] | ||||
Allocated share-based compensation | 218 | 212 | 641 | 545 |
Research and Development Expense [Member] | ||||
Allocated share-based compensation | 782 | 820 | 2,443 | 2,234 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated share-based compensation | $ 2,299 | $ 2,474 | $ 7,229 | $ 8,082 |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Weighted average common shares (in shares) | 41,947 | 41,229 | 41,764 | 41,075 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted, Total | 41,947 | 41,229 | 41,764 | 41,075 |
Note 1 - Summary of Significa_8
Note 1 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Net sales | $ 150,647 | $ 143,498 | $ 433,652 | $ 441,318 |
Semiconductor Test and Inspection [Member] | ||||
Net sales | 137,225 | 132,820 | 396,666 | 407,092 |
PCB Test [Member] | ||||
Net sales | 13,422 | 10,678 | 36,986 | 34,226 |
Systems [Member] | Semiconductor Test and Inspection [Member] | ||||
Net sales | 70,360 | 70,654 | 214,910 | 226,749 |
Systems [Member] | PCB Test [Member] | ||||
Net sales | 8,990 | 6,853 | 23,939 | 22,232 |
Non-systems [Member] | Semiconductor Test and Inspection [Member] | ||||
Net sales | 66,865 | 62,166 | 181,756 | 180,343 |
Non-systems [Member] | PCB Test [Member] | ||||
Net sales | 4,432 | 3,825 | 13,047 | 11,994 |
CHINA | ||||
Net sales | 30,423 | 31,076 | 92,367 | 87,365 |
UNITED STATES | ||||
Net sales | 32,111 | 21,918 | 71,739 | 58,427 |
Malaysia [Member] | ||||
Net sales | 11,435 | 12,991 | 38,451 | 47,698 |
TAIWAN, PROVINCE OF CHINA | ||||
Net sales | 22,689 | 20,341 | 59,060 | 52,513 |
PHILIPPINES | ||||
Net sales | 11,860 | 12,330 | 35,170 | 38,266 |
Rest of the World [Member] | ||||
Net sales | $ 42,129 | $ 44,842 | $ 136,865 | $ 157,049 |
Note 1 - Summary of Significa_9
Note 1 - Summary of Significant Accounting Policies - Customer Concentration (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] - Semiconductor Test and Inspection [Member] | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Customers individually accounting for more than 10% of net sales | 1 | 1 |
One Customer [Member] | ||
Percentage of net sales | 11.00% | 11.00% |
Note 2 - Goodwill and Purchas_3
Note 2 - Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 26, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Transfer From In-Process Technology to Developed Technology | $ 1,300 | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 7,300 | $ 0 | 11,249 | $ 0 | ||
Amortization of Intangible Assets, Total | 9,783 | $ 9,969 | 28,848 | $ 29,975 | ||
In-process Technology [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 8,300 | $ 8,300 | $ 20,800 | |||
Indefinite-lived In Process Research and Development [Member] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 3,900 |
Note 2 - Goodwill and Purchas_4
Note 2 - Goodwill and Purchased Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 26, 2020 | Dec. 28, 2019 | |||
Beginning balance | $ 238,669 | [1] | $ 242,127 | |
Adjustments | 1,134 | |||
Impairments | (715) | |||
Impact of currency exchange | 5,672 | (3,877) | ||
Ending balance | 244,341 | 238,669 | [1] | |
Semiconductor Test and Inspection [Member] | ||||
Beginning balance | 218,775 | 220,808 | ||
Adjustments | 2,117 | |||
Impairments | (715) | |||
Impact of currency exchange | 4,953 | (3,435) | ||
Ending balance | 223,728 | 218,775 | ||
PCB Test [Member] | ||||
Beginning balance | 19,894 | 21,319 | ||
Adjustments | (983) | |||
Impairments | 0 | |||
Impact of currency exchange | 719 | (442) | ||
Ending balance | $ 20,613 | $ 19,894 | ||
[1] | Derived from December 28, 2019 audited financial statements |
Note 2 - Goodwill and Purchas_5
Note 2 - Goodwill and Purchased Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2020 | Dec. 28, 2019 | |
Gross Carrying Amount, finite-lived intangible assets | $ 330,095 | $ 322,804 |
Accumulated Amortization | 99,582 | 68,617 |
Developed Technology Rights [Member] | ||
Gross Carrying Amount, finite-lived intangible assets | 233,442 | 227,619 |
Accumulated Amortization | $ 73,584 | 49,805 |
Remaining Useful Life (Year) | 6 years | |
Customer Relationships [Member] | ||
Gross Carrying Amount, finite-lived intangible assets | $ 73,165 | 72,251 |
Accumulated Amortization | $ 20,282 | 14,824 |
Remaining Useful Life (Year) | 8 years 8 months 12 days | |
Trade Names [Member] | ||
Gross Carrying Amount, finite-lived intangible assets | $ 23,154 | 22,612 |
Accumulated Amortization | $ 5,591 | 3,892 |
Remaining Useful Life (Year) | 8 years 10 months 24 days | |
Noncompete Agreements [Member] | ||
Gross Carrying Amount, finite-lived intangible assets | $ 334 | 322 |
Accumulated Amortization | $ 125 | $ 96 |
Remaining Useful Life (Year) | 6 years 3 months 18 days |
Note 3 - Borrowings and Credi_3
Note 3 - Borrowings and Credit Agreements (Details Textual) $ in Thousands, € in Millions, SFr in Millions | Jun. 16, 2020EUR (€) | Aug. 01, 2019EUR (€) | Jul. 26, 2019EUR (€) | Oct. 01, 2018USD ($) | Aug. 31, 2020USD ($) | Sep. 26, 2020USD ($) | Sep. 28, 2019USD ($) | Sep. 26, 2020USD ($) | Sep. 26, 2020EUR (€) | Sep. 28, 2019USD ($) | Sep. 26, 2020EUR (€) | Sep. 26, 2020CHF (SFr) | Dec. 28, 2019USD ($) |
Long-term Debt, Current Maturities, Total | $ 8,199 | $ 8,199 | $ 6,517 | ||||||||||
Long-term Debt, Fair Value | 317,100 | 317,100 | |||||||||||
Repayments of Long-term Debt, Total | 20,246 | $ 3,598 | |||||||||||
Gain (Loss) on Extinguishment of Debt, Total | 293 | $ 0 | 293 | 0 | |||||||||
Proceeds from Issuance of Long-term Debt, Total | 5,878 | $ 3,720 | |||||||||||
Long-term Line of Credit, Total | 5,209 | 5,209 | 3,195 | ||||||||||
Ismeca [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | SFr | SFr 2 | ||||||||||||
Long-term Line of Credit, Total | $ 0 | $ 0 | 0 | ||||||||||
Number of Available Lines of Credit | 1 | 1 | 1 | 1 | |||||||||
Revolving Credit Facility [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 9,100 | $ 9,100 | |||||||||||
Long-term Line of Credit, Total | 5,200 | 5,200 | |||||||||||
Term Loan Facility [Member] | |||||||||||||
Extinguishment of Debt, Amount | $ 16,400 | ||||||||||||
Secured Term Loan Facility [Member] | |||||||||||||
Debt Instrument, Face Amount | $ 350,000 | ||||||||||||
Debt Instrument, Amortization, Percentage of Principal Amount | 0.25% | ||||||||||||
Long-term Debt, Total | 321,300 | 321,300 | 339,100 | ||||||||||
Long-term Debt, Current Maturities, Total | 2,300 | 2,300 | 2,300 | ||||||||||
Repayments of Long-term Debt, Total | 15,800 | ||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | 300 | ||||||||||||
Extinguishment of Debt Decrease Deferred Financing Costs | $ (300) | ||||||||||||
Long-term Debt, Gross | 327,485 | 327,485 | 346,500 | ||||||||||
Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||||||||
Kita Term Loans [Member] | |||||||||||||
Long-term Debt, Total | 3,700 | 3,700 | 3,800 | ||||||||||
Long-term Debt, Current Maturities, Total | 300 | 300 | 400 | ||||||||||
Long-term Debt, Gross | $ 3,655 | $ 3,655 | 3,830 | ||||||||||
Kita Term Loans [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.05% | 0.05% | 0.05% | 0.05% | |||||||||
Kita Term Loans [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.40% | 0.40% | 0.40% | 0.40% | |||||||||
Xcerra Term Loan [Member] | |||||||||||||
Long-term Debt, Total | 1,500 | ||||||||||||
Long-term Debt, Current Maturities, Total | 300 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.35% | 2.35% | 2.35% | 2.35% | |||||||||
Debt Instrument, Term (Year) | 10 years | 10 years | |||||||||||
Loan Facilities [Member] | Construction Loans [Member] | |||||||||||||
Debt Instrument, Face Amount | € | € 8.6 | ||||||||||||
Long-term Debt, Total | $ 9,500 | $ 9,500 | 5,500 | ||||||||||
Long-term Debt, Current Maturities, Total | $ 400 | $ 400 | $ 300 | ||||||||||
First Facility [Member] | Construction Loans [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.80% | ||||||||||||
Debt Instrument, Term (Year) | 10 years | 10 years | |||||||||||
Debt Instrument, Collateral Amount | € | € 3.4 | ||||||||||||
Proceeds from Issuance of Long-term Debt, Total | € | € 3.4 | ||||||||||||
Debt Instrument, Principal Payment Terms (Year) | 8 years | ||||||||||||
Second Facility [Member] | Construction Loans [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.05% | 1.05% | 1.05% | 1.05% | |||||||||
Debt Instrument, Term (Year) | 15 years | 15 years | 15 years | ||||||||||
Debt Instrument, Collateral Amount | € | € 5.2 | ||||||||||||
Proceeds from Issuance of Long-term Debt, Total | € | € 4.8 | ||||||||||||
Debt Instrument, Principal Payment Terms (Year) | 15 years | 15 years | |||||||||||
Third Facility [Member] | Construction Loans [Member] | |||||||||||||
Debt Instrument, Face Amount | € | € 1.5 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | 1.20% | 1.20% | |||||||||
Debt Instrument, Term (Year) | 10 years | 10 years | 10 years | ||||||||||
Debt Instrument, Collateral Amount | € | € 1.5 | ||||||||||||
Proceeds from Issuance of Long-term Debt, Total | $ 0 | ||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | € | € 0.4 |
Note 3 - Borrowings and Credi_4
Note 3 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Lines of Credit | $ 5,209 | $ 3,195 |
Total debt | 345,893 | 360,476 |
Less: financing fees and discount | (6,225) | (7,441) |
Less: current portion | (8,199) | (6,517) |
Total long-term debt | 331,469 | 346,518 |
Secured Term Loan Facility [Member] | ||
Long term Debt | 327,485 | 346,500 |
Less: current portion | (2,300) | (2,300) |
Kita Term Loans [Member] | ||
Long term Debt | 3,655 | 3,830 |
Less: current portion | (300) | (400) |
Xcerra [Member] | ||
Long term Debt | 0 | 1,475 |
Construction Loan [Member] | ||
Long term Debt | $ 9,544 | $ 5,476 |
Note 4 - Restructuring Charge_2
Note 4 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Restructuring Charges, Total | $ 412 | $ 814 | $ 1,400 | $ 10,720 |
Integration Program [Member] | ||||
Restructuring Charges, Total | $ 1,400 | $ 10,700 |
Note 4 - Restructuring Charge_3
Note 4 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Restructuring Charges, Total | $ 412 | $ 814 | $ 1,400 | $ 10,720 |
Integration Program [Member] | ||||
Restructuring Charges, Total | 1,400 | 10,700 | ||
Integration Program [Member] | Employee Severance [Member] | ||||
Accrued restructuring, beginning balance | 1,236 | 4,026 | ||
Restructuring Charges, Total | 287 | 10,167 | ||
Amounts paid or charged | (1,516) | (9,251) | ||
Impact of currency exchange | 0 | (137) | ||
Accrued restructuring, ending balance | 7 | 4,805 | 7 | 4,805 |
Integration Program [Member] | Other Restructuring [Member] | ||||
Accrued restructuring, beginning balance | 0 | 0 | ||
Restructuring Charges, Total | 1,113 | 553 | ||
Amounts paid or charged | (1,113) | (553) | ||
Impact of currency exchange | 0 | 0 | ||
Accrued restructuring, ending balance | 0 | 0 | 0 | 0 |
Integration Program [Member] | Employee Severance and Other Exit Costs [Member] | ||||
Accrued restructuring, beginning balance | 1,236 | 4,026 | ||
Restructuring Charges, Total | 1,400 | 10,720 | ||
Amounts paid or charged | (2,629) | (9,804) | ||
Impact of currency exchange | 0 | (137) | ||
Accrued restructuring, ending balance | $ 7 | $ 4,805 | $ 7 | $ 4,805 |
Note 5 - Financial Instrument_3
Note 5 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 0 | $ 0 |
Note 5 - Financial Instrument_4
Note 5 - Financial Instruments Measured at Fair Value - Short-term Investments by Security Type (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | ||
Estimated Fair Value | $ 949 | $ 904 | [1] | |
Debt Security, Government, Non-US [Member] | ||||
Amortized Cost | 949 | 904 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | [2] | 0 | 0 | |
Estimated Fair Value | $ 949 | $ 904 | ||
[1] | Derived from December 28, 2019 audited financial statements | |||
[2] | As of September 26, 2020 and December 28, 2019, there were no investments in our portfolio in a loss position. |
Note 5 - Financial Instrument_5
Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Due in one year or less, amortized cost | $ 949 | $ 0 |
Due in one year or less, fair value | 949 | 0 |
Due after one year through three years, amortized cost | 0 | 904 |
Due after one year through three years, fair value | 0 | 904 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost, Total | 949 | 904 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value, Total | $ 949 | $ 904 |
Note 5 - Financial Instrument_6
Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Assets, Fair Value Disclosure | $ 170,875 | $ 156,098 |
Debt Security, Government, Non-US [Member] | ||
Short-term investments | 949 | 904 |
Cash [Member] | ||
Cash and cash equivalents | 144,727 | 147,523 |
Money Market Funds [Member] | ||
Cash and cash equivalents | 25,199 | 7,671 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure | 144,727 | 147,523 |
Fair Value, Inputs, Level 1 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Cash and cash equivalents | 144,727 | 147,523 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 26,148 | 8,575 |
Fair Value, Inputs, Level 2 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | 949 | 904 |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents | 25,199 | 7,671 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash [Member] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Note 6 - Employee Stock Benef_2
Note 6 - Employee Stock Benefit Plans (Details Textual) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 26, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 28,455 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares) | 334,821 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares | $ 10.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 2.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 2 years 1 month 6 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 778,903 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 575,830 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 63,283 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 1,467,448 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ | $ 24.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms (Year) | 1 year 6 months |
Restricted Stock Units (RSUs) [Member] | Vesting Over One Year Period [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year |
Restricted Stock Units (RSUs) [Member] | Vesting Over Four Year Period [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 200,249 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 39,075 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 99,933 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 425,435 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ | $ 7.1 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 9 months 18 days |
Equity Based Performance Stock Units Granted in 2020, 2019, 2018, and 2017 [Member] | Vest on the Third Anniversary of Awards Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Minimum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 25.00% |
Maximum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 200.00% |
Equity Incentive Plan 2005 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,664,421 |
Equity Incentive Plan 2005 [Member] | Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years |
Equity Incentive Plan 2005 [Member] | Minimum [Member] | Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year |
Equity Incentive Plan 2005 [Member] | Maximum [Member] | Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 797,727 |
Percentage of Fair Value to Determine Price of Common Stock | 85.00% |
Stock Issued During Period, Shares, New Issues (in shares) | 113,610 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | (20.20%) | (13.90%) | (0.90%) | (0.30%) |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | $ 1 | $ 1.5 |
Note 8 - Segment and Geograph_3
Note 8 - Segment and Geographic Information - Summary of Current Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | ||
Net sales | $ 150,647 | $ 143,498 | $ 433,652 | $ 441,318 | ||
Segment profit (loss) before tax: | ||||||
Profit (loss) for reportable segments | (2,384) | (2,317) | (13,283) | (30,002) | ||
Interest expense | (3,021) | (5,000) | (10,904) | (15,789) | ||
Interest income | 42 | 190 | 210 | 603 | ||
Gain on extinguishment of debt | 293 | 0 | 293 | 0 | ||
Loss from continuing operations before taxes | (5,530) | (9,203) | (28,443) | (52,553) | ||
Assets, Total | 1,046,353 | 1,046,353 | $ 1,077,710 | [1] | ||
Discontinued operations | 0 | 0 | 3,618 | |||
Corporate, Non-Segment [Member] | ||||||
Segment profit (loss) before tax: | ||||||
Corporate expenses | (460) | (2,076) | (4,759) | (7,365) | ||
Assets, Total | 43,638 | 43,638 | 18,398 | |||
Semiconductor Test and Inspection [Member] | ||||||
Net sales | 137,225 | 132,820 | 396,666 | 407,092 | ||
Segment profit (loss) before tax: | ||||||
Profit (loss) for reportable segments | (4,093) | (2,929) | (17,997) | (32,373) | ||
Assets, Total | 941,086 | 941,086 | 998,756 | |||
PCB Test [Member] | ||||||
Net sales | 13,422 | 10,678 | 36,986 | 34,226 | ||
Segment profit (loss) before tax: | ||||||
Profit (loss) for reportable segments | 1,709 | $ 612 | 4,714 | $ 2,371 | ||
Assets, Total | 61,629 | 61,629 | 56,938 | |||
Semiconductor Test and Inspection and PCB Test [Member] | ||||||
Segment profit (loss) before tax: | ||||||
Assets, Total | $ 1,002,715 | $ 1,002,715 | $ 1,055,694 | |||
[1] | Derived from December 28, 2019 audited financial statements |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 26, 2020 | Dec. 28, 2019 | |
Lessee, Operating Lease, Renewal Term (Year) | 25 years | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 26,000 | $ 100,000 |
Lessee, Sublease Income, Receivable, Year Two | $ 100,000 | |
Minimum [Member] | ||
Lessee, Lease, Remaining Term of Contract (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Remaining Term of Contract (Year) | 37 years |
Note 9 - Leases - Balance Sheet
Note 9 - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | ||
Operating lease assets | $ 30,099 | $ 33,269 | [1] | |
Finance lease assets | [2] | 463 | 2,515 | |
Total lease assets | 30,562 | 35,784 | ||
Operating, current | 5,099 | 5,458 | ||
Finance, current | 164 | 2,574 | ||
Operating, noncurrent | 26,293 | 28,877 | ||
Finance, noncurrent | 239 | 0 | ||
Total lease liabilities | $ 31,795 | $ 36,909 | ||
Operating leases (Year) | 7 years 6 months | 7 years 10 months 24 days | ||
Finance leases (Year) | 2 years 6 months | 6 months | ||
Operating leases | 6.30% | 6.30% | ||
Finance leases | 0.00% | 4.50% | ||
[1] | Derived from December 28, 2019 audited financial statements | |||
[2] | Finance lease assets are recorded net of accumulated amortization of $26,000 and $0.1 million as of September 26, 2020 and December 28, 2019 respectively. |
Note 9 - Leases - Lease Expense
Note 9 - Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Operating leases | $ 2,074 | $ 2,142 | $ 6,337 | $ 6,381 |
Variable lease expense | 523 | 570 | 1,602 | 1,765 |
Short-term operating leases | 15 | 80 | 53 | 224 |
Amortization of leased assets | 17 | 20 | 65 | 82 |
Interest on lease liabilities | 0 | 29 | 57 | 117 |
Sublease income | (31) | (31) | (94) | (101) |
Net lease cost | $ 2,598 | $ 2,810 | $ 8,020 | $ 8,468 |
Note 9 - Leases - Future Minimu
Note 9 - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | |
2020, operating leases | [1] | $ 1,709 | |
2020, finance leases | 41 | ||
2020, total | 1,750 | ||
2021, operating leases | [1] | 6,733 | |
2021, finance leases | 164 | ||
2021, total | 6,897 | ||
2022, operating leases | [1] | 5,932 | |
2022, finance leases | 164 | ||
2022, total | 6,096 | ||
2023, operating leases | [1] | 5,158 | |
2023, finance leases | 34 | ||
2023, total | 5,192 | ||
2024, operating leases | [1] | 4,750 | |
2024, finance leases | 0 | ||
2024, total | 4,750 | ||
Thereafter, operating leases | [1] | 16,295 | |
Thereafter, finance leases | 0 | ||
Thereafter, total | 16,295 | ||
Total lease payments, operating leases | [1] | 40,577 | |
Total lease payments, finance leases | 403 | ||
Total lease payments, total | 40,980 | ||
Less: Interest, operating leases | [1] | (9,185) | |
Less: Interest, finance leases | 0 | ||
Less: Interest, total | (9,185) | ||
Present value of lease liabilities, operating leases | [1] | 31,392 | |
Present value of lease liabilities, finance leases | 403 | ||
Present value of lease liabilities, total | $ 31,795 | $ 36,909 | |
[1] | Excludes sublease income of $0.1 million in 2021. |
Note 9 - Leases - Cash Flow Inf
Note 9 - Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Operating cash flows from operating leases | $ 6,207 | $ 5,153 |
Operating cash flows from finance leases | 57 | 109 |
Financing cash flows from finance leases | 104 | 25 |
Leased assets obtained in exchange for new finance lease liabilities | 468 | 0 |
Leased assets obtained in exchange for new operating lease liabilities | $ 1,830 | $ 39,815 |
Note 10 - Discontinued Operat_3
Note 10 - Discontinued Operations (Details Textual) $ in Millions | 3 Months Ended |
Dec. 28, 2019USD ($) | |
Fixtures Services Business FSG [Member] | |
Disposal Group, Including Discontinued Operation, Impairment | $ 1.1 |
Note 10 - Discontinued Operat_4
Note 10 - Discontinued Operations - Balance Sheet Information for Fixture Services Business (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | |
Total current assets | $ 0 | $ 3,503 | [1] |
Total assets | 0 | 3,618 | |
Total current liabilities | 0 | 599 | [1] |
Noncurrent liabilities | $ 0 | 24 | [1] |
Fixtures Services Business FSG [Member] | Discontinued Operations, Held-for-sale [Member] | |||
Cash and cash equivalents | 736 | ||
Accounts receivable, net | 1,316 | ||
Inventories | 1,411 | ||
Other current assets | 40 | ||
Total current assets | 3,503 | ||
Property, plant and equipment, net | 33 | ||
Other noncurrent assets | 82 | ||
Total assets | 3,618 | ||
Other accrued current liabilities | 599 | ||
Total current liabilities | 599 | ||
Noncurrent liabilities | 24 | ||
Total liabilities | $ 623 | ||
[1] | Derived from December 28, 2019 audited financial statements |
Note 10 - Discontinued Operat_5
Note 10 - Discontinued Operations - Summary of Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Net sales | $ 0 | $ 1,720 | $ 432 | $ 5,020 |
Operating income before income taxes | 0 | 173 | 11 | 400 |
Gain on sale of Fixtures business | 0 | 0 | 35 | 0 |
Income before taxes | 0 | 173 | 46 | 400 |
Income tax provision | 0 | 19 | 4 | 58 |
Income, net of tax | $ 0 | $ 154 | $ 42 | $ 342 |
Note 12 - Guarantees (Details T
Note 12 - Guarantees (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Dec. 28, 2019 | |
Non-current Other Accrued Liabilities [Member] | ||
Product Warranty Accrual, Noncurrent | $ 0.1 | $ 0.3 |
Minimum [Member] | ||
Standard Product Warranty Term (Month) | 12 months | |
Maximum [Member] | ||
Standard Product Warranty Term (Month) | 36 months |
Note 12 - Guarantees - Changes
Note 12 - Guarantees - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Balance at beginning of period | $ 5,996 | $ 6,852 | $ 6,155 | $ 8,014 |
Warranty expense accruals | 911 | 1,137 | 3,846 | 4,695 |
Warranty payments | (1,169) | (2,071) | (4,263) | (6,791) |
Balance at end of period | $ 5,738 | $ 5,918 | $ 5,738 | $ 5,918 |