DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2018 | Nov. 16, 2018 | Mar. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | KULICKE & SOFFA INDUSTRIES INC | ||
Entity Central Index Key | 56,978 | ||
Current Fiscal Year End Date | --09-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | klic | ||
Entity Common Stock, Shares Outstanding | 67,171,963 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 29, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,745.4 | ||
Amendment Description |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 320,630 | $ 392,410 |
Restricted cash | 518 | 530 |
Short-term investments | 293,000 | 216,000 |
Accounts and notes receivable, net of allowance for doubtful accounts of $385 and $79, respectively | 243,373 | 198,480 |
Inventories, net | 115,191 | 122,023 |
Prepaid expenses and other current assets | 14,561 | 23,939 |
Total current assets | 987,273 | 953,382 |
Property, plant and equipment, net | 76,067 | 67,762 |
Goodwill | 56,550 | 56,318 |
Intangible assets, net | 52,871 | 62,316 |
Deferred tax asset | 9,017 | 27,771 |
Equity investments | 1,373 | 1,502 |
Other assets | 2,589 | 2,056 |
TOTAL ASSETS | 1,185,740 | 1,171,107 |
Current liabilities: | ||
Accounts payable | 48,527 | 51,354 |
Accrued expenses and other current liabilities | 105,978 | 124,847 |
Income taxes payable | 19,571 | 16,780 |
Total current liabilities | 174,076 | 192,981 |
Financing obligation | 15,187 | 16,074 |
Deferred income taxes | 25,591 | 27,152 |
Income taxes payable | 81,491 | 6,438 |
Other liabilities | 9,188 | 8,432 |
TOTAL LIABILITIES | 305,533 | 251,077 |
Commitments and contingent liabilities (Note 16) | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, without par value: | 0 | 0 |
Authorized 200,000 shares; issued 84,659 and 83,953 respectively; outstanding 67,143 and 70,197 shares, respectively | 519,244 | 506,515 |
Treasury stock, at cost, 17,516 and 13,756 shares, respectively | (248,664) | (157,604) |
Retained earnings | 613,529 | 569,080 |
Accumulated other comprehensive (loss) / gain | (3,902) | 2,039 |
TOTAL SHAREHOLDERS' EQUITY | 880,207 | 920,030 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,185,740 | $ 1,171,107 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts and notes receivable | $ 385 | $ 79 |
Preferred stock, without par value (usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 84,659 | 83,953 |
Common stock, shares outstanding | 67,143 | 70,197 |
Treasury stock, shares | 17,516 | 13,756 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
Income Statement [Abstract] | ||||
Net revenue | $ 889,121 | $ 809,041 | $ 627,192 | |
Cost of sales | 479,680 | 426,947 | 346,156 | |
Gross profit | 409,441 | 382,094 | 281,036 | |
Selling, general and administrative | 123,188 | 133,601 | 134,709 | |
Research and development | 119,621 | 100,203 | 92,374 | |
Impairment charges | 0 | 35,207 | 0 | |
Operating expenses | 242,809 | 269,011 | 227,083 | |
Income from operations | 166,632 | 113,083 | 53,953 | |
Interest income | 11,971 | 6,491 | 3,318 | |
Interest expense | (1,054) | (1,059) | (1,107) | |
Income from operations before income taxes | 177,549 | 118,515 | 56,164 | |
Income tax expense / (benefit) | 120,744 | (7,394) | 7,709 | |
Share of results of equity-method investee, net of tax | 129 | (190) | 0 | |
Net income | $ 56,676 | $ 126,099 | $ 48,455 | |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.82 | [1] | $ 1.78 | $ 0.69 |
Diluted (in dollars per share) | 0.80 | [1] | 1.75 | 0.68 |
Common Stock, Dividends, Per Share, Declared | $ 0.24 | $ 0 | $ 0 | |
Weighted average shares outstanding: | ||||
Basic (in shares) | 69,380 | 70,906 | 70,477 | |
Diluted (in shares) | 70,419 | 72,063 | 70,841 | |
[1] | EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 56,676 | $ 126,099 | $ 48,455 |
Other comprehensive income: | |||
Foreign currency translation adjustment | (3,633) | 1,960 | 624 |
Unrecognized actuarial gain / (loss) on pension plan, net of tax | 116 | 990 | (1,791) |
Other Comprehensive Income (Loss), Foreign Currency Transaction, Translation Adjustment and unrecognized actuarial (loss), Net of Tax, Portion Attributable to Parent | (3,517) | 2,950 | (1,167) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (669) | 669 | (566) |
Other Comprehensive Loss, Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (1,755) | 1,146 | 104 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (2,424) | 1,815 | (462) |
Total other comprehensive (loss) / income | (5,941) | 4,765 | (1,629) |
Comprehensive income | $ 50,735 | $ 130,864 | $ 46,826 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Retained earnings | Accumulated Other Comprehensive (loss) / income |
Beginning Balance at Oct. 03, 2015 | $ 760,912 | $ 492,339 | $ (124,856) | $ 394,526 | $ (1,097) |
Beginning Balance, shares at Oct. 03, 2015 | 71,240,000 | ||||
Issuance of stock for services rendered | 551 | $ 551 | |||
Treasury Stock, Shares, Acquired | (1,408,000) | ||||
Issuance of stock for services rendered, shares | 50,000 | ||||
Repurchase of common stock | (14,551) | $ (14,551) | |||
Exercise of stock options | 410 | $ 410 | |||
Exercise of stock options, shares | 53,000 | ||||
Issuance of shares for market-based restricted stock and time-based restricted stock | 0 | $ 0 | |||
Issuance of shares for market-based restricted stock and time-based restricted stock, shares | 485,000 | ||||
Excess tax benefits from stock based compensation | 197 | $ 197 | |||
Equity-based compensation expense | 5,179 | 5,179 | |||
Components of comprehensive income: | |||||
Net income | 48,455 | 48,455 | |||
Other comprehensive loss | (1,629) | ||||
Comprehensive income | 46,826 | 48,455 | (1,629) | ||
Ending Balance at Oct. 01, 2016 | 799,524 | $ 498,676 | $ (139,407) | 442,981 | (2,726) |
Ending Balance, shares at Oct. 01, 2016 | 70,420,000 | ||||
Issuance of stock for services rendered | 750 | $ 750 | |||
Treasury Stock, Shares, Acquired | (945,000) | ||||
Issuance of stock for services rendered, shares | 45,000 | ||||
Repurchase of common stock | (18,197) | $ (18,197) | |||
Exercise of stock options | 509 | $ 509 | |||
Exercise of stock options, shares | 61,000 | ||||
Issuance of shares for market-based restricted stock and time-based restricted stock | 0 | $ 0 | |||
Issuance of shares for market-based restricted stock and time-based restricted stock, shares | 616,000 | ||||
Excess tax benefits from stock based compensation | (4,392) | $ (4,392) | |||
Equity-based compensation expense | 10,972 | 10,972 | |||
Components of comprehensive income: | |||||
Net income | 126,099 | 126,099 | |||
Other comprehensive loss | 4,765 | ||||
Comprehensive income | 130,864 | 126,099 | 4,765 | ||
Ending Balance at Sep. 30, 2017 | 920,030 | $ 506,515 | $ (157,604) | 569,080 | 2,039 |
Ending Balance, shares at Sep. 30, 2017 | 70,197,000 | ||||
Cumulative effect of accounting changes | 5,420 | $ 1,414 | 4,006 | ||
Issuance of stock for services rendered | $ 780 | $ 780 | |||
Treasury Stock, Shares, Acquired | (3,760,000) | (3,760,000) | |||
Issuance of stock for services rendered, shares | 33,000 | ||||
Repurchase of common stock | $ (91,060) | $ (91,060) | |||
Exercise of stock options | 55 | $ 55 | |||
Exercise of stock options, shares | 6,000 | ||||
Issuance of shares for market-based restricted stock and time-based restricted stock | 0 | $ 0 | |||
Issuance of shares for market-based restricted stock and time-based restricted stock, shares | 667,000 | ||||
Excess tax benefits from stock based compensation | 0 | $ 0 | |||
Equity-based compensation expense | 10,480 | 10,480 | |||
Cash dividend declared | (16,233) | (16,233) | |||
Components of comprehensive income: | |||||
Net income | 56,676 | 56,676 | |||
Other comprehensive loss | (5,941) | ||||
Comprehensive income | 50,735 | 56,676 | (5,941) | ||
Ending Balance at Sep. 29, 2018 | $ 880,207 | $ 519,244 | $ (248,664) | $ 613,529 | $ (3,902) |
Ending Balance, shares at Sep. 29, 2018 | 67,143,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 56,676 | $ 126,099 | $ 48,455 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,015 | 16,257 | 16,230 |
Impairment charges | 0 | 35,207 | 0 |
Equity-based compensation and employee benefits | 11,685 | 11,722 | 5,730 |
(Excess tax benefits) / Reversal of excess tax benefits from stock based compensation | (50) | 4,392 | (197) |
Adjustment for doubtful accounts | 383 | (136) | (115) |
Adjustment for inventory valuation | 4,897 | 10,925 | 6,676 |
Deferred taxes | 22,519 | (16,758) | (15,459) |
Gain on disposal of property, plant and equipment | (676) | (999) | (55) |
Unrealized foreign currency translation | (2,002) | 1,362 | 1,318 |
Share of results of equity-method investee | 129 | (190) | 0 |
Changes in operating assets and liabilities, net of assets and liabilities assumed in businesses combinations: | |||
Accounts and notes receivable | (45,154) | (67,879) | (22,139) |
Inventory | 1,631 | (47,425) | (16,340) |
Prepaid expenses and other current assets | 9,405 | (8,468) | 1,599 |
Accounts Payable, accrued expenses and other current liabilities | (30,868) | 63,425 | 32,692 |
Income taxes payable | 77,968 | 3,946 | 10,492 |
Other, net | (2,059) | 4,830 | (480) |
Net cash provided by operating activities | 123,499 | 136,310 | 68,407 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of business, net of cash acquired | 0 | (27,119) | 0 |
Purchases of property, plant and equipment | (20,496) | (25,590) | (6,218) |
Proceeds from sales of property, plant and equipment | 625 | 1,352 | 1,053 |
Purchases of equity investments | 0 | (1,312) | 0 |
Purchase of short term investments | (684,000) | (305,000) | (124,000) |
Maturity of short term investments | 607,000 | 213,000 | 0 |
Net cash used in investing activities | (96,871) | (144,669) | (129,165) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment on debts | (704) | (604) | (542) |
Proceeds from exercise of common stock options | 55 | 509 | 410 |
Repurchase of common stock | (90,310) | (18,197) | (14,551) |
(Reversal of excess tax benefits) / Excess tax benefits from stock based compensation | 0 | (4,392) | 197 |
Common stock cash dividends paid | (8,176) | 0 | 0 |
Net cash used in financing activities | (99,135) | (22,684) | (14,486) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 715 | 76 | 537 |
Changes in cash, cash equivalents and restricted cash | (71,792) | (30,967) | (74,707) |
Cash, cash equivalents and restricted cash at end of period | 320,630 | 392,410 | |
CASH PAID FOR: | |||
Interest | 1,054 | 1,059 | 1,107 |
Income taxes | 13,179 | 8,283 | 10,020 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 321,148 | $ 392,940 | $ 423,907 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION These consolidated financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (the “Company”), with appropriate elimination of intercompany balances and transactions. As previously reported on the Annual Report on Form 10-K/A for the fiscal year ended September 30, 2017, the Company restated certain of its financial statements and related notes for the fiscal years ended September 30, 2017, October 1, 2016 and October 3, 2015. This annual report for the year ended September 29, 2018 reflects the restated numbers for those periods. Fiscal Year Each of the Company's first three fiscal quarters ends on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter. The fourth quarter of each fiscal year ends on the Saturday closest to September 30. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. The 2018, 2017, and 2016 fiscal years ended on September 29, 2018 , September 30, 2017 and October 1, 2016 , respectively. Nature of Business The Company designs, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company's operating results depend upon the capital and operating expenditures of semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers (“OSATs”), and other electronics manufacturers, including automotive electronics suppliers, worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry's demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, including those sold by the Company. These downturns and slowdowns have in the past adversely affected the Company's operating results. The Company believes such volatility will continue to characterize the industry and the Company's operations in the future. Use of Estimates The preparation of consolidated financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, valuation allowances for deferred tax assets and deferred tax liabilities, repatriation of un-remitted foreign subsidiary earnings, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company's assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of September 29, 2018 and September 30, 2017 consisted primarily of trade receivables. The Company manages credit risk associated with investments by investing its excess cash in highly rated debt instruments of the U.S. Government and its agencies, financial institutions, and corporations. The Company has established investment guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified as appropriate. The Company does not have any exposure to sub-prime financial instruments or auction rate securities. The Company's trade receivables result primarily from the sale of semiconductor equipment, related accessories and replacement parts, and tools to a relatively small number of large manufacturers in a highly concentrated industry. Write-offs of uncollectible accounts have historically not been significant. The Company actively monitors its customers' financial strength to reduce the risk of loss. The Company's products are complex and require raw materials, components and subassemblies having a high degree of reliability, accuracy and performance. The Company relies on subcontractors to manufacture many of these components and subassemblies and it relies on sole source suppliers for some important components and raw material inventory. Foreign Currency Translation and Remeasurement The majority of the Company's business is transacted in U.S. dollars; however, the functional currencies of some of the Company's subsidiaries are their local currencies. In accordance with ASC No. 830, Foreign Currency Matters (“ASC 830”), for a subsidiary of the Company that has a functional currency other than the U.S. dollar, gains and losses resulting from the translation of the functional currency into U.S. dollars for financial statement presentation are not included in determining net income, but are accumulated in the cumulative translation adjustment account as a separate component of shareholders' equity (accumulated other comprehensive income / (loss)). Under ASC 830, cumulative translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Gains and losses resulting from foreign currency transactions are included in the determination of net income. The Company's operations are exposed to changes in foreign currency exchange rates due to transactions denominated in currencies other than the location's functional currency. The Company is also exposed to foreign currency fluctuations that impact the remeasurement of net monetary assets of those operations whose functional currency, the U.S. dollar, differs from their respective local currencies, most notably in Israel, Malaysia, Singapore and Switzerland. In addition to net monetary remeasurement, the Company has exposures related to the translation of subsidiary financial statements from their functional currency, the local currency, into its reporting currency, the U.S. dollar, most notably in the Netherlands, China, Taiwan, Japan and Germany. The Company's U.S. operations also have foreign currency exposure due to net monetary assets denominated in currencies other than the U.S. dollar. Derivative Financial Instruments The Company’s primary objective for holding derivative financial instruments is to manage the fluctuation in foreign exchange rates and accordingly is not speculative in nature. The Company’s international operations are exposed to changes in foreign exchange rates as described above. The Company has established a program to monitor the forecasted transaction currency risk to protect against foreign exchange rate volatility. Generally, the Company uses foreign exchange forward contracts in these hedging programs. These instruments, which have maturities of up to twelve months, are recorded at fair value and are included in prepaid expenses and other current assets, or accrued expenses and other current liabilities. Our accounting policy for derivative financial instruments is based on whether they meet the criteria for designation as a cash flow hedge. A designated hedge with exposure to variability in the functional currency equivalent of the future foreign currency cash flows of a forecasted transaction is referred to as a cash flow hedge. The criteria for designating a derivative as a cash flow hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction, and the assessment of the probability that the underlying transaction will occur. For derivatives with cash flow hedge accounting designation, we report the after-tax gain / (loss) from the effective portion of the hedge as a component of accumulated other comprehensive income / (loss) and reclassify it into earnings in the same period in which the hedged transaction affects earnings and in the same line item on the consolidated statement of operations as the impact of the hedged transaction. Derivatives that we designate as cash flow hedges are classified in the consolidated statement of cash flows in the same section as the underlying item, primarily within cash flows from operating activities. The hedge effectiveness of these derivative instruments is evaluated by comparing the cumulative change in the fair value of the hedge contract with the cumulative change in the fair value of the forecasted cash flows of the hedged item. If a cash flow hedge is discontinued because it is no longer probable that the original hedged transaction will occur as previously anticipated, the cumulative unrealized gain or loss on the related derivative is reclassified from accumulated other comprehensive income / (loss) into earnings. Subsequent gain / (loss) on the related derivative instrument is recognized into earnings in each period until the instrument matures, is terminated, is re-designated as a qualified cash flow hedge, or is sold. Ineffective portions of cash flow hedges, as well as amounts excluded from the assessment of effectiveness, are recognized in earnings. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents are measured at fair value based on level one measurement, or quoted market prices, as defined by ASC No. 820, Fair Value Measurements and Disclosures . Investments Investments, other than cash equivalents, are classified as “trading,” “available-for-sale” or “held-to-maturity,” in accordance with ASC No. 320, Investments-Debt & Equity Securities , and depending upon the nature of the investment, its ultimate maturity date in the case of debt securities, and management's intentions with respect to holding the securities. Investments classified as “trading” are reported at fair market value, with unrealized gains or losses included in earnings. Investments classified as “available-for-sale” are reported at fair market value, with net unrealized gains or losses reflected as a separate component of shareholders' equity (accumulated other comprehensive income (loss)). The fair market value of trading and available-for-sale securities is determined using quoted market prices at the balance sheet date. Investments classified as held-to-maturity are reported at amortized cost. Realized gains and losses are determined on the basis of specific identification of the securities sold. Equity Investments The Company applies the equity method of accounting to investments that provide it with ability to exercise significant influence over the entities in which it lacks controlling financial interest and is not a primary beneficiary. Our proportionate share of the income or loss is recognized on a one-quarter lag and is recorded as share of results of equity-method investee, net of tax. Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its customers' failure to make required payments. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company is also subject to concentrations of customers and sales to a few geographic locations, which could also impact the collectability of certain receivables. If global or regional economic conditions deteriorate or political conditions were to change in some of the countries where the Company does business, it could have a significant impact on the results of operations, and the Company's ability to realize the full value of its accounts receivable. Inventories Inventories are stated at the lower of cost (on a first-in first-out basis) or net realizable value. The Company generally provides reserves for obsolete inventory and for inventory considered to be in excess of demand. Demand is generally defined as 18 months forecasted future consumption for equipment, 24 months forecasted future consumption for spare parts, and 12 months forecasted future consumption for tools. Forecasted consumption is based upon internal projections, historical sales volumes, customer order activity and a review of consumable inventory levels at customers' facilities. The Company communicates forecasts of its future consumption to its suppliers and adjusts commitments to those suppliers accordingly. If required, the Company reserves the difference between the carrying value of its inventory and the lower of cost or net realizable value, based upon projections about future consumption, and market conditions. If actual market conditions are less favorable than projections, additional inventory reserves may be required. Inventory reserve provision for certain subsidiaries is determined based on management's estimate of future consumption for equipment and spare parts. This estimate is based on historical sales volumes, internal projections and market developments and trends. Property, Plant and Equipment Property, plant and equipment are carried at cost. The cost of additions and those improvements which increase the capacity or lengthen the useful lives of assets are capitalized while repair and maintenance costs are expensed as incurred. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives as follows: buildings 25 years ; machinery, equipment, furniture and fittings 3 to 10 years ; toolings 1 year; and leasehold improvements are based on the shorter of the life of lease or life of asset . Purchased computer software costs related to business and financial systems are amortized over a five-year period on a straight-line basis. Land is not depreciated. Valuation of Long-Lived Assets In accordance with ASC No. 360, Property, Plant & Equipment ("ASC 360"), the Company's property, plant and equipment is tested for impairment based on undiscounted cash flows when triggering events occur, and if impaired, written-down to fair value based on either discounted cash flows or appraised values. ASC 360 also provides a single accounting model for long-lived assets to be disposed of by sale and establishes additional criteria that would have to be met to classify an asset as held for sale. The carrying amount of an asset or asset group is not recoverable to the extent it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Estimates of future cash flows used to test the recoverability of a long-lived asset or asset group must incorporate the entity's own assumptions about its use of the asset or asset group and must factor in all available evidence. ASC 360 requires that long-lived assets be tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Such events include significant under-performance relative to historical internal forecasts or projected future operating results; significant changes in the manner of use of the assets; significant negative industry or economic trends; or significant changes in market capitalization. During the fiscal years ended September 29, 2018 and September 30, 2017 , no "triggering" events occurred. Accounting for Impairment of Goodwill ASC No. 350, Intangibles-Goodwill and Other ("ASC 350") requires goodwill and other intangible assets with indefinite lives to be reviewed for impairment annually, or more frequently if circumstances indicate a possible impairment. We assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, a company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing the two-step impairment test is unnecessary. However, if a company concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. If the carrying value of a reporting unit exceeds its fair value in the first step of the test, then a company is required to perform the second step of the goodwill impairment test to measure the amount of the reporting unit's goodwill impairment loss, if any. As part of the annual evaluation, the Company performs an impairment test of its goodwill in the fourth quarter of each fiscal year to coincide with the completion of its annual forecasting and refreshing of its business outlook processes. On an ongoing basis, the Company monitors if a “triggering” event has occurred that may have the effect of reducing the fair value of a reporting unit below its respective carrying value. Adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment charge in the future. Impairment assessments inherently involve judgment as to the assumptions made about the expected future cash flows and the impact of market conditions on those assumptions. Future events and changing market conditions may impact the assumptions as to prices, costs, growth rates or other factors that may result in changes in the estimates of future cash flows. Although the Company believes the assumptions that it has used in testing for impairment are reasonable, significant changes in any one of the assumptions could produce a significantly different result. Indicators of potential impairment may lead the Company to perform interim goodwill impairment assessments, including significant and unforeseen customer losses, a significant adverse change in legal factors or in the business climate, a significant adverse action or assessment by a regulator, a significant stock price decline or unanticipated competition. For further information on goodwill and other intangible assets, see Note 5 below. Revenue Recognition In accordance with ASC No. 605, Revenue Recognition , the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, the collectability is reasonably assured, and customer acceptance, when applicable, has been received or we otherwise have been released from customer acceptance obligations. If terms of the sale provide for a customer acceptance period, revenue is recognized upon the expiration of the acceptance period or customer acceptance, whichever occurs first. Service revenue is generally recognized over the period that the services are provided. Shipping and handling costs billed to customers are recognized in net revenue. Shipping and handling costs paid by the Company are included in cost of sales. Research and Development The Company charges research and development costs associated with the development of new products to expense when incurred. In certain circumstances, pre-production machines that the Company intends to sell are carried as inventory until sold. Income Taxes In accordance with ASC No. 740, Income Taxes , deferred income taxes are determined using the balance sheet method . The Company records a valuation allowance to reduce its deferred tax assets to the amount it expects is more likely than not to be realized. While the Company has considered future taxable income and its ongoing tax planning strategies in assessing the need for the valuation allowance, if it were to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period when such determination is made. Likewise, should the Company determine it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the deferred tax asset would decrease income in the period when such determination is made. In accordance with ASC No. 740 Topic 10, Income Taxes, General (“ASC 740.10”), the Company accounts for uncertain tax positions taken or expected to be taken in its income tax return. Under ASC 740.10, the Company utilizes a two-step approach for evaluating uncertain tax positions. Step one, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon examination solely based on its technical merit. Step two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority, including resolution of related appeals or litigation processes, if any. Equity-Based Compensation The Company accounts for equity-based compensation under the provisions of ASC No. 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 requires the recognition of the fair value of the equity-based compensation in net income. Compensation expense associated with Relative TSR Performance Share Units is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based and Special/Growth Performance Share Units is determined based on the number of shares granted and the fair value on the date of grant. See Note 11 for a summary of the terms of these performance-based awards. The fair value of the Company's stock option awards are estimated using a Black-Scholes option valuation model. The fair value of equity-based awards is amortized over the vesting period of the award and the Company elected to use the straight-line method for awards granted after the adoption of ASC 718. Earnings per Share Earnings per share (“EPS”) are calculated in accordance with ASC No. 260, Earnings per Share . Basic EPS include only the weighted average number of common shares outstanding during the period. Diluted EPS include the weighted average number of common shares and the dilutive effect of stock options, restricted stock awards, performance share units and restricted share units outstanding during the period, when such instruments are dilutive. Accounting for Business Acquisitions The Company accounts for business acquisitions in accordance with ASC No. 805, Business Combinations . The fair value of the net assets acquired and the results of operations of the acquired businesses are included in the Consolidated Financial Statements from the acquisition date forward. The Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, deferred revenue, intangible assets and related deferred tax liabilities, useful lives of plant and equipment, and amortizable lives of acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. Restructuring charges Restructuring charges may consist of voluntary or involuntary severance-related charges, asset-related charges and other costs due to exit activities. We recognize voluntary termination benefits when an employee accepts the offered benefit arrangement. We recognize involuntary severance-related charges depending on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. If the former, we recognize the charges once they are probable and the amounts are estimable. If the latter, we recognize the charges once the benefits have been communicated to employees. Recent Accounting Pronouncements Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). This update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.We adopted this ASU in the first quarter of 2018 on a retrospective basis. As of September 29, 2018 and September 30, 2017, restricted cash was $0.5 million. The adoption of this ASU did not have a material impact on our cash flows. Income Taxes In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The new guidance requires the tax effects of intercompany transactions (other than transfers of inventory) to be recognized currently. The new guidance will be effective for us in the first quarter of 2019. The modified retrospective approach will be required for transition to the new guidance, with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. We do not expect the adoption of this ASU itself to have a material impact on our financial statements. Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. We adopted this ASU as of the beginning of the first quarter of 2018 and elected to account for forfeitures when they occur, on a modified retrospective basis. The adoption impact on the consolidated balance sheet as of September 29, 2018 was a cumulative adjustment of $1.4 million, decreasing the retained earnings and increasing capital surplus. We also recognized deferred tax assets of $5.4 million with a corresponding increase in retained earnings. The adoption did not have any other material impacts on our financial statements. Beginning in fiscal 2018, any current year excess tax benefits or deficiencies from stock based awards are reflected in the Statement of Operations. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU specifies the modification accounting applicable to any entity which changes the terms or conditions of a share-based payment award. We elected to prospectively adopt this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current GAAP. Subsequently in July 2018, the FASB issued ASU 2018-11 -Leases (Topic 842): Targeted Improvements, provides additional information concerning the new leases standard in ASU 2016-02, Leases (Topic 842). The targeted improvements provide entities with additional and optional transition methods. The new standard will be effective for us beginning in our first quarter of fiscal 2020 with early adoption permitted. The adoption of the new standard will result in an increase in our consolidated balance sheets for these right of use assets and corresponding liabilities. However, the ultimate impact of adopting this new standard will depend on the Company's lease portfolio as of the adoption date. We are currently evaluating the effects of the adoption of the new standard on our financial statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. We adopted this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the impairment methodology in current GAAP, which delays recognition of credit losses until it is probable a loss has been incurred, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for us beginning in our first quarter of fiscal 2021. Early adoption is permitted beginning in our first quarter of 2020. We are currently evaluating the impact of the adoption of this ASU on our financial statements. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815). The new guidance expands and refines hedge accounting for both financial and non-financial risks. The new guidance also modifies disclosure requirements for hedging activities. The new guidance will be effective for us beginning in our first quarter of fiscal 2020, and early adoption is permitted in any interim period. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements as well as whether to adopt the new guidance early. Business Combinations In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides a new framework for determining whether business development transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU will be effective for us beginning in our first quarter of 2019. Earlier application is permitted for acquisition or derecognition events that occurred prior to issuance date or effective date of the guidance only when the transaction has not been reported in financial statements that have been issued or made available for issuance. We have elected to prospectively adopt this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. We have elected to prospectively adopt this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Custome |
RESTRUCTURING (Notes)
RESTRUCTURING (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In fiscal 2016, the Company implemented a restructuring program to streamline its international operations and functions as well as to consolidate its organization structure to achieve our cost-reduction, productivity and efficiency initiatives. In fiscal 2017, the Company implemented a restructuring program to reallocate resources with respect to the EA/APMR ("Electronics Assembly/Hybrid") business unit. The accrued cost as at September 29, 2018 of these restructuring programs is expected to be paid by the end of fiscal 2019. The following table is a summary of activity related to the Company’s restructuring and other charges for fiscal 2018, 2017, and 2016 : Fiscal Year 2018 Activity (in thousands) Beginning of period (1) Expenses (2) Payments End of period (1) Severance and benefits $ 2,892 $ (96 ) $ (2,708 ) $ 88 Other exit costs 1,736 (225 ) (329 ) 1,182 4,628 (321 ) (3,037 ) 1,270 Fiscal Year 2017 Activity (in thousands) Beginning of period (1) Expenses (2) Payments End of period (1) Severance and benefits $ 37 $ 3,273 $ (418 ) $ 2,892 Other exit costs 6,525 38 (4,827 ) 1,736 6,562 3,311 (5,245 ) 4,628 Fiscal Year 2016 Activity (in thousands) Beginning of period (1) Expenses (2) Payments End of period (1) Severance and benefits $ 1,538 $ 661 $ (2,162 ) $ 37 Other exit costs — 7,983 (1,458 ) 6,525 1,538 8,644 (3,620 ) 6,562 (1) Included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. (2) Provision for severance and benefits and other exit costs are included within selling, general and administrative expenses on the Consolidated Statements of Operations. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS The following tables reflect the components of significant balance sheet accounts as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 Short term investments, available-for-sale (1) $ 293,000 $ 216,000 Inventories, net: Raw materials and supplies $ 63,894 $ 44,239 Work in process 37,829 40,827 Finished goods 40,357 61,596 142,080 146,662 Inventory reserves (26,889 ) (24,639 ) $ 115,191 $ 122,023 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 52,449 50,910 Leasehold improvements 12,728 9,882 Data processing equipment and software 35,469 34,700 Machinery, equipment, furniture and fixtures 68,666 60,143 Construction in progress 6,940 8,000 178,434 165,817 Accumulated depreciation (102,367 ) (98,055 ) $ 76,067 $ 67,762 Accrued expenses and other current liabilities: Wages and benefits $ 44,505 $ 47,411 Accrued customer obligations (2) 34,918 54,163 Commissions and professional fees 5,549 8,555 Dividends payable 8,057 — Deferred rent 1,847 1,930 Severance (3) 1,415 3,828 Other 9,687 8,960 $ 105,978 $ 124,847 (1) All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the years ended 2018 and 2017. (2) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. (3) Includes the restructuring plan discussed in Note 2, severance payable in connection with the November 2017 departure of the Company's Chief Financial Officer of $0.4 million , and other severance payments. |
BUSINESS COMBINATION (Notes)
BUSINESS COMBINATION (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Acquisition of Liteq On July 2, 2017, Kulicke and Soffa Holland Holdings B.V. (“KSHH”), the Company's wholly owned subsidiary, entered into a Share Sale and Purchase Agreement (the “Agreement”) with the shareholders of Liteq to purchase all of the outstanding equity interests of Liteq. Liteq is a lithography solutions provider for advanced packaging. The purchase price consists of EUR 25.0 million (approximately $28.6 million ) cash paid at closing and additional potential earn-out payments based on Liteq's cumulative pre-tax earnings and cumulative engineering expenses for fiscal 2018 to 2022. The acquisition expands the Company's presence in the advanced packaging market. The acquisition of Liteq was accounted for in accordance with ASC No. 805, Business Combinations, using the acquisition method. On July 2, 2018 the Company finalized the valuation of the tangible and identifiable intangible assets and liabilities in connection with the acquisition of Liteq and no further adjustment was recorded. The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the acquisition date and related useful lives of the finite-lived intangible assets acquired: (in thousands) July 2, 2017 Prepaid expenses and other current assets $ 199 Property, plant and equipment 107 Intangibles 18,060 Goodwill 10,253 Accounts payable (157 ) Accrued expenses and other current liabilities (103 ) Deferred tax liabilities (1,240 ) Total purchase price, net of cash acquired $ 27,119 Tangible net assets (liabilities) were valued at their respective carrying amounts, which the Company believes approximate their current fair values at the acquisition date. The valuation of identifiable intangible assets acquired, representing developed technology, reflects management’s estimates based on, among other factors, use of established valuation methods. The developed technology was determined using the relief from royalty method, and is amortized over the period of estimated benefit using the straight-line method and the estimated useful lives of ten years. The straight-line method of amortization represents the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and includes the value of expected future cash flows of Liteq from expected synergies with our other affiliates and other unidentifiable intangible assets. None of the goodwill recorded as part of the acquisition will be deductible for income tax purposes. In connection with the acquisition of Liteq, the Company recorded deferred tax liabilities relating to the acquired intangible assets, which are partially offset by the net amount of acquired net operating losses. The net amount of acquired net operating losses is comprised of net operating losses less the tax reserves and valuation allowance. For the year ended September 30, 2017, the acquired business contributed a net loss of $1.4 million . During fiscal 2017, the Company incurred $0.3 million of expenses related to the acquisition, which is included within selling, general and administrative expense in the consolidated statements of operations. The following unaudited pro forma information presents the combined results of operations as if the acquisition had been completed on October 3, 2015, the beginning of the comparable prior annual reporting period. The unaudited pro forma results include: (i) amortization associated with preliminary estimates for the acquired intangible assets; (ii) recognition of the post-acquisition share-based compensation and other compensation expense; and (iii) the associated tax impact on these unaudited pro forma adjustments. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred in integrating the two companies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the periods presented, nor are they indicative of future results of operations: Fiscal (in thousands, except for per share information) 2017 2016 Net revenue $ 809,041 $ 627,192 Net income 120,143 42,513 Basic income per common share 1.69 0.60 Diluted income per common share $ 1.67 $ 0.59 Acquisition of Assembléon On January 9, 2015, Kulicke & Soffa Holdings B.V. (“KSH”), the Company's wholly owned subsidiary, acquired all of the outstanding equity interests of Assembléon. The cash purchase price of approximately $97.4 million (EUR 80 million ) consisted of $72.5 million for 100% of the equity of Assembléon and $24.9 million which was used by Assembléon to settle intercompany loans with its parent company. On January 18, 2018, the Company released $5.0 million (EUR 4.2 million ) previously held in escrow, after the conclusion of a legal proceeding for which the Company asserted indemnification rights under the share purchase agreement. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process. During the third quarter of the fiscal year ended September 30, 2017, the Company concluded that a triggering event had occurred in connection with the EA/APMR reporting unit (the former Assembléon) based on the results of an updated long-term financial outlook for the EA/APMR business that was conducted as part of the Company’s strategic review during the third quarter due to the lower demand as compared to forecast. The projection used in the fiscal 2016 annual impairment test had been developed based on the fiscal 2016 actual results, where the actual revenue had exceeded the forecast. This updated outlook projected that the near-term projected cash flows are expected to be lower than previously forecasted due to softer near-term demand in the System-in-package market. Under ASC 350, the Company is required to test its goodwill and intangible assets for impairment annually or when a triggering event has occurred that would indicate it is more likely than not that the fair value of the reporting unit is less than the carrying value including goodwill and intangible assets. Accordingly, the Company performed the first step of the goodwill impairment test for the EA/APMR reporting unit. The Company used a discounted cash flow model to determine the fair value of the EA/APMR reporting unit. The cash flow projections used within the discounted cash flow model were prepared using the forecasted financial results of the reporting unit, which was based upon underlying estimates of the total market size using independent third party industry reports, and market share data developed using the combination of independent third party data and our internal data. Significant assumptions used to determine fair value of the EA/APMR reporting unit include terminal growth rate of 2.5% , cost reduction initiatives including restructuring, working capital, tax rate and a weighted average cost of capital (discount rate) of 10.45% . Following the Company's early adoption of ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment in the third quarter of fiscal 2017, the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment (i.e. Step 2 of the goodwill impairment test) was eliminated. Accordingly, the Company's impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. Based on the calculation, the Company determined that the carrying amount of the EA/APMR reporting unit exceeded its fair value by $35.2 million , requiring an impairment charge of this amount in the third quarter of fiscal 2017. The goodwill impairment charge, which is a non-cash charge, has been reflected in the Company’s Consolidated Statements of Operations for the fiscal year ended September 30, 2017. The Company performed its annual impairment test in the fourth quarter of fiscal 2018 and concluded that no impairment charge was required. The following table summarizes the Company's recorded goodwill by reportable segments as of September 29, 2018 and September 30, 2017 : (in thousands) Capital Equipment APS Balance at October 1, 2016 $ 33,453 $ 47,819 Acquired in business combination 10,253 — Goodwill impairment (13,731 ) (21,476 ) Balance at September 30, 2017 $ 29,975 $ 26,343 Other 184 48 Balance at September 29, 2018 $ 30,159 $ 26,391 Intangible Assets Intangible assets with determinable lives are amortized over their estimated useful lives. The Company's intangible assets consist primarily of developed technology, customer relationships and trade and brand names. The following table reflects net intangible assets as of September 29, 2018 and September 30, 2017 : As of Average estimated (dollar amounts in thousands) September 29, 2018 September 30, 2017 useful lives (in years) Developed technology $ 90,500 $ 92,140 7.0 to 15.0 Accumulated amortization (45,229 ) (41,162 ) Net developed technology $ 45,271 $ 50,978 Customer relationships $ 36,131 $ 36,968 5.0 to 6.0 Accumulated amortization (29,820 ) (27,398 ) Net customer relationships $ 6,311 $ 9,570 Trade and brand names $ 7,377 $ 7,515 7.0 to 8.0 Accumulated amortization (6,088 ) (5,747 ) Net trade and brand names $ 1,289 $ 1,768 Other intangible assets $ 2,500 $ 2,500 1.9 Accumulated amortization (2,500 ) (2,500 ) Net wedge bonder other intangible assets $ — $ — Net intangible assets $ 52,871 $ 62,316 The following table reflects estimated annual amortization expense related to intangible assets as of September 29, 2018 : As of (in thousands) September 29, 2018 Fiscal 2019 $ 7,633 Fiscal 2020 7,633 Fiscal 2021 5,529 Fiscal 2022 4,530 Fiscal 2023 and thereafter 27,546 Total amortization expense $ 52,871 |
CASH, CASH EQUIVALENTS, RESTRIC
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Sep. 29, 2018 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. In general, these investments are free of trading restrictions. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 29, 2018 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 42,446 $ — $ — $ 42,446 Cash equivalents: Money market funds (1) 209,172 — (5 ) 209,167 Time deposits (2) 69,017 — — 69,017 Total cash and cash equivalents $ 320,635 $ — $ (5 ) $ 320,630 Restricted Cash (2) $ 518 $ — $ — $ 518 Total restricted cash $ 518 $ — $ — $ 518 Short-term investments (2) : Time deposits $ 197,000 $ — $ — $ 197,000 Deposits (3) 96,000 — — 96,000 Total short-term investments $ 293,000 $ — $ — $ 293,000 Total cash, cash equivalents, restricted cash and short-term investments $ 614,153 $ — $ (5 ) $ 614,148 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) Fair value approximates cost basis. (3) Represents deposits that require a notice period of three months for withdrawal. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 30, 2017 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 65,759 $ — $ — $ 65,759 Cash equivalents (1) : Money market funds 232,069 — — 232,069 Time deposits 89,087 — — 89,087 Commercial paper 5,495 — — 5,495 Total cash and cash equivalents $ 392,410 $ — $ — $ 392,410 Restricted Cash (1) $ 530 $ — $ — $ 530 Total restricted cash $ 530 $ — $ — $ 530 Short-term investments (1) : Time deposits $ 120,000 $ — $ — $ 120,000 Deposits (2) 96,000 — — 96,000 Total short-term investments $ 216,000 $ — $ — $ 216,000 Total cash, cash equivalents, restricted cash and short-term investments $ 608,940 $ — $ — $ 608,940 (1) Fair value approximates cost basis. (2) Represents deposits that require a notice period of three months for withdrawal. |
EQUITY INVESTMENTS (Notes)
EQUITY INVESTMENTS (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Equity Investments The Company applies the equity method of accounting to investments that provide it with ability to exercise significant influence over the entities in which it lacks controlling financial interest and is not a primary beneficiary. Our proportionate share of the income or loss is recognized on a one-quarter lag and is recorded as share of results of equity-method investee, net of tax. EQUITY INVESTMENTS Equity investments consisted of the following as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 Equity method investment $ 1,373 $ 1,502 The Company has an investment in one of our strategic suppliers which provides the Company with the ability to exercise significant influence over the investment vehicle, in which it lacks controlling financial interest and is not a primary beneficiary. Our share of gains and losses in the equity method investment is recognized on a one-quarter lag, and is reflected as share of results of equity-method investee, net of tax, in the accompanying Consolidated Statements of Operations. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASURMENTS | FAIR VALUE MEASUREMENTS Accounting standards establish three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities at fair value on a recurring basis. There were no transfers between fair value measurement levels during the year ended September 29, 2018 . Fair Value Measurements on a Nonrecurring Basis Our non-financial assets such as intangible assets and property, plant equipment are carried at cost unless impairment is deemed to have occurred. Our equity method investments are recorded at fair value only if an impairment is recognized. Fair Value of Financial Instruments Amounts reported as accounts receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENT (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Derivative financial Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE FINANCIAL INSTRUMENTS The Company’s international operations are exposed to changes in foreign exchange rates due to transactions denominated in currencies other than U.S. dollars. Most of the Company’s revenue and cost of materials are transacted in U.S. dollars. However, a significant amount of the Company’s operating expenses are denominated in foreign currencies, primarily in Singapore. The foreign currency exposure of our operating expenses are generally hedged with foreign exchange forward contracts. The Company’s foreign exchange risk management programs include using foreign exchange forward contracts with cash flow hedge accounting designation to hedge exposures to the variability in the U.S.-dollar equivalent of forecasted non-U.S. dollar-denominated operating expenses. These instruments generally mature within twelve months. For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss), and we reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the Consolidated Statements of Operations as the impact of the hedged transaction. The fair value of derivative instruments on our Consolidated Balance Sheet as of September 29, 2018 and September 30, 2017 is as follows: As of (in thousands) September 29, 2018 September 30, 2017 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Asset Derivatives (2) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 43,095 $ 1,071 $ 36,404 $ 1,353 Total derivatives $ 43,095 $ 1,071 $ 36,404 $ 1,353 (1) The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet. (2) The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Balance Sheet (3) Hedged amounts expected to be recognized into earnings within the next twelve months. The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Operations for the year ended September 29, 2018 and September 30, 2017 was as follows: (in thousands) Fiscal 2018 2017 Foreign exchange forward contract in cash flow hedging relationships: Net (loss) / gain recognized in OCI, net of tax (1) $ (669 ) $ 669 Net gain / (loss) reclassified from accumulated OCI into earnings, net of tax (2) $ 1,755 $ (1,146 ) Net gain recognized into earnings (3) $ — $ — (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion classified as selling, general and administrative expense. (3) Ineffective portion and amount excluded from effectiveness testing classified in selling, general and administrative expense. |
DEBT AND OTHER OBLIGATIONS
DEBT AND OTHER OBLIGATIONS | 12 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER OBLIGATIONS | DEBT AND OTHER OBLIGATIONS Financing Obligation On December 1, 2013, Kulicke & Soffa Pte Ltd. (“Pte”), the Company's wholly owned subsidiary, signed a lease with DBS Trustee Limited as trustee of Mapletree Industrial Trust (the “Landlord”) to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of a building in Singapore as our corporate headquarters, as well as a manufacturing, technology, sales and service center (the “Building”). The lease has a 10 year non-cancellable term (the "Initial Term") and contains options to renew for 2 further 10 -year terms. The annual rent and service charge for the initial term range from $4 million to $5 million Singapore dollars. Pursuant to ASC No. 840, Leases ("ASC 840"), we have classified the Building on our balance sheet as Property, Plant and Equipment, which we are depreciating over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. At the inception of the lease, the asset and financing obligation recorded on the balance sheet was $20.0 million , which was based on an interest rate of 6.3% over the Initial Term. As of September 29, 2018 , the financing obligation related to the Building is $16.0 million , which approximates fair value (Level 2). The financing obligation will be settled through a combination of periodic cash rental payments and the return of the leased property at the expiration of the lease. We do not report rent expense for the property, which is deemed owned for accounting purposes. Rather, rental payments required under the lease are considered debt service and applied to the deemed landlord financing obligation and interest expense. The Building and financing obligation are being amortized in a manner that will not generate a gain or loss upon lease termination. Credit facilities and Bank Guarantees On November 22, 2013, the Company obtained a $5.0 million credit facility with Citibank in connection with the issuance of bank guarantees for operational purposes. As of September 29, 2018 and September 30, 2017 , the outstanding amount is $4.0 million and $3.2 million respectively. In addition, the Company has other bank guarantees for operational purposes which are secured with corresponding deposits placed with the issuer banks. These amounts are shown as restricted cash in the Consolidated Balance Sheets. |
SHAREHOLDERS' EQUITY AND EMPLOY
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS | SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS Common Stock and 401(k) Retirement Income Plans The Company has a 401(k) retirement plan (the “Plan”) for eligible U.S. employees. The Plan allows for employee contributions and matching Company contributions from 4% to 6% based upon terms and conditions of the 401(k) Plan. The following table reflects the Company’s contributions to the Plan during fiscal 2018 and 2017: Fiscal (in thousands) 2018 2017 Cash $ 1,610 $ 1,645 Share Repurchase Program On August 15, 2017 , the Company's Board of Directors authorized a program (the " Program") to repurchase up to $100 million of the Company’s common stock on or before August 1, 2020. The Company has entered into a written trading plan under Rule 10b5-1 of the Exchange Act to facilitate repurchases under the Program. The Program may be suspended or discontinued at any time and is funded using the Company's available cash, cash equivalents and short-term investments. Under the Program, shares may be repurchased through open market and/or privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under the Program depend on market conditions as well as corporate and regulatory considerations. On July 10, 2018, the Company's Board of Directors increased the share repurchase authorization under the Program by an additional $100 million. During the year ended September 29, 2018 , the Company repurchased a total of 3.8 million shares of common stock at a cost of $91.1 million . The share repurchases were recorded in the periods they were delivered and accounted for as treasury stock in the Company’s Consolidated Balance Sheet. The Company records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid-in capital associated with prior treasury stock transactions is insufficient to cover the difference between acquisition cost and the reissue price, this difference is recorded against retained earnings. As of September 29, 2018 , our remaining share repurchase authorization under the Program was approximately $97.7 million. Dividends On June 14, 2018, the Board of Directors declared and authorized the initiation of a quarterly dividend. During the year ended September 29, 2018 , the Company declared dividends of $0.24 per share of common stock. The declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on the Company's financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that such dividends are in the best interests of the Company's stockholders. Accumulated Other Comprehensive Income The following table reflects accumulated other comprehensive income / (loss) reflected on the Consolidated Balance Sheets as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 (Loss) / Gain from foreign currency translation adjustments $ (1,211 ) $ 2,422 Unrecognized actuarial loss on pension plan, net of tax (1,620 ) (1,736 ) Unrealized (loss) / gain on hedging (1,071 ) 1,353 Accumulated other comprehensive (loss) / income $ (3,902 ) $ 2,039 Equity-Based Compensation The Company has stockholder-approved equity-based employee compensation plans (the “Employee Plans”) and director compensation plans (the “Director Plans”) (collectively, the “Equity Plans”). As of September 29, 2018 , 4.7 million shares of common stock are available for grant to its employees and directors under the 2017 Equity Plan, including previously registered shares that have been carried forward for issuance under the 2009 Equity Plan. • Relative TSR Performance Share Units ("Relative TSR PSUs") entitles the employee to receive common shares of the Company on the award vesting date if market performance objectives which measure relative total shareholder return (“TSR”) are attained. Relative TSR is calculated based upon the 90 -calendar day average price of the Company's stock as compared to specific peer companies that comprise the GICS (45301020) Semiconductor Index. TSR is measured for the Company and each peer company over a performance period, which is generally three years . Vesting percentages range from 0% to 200% of awards granted. The provisions of the Relative TSR PSUs are reflected in the grant date fair value of the award; therefore, compensation expense is recognized regardless of whether the market condition is ultimately satisfied. Compensation expense is reversed if the award is forfeited prior to the vesting date. • In general, stock options and Time-based Restricted Share Units ("Time-based RSUs") awarded to employees vest annually over a three-year period provided the employee remains employed by the Company. The Company follows the non-substantive vesting method for stock options and recognizes compensation expense immediately for awards granted to retirement-eligible employees, or over the period from the grant date to the date retirement eligibility is achieved. • Special/Growth Performance Share Units (“Special/Growth PSUs”) entitles the employee to receive common shares of the Company on the three-year anniversary of the grant date (if employed by the Company) if revenue growth targets set by the Management Development and Compensation Committee (“MDCC”) of the Board of Directors on the date of grant are met. If revenue growth targets are not met, the Special/Growth PSUs do not vest. Certain Special/Growth PSUs vest based on achievement of strategic goals over a certain time period or periods set by the MDCC. If the strategic goals are not achieved, the Special/Growth PSUs do not vest. • In general, Performance-based Restricted Stock entitles the employee to receive common shares of the Company on the three-year anniversary of the grant date (if employed by the Company) if return on invested capital and revenue growth targets set by the Management Development and Compensation Committee (“MDCC”) of the Board of Directors on the date of grant are met. If return on invested capital and revenue growth targets are not met, performance-based restricted stock does not vest. Certain PSUs vest based on achievement of strategic goals over a certain time period or periods set by the MDCC. If the strategic goals are not achieved, the PSUs do not vest. Equity-based compensation expense recognized in the Consolidated Statements of Operations for fiscal 2018, 2017, and 2016 was based upon awards ultimately expected to vest. Following the early adoption in the first quarter of fiscal 2018 of ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, forfeitures have been accounted for when they occur. The following table reflects total equity-based compensation expense, which includes Relative TSR PSUs, Time-based RSUs, Special/Growth PSUs, Performance-based Restricted Stock and common stock, included in the Consolidated Statements of Operations for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Cost of sales $ 515 $ 463 $ 421 Selling, general and administrative (1) 8,548 9,015 3,244 Research and development 2,622 2,244 2,065 Total equity-based compensation expense $ 11,685 $ 11,722 $ 5,730 (1) The selling, general and administrative expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. The following table reflects equity-based compensation expense, by type of award, for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Relative TSR PSUs $ 3,583 $ 3,480 $ (33 ) Time-based RSUs 7,027 7,492 5,255 Performance-based restricted stock — — (43 ) Special/Growth PSUs 295 — — Common stock 780 750 551 Total equity-based compensation expense (1) $ 11,685 $ 11,722 $ 5,730 (1) The equity-based compensation expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. Equity-Based Compensation: Relative TSR PSUs The following table reflects Relative TSR PSUs activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Relative TSR PSUs outstanding as of October 3, 2015 578 $ 4,465 1.4 Granted 172 $ 12.26 Forfeited or expired (256 ) Vested (10 ) Relative TSR PSUs outstanding as of October 1, 2016 484 $ 2,924 1.0 Granted 388 $ 13.47 Forfeited or expired (3 ) Vested (196 ) Relative TSR PSUs outstanding as of September 30, 2017 673 $ 6,204 1.4 Granted 180 $ 29.60 Forfeited or expired (146 ) Vested (168 ) Relative TSR PSUs outstanding as of September 29, 2018 539 $ 4,629 1.1 The following table reflects the assumptions used to calculate compensation expense related to the Company’s Relative TSR PSUs issued during fiscal 2018, 2017, and 2016 : Fiscal 2018 2017 2016 Grant Price $ 19.65 $ 12.51 $ 9.58 Expected dividend yield (1) 0.12% N/A N/A Expected stock price volatility 31.71 % 30.39 % 30.85 % Risk-free interest rate 1.68 % 0.96 % 0.89 % (1) The expected dividend yield for fiscal 2018 includes the effect of 10,511 grants which were issued in the quarter ended September 29, 2018 with an assumed dividend yield of 1.91% Equity-Based Compensation: Time-based RSUs The following table reflects Time-based RSUs activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Time-based RSUs outstanding as of October 3, 2015 849 $ 7,054 1.6 Granted 597 $ 9.66 Forfeited or expired (85 ) Vested (346 ) Time-based RSUs outstanding as of October 1, 2016 1,015 $ 6,440 1.5 Granted 715 $ 13.32 Forfeited or expired (50 ) Vested (600 ) Time-based RSUs outstanding as of September 30, 2017 1,080 $ 7,770 1.5 Granted 459 $ 22.32 Forfeited or expired (87 ) Vested (542 ) Time-based RSUs outstanding as of September 29, 2018 910 $ 9,038 1.4 Equity-Based Compensation: Performance-based restricted stock The following table reflects Performance-based restricted stock activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Performance-based restricted stock outstanding as of October 3, 2015 57 $ 285 2.2 Granted — Forfeited or expired (29 ) Vested (28 ) Performance-based restricted stock outstanding as of October 1, 2016 — — 0 No Performance-based restricted stock were granted during fiscal 2018, 2017, and 2016 . Equity-Based Compensation: Special/Growth PSUs The following table reflects Special/Growth PSUs activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Special/Growth PSUs outstanding as of September 30, 2017 — Granted 60 $ 22.57 Forfeited or expired (14 ) Vested — Special/Growth PSUs outstanding as of September 29, 2018 46 $ 702 2.1 The following table reflects employee stock option activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of October 3, 2015 147 $ 8.18 Exercised (53 ) $ 5.40 $ 330 Forfeited or expired (4 ) $ 9.00 Options outstanding as of October 1, 2016 90 $ 8.41 Exercised (61 ) $ 8.31 $ 531 Forfeited or expired (13 ) $ 8.50 Options outstanding as of September 30, 2017 16 $ 8.73 Exercised (6 ) $ 8.74 $ 73 Forfeited or expired (8 ) $ 8.74 Options outstanding as of September 29, 2018 2 $ 8.64 1.6 $ 25 Options vested and expected to vest as of September 29, 2018 2 $ 8.64 1.6 $ 25 Options exercisable as of September 29, 2018 2 $ 8.64 1.6 In the money exercisable options as of September 29, 2018 2 $ 25 Intrinsic value of stock options exercised is determined by calculating the difference between the market value of the Company's stock price at the time an option is exercised and the exercise price, multiplied by the number of shares. The intrinsic value of stock options outstanding and stock options exercisable is determined by calculating the difference between the Company's closing stock price on the last trading day of fiscal 2018 and the exercise price of in-the-money stock options, multiplied by the number of underlying shares. During fiscal 2018, the Company received $54,800 in cash from the exercise of employee and non-employee director stock options. As of September 29, 2018 , there were no unvested employee stock options. The following table reflects outstanding and exercisable employee stock options as of September 29, 2018 : Options Outstanding Options Exercisable Range of exercise prices Options outstanding (in thousands) Weighted average remaining contractual life (in years) Weighted average exercise price Options exercisable (in thousands) Weighted average exercise price 8.64 2 1.6 $ 8.64 2 $ 8.64 Equity-Based Compensation: non-employee directors The 2017 Equity Plan provides for the grant of common shares to each non-employee director upon initial election to the board and on the first business day of each calendar quarter while serving on the board. The grant to a non-employee director upon initial election to the board is that number of common shares closest in value to, without exceeding, $120,000 . The quarterly grant to a non-employee director upon the first business day of each calendar year quarter is that number of common shares closest in value to, without exceeding, $32,500 . The following table reflects shares of common stock issued to non-employee directors and the corresponding fair value for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Number of common shares issued 33 45 50 Fair value based upon market price at time of issue $ 780 $ 750 $ 551 The following table reflects non-employee director stock option activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of October 3, 2015 20 $ 11.20 $ 225 Exercised — $ — Forfeited or expired (20 ) $ 11.20 Options outstanding as of October 1, 2016 — $ — $ — No non-employee director stock options were granted during fiscal 2018, 2017, and 2016 . Pension Plan The following table reflects the Company's defined benefits pension obligations, mainly in Switzerland and Taiwan, as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 Switzerland pension obligation $ 1,980 $ 1,951 Taiwan pension obligation 1,256 967 Other Plans Some of the Company's other foreign subsidiaries have retirement plans that are integrated with and supplement the benefits provided by laws of the various countries. These other plans are not required to report nor do they determine the actuarial present value of accumulated benefits or net assets available for plan benefits as they are defined contribution plans. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic income per share is calculated using the weighted average number of shares of common stock outstanding during the period. Stock options and restricted stock are included in the calculation of diluted earnings per share, except when their effect would be anti-dilutive. The following tables reflect a reconciliation of the shares used in the basic and diluted net income per share computation for fiscal 2018, 2017, and 2016 : Fiscal (in thousands, except per share) 2018 2017 2016 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 56,676 $ 56,676 $ 126,099 $ 126,099 $ 48,455 $ 48,455 DENOMINATOR: Weighted average shares outstanding - Basic 69,380 69,380 70,906 70,906 70,477 70,477 Stock options 1 19 32 Time-based restricted stock 402 592 274 Market-based restricted stock 636 546 58 Weighted average shares outstanding - Diluted 70,419 72,063 70,841 EPS: Net income per share - Basic $ 0.82 $ 0.82 $ 1.78 $ 1.78 $ 0.69 $ 0.69 Effect of dilutive shares $ (0.02 ) $ (0.03 ) $ (0.01 ) Net income per share - Diluted $ 0.80 $ 1.75 $ 0.68 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table reflects income or losses from continuing operations by location, the provision for income taxes and the effective tax rate for fiscal 2018, 2017, and 2016 : Fiscal (dollar amounts in thousands) 2018 2017 2016 United States operations $ 25,211 $ (4,114 ) $ (12,600 ) Foreign operations 152,338 122,629 68,764 Income from operations before tax 177,549 118,515 56,164 Income tax expenses / (benefit) $ 120,744 $ (7,394 ) $ 7,709 Effective tax rate 68.0 % (6.2 )% 13.7 % The following table reflects the provision for income taxes from continuing operations for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Current: Federal $ 83,159 $ (3,975 ) $ 871 State 58 64 53 Foreign 16,980 13,290 21,841 Deferred: Federal 23,346 (15,374 ) (13,423 ) State (2 ) 40 12 Foreign (2,797 ) (1,439 ) (1,645 ) Provision for income taxes $ 120,744 $ (7,394 ) $ 7,709 The following table reflects the difference between the provision for income taxes and the amount computed by applying the statutory federal income tax rate for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Computed income tax expense based on U.S. statutory rate $ 43,568 $ 41,358 $ 19,658 Effect of earnings of foreign subsidiaries subject to different tax rates (12,947 ) (22,832 ) (7,584 ) Benefits from foreign approved enterprise zones (20,429 ) (23,294 ) (8,701 ) Benefits from research and development tax credits (2,785 ) (1,859 ) (2,839 ) Benefits from foreign tax credits (3,939 ) (26,119 ) — Provisional estimate for the one-time U.S. transition tax, net of uncertain tax positions and foreign tax credits 101,854 — — Remeasurement of net U.S. deferred tax assets to reflect a reduction in the U.S. federal corporate tax rate 2,760 — — Change in permanent reinvestment assertion — — (9,696 ) Tax impact on restructuring — — 4,238 Tax audit settlement — — 4,889 Effect of permanent items (758 ) 778 (2,274 ) Non-deductible goodwill impairment — 8,805 — Deferred taxes not benefited 7,366 6,458 3,585 Foreign operations (withholding taxes, deferred taxes on unremitted earnings, US taxation of foreign earnings) 5,746 6,039 4,981 Reserve for uncertain tax positions 530 2,936 208 State income tax expense (net of federal benefit) 56 60 996 Other, net (278 ) 276 248 Provision for income taxes $ 120,744 $ (7,394 ) $ 7,709 2017 Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law. The Act, among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%, implements a modified territorial tax system that includes a one-time transition tax on deemed repatriation of previously untaxed accumulated earnings and profits of certain foreign subsidiaries, and creates new taxes on certain foreign-sourced earnings. The Company has reflected the income tax effects of the Act for which the accounting under Accounting Standards Codification Topic 740, Income Taxes is complete. For those items for which the accounting is not yet complete, but for which a reasonable estimate could be made, we have recorded the provisional income tax expense in the Statement of Operations. As of September 29, 2018, there are no material items for which a reasonable estimate of the impact could not be made. Due to the enactment of this legislation, we recognized a net income tax provision of $104.6 million , comprised primarily of approximately $2.8 million from the remeasurement of U.S. deferred tax assets and liabilities using the relevant tax rate at which we expect them to reverse (with a blended U.S. federal corporate tax rate of 24.5% applicable for reversals in fiscal 2018 and 21% applicable for reversals in fiscal 2019 and beyond) and approximately $101.9 million from the one-time transition tax on deemed repatriation of previously untaxed accumulated earnings and profits of certain foreign subsidiaries, net of uncertain tax positions and foreign tax credits. In addition, beginning in the first quarter of fiscal 2019, we will record the income tax effects of GILTI, as well as all other tax law changes enacted by the Act. Provisional estimate for the one-time U.S. transition tax, net of uncertain tax positions and foreign tax credits (“one-time transition tax”): The one-time transition tax is estimated based on our accumulated post-1986 deferred foreign income not previously subject to U.S. federal and state income tax. Because the accounting and our analysis are not yet complete, the provisional income tax expense of $101.9 million represents a reasonable estimate of the potential impact of the one-time transition tax. We have elected to pay the one-time transition tax in eight annual, interest-free, installments as allowed under the Act, beginning in January 2019. This provisional estimate relies on assumptions made based upon our current interpretation of the Act, proposed regulations, and information available through October 30, 2018. The final impact of the Act may differ significantly from this estimate, due to, among other things, changes in interpretations and assumptions made by the Company as a result of the enactment of final regulations differing from proposed regulations, as well as, additional information and guidance being made available by the IRS, U.S. Department of the Treasury, FASB or other relevant governing body. The accounting for the tax effects for the Act will be completed during our financial statement period ending December 29, 2018 in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”). During fiscal 2017, the Company elected to adopt the foreign tax credit for its U.S. federal tax return filings. As a result of this election, the Company has amended its U.S. tax returns from 2006 through 2015, filed its 2016 return on the same basis, and accrued the benefit for 2017. While the Company may repatriate up to $100 million of cash held by foreign subsidiaries that has already been subject to U.S. tax to facilitate the repurchase of the Company’s common stock under the share repurchase program, we continue to consider the remainder of the earnings of certain foreign subsidiaries to be permanently reinvested outside the United States. As of September 30, 2017, we had not recorded a deferred tax liability for U.S. federal income taxes of approximately $627.0 million of undistributed foreign earnings. During fiscal 2018, as a result of the one-time transition tax, we have included approximately $496.8 million of undistributed foreign earnings as net “deemed” dividends in the United States as required by the Act. Determination of the amount of unrecognized deferred tax liability related to the remaining untaxed foreign earnings is not practicable, with the exception of certain foreign subsidiaries where we continue to retain a deferred tax liability for foreign withholding taxes of approximately $21.0 million , as those earnings may be distributed to its foreign parent company. The following table reflects the net deferred tax balance, composed of the tax effects of cumulative temporary differences for fiscal 2018 and 2017 : Fiscal (in thousands) 2018 2017 Inventory reserves $ 424 $ 589 Stock options 301 422 Other accruals and reserves 5,927 7,857 Domestic tax credit carryforwards 4,532 17,635 Net operating loss carryforwards 39,856 35,937 $ 51,040 $ 62,440 Valuation allowance $ (37,249 ) $ (29,614 ) Total long-term deferred tax asset $ 13,791 $ 32,826 Foreign withholding tax on undistributed earnings $ 21,988 $ 20,945 Fixed and intangible assets 8,377 11,262 Total long-term deferred tax liability $ 30,365 $ 32,207 Total net deferred tax (liability) / asset $ (16,574 ) $ 619 Reported as Deferred tax asset $ 9,017 $ 27,771 Deferred tax liability 25,591 27,152 Total net deferred tax (liability) / asset $ (16,574 ) $ 619 As of September 29, 2018 , the Company has foreign net operating loss carryforwards of $102.9 million , domestic state net operating loss carryforwards of $163.8 million , federal tax credit carryforwards of $1.2 million , and state tax credit carryforwards of $5.9 million that can reduce future taxable income. These carryforwards can be utilized in the future, prior to expiration of certain carryforwards in fiscal years 2017 through 2035 with the exception of certain credits and foreign net operating losses that have no expiration date. Pennsylvania tax law limits the time during which carryforwards may be applied against future taxes and also limits the utilization of domestic state net operating loss carryforwards to $5.0 million annually, but recent developments may change this amount in future years. The Company has recorded a valuation allowance against domestic state tax attributes and certain foreign tax attributes. The Company continues to evaluate the realizability of all of its net deferred tax assets at each reporting date and records a benefit for deferred tax assets to the extent it has projected future taxable income or deferred tax liabilities that provide a source of future income to benefit the deferred tax asset. As a result of this analysis, the Company continues to maintain a valuation allowance against a majority of its state deferred tax assets as the realization of these assets is not more likely than not given uncertainty of future apportioned earnings in these jurisdictions. The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2017 2016 2015 Unrecognized tax benefit, beginning of year $ 12,062 $ 7,453 $ 7,101 Additions for tax positions, current year 1,482 3,657 519 Additions for tax positions, prior year — 1,834 827 Reductions for tax positions, prior year (506 ) (882 ) (994 ) Unrecognized tax benefit, end of year $ 13,038 $ 12,062 $ 7,453 Approximately $12.0 million of the $13.0 million of unrecognized tax benefit as of September 29, 2018 , if recognized, would impact the Company's effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company's future effective tax rate would be affected if earnings were lower than anticipated in countries where it is subjected to lower statutory rates and higher than anticipated in countries where it is subjected to higher statutory rates, by changes in the valuation of its deferred tax assets and liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, changes in assertion for foreign earnings permanently or non-permanently reinvested as a result of changes in facts and circumstances could significantly impact the effective tax rate. The Company regularly assesses the effects resulting from these factors to determine the adequacy of its provision for income taxes. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months due to the expected lapse of statutes of limitation and/ or settlements of tax examinations. We cannot practicably estimate the financial outcomes of these examinations. The Company files U.S. federal income tax return, as well as income tax returns in various state and foreign jurisdictions. The Company recently completed an income tax examination by the U.S. Internal Revenue Service which resulted in an insignificant impact to the financial statements. For most state tax returns, tax years following fiscal 2001 remain subject to examination as a result of the generation of net operating loss carry-forwards. In the foreign jurisdictions where the Company files income tax returns, the statutes of limitations with respect to these jurisdictions vary from jurisdiction to jurisdiction and range from 4 to 6 years. The Company is currently under income tax examination by tax authorities in certain foreign jurisdictions. The Company believes that adequate provisions have been made for any adjustments that may result from these tax examinations. As a result of committing to certain capital investments and employment levels, income from operations in Singapore and Malaysia is subject to reduced tax rates. In connection with Singapore operations, the Company has been granted a decreased effective tax rate of five percent in that jurisdiction until February 1, 2020 subject to the fulfillment of certain continuing conditions. In fiscal 2018, 2017, and 2016 , the preferential rate reduced income tax expense by approximately $20.4 million or $0.29 per share, $23.3 million or $0.32 per share and $8.7 million or $0.12 per share, respectively. |
OTHER FINANCIAL DATA (Notes)
OTHER FINANCIAL DATA (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL DATA | OTHER FINANCIAL DATA The following table reflects other financial data for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Incentive compensation expense $ 25,607 $ 29,612 $ 14,661 Rent expense $ 4,914 $ 5,071 $ 5,901 Warranty and retrofit expense $ 13,110 $ 13,740 $ 11,557 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Reportable segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. The Company's Chief Executive Officer is the Company's chief operating decision maker. The chief operating decision-maker does not review discrete asset information. The following table reflects operating information by segment for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Net revenue: Capital Equipment $ 719,390 $ 651,934 $ 488,925 APS 169,731 157,107 138,267 Net revenue 889,121 809,041 627,192 Income from operations: Capital Equipment (1) 132,563 107,115 33,484 APS (2) 34,069 5,968 20,469 Income from operations $ 166,632 $ 113,083 $ 53,953 (1) Includes the restructuring expenses as discussed in Note 2, of $2.4 million and $6.2 million for the years ended 2017 and 2016 respectively. (2) Includes the restructuring expenses as discussed in Note 2, of $0.9 million and $2.4 million for the years ended 2017 and 2016 respectively The following tables reflect capital expenditures, depreciation and amortization expense by segment for fiscal 2018, 2017 and 2016. Fiscal (in thousands) 2018 2017 2016 Capital expenditures: Capital Equipment $ 7,029 $ 14,415 $ 3,111 APS 13,412 11,273 3,190 Capital expenditures $ 20,441 $ 25,688 $ 6,301 Fiscal (in thousands) 2018 2017 2016 Depreciation expense: Capital Equipment $ 7,435 $ 6,306 $ 6,012 APS 3,754 3,397 3,557 Depreciation expense $ 11,189 $ 9,703 $ 9,569 Fiscal (in thousands) 2018 2017 2016 Amortization expense: Capital Equipment $ 4,203 $ 2,841 $ 2,760 APS 3,623 3,713 3,901 Amortization expense $ 7,826 $ 6,554 $ 6,661 Geographical information The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 China $ 408,567 $ 323,803 $ 211,448 Taiwan 126,676 100,738 129,128 United States 68,774 57,728 47,806 Malaysia 65,354 72,329 42,368 Korea 38,551 73,410 70,593 Philippines 26,372 25,165 8,272 Vietnam 20,864 29,330 3,785 Singapore 19,648 7,119 8,770 Germany 19,018 18,754 13,043 Thailand 17,051 15,705 11,782 All other 78,246 84,960 80,197 Total destination sales to unaffiliated customers $ 889,121 $ 809,041 $ 627,192 Fiscal (in thousands) 2018 2017 2016 Long-lived assets: Singapore $ 30,240 $ 31,553 $ 33,286 United States 23,696 43,440 18,570 China 18,333 11,148 7,459 Israel 8,460 4,549 4,810 All other 6,944 6,899 5,295 Total long-lived assets $ 87,673 $ 97,589 $ 69,420 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Warranty Expense The Company's equipment is generally shipped with a one -year warranty against manufacturing defects. The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management's estimate of future warranty costs, including product part replacement, freight charges and related labor costs expected to be incurred to correct product failures during the warranty period. The following table reflects the reserve for product warranty activity for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Reserve for warranty, beginning of period $ 13,796 $ 12,544 $ 10,632 Provision for warranty 12,603 11,743 11,553 Utilization of reserve (11,925 ) (10,491 ) (9,641 ) Reserve for warranty, end of period $ 14,474 $ 13,796 $ 12,544 Other Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Balance Sheet as of September 29, 2018 : Payments due by fiscal year (in thousands) Total 2019 2020 2021 2022 thereafter Inventory purchase obligation (1) $ 129,962 $ 129,962 $ — $ — $ — $ — Operating lease obligations (2) 18,563 3,863 3,511 2,262 1,823 7,104 Total $ 148,525 $ 133,825 $ 3,511 $ 2,262 $ 1,823 $ 7,104 (1) The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. (2) The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2018 (not including lease extension options, if applicable). Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company was considered the owner of the Building during the construction phase. The Building was completed on December 1, 2013 and Pte signed an agreement with the Landlord to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of the Building. Following the completion of construction, we performed a sale-leaseback analysis pursuant to ASC 840-40 and determined that because of our continuing involvement, ASC 840-40 precluded us from derecognizing the asset and associated financing obligation. As such, we reclassified the asset from construction in progress to Property, Plant and Equipment and began to depreciate the building over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. As of September 29, 2018 , we recorded a financing obligation related to the Building of $16.0 million (see Note 10 above). The financing obligation is not reflected in the table above. Concentrations The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2018, 2017, and 2016 : Fiscal 2018 2017 2016 Haoseng Industrial Co., Ltd 12.8 % 10.1 % 11.5 % The following table reflects significant customer concentrations as a percentage of total accounts receivable as of September 29, 2018 and September 30, 2017 : As of September 29, 2018 September 30, 2017 Haoseng Industrial Co., Ltd 32.9 % 26.2 % Super Power International Ltd. 13.6 % * * Represents less than 10% of total accounts receivable |
SELECTED QUARTERLY FINANCIAL RE
SELECTED QUARTERLY FINANCIAL RESULTS (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL RESULTS | SELECTED QUARTERLY FINANCIAL DATA (unaudited) Presented below is a summary of the unaudited quarterly financial information for fiscal 2018 and 2017 (in thousands, except per share amounts). Fiscal 2018 for the Quarter Ended (in thousands, except per share amounts) December 30 March 30 June 30 September 29 Fiscal 2018 Net revenue $ 213,691 $ 221,772 $ 268,834 $ 184,824 $ 889,121 Gross profit 97,202 99,447 126,969 85,823 409,441 Income from operations 39,159 38,436 64,463 24,574 166,632 Income tax expense / (benefits) 110,412 4,800 7,282 (1,750 ) 120,744 Net (loss) / income $ (69,528 ) $ 36,313 $ 60,256 $ 29,635 $ 56,676 Net (loss) / income per share (1) : Basic $ (0.99 ) $ 0.52 $ 0.87 $ 0.44 $ 0.82 Diluted $ (0.99 ) $ 0.51 $ 0.86 $ 0.43 $ 0.80 Weighted average shares outstanding: Basic 70,577 70,361 69,125 67,462 69,380 Diluted 70,577 71,425 70,302 68,675 70,419 Fiscal 2017 for the Quarter Ended (in thousands, except per share amounts) December 31 April 1 July 1 September 30 Fiscal 2017 Net revenue $ 149,639 $ 199,613 $ 243,897 $ 215,892 $ 809,041 Gross profit 68,427 92,263 114,003 107,401 382,094 Income from operations 19,059 36,503 15,672 41,849 113,083 Income tax expense / (benefit) 2,573 5,151 (17,657 ) 2,539 (7,394 ) Net income $ 17,396 $ 32,670 $ 34,809 $ 41,224 $ 126,099 Net income per share (1) : Basic $ 0.25 $ 0.46 $ 0.49 $ 0.58 $ 1.78 Diluted $ 0.24 $ 0.45 $ 0.48 $ 0.57 $ 1.75 Weighted average shares outstanding: Basic 70,854 70,964 71,063 70,742 70,906 Diluted 71,763 72,270 72,483 72,071 72,063 (1) EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Sep. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On November 2, 2018 , the Company entered into foreign exchange forward contracts with notional amounts of $10.9 million . We entered into these foreign exchange forward contracts to hedge a portion of our forecasted foreign currency-denominated expenses in the normal course of business and, accordingly, they are not speculative in nature. These foreign exchange forward contracts have maturities of up to twelve months |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 29, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | KULICKE AND SOFFA INDUSTRIES, INC. Schedule II-Valuation and Qualifying Accounts Fiscal 2018: Beginning of period Charged to Costs and Expenses Other Additions Other Deductions End of period Allowance for doubtful accounts $ 79 $ 383 $ — $ (77 ) (1) $ 385 Inventory reserve $ 24,639 $ 4,897 $ — $ (2,647 ) (2) $ 26,889 Valuation allowance for deferred taxes $ 29,614 $ — (3) $ 7,635 $ — $ 37,249 Fiscal 2017: Allowance for doubtful accounts $ 506 $ (136 ) $ — $ (291 ) (1) $ 79 Inventory reserve $ 21,080 $ 10,925 $ — $ (7,366 ) (2) $ 24,639 Valuation allowance for deferred taxes $ 27,381 $ — (3) $ 2,233 $ — $ 29,614 Fiscal 2016: Allowance for doubtful accounts $ 621 $ (115 ) $ — $ — (1) $ 506 Inventory reserve $ 19,073 $ 6,676 $ — $ (4,669 ) (2) $ 21,080 Valuation allowance for deferred taxes $ 23,128 $ 563 (3) $ 3,690 $ — $ 27,381 (1) Represents write-offs of specific accounts receivable. (2) Sale or scrap of previously reserved inventory. (3) Reflects increase/decrease in the valuation allowance primarily associated with the Company's U.S. and foreign net operating losses and other deferred tax assets. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | These consolidated financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (the “Company”), with appropriate elimination of intercompany balances and transactions. As previously reported on the Annual Report on Form 10-K/A for the fiscal year ended September 30, 2017, the Company restated certain of its financial statements and related notes for the fiscal years ended September 30, 2017, October 1, 2016 and October 3, 2015. This annual report for the year ended September 29, 2018 reflects the restated numbers for those periods. |
Fiscal Year | Fiscal Year Each of the Company's first three fiscal quarters ends on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter. The fourth quarter of each fiscal year ends on the Saturday closest to September 30. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. The 2018, 2017, and 2016 fiscal years ended on September 29, 2018 , September 30, 2017 and October 1, 2016 , respectively. |
Nature of Business | Nature of Business The Company designs, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company's operating results depend upon the capital and operating expenditures of semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers (“OSATs”), and other electronics manufacturers, including automotive electronics suppliers, worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry's demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, including those sold by the Company. These downturns and slowdowns have in the past adversely affected the Company's operating results. The Company believes such volatility will continue to characterize the industry and the Company's operations in the future. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, valuation allowances for deferred tax assets and deferred tax liabilities, repatriation of un-remitted foreign subsidiary earnings, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company's assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. |
Vulnerability to Certain Concentrations | Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of September 29, 2018 and September 30, 2017 consisted primarily of trade receivables. The Company manages credit risk associated with investments by investing its excess cash in highly rated debt instruments of the U.S. Government and its agencies, financial institutions, and corporations. The Company has established investment guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified as appropriate. The Company does not have any exposure to sub-prime financial instruments or auction rate securities. The Company's trade receivables result primarily from the sale of semiconductor equipment, related accessories and replacement parts, and tools to a relatively small number of large manufacturers in a highly concentrated industry. Write-offs of uncollectible accounts have historically not been significant. The Company actively monitors its customers' financial strength to reduce the risk of loss. The Company's products are complex and require raw materials, components and subassemblies having a high degree of reliability, accuracy and performance. The Company relies on subcontractors to manufacture many of these components and subassemblies and it relies on sole source suppliers for some important components and raw material inventory. |
Foreign Currency Translation | Foreign Currency Translation and Remeasurement The majority of the Company's business is transacted in U.S. dollars; however, the functional currencies of some of the Company's subsidiaries are their local currencies. In accordance with ASC No. 830, Foreign Currency Matters (“ASC 830”), for a subsidiary of the Company that has a functional currency other than the U.S. dollar, gains and losses resulting from the translation of the functional currency into U.S. dollars for financial statement presentation are not included in determining net income, but are accumulated in the cumulative translation adjustment account as a separate component of shareholders' equity (accumulated other comprehensive income / (loss)). Under ASC 830, cumulative translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Gains and losses resulting from foreign currency transactions are included in the determination of net income. The Company's operations are exposed to changes in foreign currency exchange rates due to transactions denominated in currencies other than the location's functional currency. The Company is also exposed to foreign currency fluctuations that impact the remeasurement of net monetary assets of those operations whose functional currency, the U.S. dollar, differs from their respective local currencies, most notably in Israel, Malaysia, Singapore and Switzerland. In addition to net monetary remeasurement, the Company has exposures related to the translation of subsidiary financial statements from their functional currency, the local currency, into its reporting currency, the U.S. dollar, most notably in the Netherlands, China, Taiwan, Japan and Germany. The Company's U.S. operations also have foreign currency exposure due to net monetary assets denominated in currencies other than the U.S. dollar. |
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | Derivative Financial Instruments The Company’s primary objective for holding derivative financial instruments is to manage the fluctuation in foreign exchange rates and accordingly is not speculative in nature. The Company’s international operations are exposed to changes in foreign exchange rates as described above. The Company has established a program to monitor the forecasted transaction currency risk to protect against foreign exchange rate volatility. Generally, the Company uses foreign exchange forward contracts in these hedging programs. These instruments, which have maturities of up to twelve months, are recorded at fair value and are included in prepaid expenses and other current assets, or accrued expenses and other current liabilities. Our accounting policy for derivative financial instruments is based on whether they meet the criteria for designation as a cash flow hedge. A designated hedge with exposure to variability in the functional currency equivalent of the future foreign currency cash flows of a forecasted transaction is referred to as a cash flow hedge. The criteria for designating a derivative as a cash flow hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction, and the assessment of the probability that the underlying transaction will occur. For derivatives with cash flow hedge accounting designation, we report the after-tax gain / (loss) from the effective portion of the hedge as a component of accumulated other comprehensive income / (loss) and reclassify it into earnings in the same period in which the hedged transaction affects earnings and in the same line item on the consolidated statement of operations as the impact of the hedged transaction. Derivatives that we designate as cash flow hedges are classified in the consolidated statement of cash flows in the same section as the underlying item, primarily within cash flows from operating activities. The hedge effectiveness of these derivative instruments is evaluated by comparing the cumulative change in the fair value of the hedge contract with the cumulative change in the fair value of the forecasted cash flows of the hedged item. If a cash flow hedge is discontinued because it is no longer probable that the original hedged transaction will occur as previously anticipated, the cumulative unrealized gain or loss on the related derivative is reclassified from accumulated other comprehensive income / (loss) into earnings. Subsequent gain / (loss) on the related derivative instrument is recognized into earnings in each period until the instrument matures, is terminated, is re-designated as a qualified cash flow hedge, or is sold. Ineffective portions of cash flow hedges, as well as amounts excluded from the assessment of effectiveness, are recognized in earnings. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents are measured at fair value based on level one measurement, or quoted market prices, as defined by ASC No. 820, Fair Value Measurements and Disclosures . |
Investments | Investments Investments, other than cash equivalents, are classified as “trading,” “available-for-sale” or “held-to-maturity,” in accordance with ASC No. 320, Investments-Debt & Equity Securities , and depending upon the nature of the investment, its ultimate maturity date in the case of debt securities, and management's intentions with respect to holding the securities. Investments classified as “trading” are reported at fair market value, with unrealized gains or losses included in earnings. Investments classified as “available-for-sale” are reported at fair market value, with net unrealized gains or losses reflected as a separate component of shareholders' equity (accumulated other comprehensive income (loss)). The fair market value of trading and available-for-sale securities is determined using quoted market prices at the balance sheet date. Investments classified as held-to-maturity are reported at amortized cost. Realized gains and losses are determined on the basis of specific identification of the securities sold. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its customers' failure to make required payments. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company is also subject to concentrations of customers and sales to a few geographic locations, which could also impact the collectability of certain receivables. If global or regional economic conditions deteriorate or political conditions were to change in some of the countries where the Company does business, it could have a significant impact on the results of operations, and the Company's ability to realize the full value of its accounts receivable. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first-in first-out basis) or net realizable value. The Company generally provides reserves for obsolete inventory and for inventory considered to be in excess of demand. Demand is generally defined as 18 months forecasted future consumption for equipment, 24 months forecasted future consumption for spare parts, and 12 months forecasted future consumption for tools. Forecasted consumption is based upon internal projections, historical sales volumes, customer order activity and a review of consumable inventory levels at customers' facilities. The Company communicates forecasts of its future consumption to its suppliers and adjusts commitments to those suppliers accordingly. If required, the Company reserves the difference between the carrying value of its inventory and the lower of cost or net realizable value, based upon projections about future consumption, and market conditions. If actual market conditions are less favorable than projections, additional inventory reserves may be required. Inventory reserve provision for certain subsidiaries is determined based on management's estimate of future consumption for equipment and spare parts. This estimate is based on historical sales volumes, internal projections and market developments and trends. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. The cost of additions and those improvements which increase the capacity or lengthen the useful lives of assets are capitalized while repair and maintenance costs are expensed as incurred. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives as follows: buildings 25 years ; machinery, equipment, furniture and fittings 3 to 10 years ; toolings 1 year; and leasehold improvements are based on the shorter of the life of lease or life of asset . Purchased computer software costs related to business and financial systems are amortized over a five-year period on a straight-line basis. Land is not depreciated. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets In accordance with ASC No. 360, Property, Plant & Equipment ("ASC 360"), the Company's property, plant and equipment is tested for impairment based on undiscounted cash flows when triggering events occur, and if impaired, written-down to fair value based on either discounted cash flows or appraised values. ASC 360 also provides a single accounting model for long-lived assets to be disposed of by sale and establishes additional criteria that would have to be met to classify an asset as held for sale. The carrying amount of an asset or asset group is not recoverable to the extent it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Estimates of future cash flows used to test the recoverability of a long-lived asset or asset group must incorporate the entity's own assumptions about its use of the asset or asset group and must factor in all available evidence. ASC 360 requires that long-lived assets be tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Such events include significant under-performance relative to historical internal forecasts or projected future operating results; significant changes in the manner of use of the assets; significant negative industry or economic trends; or significant changes in market capitalization. During the fiscal years ended September 29, 2018 and September 30, 2017 , no "triggering" events occurred. |
Accounting for Impairment of Goodwill | Accounting for Impairment of Goodwill ASC No. 350, Intangibles-Goodwill and Other ("ASC 350") requires goodwill and other intangible assets with indefinite lives to be reviewed for impairment annually, or more frequently if circumstances indicate a possible impairment. We assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, a company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing the two-step impairment test is unnecessary. However, if a company concludes otherwise, then it is required to perform the first step of the two-step goodwill impairment test. If the carrying value of a reporting unit exceeds its fair value in the first step of the test, then a company is required to perform the second step of the goodwill impairment test to measure the amount of the reporting unit's goodwill impairment loss, if any. As part of the annual evaluation, the Company performs an impairment test of its goodwill in the fourth quarter of each fiscal year to coincide with the completion of its annual forecasting and refreshing of its business outlook processes. On an ongoing basis, the Company monitors if a “triggering” event has occurred that may have the effect of reducing the fair value of a reporting unit below its respective carrying value. Adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment charge in the future. Impairment assessments inherently involve judgment as to the assumptions made about the expected future cash flows and the impact of market conditions on those assumptions. Future events and changing market conditions may impact the assumptions as to prices, costs, growth rates or other factors that may result in changes in the estimates of future cash flows. Although the Company believes the assumptions that it has used in testing for impairment are reasonable, significant changes in any one of the assumptions could produce a significantly different result. Indicators of potential impairment may lead the Company to perform interim goodwill impairment assessments, including significant and unforeseen customer losses, a significant adverse change in legal factors or in the business climate, a significant adverse action or assessment by a regulator, a significant stock price decline or unanticipated competition. For further information on goodwill and other intangible assets, see Note 5 below. |
Revenue Recognition | Revenue Recognition In accordance with ASC No. 605, Revenue Recognition , the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, the collectability is reasonably assured, and customer acceptance, when applicable, has been received or we otherwise have been released from customer acceptance obligations. If terms of the sale provide for a customer acceptance period, revenue is recognized upon the expiration of the acceptance period or customer acceptance, whichever occurs first. Service revenue is generally recognized over the period that the services are provided. Shipping and handling costs billed to customers are recognized in net revenue. Shipping and handling costs paid by the Company are included in cost of sales. |
Research and Development | Research and Development The Company charges research and development costs associated with the development of new products to expense when incurred. In certain circumstances, pre-production machines that the Company intends to sell are carried as inventory until sold. |
Income Taxes | Income Taxes In accordance with ASC No. 740, Income Taxes , deferred income taxes are determined using the balance sheet method . The Company records a valuation allowance to reduce its deferred tax assets to the amount it expects is more likely than not to be realized. While the Company has considered future taxable income and its ongoing tax planning strategies in assessing the need for the valuation allowance, if it were to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period when such determination is made. Likewise, should the Company determine it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the deferred tax asset would decrease income in the period when such determination is made. In accordance with ASC No. 740 Topic 10, Income Taxes, General (“ASC 740.10”), the Company accounts for uncertain tax positions taken or expected to be taken in its income tax return. Under ASC 740.10, the Company utilizes a two-step approach for evaluating uncertain tax positions. Step one, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon examination solely based on its technical merit. Step two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority, including resolution of related appeals or litigation processes, if any. |
Equity-Based Compensation | Equity-Based Compensation The Company accounts for equity-based compensation under the provisions of ASC No. 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 requires the recognition of the fair value of the equity-based compensation in net income. Compensation expense associated with Relative TSR Performance Share Units is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based and Special/Growth Performance Share Units is determined based on the number of shares granted and the fair value on the date of grant. See Note 11 for a summary of the terms of these performance-based awards. The fair value of the Company's stock option awards are estimated using a Black-Scholes option valuation model. The fair value of equity-based awards is amortized over the vesting period of the award and the Company elected to use the straight-line method for awards granted after the adoption of ASC 718. |
Earnings per Share | Earnings per Share Earnings per share (“EPS”) are calculated in accordance with ASC No. 260, Earnings per Share . Basic EPS include only the weighted average number of common shares outstanding during the period. Diluted EPS include the weighted average number of common shares and the dilutive effect of stock options, restricted stock awards, performance share units and restricted share units outstanding during the period, when such instruments are dilutive. |
Accounting for Business Acquisitions | Accounting for Business Acquisitions The Company accounts for business acquisitions in accordance with ASC No. 805, Business Combinations . The fair value of the net assets acquired and the results of operations of the acquired businesses are included in the Consolidated Financial Statements from the acquisition date forward. The Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, deferred revenue, intangible assets and related deferred tax liabilities, useful lives of plant and equipment, and amortizable lives of acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. |
Restructuring charges | Restructuring charges Restructuring charges may consist of voluntary or involuntary severance-related charges, asset-related charges and other costs due to exit activities. We recognize voluntary termination benefits when an employee accepts the offered benefit arrangement. We recognize involuntary severance-related charges depending on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. If the former, we recognize the charges once they are probable and the amounts are estimable. If the latter, we recognize the charges once the benefits have been communicated to employees. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). This update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.We adopted this ASU in the first quarter of 2018 on a retrospective basis. As of September 29, 2018 and September 30, 2017, restricted cash was $0.5 million. The adoption of this ASU did not have a material impact on our cash flows. Income Taxes In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The new guidance requires the tax effects of intercompany transactions (other than transfers of inventory) to be recognized currently. The new guidance will be effective for us in the first quarter of 2019. The modified retrospective approach will be required for transition to the new guidance, with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. We do not expect the adoption of this ASU itself to have a material impact on our financial statements. Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. We adopted this ASU as of the beginning of the first quarter of 2018 and elected to account for forfeitures when they occur, on a modified retrospective basis. The adoption impact on the consolidated balance sheet as of September 29, 2018 was a cumulative adjustment of $1.4 million, decreasing the retained earnings and increasing capital surplus. We also recognized deferred tax assets of $5.4 million with a corresponding increase in retained earnings. The adoption did not have any other material impacts on our financial statements. Beginning in fiscal 2018, any current year excess tax benefits or deficiencies from stock based awards are reflected in the Statement of Operations. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU specifies the modification accounting applicable to any entity which changes the terms or conditions of a share-based payment award. We elected to prospectively adopt this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current GAAP. Subsequently in July 2018, the FASB issued ASU 2018-11 -Leases (Topic 842): Targeted Improvements, provides additional information concerning the new leases standard in ASU 2016-02, Leases (Topic 842). The targeted improvements provide entities with additional and optional transition methods. The new standard will be effective for us beginning in our first quarter of fiscal 2020 with early adoption permitted. The adoption of the new standard will result in an increase in our consolidated balance sheets for these right of use assets and corresponding liabilities. However, the ultimate impact of adopting this new standard will depend on the Company's lease portfolio as of the adoption date. We are currently evaluating the effects of the adoption of the new standard on our financial statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. We adopted this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the impairment methodology in current GAAP, which delays recognition of credit losses until it is probable a loss has been incurred, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for us beginning in our first quarter of fiscal 2021. Early adoption is permitted beginning in our first quarter of 2020. We are currently evaluating the impact of the adoption of this ASU on our financial statements. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815). The new guidance expands and refines hedge accounting for both financial and non-financial risks. The new guidance also modifies disclosure requirements for hedging activities. The new guidance will be effective for us beginning in our first quarter of fiscal 2020, and early adoption is permitted in any interim period. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements as well as whether to adopt the new guidance early. Business Combinations In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides a new framework for determining whether business development transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU will be effective for us beginning in our first quarter of 2019. Earlier application is permitted for acquisition or derecognition events that occurred prior to issuance date or effective date of the guidance only when the transaction has not been reported in financial statements that have been issued or made available for issuance. We have elected to prospectively adopt this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. We have elected to prospectively adopt this ASU as of the beginning of the first quarter of 2018. The adoption of this ASU did not have a material impact on our financial statements. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20” and collectively, the “new revenue standards”). The new revenue standards may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption ("modified retrospective approach"). The new standard is effective for annual reporting periods beginning after December 15, 2017. The new standard will be effective for the Company in the first quarter of its fiscal 2019. We have performed an evaluation of this ASU and its impact on the financial statements. This included tasks such as identifying contracts, performance obligations and reviewing the applicable revenue streams. We plan to adopt the standard based on the modified retrospective approach. We have completed our assessment and implemented policies, processes, and controls to support the standard's measurement and disclosure requirements. Based on our review of our customer agreements, our revenue from sales of equipment and spare parts will continue to be recognized at a point in time, generally upon shipment of equipment and spare parts to customers, consistent with our current revenue recognition model. Revenue related to the sale of services will generally continue to be recognized over time as the services are performed. In certain instances, where collection of consideration is not probable, recognition of revenue may occur later under the new model after we have completed all of our obligations under the contract. However, when adopting the new standard, we did not identify any balances where collection of consideration is not probable. This ASU will not have a material impact on the amount and timing of revenue recognized in the Company’s consolidated financial statements. |
equity investment (Policies)
equity investment (Policies) | 12 Months Ended |
Sep. 29, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Equity Investments The Company applies the equity method of accounting to investments that provide it with ability to exercise significant influence over the entities in which it lacks controlling financial interest and is not a primary beneficiary. Our proportionate share of the income or loss is recognized on a one-quarter lag and is recorded as share of results of equity-method investee, net of tax. EQUITY INVESTMENTS Equity investments consisted of the following as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 Equity method investment $ 1,373 $ 1,502 The Company has an investment in one of our strategic suppliers which provides the Company with the ability to exercise significant influence over the investment vehicle, in which it lacks controlling financial interest and is not a primary beneficiary. Our share of gains and losses in the equity method investment is recognized on a one-quarter lag, and is reflected as share of results of equity-method investee, net of tax, in the accompanying Consolidated Statements of Operations. |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table is a summary of activity related to the Company’s restructuring and other charges for fiscal 2018, 2017, and 2016 : Fiscal Year 2018 Activity (in thousands) Beginning of period (1) Expenses (2) Payments End of period (1) Severance and benefits $ 2,892 $ (96 ) $ (2,708 ) $ 88 Other exit costs 1,736 (225 ) (329 ) 1,182 4,628 (321 ) (3,037 ) 1,270 Fiscal Year 2017 Activity (in thousands) Beginning of period (1) Expenses (2) Payments End of period (1) Severance and benefits $ 37 $ 3,273 $ (418 ) $ 2,892 Other exit costs 6,525 38 (4,827 ) 1,736 6,562 3,311 (5,245 ) 4,628 Fiscal Year 2016 Activity (in thousands) Beginning of period (1) Expenses (2) Payments End of period (1) Severance and benefits $ 1,538 $ 661 $ (2,162 ) $ 37 Other exit costs — 7,983 (1,458 ) 6,525 1,538 8,644 (3,620 ) 6,562 (1) Included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. (2) Provision for severance and benefits and other exit costs are included within selling, general and administrative expenses on the Consolidated Statements of Operations. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of significant balance sheet accounts | The following tables reflect the components of significant balance sheet accounts as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 Short term investments, available-for-sale (1) $ 293,000 $ 216,000 Inventories, net: Raw materials and supplies $ 63,894 $ 44,239 Work in process 37,829 40,827 Finished goods 40,357 61,596 142,080 146,662 Inventory reserves (26,889 ) (24,639 ) $ 115,191 $ 122,023 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 52,449 50,910 Leasehold improvements 12,728 9,882 Data processing equipment and software 35,469 34,700 Machinery, equipment, furniture and fixtures 68,666 60,143 Construction in progress 6,940 8,000 178,434 165,817 Accumulated depreciation (102,367 ) (98,055 ) $ 76,067 $ 67,762 Accrued expenses and other current liabilities: Wages and benefits $ 44,505 $ 47,411 Accrued customer obligations (2) 34,918 54,163 Commissions and professional fees 5,549 8,555 Dividends payable 8,057 — Deferred rent 1,847 1,930 Severance (3) 1,415 3,828 Other 9,687 8,960 $ 105,978 $ 124,847 (1) All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the years ended 2018 and 2017. (2) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. (3) Includes the restructuring plan discussed in Note 2, severance payable in connection with the November 2017 departure of the Company's Chief Financial Officer of $0.4 million , and other severance payments. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) - Liteq B.V. [Member] | 12 Months Ended |
Sep. 29, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the acquisition date and related useful lives of the finite-lived intangible assets acquired: (in thousands) July 2, 2017 Prepaid expenses and other current assets $ 199 Property, plant and equipment 107 Intangibles 18,060 Goodwill 10,253 Accounts payable (157 ) Accrued expenses and other current liabilities (103 ) Deferred tax liabilities (1,240 ) Total purchase price, net of cash acquired $ 27,119 |
Business Acquisition, Pro Forma Information [Table Text Block] | Fiscal (in thousands, except for per share information) 2017 2016 Net revenue $ 809,041 $ 627,192 Net income 120,143 42,513 Basic income per common share 1.69 0.60 Diluted income per common share $ 1.67 $ 0.59 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the Company's recorded goodwill by reportable segments as of September 29, 2018 and September 30, 2017 : (in thousands) Capital Equipment APS Balance at October 1, 2016 $ 33,453 $ 47,819 Acquired in business combination 10,253 — Goodwill impairment (13,731 ) (21,476 ) Balance at September 30, 2017 $ 29,975 $ 26,343 Other 184 48 Balance at September 29, 2018 $ 30,159 $ 26,391 |
Net intangible assets | The following table reflects net intangible assets as of September 29, 2018 and September 30, 2017 : As of Average estimated (dollar amounts in thousands) September 29, 2018 September 30, 2017 useful lives (in years) Developed technology $ 90,500 $ 92,140 7.0 to 15.0 Accumulated amortization (45,229 ) (41,162 ) Net developed technology $ 45,271 $ 50,978 Customer relationships $ 36,131 $ 36,968 5.0 to 6.0 Accumulated amortization (29,820 ) (27,398 ) Net customer relationships $ 6,311 $ 9,570 Trade and brand names $ 7,377 $ 7,515 7.0 to 8.0 Accumulated amortization (6,088 ) (5,747 ) Net trade and brand names $ 1,289 $ 1,768 Other intangible assets $ 2,500 $ 2,500 1.9 Accumulated amortization (2,500 ) (2,500 ) Net wedge bonder other intangible assets $ — $ — Net intangible assets $ 52,871 $ 62,316 |
Estimated annual amortization expense related to intangible assets | The following table reflects estimated annual amortization expense related to intangible assets as of September 29, 2018 : As of (in thousands) September 29, 2018 Fiscal 2019 $ 7,633 Fiscal 2020 7,633 Fiscal 2021 5,529 Fiscal 2022 4,530 Fiscal 2023 and thereafter 27,546 Total amortization expense $ 52,871 |
CASH, CASH EQUIVALENTS, RESTR_2
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents and short-term investments [Table Text Block] | Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 29, 2018 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 42,446 $ — $ — $ 42,446 Cash equivalents: Money market funds (1) 209,172 — (5 ) 209,167 Time deposits (2) 69,017 — — 69,017 Total cash and cash equivalents $ 320,635 $ — $ (5 ) $ 320,630 Restricted Cash (2) $ 518 $ — $ — $ 518 Total restricted cash $ 518 $ — $ — $ 518 Short-term investments (2) : Time deposits $ 197,000 $ — $ — $ 197,000 Deposits (3) 96,000 — — 96,000 Total short-term investments $ 293,000 $ — $ — $ 293,000 Total cash, cash equivalents, restricted cash and short-term investments $ 614,153 $ — $ (5 ) $ 614,148 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) Fair value approximates cost basis. (3) Represents deposits that require a notice period of three months for withdrawal. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 30, 2017 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 65,759 $ — $ — $ 65,759 Cash equivalents (1) : Money market funds 232,069 — — 232,069 Time deposits 89,087 — — 89,087 Commercial paper 5,495 — — 5,495 Total cash and cash equivalents $ 392,410 $ — $ — $ 392,410 Restricted Cash (1) $ 530 $ — $ — $ 530 Total restricted cash $ 530 $ — $ — $ 530 Short-term investments (1) : Time deposits $ 120,000 $ — $ — $ 120,000 Deposits (2) 96,000 — — 96,000 Total short-term investments $ 216,000 $ — $ — $ 216,000 Total cash, cash equivalents, restricted cash and short-term investments $ 608,940 $ — $ — $ 608,940 (1) Fair value approximates cost basis. (2) Represents deposits that require a notice period of three months for withdrawal. |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | Equity investments consisted of the following as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 Equity method investment $ 1,373 $ 1,502 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENT (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Derivative financial Instruments [Abstract] | |
Schedule of Fair Value of Derivative Instruments on Balance Sheet | The fair value of derivative instruments on our Consolidated Balance Sheet as of September 29, 2018 and September 30, 2017 is as follows: As of (in thousands) September 29, 2018 September 30, 2017 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Asset Derivatives (2) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 43,095 $ 1,071 $ 36,404 $ 1,353 Total derivatives $ 43,095 $ 1,071 $ 36,404 $ 1,353 (1) The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet. (2) The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Balance Sheet (3) Hedged amounts expected to be recognized into earnings within the next twelve months. |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Operations for the year ended September 29, 2018 and September 30, 2017 was as follows: (in thousands) Fiscal 2018 2017 Foreign exchange forward contract in cash flow hedging relationships: Net (loss) / gain recognized in OCI, net of tax (1) $ (669 ) $ 669 Net gain / (loss) reclassified from accumulated OCI into earnings, net of tax (2) $ 1,755 $ (1,146 ) Net gain recognized into earnings (3) $ — $ — (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion classified as selling, general and administrative expense. (3) Ineffective portion and amount excluded from effectiveness testing classified in selling, general and administrative expense. |
SHAREHOLDERS' EQUITY AND EMPL_2
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Company’s matching contributions to the Plan | The following table reflects the Company’s contributions to the Plan during fiscal 2018 and 2017: Fiscal (in thousands) 2018 2017 Cash $ 1,610 $ 1,645 |
Accumulated other comprehensive income reflected on the Consolidated Balance Sheets | The following table reflects accumulated other comprehensive income / (loss) reflected on the Consolidated Balance Sheets as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 (Loss) / Gain from foreign currency translation adjustments $ (1,211 ) $ 2,422 Unrecognized actuarial loss on pension plan, net of tax (1,620 ) (1,736 ) Unrealized (loss) / gain on hedging (1,071 ) 1,353 Accumulated other comprehensive (loss) / income $ (3,902 ) $ 2,039 |
Equity-based compensation expense | The following table reflects total equity-based compensation expense, which includes Relative TSR PSUs, Time-based RSUs, Special/Growth PSUs, Performance-based Restricted Stock and common stock, included in the Consolidated Statements of Operations for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Cost of sales $ 515 $ 463 $ 421 Selling, general and administrative (1) 8,548 9,015 3,244 Research and development 2,622 2,244 2,065 Total equity-based compensation expense $ 11,685 $ 11,722 $ 5,730 (1) The selling, general and administrative expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. The following table reflects equity-based compensation expense, by type of award, for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Relative TSR PSUs $ 3,583 $ 3,480 $ (33 ) Time-based RSUs 7,027 7,492 5,255 Performance-based restricted stock — — (43 ) Special/Growth PSUs 295 — — Common stock 780 750 551 Total equity-based compensation expense (1) $ 11,685 $ 11,722 $ 5,730 (1) The equity-based compensation expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. |
Employee market-based restricted stock activity | The following table reflects Relative TSR PSUs activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Relative TSR PSUs outstanding as of October 3, 2015 578 $ 4,465 1.4 Granted 172 $ 12.26 Forfeited or expired (256 ) Vested (10 ) Relative TSR PSUs outstanding as of October 1, 2016 484 $ 2,924 1.0 Granted 388 $ 13.47 Forfeited or expired (3 ) Vested (196 ) Relative TSR PSUs outstanding as of September 30, 2017 673 $ 6,204 1.4 Granted 180 $ 29.60 Forfeited or expired (146 ) Vested (168 ) Relative TSR PSUs outstanding as of September 29, 2018 539 $ 4,629 1.1 |
Schedule of Assumptions Used to Calculate Compensation Expense | The following table reflects the assumptions used to calculate compensation expense related to the Company’s Relative TSR PSUs issued during fiscal 2018, 2017, and 2016 : Fiscal 2018 2017 2016 Grant Price $ 19.65 $ 12.51 $ 9.58 Expected dividend yield (1) 0.12% N/A N/A Expected stock price volatility 31.71 % 30.39 % 30.85 % Risk-free interest rate 1.68 % 0.96 % 0.89 % |
Employee time-based restricted stock activity | The following table reflects Time-based RSUs activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Time-based RSUs outstanding as of October 3, 2015 849 $ 7,054 1.6 Granted 597 $ 9.66 Forfeited or expired (85 ) Vested (346 ) Time-based RSUs outstanding as of October 1, 2016 1,015 $ 6,440 1.5 Granted 715 $ 13.32 Forfeited or expired (50 ) Vested (600 ) Time-based RSUs outstanding as of September 30, 2017 1,080 $ 7,770 1.5 Granted 459 $ 22.32 Forfeited or expired (87 ) Vested (542 ) Time-based RSUs outstanding as of September 29, 2018 910 $ 9,038 1.4 |
Schedule of Performance Based Restricted Stock Activity | The following table reflects Performance-based restricted stock activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Performance-based restricted stock outstanding as of October 3, 2015 57 $ 285 2.2 Granted — Forfeited or expired (29 ) Vested (28 ) Performance-based restricted stock outstanding as of October 1, 2016 — — 0 |
Schedule of Special/Growth Based Restricted Stock Activity | The following table reflects Special/Growth PSUs activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Special/Growth PSUs outstanding as of September 30, 2017 — Granted 60 $ 22.57 Forfeited or expired (14 ) Vested — Special/Growth PSUs outstanding as of September 29, 2018 46 $ 702 2.1 |
Employee stock option activity | The following table reflects employee stock option activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of October 3, 2015 147 $ 8.18 Exercised (53 ) $ 5.40 $ 330 Forfeited or expired (4 ) $ 9.00 Options outstanding as of October 1, 2016 90 $ 8.41 Exercised (61 ) $ 8.31 $ 531 Forfeited or expired (13 ) $ 8.50 Options outstanding as of September 30, 2017 16 $ 8.73 Exercised (6 ) $ 8.74 $ 73 Forfeited or expired (8 ) $ 8.74 Options outstanding as of September 29, 2018 2 $ 8.64 1.6 $ 25 Options vested and expected to vest as of September 29, 2018 2 $ 8.64 1.6 $ 25 Options exercisable as of September 29, 2018 2 $ 8.64 1.6 In the money exercisable options as of September 29, 2018 2 $ 25 |
Outstanding and exercisable employee stock options | The following table reflects outstanding and exercisable employee stock options as of September 29, 2018 : Options Outstanding Options Exercisable Range of exercise prices Options outstanding (in thousands) Weighted average remaining contractual life (in years) Weighted average exercise price Options exercisable (in thousands) Weighted average exercise price 8.64 2 1.6 $ 8.64 2 $ 8.64 |
Common stock issued to non-employee directors | The following table reflects shares of common stock issued to non-employee directors and the corresponding fair value for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Number of common shares issued 33 45 50 Fair value based upon market price at time of issue $ 780 $ 750 $ 551 |
Non-employee director stock option activity | The following table reflects non-employee director stock option activity for fiscal 2018, 2017, and 2016 : Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of October 3, 2015 20 $ 11.20 $ 225 Exercised — $ — Forfeited or expired (20 ) $ 11.20 Options outstanding as of October 1, 2016 — $ — $ — No non-employee director stock options were granted during fiscal 2018, 2017, and 2016 . |
Defined benefits pension obligations and pension expenses | The following table reflects the Company's defined benefits pension obligations, mainly in Switzerland and Taiwan, as of September 29, 2018 and September 30, 2017 : As of (in thousands) September 29, 2018 September 30, 2017 Switzerland pension obligation $ 1,980 $ 1,951 Taiwan pension obligation 1,256 967 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of shares used in the basic and diluted net income per share computation | The following tables reflect a reconciliation of the shares used in the basic and diluted net income per share computation for fiscal 2018, 2017, and 2016 : Fiscal (in thousands, except per share) 2018 2017 2016 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 56,676 $ 56,676 $ 126,099 $ 126,099 $ 48,455 $ 48,455 DENOMINATOR: Weighted average shares outstanding - Basic 69,380 69,380 70,906 70,906 70,477 70,477 Stock options 1 19 32 Time-based restricted stock 402 592 274 Market-based restricted stock 636 546 58 Weighted average shares outstanding - Diluted 70,419 72,063 70,841 EPS: Net income per share - Basic $ 0.82 $ 0.82 $ 1.78 $ 1.78 $ 0.69 $ 0.69 Effect of dilutive shares $ (0.02 ) $ (0.03 ) $ (0.01 ) Net income per share - Diluted $ 0.80 $ 1.75 $ 0.68 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations by location, the provision (benefit) for income taxes and the effective tax rate | The following table reflects income or losses from continuing operations by location, the provision for income taxes and the effective tax rate for fiscal 2018, 2017, and 2016 : Fiscal (dollar amounts in thousands) 2018 2017 2016 United States operations $ 25,211 $ (4,114 ) $ (12,600 ) Foreign operations 152,338 122,629 68,764 Income from operations before tax 177,549 118,515 56,164 Income tax expenses / (benefit) $ 120,744 $ (7,394 ) $ 7,709 Effective tax rate 68.0 % (6.2 )% 13.7 % |
Provision (benefit) for income taxes from continuing operations | The following table reflects the provision for income taxes from continuing operations for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Current: Federal $ 83,159 $ (3,975 ) $ 871 State 58 64 53 Foreign 16,980 13,290 21,841 Deferred: Federal 23,346 (15,374 ) (13,423 ) State (2 ) 40 12 Foreign (2,797 ) (1,439 ) (1,645 ) Provision for income taxes $ 120,744 $ (7,394 ) $ 7,709 |
Effective income tax rate reconciliation | The following table reflects the difference between the provision for income taxes and the amount computed by applying the statutory federal income tax rate for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Computed income tax expense based on U.S. statutory rate $ 43,568 $ 41,358 $ 19,658 Effect of earnings of foreign subsidiaries subject to different tax rates (12,947 ) (22,832 ) (7,584 ) Benefits from foreign approved enterprise zones (20,429 ) (23,294 ) (8,701 ) Benefits from research and development tax credits (2,785 ) (1,859 ) (2,839 ) Benefits from foreign tax credits (3,939 ) (26,119 ) — Provisional estimate for the one-time U.S. transition tax, net of uncertain tax positions and foreign tax credits 101,854 — — Remeasurement of net U.S. deferred tax assets to reflect a reduction in the U.S. federal corporate tax rate 2,760 — — Change in permanent reinvestment assertion — — (9,696 ) Tax impact on restructuring — — 4,238 Tax audit settlement — — 4,889 Effect of permanent items (758 ) 778 (2,274 ) Non-deductible goodwill impairment — 8,805 — Deferred taxes not benefited 7,366 6,458 3,585 Foreign operations (withholding taxes, deferred taxes on unremitted earnings, US taxation of foreign earnings) 5,746 6,039 4,981 Reserve for uncertain tax positions 530 2,936 208 State income tax expense (net of federal benefit) 56 60 996 Other, net (278 ) 276 248 Provision for income taxes $ 120,744 $ (7,394 ) $ 7,709 |
Net deferred tax balance | The following table reflects the net deferred tax balance, composed of the tax effects of cumulative temporary differences for fiscal 2018 and 2017 : Fiscal (in thousands) 2018 2017 Inventory reserves $ 424 $ 589 Stock options 301 422 Other accruals and reserves 5,927 7,857 Domestic tax credit carryforwards 4,532 17,635 Net operating loss carryforwards 39,856 35,937 $ 51,040 $ 62,440 Valuation allowance $ (37,249 ) $ (29,614 ) Total long-term deferred tax asset $ 13,791 $ 32,826 Foreign withholding tax on undistributed earnings $ 21,988 $ 20,945 Fixed and intangible assets 8,377 11,262 Total long-term deferred tax liability $ 30,365 $ 32,207 Total net deferred tax (liability) / asset $ (16,574 ) $ 619 Reported as Deferred tax asset $ 9,017 $ 27,771 Deferred tax liability 25,591 27,152 Total net deferred tax (liability) / asset $ (16,574 ) $ 619 |
Unrecognized tax benefits | The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2017 2016 2015 Unrecognized tax benefit, beginning of year $ 12,062 $ 7,453 $ 7,101 Additions for tax positions, current year 1,482 3,657 519 Additions for tax positions, prior year — 1,834 827 Reductions for tax positions, prior year (506 ) (882 ) (994 ) Unrecognized tax benefit, end of year $ 13,038 $ 12,062 $ 7,453 |
OTHER FINANCIAL DATA (Tables)
OTHER FINANCIAL DATA (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information Disclosure [Table Text Block] | The following table reflects other financial data for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Incentive compensation expense $ 25,607 $ 29,612 $ 14,661 Rent expense $ 4,914 $ 5,071 $ 5,901 Warranty and retrofit expense $ 13,110 $ 13,740 $ 11,557 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Operating information by segment | The following table reflects operating information by segment for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Net revenue: Capital Equipment $ 719,390 $ 651,934 $ 488,925 APS 169,731 157,107 138,267 Net revenue 889,121 809,041 627,192 Income from operations: Capital Equipment (1) 132,563 107,115 33,484 APS (2) 34,069 5,968 20,469 Income from operations $ 166,632 $ 113,083 $ 53,953 (1) Includes the restructuring expenses as discussed in Note 2, of $2.4 million and $6.2 million for the years ended 2017 and 2016 respectively. (2) Includes the restructuring expenses as discussed in Note 2, of $0.9 million and $2.4 million for the years ended 2017 and 2016 respectively |
Capital expenditures and depreciation expense | The following tables reflect capital expenditures, depreciation and amortization expense by segment for fiscal 2018, 2017 and 2016. Fiscal (in thousands) 2018 2017 2016 Capital expenditures: Capital Equipment $ 7,029 $ 14,415 $ 3,111 APS 13,412 11,273 3,190 Capital expenditures $ 20,441 $ 25,688 $ 6,301 Fiscal (in thousands) 2018 2017 2016 Depreciation expense: Capital Equipment $ 7,435 $ 6,306 $ 6,012 APS 3,754 3,397 3,557 Depreciation expense $ 11,189 $ 9,703 $ 9,569 Fiscal (in thousands) 2018 2017 2016 Amortization expense: Capital Equipment $ 4,203 $ 2,841 $ 2,760 APS 3,623 3,713 3,901 Amortization expense $ 7,826 $ 6,554 $ 6,661 |
SEGMENT INFORMATION Revenue by
SEGMENT INFORMATION Revenue by country (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 China $ 408,567 $ 323,803 $ 211,448 Taiwan 126,676 100,738 129,128 United States 68,774 57,728 47,806 Malaysia 65,354 72,329 42,368 Korea 38,551 73,410 70,593 Philippines 26,372 25,165 8,272 Vietnam 20,864 29,330 3,785 Singapore 19,648 7,119 8,770 Germany 19,018 18,754 13,043 Thailand 17,051 15,705 11,782 All other 78,246 84,960 80,197 Total destination sales to unaffiliated customers $ 889,121 $ 809,041 $ 627,192 Fiscal (in thousands) 2018 2017 2016 Long-lived assets: Singapore $ 30,240 $ 31,553 $ 33,286 United States 23,696 43,440 18,570 China 18,333 11,148 7,459 Israel 8,460 4,549 4,810 All other 6,944 6,899 5,295 Total long-lived assets $ 87,673 $ 97,589 $ 69,420 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reserve for product warranty activity | The following table reflects the reserve for product warranty activity for fiscal 2018, 2017, and 2016 : Fiscal (in thousands) 2018 2017 2016 Reserve for warranty, beginning of period $ 13,796 $ 12,544 $ 10,632 Provision for warranty 12,603 11,743 11,553 Utilization of reserve (11,925 ) (10,491 ) (9,641 ) Reserve for warranty, end of period $ 14,474 $ 13,796 $ 12,544 |
Obligations not reflected on the Consolidated Balance Sheet | The following table reflects obligations not reflected on the Consolidated Balance Sheet as of September 29, 2018 : Payments due by fiscal year (in thousands) Total 2019 2020 2021 2022 thereafter Inventory purchase obligation (1) $ 129,962 $ 129,962 $ — $ — $ — $ — Operating lease obligations (2) 18,563 3,863 3,511 2,262 1,823 7,104 Total $ 148,525 $ 133,825 $ 3,511 $ 2,262 $ 1,823 $ 7,104 (1) The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. (2) The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2018 (not including lease extension options, if applicable). Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company was considered the owner of the Building during the construction phase. The Building was completed on December 1, 2013 and Pte signed an agreement with the Landlord to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of the Building. Following the completion of construction, we performed a sale-leaseback analysis pursuant to ASC 840-40 and determined that because of our continuing involvement, ASC 840-40 precluded us from derecognizing the asset and associated financing obligation. As such, we reclassified the asset from construction in progress to Property, Plant and Equipment and began to depreciate the building over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. As of September 29, 2018 , we recorded a financing obligation related to the Building of $16.0 million (see Note 10 above). The financing obligation is not reflected in the table above. |
Significant customer concentrations as a percentage of net revenue | The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2018, 2017, and 2016 : Fiscal 2018 2017 2016 Haoseng Industrial Co., Ltd 12.8 % 10.1 % 11.5 % |
Significant customer concentrations as a percentage of total accounts receivable | The following table reflects significant customer concentrations as a percentage of total accounts receivable as of September 29, 2018 and September 30, 2017 : As of September 29, 2018 September 30, 2017 Haoseng Industrial Co., Ltd 32.9 % 26.2 % Super Power International Ltd. 13.6 % * |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL RESULTS (Tables) | 12 Months Ended |
Sep. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2018 for the Quarter Ended (in thousands, except per share amounts) December 30 March 30 June 30 September 29 Fiscal 2018 Net revenue $ 213,691 $ 221,772 $ 268,834 $ 184,824 $ 889,121 Gross profit 97,202 99,447 126,969 85,823 409,441 Income from operations 39,159 38,436 64,463 24,574 166,632 Income tax expense / (benefits) 110,412 4,800 7,282 (1,750 ) 120,744 Net (loss) / income $ (69,528 ) $ 36,313 $ 60,256 $ 29,635 $ 56,676 Net (loss) / income per share (1) : Basic $ (0.99 ) $ 0.52 $ 0.87 $ 0.44 $ 0.82 Diluted $ (0.99 ) $ 0.51 $ 0.86 $ 0.43 $ 0.80 Weighted average shares outstanding: Basic 70,577 70,361 69,125 67,462 69,380 Diluted 70,577 71,425 70,302 68,675 70,419 Fiscal 2017 for the Quarter Ended (in thousands, except per share amounts) December 31 April 1 July 1 September 30 Fiscal 2017 Net revenue $ 149,639 $ 199,613 $ 243,897 $ 215,892 $ 809,041 Gross profit 68,427 92,263 114,003 107,401 382,094 Income from operations 19,059 36,503 15,672 41,849 113,083 Income tax expense / (benefit) 2,573 5,151 (17,657 ) 2,539 (7,394 ) Net income $ 17,396 $ 32,670 $ 34,809 $ 41,224 $ 126,099 Net income per share (1) : Basic $ 0.25 $ 0.46 $ 0.49 $ 0.58 $ 1.78 Diluted $ 0.24 $ 0.45 $ 0.48 $ 0.57 $ 1.75 Weighted average shares outstanding: Basic 70,854 70,964 71,063 70,742 70,906 Diluted 71,763 72,270 72,483 72,071 72,063 (1) EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
BASIS OF PRESENTATION (Inventor
BASIS OF PRESENTATION (Inventories) (Narrative) (Details) | 12 Months Ended |
Sep. 29, 2018 | |
Equipment [Member] | |
Inventory [Line Items] | |
Reserves For Inventory In Excess Of Demand Inventory Future Consumption Period | 18 months |
Spare Parts [Member] | |
Inventory [Line Items] | |
Reserves For Inventory In Excess Of Demand Inventory Future Consumption Period | 24 months |
Expendable Tools [Member] | |
Inventory [Line Items] | |
Reserves For Inventory In Excess Of Demand Inventory Future Consumption Period | 12 months |
BASIS OF PRESENTATION (Property
BASIS OF PRESENTATION (Property, Plant and Equipment) (Narrative) (Details) | 12 Months Ended |
Sep. 29, 2018 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Leaseholds and Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | based on the shorter of the life of lease or life of asset |
Software and Software Development Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
BASIS OF PRESENTATION (Recent A
BASIS OF PRESENTATION (Recent Accounting Pronouncements) (Narrative) (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Sep. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting changes | $ 5,420 | |
Retained earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting changes | $ 4,006 | |
Pro Forma [Member] | Accounting Standards Update 2016-09, Excess Tax Benefit Component [Member] | Retained earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting changes | $ 5,400 |
RESTRUCTURING - Summary of Rest
RESTRUCTURING - Summary of Restructuring Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Provision for severance and benefits | [1] | $ (321) | $ 3,311 | $ 8,644 | |
Payment of severance and benefits | (3,037) | (5,245) | (3,620) | ||
Accrual for estimated severance and benefits, end of period | [2] | 1,270 | 4,628 | 6,562 | $ 1,538 |
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Provision for severance and benefits | [1] | (96) | 3,273 | 661 | |
Payment of severance and benefits | (2,708) | (418) | (2,162) | ||
Accrual for estimated severance and benefits, end of period | [2] | 88 | 2,892 | 37 | 1,538 |
Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Provision for severance and benefits | [1] | (225) | 38 | 7,983 | |
Payment of severance and benefits | (329) | (4,827) | (1,458) | ||
Accrual for estimated severance and benefits, end of period | [2] | $ 1,182 | $ 1,736 | $ 6,525 | $ 0 |
[1] | Provision for severance and benefits and other exit costs are included within selling, general and administrative expenses on the Consolidated Statements of Operations. | ||||
[2] | Included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
BALANCE SHEET COMPONENTS (Compo
BALANCE SHEET COMPONENTS (Components of significant balance sheet accounts) (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Short-term Investments | [1] | $ 293,000 | $ 216,000 |
Inventories, net: | |||
Raw materials and supplies | 63,894 | 44,239 | |
Work in process | 37,829 | 40,827 | |
Finished goods | 40,357 | 61,596 | |
Inventory, gross | 142,080 | 146,662 | |
Inventory reserves | (26,889) | (24,639) | |
Inventories, net | 115,191 | 122,023 | |
Property, plant and equipment, net: | |||
Land | 2,182 | 2,182 | |
Buildings and building improvements | 52,449 | 50,910 | |
Leasehold improvements | 12,728 | 9,882 | |
Data processing equipment and software | 35,469 | 34,700 | |
Machinery, equipment, furniture and fixtures | 68,666 | 60,143 | |
Construction in Progress, Gross | 6,940 | 8,000 | |
Property, plant and equipment, gross | 178,434 | 165,817 | |
Accumulated depreciation | (102,367) | (98,055) | |
Property, plant and equipment, net | 76,067 | 67,762 | |
Accrued expenses and other current liabilities: | |||
Wages and benefits | 44,505 | 47,411 | |
Accrued customer obligations (2) | [2] | 34,918 | 54,163 |
Commissions and professional fees | 5,549 | 8,555 | |
Dividends Payable, Current | 8,057 | 0 | |
Deferred rent | 1,847 | 1,930 | |
Severance (3) | [3] | 1,415 | 3,828 |
Other | 9,687 | 8,960 | |
Accrued expenses and other current liabilities | $ 105,978 | $ 124,847 | |
[1] | All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the years ended 2018 and 2017. | ||
[2] | Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. | ||
[3] | Includes the restructuring plan discussed in Note 2, severance payable in connection with the November 2017 departure of the Company's Chief Financial Officer of $0.4 million, and other severance payments. |
BALANCE SHEET COMPONENTS (Narra
BALANCE SHEET COMPONENTS (Narrative) (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance | [1] | $ 1,415 | $ 3,828 |
CFO Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance | $ 400 | ||
[1] | Includes the restructuring plan discussed in Note 2, severance payable in connection with the November 2017 departure of the Company's Chief Financial Officer of $0.4 million, and other severance payments. |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) € in Millions, $ in Millions | Jul. 02, 2017USD ($) | Jul. 02, 2017EUR (€) | Jan. 09, 2015USD ($) | Jan. 09, 2015EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) |
Liteq B.V. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 28.6 | € 25 | ||||
Net loss contributed | 1.4 | |||||
Acquisition-related expenses incurred | $ 0.3 | |||||
Assembléon [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 97.4 | € 80 | ||||
Cash consideration paid to acquire equity | 72.5 | |||||
Cash consideration used to settle acquiree's intercompany loans | $ 24.9 | |||||
Escrow Deposit | $ 5 | € 4.2 |
BUSINESS COMBINATION - Acquired
BUSINESS COMBINATION - Acquired Assets and Liabilities Allocation Table (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | Jul. 02, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 56,550 | $ 56,318 | |
Liteq B.V. [Member] | |||
Business Acquisition [Line Items] | |||
Prepaid expenses and other current assets | $ 199 | ||
Property, plant and equipment | 107 | ||
Intangibles | 18,060 | ||
Goodwill | 10,253 | ||
Accounts payable | (157) | ||
Accrued expenses and other current liabilities | (103) | ||
Deferred tax liabilities | (1,240) | ||
Total purchase price, net of cash acquired | $ 27,119 |
BUSINESS COMBINATION - Pro Form
BUSINESS COMBINATION - Pro Forma Information (Details) - Liteq B.V. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Business Acquisition [Line Items] | ||
Net revenue | $ 809,041 | $ 627,192 |
Net income | $ 120,143 | $ 42,513 |
Basic income per common share (in dollars per share) | $ 1.69 | $ 0.60 |
Diluted income per common share (in dollars per share) | $ 1.67 | $ 0.59 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Goodwill [Line Items] | |||||
Impairment charges | $ 0 | $ 35,207 | $ 0 | ||
Assembléon [Member] | |||||
Goodwill [Line Items] | |||||
Fair Value Inputs, Long-term Revenue Growth Rate | 2.50% | ||||
Fair Value Inputs, Discount Rate | 10.45% | ||||
Impairment charges | $ 35,200 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Recorded Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 29, 2018 | Oct. 01, 2016 | |
Goodwill [Line Items] | |||
Goodwill | $ 56,318 | $ 56,550 | |
Aftermarket Products and Services [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 26,343 | 26,391 | $ 47,819 |
Goodwill, Acquired During Period | 0 | ||
Goodwill, Impairment Loss | (21,476) | ||
Capital Equipment [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 29,975 | $ 30,159 | $ 33,453 |
Goodwill, Acquired During Period | 10,253 | ||
Goodwill, Impairment Loss | $ (13,731) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Net intangible assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 52,871 | $ 62,316 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 90,500 | 92,140 |
Accumulated amortization | (45,229) | (41,162) |
Net intangible assets | 45,271 | 50,978 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 36,131 | 36,968 |
Accumulated amortization | (29,820) | (27,398) |
Net intangible assets | 6,311 | 9,570 |
Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 7,377 | 7,515 |
Accumulated amortization | (6,088) | (5,747) |
Net intangible assets | 1,289 | 1,768 |
Other intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 2,500 | 2,500 |
Accumulated amortization | (2,500) | (2,500) |
Net intangible assets | $ 0 | $ 0 |
Average estimated useful lives (in years) | 1 year 10 months 24 days | |
Minimum [Member] | Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Minimum [Member] | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | |
Minimum [Member] | Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Maximum [Member] | Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 15 years | |
Maximum [Member] | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 6 years | |
Maximum [Member] | Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Estimated annual amortization expense) (Details) $ in Thousands | Sep. 29, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2,019 | $ 7,633 |
Fiscal 2,020 | 7,633 |
Fiscal 2,021 | 5,529 |
Fiscal 2,022 | 4,530 |
Fiscal 2023 and thereafter | 27,546 |
Total amortization expense | $ 52,871 |
CASH, CASH EQUIVALENTS, RESTR_3
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Cash and Cash Equivalents [Line Items] | |||||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Gain | $ 0 | $ 0 | |||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Loss | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Fair Value Disclosure | 293,000 | 216,000 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 321,148 | 392,940 | $ 423,907 | $ 498,614 | |
Short-term investments | 293,000 | 216,000 | |||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments | 614,153 | 608,940 | |||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments, Gross Unrealized Gain | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments, Gross Unrealized Loss | (5) | 0 | |||
Cash and cash equivalents, Amortized Cost | 320,630 | 392,410 | |||
Cash | 42,446 | 65,759 | |||
Cash and Cash Equivalents, Amortized Cost | 320,635 | 392,410 | |||
Cash and Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash and Cash Equivalents, Gross Unrealized Loss | (5) | 0 | |||
Cash and Cash Equivalents | 320,630 | 392,410 | |||
Restricted cash | 518 | 530 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Amortized Cost | 518 | 530 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Gross Unrealized Loss | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Fair Value Disclosure | 518 | 530 | |||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments, Fair Value Disclosure | 614,148 | 608,940 | |||
Demand Deposits [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Gain | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Loss | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Fair Value Disclosure | 96,000 | 96,000 | |||
Short-term investments | 96,000 | 96,000 | |||
Cash [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents, Amortized Cost | 42,446 | 65,759 | |||
Cash equivalents, Money market funds [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents, Amortized Cost | 209,172 | 232,069 | |||
Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash Equivalents, Gross Unrealized Loss | (5) | 0 | |||
Cash Equivalents, Fair Value Disclosure | 209,167 | 232,069 | |||
Cash equivalents, Time deposits [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Gain | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Loss | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Fair Value Disclosure | 197,000 | 120,000 | |||
Short-term investments | 197,000 | 120,000 | [1] | ||
Cash and cash equivalents, Amortized Cost | 69,017 | 89,087 | |||
Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash Equivalents, Gross Unrealized Loss | 0 | 0 | |||
Cash Equivalents, Fair Value Disclosure | $ 69,017 | 89,087 | |||
Commercial Paper [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents, Amortized Cost | 5,495 | ||||
Cash Equivalents, Gross Unrealized Gain | 0 | ||||
Cash Equivalents, Gross Unrealized Loss | 0 | ||||
Cash Equivalents, Fair Value Disclosure | $ 5,495 | ||||
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EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | $ (129) | $ 190 | $ 0 |
Equity investments | $ 1,373 | $ 1,502 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||
Derivative, Notional Amount | $ 43,095 | $ 36,404 | |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | $ 43,095 | 36,404 | |
Derivative Asset, Fair Value, Gross Asset | [1],[2] | 1,353 | |
Derivative, Term of Contract | 12 months | ||
Fair Value Liability Derivatives | [1],[3] | $ 1,071 | |
Other Comprehensive Income (Loss) [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | [4] | (669) | 669 |
Selling, General and Administrative Expenses [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [5] | 1,755 | (1,146) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | [6] | 0 | 0 |
Prepaid Expenses and Other Current Assets [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 1,353 | ||
Fair Value Liability Derivatives | $ 1,071 | ||
[1] | Hedged amounts expected to be recognized into earnings within the next twelve months. | ||
[2] | The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Balance Sheet | ||
[3] | The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet. | ||
[4] | Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). | ||
[5] | Effective portion classified as selling, general and administrative expense. | ||
[6] | Ineffective portion and amount excluded from effectiveness testing classified in selling, general and administrative expense. |
DEBT AND OTHER OBLIGATIONS (Nar
DEBT AND OTHER OBLIGATIONS (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018USD ($)renewal_option | Sep. 30, 2017USD ($) | Dec. 01, 2013USD ($)ft² | Nov. 22, 2013USD ($) | |
Debt Instrument [Line Items] | ||||
Area of Land | ft² | 198,000 | |||
Percentage Of Building Area Agreed To Lease From Landlord | 70.00% | |||
Financing obligation | $ 15,187 | $ 16,074 | $ 20,000 | |
K&S Corporate Headquarters [Member] | ||||
Debt Instrument [Line Items] | ||||
Lessee Leasing Arrangements, Capital Leases, Renewal Term | 10 years | |||
Annual Rent and Service Charge Minimum Range | $ 4,000 | |||
Annual Rent and Service Charge Maximum Range | $ 5,000 | |||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 10 years | |||
Lessee Leasing Arrangements, Capital Leases, Number of Renewal Options | renewal_option | 2 | |||
Capital Lease Obligations, Interest Rate, Effective Percentage | 6.30% | |||
Building [Member] | ||||
Debt Instrument [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 25 years | |||
Citibank [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |||
Long-term Line of Credit | $ 4,000 | |||
Current and Noncurrent Portion [Member] | ||||
Debt Instrument [Line Items] | ||||
Financing obligation | $ 16,000 |
SHAREHOLDERS' EQUITY AND EMPL_3
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Matching contributions to the Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Cash | $ 1,610 | $ 1,645 |
SHAREHOLDERS' EQUITY AND EMPL_4
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Accumulated other comprehensive income) (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
(Loss) / Gain from foreign currency translation adjustments | $ (1,211) | $ 2,422 |
Unrecognized actuarial loss on pension plan, net of tax | (1,620) | (1,736) |
Accumulated other comprehensive (loss) / income | (3,902) | 2,039 |
Accumulated other comprehensive (loss) / income | $ (1,071) | $ 1,353 |
SHAREHOLDERS' EQUITY AND EMPL_5
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Total equity-based compensation expense) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Jul. 02, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | $ 11,685 | $ 11,722 | [1] | $ 5,730 | |
Market-based restricted stock [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | 3,583 | 3,480 | (33) | ||
Time-based restricted stock [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | 7,027 | 7,492 | 5,255 | ||
Performance-based restricted stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | 0 | 0 | (43) | ||
Stock options [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | 295 | 0 | 0 | ||
Common Stock | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | 780 | 750 | 551 | ||
Cost of sales [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | 515 | 463 | 421 | ||
Selling, general and administrative (1) [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | 8,548 | 9,015 | [2] | 3,244 | |
Selling, general and administrative (1) [Member] | Forfeiture of Stock Awards [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | $ (2,000) | ||||
Research and development [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total equity-based compensation expense (reversal) | $ 2,622 | $ 2,244 | $ 2,065 | ||
[1] | The equity-based compensation expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. | ||||
[2] | The selling, general and administrative expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. |
SHAREHOLDERS' EQUITY AND EMPL_6
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee market-based restricted stock activity) (Details) - Market-based restricted stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of shares, Restricted stock outstanding, beginning balance (in shares) | 673 | 484 | 578 | |
Number of shares, Granted (in shares) | 180 | 388 | 172 | |
Number of shares, Forfeited or expired (in shares) | (146) | (3) | (256) | |
Number of shares, Vested (in shares) | (168) | (196) | (10) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 539 | 673 | 484 | 578 |
Unrecognized compensation expense | $ 4,629 | $ 6,204 | $ 2,924 | $ 4,465 |
Average remaining service period (in years) | 1 year 1 month 2 days | 1 year 4 months 15 days | 1 year 15 days | 1 year 5 months |
Weighted average grant date fair value per share | $ 29.60 | $ 13.47 | $ 12.26 |
SHAREHOLDERS' EQUITY AND EMPL_7
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee time-based restricted stock activity) (Details) - Time-based restricted stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of shares, Restricted stock outstanding, beginning balance (in shares) | 1,080 | 1,015 | 849 | |
Number of shares, Granted (in shares) | 459 | 715 | 597 | |
Number of shares, Forfeited or expired (in shares) | (87) | (50) | (85) | |
Number of shares, Vested (in shares) | (542) | (600) | (346) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 910 | 1,080 | 1,015 | 849 |
Unrecognized compensation expense | $ 9,038 | $ 7,770 | $ 6,440 | $ 7,054 |
Average remaining service period (in years) | 1 year 4 months 9 days | 1 year 5 months 15 days | 1 year 5 months 15 days | 1 year 7 months 6 days |
Weighted average grant date fair value per share | $ 22.32 | $ 13.32 | $ 9.66 |
SHAREHOLDERS' EQUITY AND EMPL_8
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee performance-based and special growth restricted stock activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 03, 2015 | |
Performance based Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of shares, Restricted stock outstanding, beginning balance (in shares) | 0 | ||
Number of shares, Granted (in shares) | 0 | ||
Number of shares, Restricted stock outstanding, ending balance (in shares) | 0 | 57 | |
Unrecognized compensation expense | $ 0 | $ 285 | |
Average remaining service period (in years) | 2 years 2 months 11 days | ||
Special/Growth PSU's | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of shares, Restricted stock outstanding, beginning balance (in shares) | 0 | ||
Number of shares, Granted (in shares) | 60 | ||
Weighted average grant date fair value per share | $ 22.57 | ||
Number of shares, Forfeited or expired (in shares) | (14) | ||
Number of shares, Restricted stock outstanding, ending balance (in shares) | 46 | 0 | |
Unrecognized compensation expense | $ 702 | ||
Average remaining service period (in years) | 2 years 1 month 13 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 |
SHAREHOLDERS' EQUITY AND EMPL_9
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee stock option activity) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares, Options outstanding, beginning balance (in shares) | 16 | 90 | 147 |
Number of shares, Exercised (in shares) | (6) | (61) | (53) |
Number of shares, Forfeited or expired (in shares) | (8) | (13) | (4) |
Number of shares, Options outstanding, ending balance (in shares) | 2 | 16 | 90 |
Number of shares, Options vested and expected to vest (in shares) | 2 | ||
Number of shares, Options exercisable (in shares) | 2 | ||
Number of shares, In the money exercisable options (in shares) | 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, Options outstanding, beginning balance (in dollars per share) | $ 8.73 | $ 8.41 | $ 8.18 |
Weighted average exercise price, Exercised (in dollars per share) | 8.74 | 8.31 | 5.40 |
Weighted average exercise price, Forfeited or expired (in dollars per share) | 8.74 | 8.50 | 9 |
Weighted average exercise price, Options outstanding, ending balance (in dollars per share) | 8.64 | $ 8.73 | $ 8.41 |
Weighted average exercise price, Options vested and expected to vest (in dollars per share) | 8.64 | ||
Weighted average exercise price, Options exercisable (in dollars per share) | $ 8.64 | ||
Average remaining contractual life, Options outstanding (in years) | 1 year 7 months 4 days | ||
Average remaining contractual life, Options vested and expected to vest (in years) | 1 year 7 months 4 days | ||
Average remaining contractual life, Options exercisable (in years) | 1 year 7 months 4 days | ||
Aggregate intrinsic value, Exercised | $ 73 | $ 531 | $ 330 |
Aggregate intrinsic value, Options outstanding | 25 | ||
Aggregate intrinsic value, Options vested and expected to vest | 25 | ||
Aggregate intrinsic value, In the money exercisable options | $ 25 |
SHAREHOLDERS' EQUITY AND EMP_10
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Outstanding and exercisable employee stock options) (Details) - Stock Options One [Member] shares in Thousands | 12 Months Ended |
Sep. 29, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $ 8.64 |
Range of exercise prices, upper limit | $ 8.74 |
Options Outstanding | shares | 2 |
Options Outstanding, Weighted average remaining contractual life (in years) | 1 year 7 months 4 days |
Options Outstanding, Weighted average exercise price | $ 8.64 |
Options Exercisable | shares | 2 |
Options Exercisable, Weighted average exercise price | $ 8.64 |
SHAREHOLDERS' EQUITY AND EMP_11
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Common stock issued to non-employee directors) (Details) - Non Employee Director [Member] - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of common shares issued | 33 | 45 | 50 |
Fair value based upon market price at time of issue | $ 780 | $ 750 | $ 551 |
SHAREHOLDERS' EQUITY AND EMP_12
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Non-employee director stock option activity) (Details) - Non Employee Director [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares, Options outstanding, beginning balance (in shares) | 20 | ||
Number of shares, Exercised (in shares) | 0 | ||
Number of shares, Forfeited or expired (in shares) | (20) | ||
Number of shares, Options outstanding, ending balance (in shares) | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, Options outstanding, beginning balance (in dollars per share) | $ 11.20 | ||
Weighted average exercise price, Exercised (in dollars per share) | 0 | ||
Weighted average exercise price, Forfeited or expired (in dollars per share) | 11.20 | ||
Weighted average exercise price, Options outstanding, ending balance (in dollars per share) | $ 0 | $ 0 | |
Average remaining contractual life, Options outstanding (in years) | 0 years | ||
Average remaining contractual life, Options vested and expected to vest (in years) | 0 years | ||
Average remaining contractual life, Options exercisable (in years) | 0 years | ||
Aggregate intrinsic value, Options outstanding | $ 0 | $ 0 | $ 225 |
SHAREHOLDERS' EQUITY AND EMP_13
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Defined benefits pension obligations and pension expenses) (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Switzerland [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 1,980 | $ 1,951 |
Taiwan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 1,256 | $ 967 |
SHAREHOLDERS' EQUITY AND EMP_14
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends declared (in usd per share) | $ 0.24 | $ 0 | $ 0 | |
Description Of Maximum Percentage Of Employee Contributions and Matching Contributions Based Upon Years Of Service | employee contributions and matching Company contributions from 4% to 6% | |||
Relative Total Shareholder Return Average Stock Price Calculation Period | 90 days | |||
Total Shareholder Return Award Performance Measurement Period | 3 years | |||
Proceeds from Stock Options Exercised | $ 55,000 | $ 509,000 | $ 410,000 | |
Grant To Non Employee Director | $ 32,500 | $ 120,000 | ||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 4.00% | |||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 0.00% | 0.00% | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | |||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 200.00% | 200.00% | ||
Equity Incentive Plan 2009 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4.7 | 4.7 |
SHAREHOLDERS' EQUITY AND EMP_15
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Assumptions Used to Calculate Compensation Expense) (Details) - Time-based restricted stock [Member] - $ / shares | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 19.65 | $ 12.51 | $ 9.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 31.71% | 30.39% | 30.85% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.68% | 0.96% | 0.89% |
SHAREHOLDERS' EQUITY AND EMP_16
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS Share Repurchase Program (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Aug. 15, 2017 | |
Share Repurchases [Line Items] | ||||
Treasury Stock, Shares, Acquired | (3,760,000) | |||
Stock Repurchased During Period, Value | $ 91,100 | |||
Payments for Repurchase of Common Stock | 90,310 | $ 18,197 | $ 14,551 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 97,700 | |||
August 2017 Share Repurchase Program [Member] | ||||
Share Repurchases [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 100,000 |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of the shares used in the basic and diluted net income per share computation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
NUMERATOR: | ||||||||||||
Net income | $ 29,635 | $ 60,256 | $ 36,313 | $ (69,528) | $ 41,224 | $ 34,809 | $ 32,670 | $ 17,396 | $ 56,676 | $ 126,099 | $ 48,455 | |
DENOMINATOR: | ||||||||||||
Weighted average shares outstanding - Basic (in shares) | 67,462 | 69,125 | 70,361 | 70,577 | 70,742 | 71,063 | 70,964 | 70,854 | 69,380 | 70,906 | 70,477 | |
Stock options (in shares) | 1 | 19 | 32 | |||||||||
Time-based restricted stock (in shares) | 402 | 592 | 274 | |||||||||
Market-based restricted stock (in shares) | 636 | 546 | 58 | |||||||||
Weighted average shares outstanding - Diluted (1) | 68,675 | 70,302 | 71,425 | 70,577 | 72,071 | 72,483 | 72,270 | 71,763 | 70,419 | 72,063 | 70,841 | |
EPS: | ||||||||||||
Net income per share - Basic (in dollars per share) | $ 0.44 | $ 0.87 | $ 0.52 | $ (0.99) | $ 0.58 | $ 0.49 | $ 0.46 | $ 0.25 | $ 0.82 | [1] | $ 1.78 | $ 0.69 |
Effect of dilutive shares (in dollars per share) | (0.02) | (0.03) | (0.01) | |||||||||
Net income per share - Diluted (in dollars per share) | $ 0.43 | $ 0.86 | $ 0.51 | $ (0.99) | $ 0.57 | $ 0.48 | $ 0.45 | $ 0.24 | $ 0.80 | [1] | $ 1.75 | $ 0.68 |
[1] | EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
INCOME TAXES (Income from conti
INCOME TAXES (Income from continuing operations by location, the provision (benefit) for income taxes and the effective tax rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States operations | $ 25,211 | $ (4,114) | $ (12,600) | ||||||||
Foreign operations | 152,338 | 122,629 | 68,764 | ||||||||
Income from operations before income taxes | 177,549 | 118,515 | 56,164 | ||||||||
Income tax expenses / (benefit) | $ (1,750) | $ 7,282 | $ 4,800 | $ 110,412 | $ 2,539 | $ (17,657) | $ 5,151 | $ 2,573 | $ 120,744 | $ (7,394) | $ 7,709 |
Effective tax rate | 68.00% | (6.20%) | 13.70% |
INCOME TAXES (Provision (benefi
INCOME TAXES (Provision (benefit) for income taxes from continuing operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Current: | |||||||||||
Federal | $ 83,159 | $ (3,975) | $ 871 | ||||||||
State | 58 | 64 | 53 | ||||||||
Foreign | 16,980 | 13,290 | 21,841 | ||||||||
Deferred: | |||||||||||
Federal | 23,346 | (15,374) | (13,423) | ||||||||
State | (2) | 40 | 12 | ||||||||
Foreign | (2,797) | (1,439) | (1,645) | ||||||||
Provision for income taxes | $ (1,750) | $ 7,282 | $ 4,800 | $ 110,412 | $ 2,539 | $ (17,657) | $ 5,151 | $ 2,573 | $ 120,744 | $ (7,394) | $ 7,709 |
INCOME TAXES (Effective income
INCOME TAXES (Effective income tax rate reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed income tax expense based on U.S. statutory rate | $ 43,568 | $ 41,358 | $ 19,658 | ||||||||
Effect of earnings of foreign subsidiaries subject to different tax rates | (12,947) | (22,832) | (7,584) | ||||||||
Benefits from foreign approved enterprise zones | (20,429) | (23,294) | (8,701) | ||||||||
Benefits from research and development tax credits | (2,785) | (1,859) | (2,839) | ||||||||
Benefits from foreign tax credits | (3,939) | (26,119) | 0 | ||||||||
Provisional estimate for the one-time U.S. transition tax, net of uncertain tax positions and foreign tax credits | 101,854 | 0 | 0 | ||||||||
Remeasurement of net U.S. deferred tax assets to reflect a reduction in the U.S. federal corporate tax rate | 2,760 | 0 | 0 | ||||||||
Change in permanent reinvestment assertion | 0 | 0 | (9,696) | ||||||||
Tax impact on restructuring | 0 | 0 | 4,238 | ||||||||
Tax audit settlement | 0 | 0 | 4,889 | ||||||||
Effect of permanent items | (758) | 778 | (2,274) | ||||||||
Non-deductible goodwill impairment | 0 | 8,805 | 0 | ||||||||
Deferred taxes not benefited | 7,366 | 6,458 | 3,585 | ||||||||
Foreign operations (withholding taxes, deferred taxes on unremitted earnings, US taxation of foreign earnings) | 5,746 | 6,039 | 4,981 | ||||||||
Reserve for uncertain tax positions | 530 | 2,936 | 208 | ||||||||
State income tax expense (net of federal benefit) | 56 | 60 | 996 | ||||||||
Other, net | (278) | 276 | 248 | ||||||||
Provision for income taxes | $ (1,750) | $ 7,282 | $ 4,800 | $ 110,412 | $ 2,539 | $ (17,657) | $ 5,151 | $ 2,573 | $ 120,744 | $ (7,394) | $ 7,709 |
INCOME TAXES (Net deferred tax
INCOME TAXES (Net deferred tax balance) (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Inventory reserves | $ 424 | $ 589 |
Stock options | 301 | 422 |
Other accruals and reserves | 5,927 | 7,857 |
Domestic tax credit carryforwards | 4,532 | 17,635 |
Net operating loss carryforwards | 39,856 | 35,937 |
Deferred Tax Assets, Gross | 51,040 | 62,440 |
Valuation allowance | (37,249) | (29,614) |
Total long-term deferred tax asset | 13,791 | 32,826 |
Foreign withholding tax on undistributed earnings | 21,988 | 20,945 |
Fixed and intangible assets | 8,377 | 11,262 |
Total long-term deferred tax liability | 30,365 | 32,207 |
Total net deferred tax (liability) / asset | 619 | |
Total net deferred tax (liability) / asset | (16,574) | |
Deferred tax asset | 9,017 | 27,771 |
Deferred tax liability | $ 25,591 | $ 27,152 |
INCOME TAXES (Unrecognized tax
INCOME TAXES (Unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning of year | $ 12,062 | $ 7,453 | $ 7,101 |
Additions for tax positions, current year | 1,482 | 3,657 | 519 |
Additions for tax positions, prior year | 0 | 1,834 | 827 |
Reductions for tax positions, prior year | (506) | (882) | (994) |
Unrecognized tax benefit, end of year | $ 13,038 | $ 12,062 | $ 7,453 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Change in permanent reinvestment assertion | $ 0 | $ 0 | $ (9,696) | |
Tax impact on restructuring | 0 | 0 | 4,238 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 627,000 | |||
Tax Cuts and Job Act of 2017,Transition Tax for Accumulated Foreign Earnings, Deemed Dividend, Amount | 496,800 | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 21,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 102,900 | |||
Deferred Tax Assets, Tax Credit Carryforwards | 5,900 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 12,000 | |||
Excess tax benefits from stock based compensation | 0 | (4,392) | 197 | |
Operating Loss Carryforwards [Line Items] | ||||
Tax Cuts And Jobs Act of 2017 Income Tax Expense (Benefit) | 104,600 | |||
Remeasurement of net U.S. deferred tax assets to reflect a reduction in the U.S. federal corporate tax rate | $ 2,760 | 0 | 0 | |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act of 2017, Percent | 24.50% | |||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | $ 506 | 882 | 994 | |
Unrecognized Tax Benefits | 13,038 | 12,062 | 7,453 | $ 7,101 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 163,800 | |||
Provisional estimate for the one-time U.S. transition tax, net of uncertain tax positions and foreign tax credits | 101,854 | 0 | 0 | |
Undistributed Earnings of Foreign Subsidiaries Potentially Repatriated | 100,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 1,200 | |||
Operations In Singapore And Malaysia [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Reconciliation, Tax Exempt Income | $ 20,400 | $ 23,300 | $ 8,700 | |
Income Tax Reconciliation Foreign Income Tax Rate Differential Per Share | $ 0.29 | $ 0.32 | $ 0.12 | |
Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforward, Foreign, Statute Of Limitions | 4 years | |||
Minimum [Member] | Operations In Singapore And Malaysia [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 0.00% | |||
Maximum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforward, Foreign, Statute Of Limitions | 6 years | |||
Maximum [Member] | Operations In Singapore And Malaysia [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 5.00% | |||
Pennsylvania Tax Law [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 5,000 | $ 0 | $ 4,000 | $ 4,000 |
OTHER FINANCIAL DATA Other Fina
OTHER FINANCIAL DATA Other Financial Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Incentive Compensation Expense | $ 25,607 | $ 29,612 | $ 14,661 |
Rent Expense | 4,914 | 5,071 | 5,901 |
Warranty and Retrofit Expense | $ 13,110 | $ 13,740 | $ 11,557 |
SEGMENT INFORMATION (Operating
SEGMENT INFORMATION (Operating information by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
Net revenue: | ||||||||||||
Net revenue | $ 184,824 | $ 268,834 | $ 221,772 | $ 213,691 | $ 215,892 | $ 243,897 | $ 199,613 | $ 149,639 | $ 889,121 | $ 809,041 | $ 627,192 | |
Cost of sales : | ||||||||||||
Cost of sales | 479,680 | 426,947 | 346,156 | |||||||||
Gross profit : | ||||||||||||
Gross profit | 85,823 | 126,969 | 99,447 | 97,202 | 107,401 | 114,003 | 92,263 | 68,427 | 409,441 | 382,094 | 281,036 | |
Operating expenses: | ||||||||||||
Operating expenses | 242,809 | 269,011 | 227,083 | |||||||||
Income from operations: | ||||||||||||
Income from operations | $ 24,574 | $ 64,463 | $ 38,436 | $ 39,159 | $ 41,849 | $ 15,672 | $ 36,503 | $ 19,059 | 166,632 | 113,083 | 53,953 | |
Restructuring expenses | [1] | (321) | 3,311 | 8,644 | ||||||||
Capital Equipment | ||||||||||||
Net revenue: | ||||||||||||
Net revenue | 719,390 | 651,934 | 488,925 | |||||||||
Income from operations: | ||||||||||||
Income from operations | [2] | 132,563 | 107,115 | 33,484 | ||||||||
Restructuring expenses | 2,400 | 6,200 | ||||||||||
APS [Member] | ||||||||||||
Net revenue: | ||||||||||||
Net revenue | 169,731 | 157,107 | 138,267 | |||||||||
Income from operations: | ||||||||||||
Income from operations | [3] | $ 34,069 | 5,968 | 20,469 | ||||||||
Restructuring expenses | $ 900 | $ 2,400 | ||||||||||
[1] | Provision for severance and benefits and other exit costs are included within selling, general and administrative expenses on the Consolidated Statements of Operations. | |||||||||||
[2] | Includes the restructuring expenses as discussed in Note 2, of $2.4 million and $6.2 million for the years ended 2017 and 2016 respectively. | |||||||||||
[3] | Includes the restructuring expenses as discussed in Note 2, of $0.9 million and $2.4 million for the years ended 2017 and 2016 respectively |
SEGMENT INFORMATION (Capital ex
SEGMENT INFORMATION (Capital expenditures, depreciation, and amortization expense by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Capital expenditures: | |||
Capital expenditures | $ 20,441 | $ 25,688 | $ 6,301 |
Depreciation expense: | |||
Depreciation expense | 11,189 | 9,703 | 9,569 |
Amortization expense: | |||
Amortization expense | 7,826 | 6,554 | 6,661 |
Capital Equipment | |||
Capital expenditures: | |||
Capital expenditures | 7,029 | 14,415 | 3,111 |
Depreciation expense: | |||
Depreciation expense | 7,435 | 6,306 | 6,012 |
Amortization expense: | |||
Amortization expense | 4,203 | 2,841 | 2,760 |
APS [Member] | |||
Capital expenditures: | |||
Capital expenditures | 13,412 | 11,273 | 3,190 |
Depreciation expense: | |||
Depreciation expense | 3,754 | 3,397 | 3,557 |
Amortization expense: | |||
Amortization expense | $ 3,623 | $ 3,713 | $ 3,901 |
SEGMENT INFORMATION Sales by co
SEGMENT INFORMATION Sales by country (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | $ 184,824 | $ 268,834 | $ 221,772 | $ 213,691 | $ 215,892 | $ 243,897 | $ 199,613 | $ 149,639 | $ 889,121 | $ 809,041 | $ 627,192 |
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 408,567 | 323,803 | 211,448 | ||||||||
Taiwan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 126,676 | 100,738 | 129,128 | ||||||||
Korea [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 38,551 | 73,410 | 70,593 | ||||||||
Malaysia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 65,354 | 72,329 | 42,368 | ||||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 68,774 | 57,728 | 47,806 | ||||||||
Philippines [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 26,372 | 25,165 | 8,272 | ||||||||
VIET NAM | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 20,864 | 29,330 | 3,785 | ||||||||
Singapore [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 19,648 | 7,119 | 8,770 | ||||||||
THAILAND | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 19,018 | 18,754 | 13,043 | ||||||||
THAILAND | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | 17,051 | 15,705 | 11,782 | ||||||||
All Other Segments [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net | $ 78,246 | $ 84,960 | $ 80,197 |
SEGMENT INFORMATION Long-lived
SEGMENT INFORMATION Long-lived assets by countries (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 87,673 | $ 97,589 | $ 69,420 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 23,696 | 43,440 | 18,570 |
Singapore [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 30,240 | 31,553 | 33,286 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 18,333 | 11,148 | 7,459 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 8,460 | 4,549 | 4,810 |
All Other Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 6,944 | $ 6,899 | $ 5,295 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Reserve for product warranty activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Reserve for warranty, beginning of period | $ 13,796 | $ 12,544 | $ 10,632 |
Provision for warranty | 12,603 | 11,743 | 11,553 |
Utilization of reserve | (11,925) | (10,491) | (9,641) |
Reserve for warranty, end of period | $ 14,474 | $ 13,796 | $ 12,544 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Obligations not reflected on the Consolidated Balance Sheet) (Details) $ in Thousands | Sep. 29, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Inventory purchase obligation | $ 129,962 | [1] |
Inventory purchase obligation, Payments due by fiscal year 2018 | 129,962 | [1] |
Inventory purchase obligation, Payments due by fiscal year 2019 | 0 | [1] |
Inventory purchase obligation, Payments due by fiscal year 2020 | 0 | [1] |
Inventory purchase obligation, Payments due by fiscal year 2021 | 0 | [1] |
Inventory purchase obligation, Payments due by fiscal year thereafter | 0 | [1] |
Operating lease obligations | 18,563 | [2] |
Operating lease obligations, Payments due by fiscal year 2018 | 3,863 | [2] |
Operating lease obligations, Payments due by fiscal year 2019 | 3,511 | [2] |
Operating lease obligations, Payments due by fiscal year 2020 | 2,262 | [2] |
Operating lease obligations, Payments due by fiscal year 2021 | 1,823 | [2] |
Operating lease obligations, Payments due by fiscal year thereafter | 7,104 | [2] |
Total | 148,525 | |
Total, Payments due by fiscal year 2018 | 133,825 | |
Total, Payments due by fiscal year 2019 | 3,511 | |
Total, Payments due by fiscal year 2020 | 2,262 | |
Total, Payments due by fiscal year 2021 | 1,823 | |
Total, Payments due by fiscal year thereafter | $ 7,104 | |
[1] | The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. | |
[2] | The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2018 (not including lease extension options, if applicable). Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company was considered the owner of the Building during the construction phase. The Building was completed on December 1, 2013 and Pte signed an agreement with the Landlord to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of the Building. Following the completion of construction, we performed a sale-leaseback analysis pursuant to ASC 840-40 and determined that because of our continuing involvement, ASC 840-40 precluded us from derecognizing the asset and associated financing obligation. As such, we reclassified the asset from construction in progress to Property, Plant and Equipment and began to depreciate the building over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. As of September 29, 2018, we recorded a financing obligation related to the Building of $16.0 million (see Note 10 above). The financing obligation is not reflected in the table above. |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of net revenue) (Details) | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Haoseng Industrial Co., Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | 12.80% | 10.10% | 11.50% |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of total accounts receivable) (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Haoseng Industrial Co., Ltd [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 32.90% | 26.20% |
Super Power International Ltd [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentrations risk percentage | 13.60% |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 01, 2013USD ($)ft² | |
Other Commitments [Line Items] | |||
Area of Land | ft² | 198,000 | ||
Percentage Of Building Area Agreed To Lease From Landlord | 70.00% | ||
Period Of Warranty For Manufacturing Defects | 1 year | ||
Lease Expiration Year | 2,018 | ||
Financing obligation | $ 15,187 | $ 16,074 | $ 20,000 |
Building [Member] | |||
Other Commitments [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years | ||
Current and Noncurrent Portion [Member] | |||
Other Commitments [Line Items] | |||
Financing obligation | $ 16,000 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL RESULTS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Revenue, Net | $ 184,824 | $ 268,834 | $ 221,772 | $ 213,691 | $ 215,892 | $ 243,897 | $ 199,613 | $ 149,639 | $ 889,121 | $ 809,041 | $ 627,192 | |
Gross profit | 85,823 | 126,969 | 99,447 | 97,202 | 107,401 | 114,003 | 92,263 | 68,427 | 409,441 | 382,094 | 281,036 | |
Income from operations | 24,574 | 64,463 | 38,436 | 39,159 | 41,849 | 15,672 | 36,503 | 19,059 | 166,632 | 113,083 | 53,953 | |
Income tax expense / (benefit) | (1,750) | 7,282 | 4,800 | 110,412 | 2,539 | (17,657) | 5,151 | 2,573 | 120,744 | (7,394) | 7,709 | |
Net income | $ 29,635 | $ 60,256 | $ 36,313 | $ (69,528) | $ 41,224 | $ 34,809 | $ 32,670 | $ 17,396 | $ 56,676 | $ 126,099 | $ 48,455 | |
Basic (in dollars per share) | $ 0.44 | $ 0.87 | $ 0.52 | $ (0.99) | $ 0.58 | $ 0.49 | $ 0.46 | $ 0.25 | $ 0.82 | [1] | $ 1.78 | $ 0.69 |
Earnings Per Share, Diluted | $ 0.43 | $ 0.86 | $ 0.51 | $ (0.99) | $ 0.57 | $ 0.48 | $ 0.45 | $ 0.24 | $ 0.80 | [1] | $ 1.75 | $ 0.68 |
Weighted average shares outstanding - Basic (in shares) | 67,462 | 69,125 | 70,361 | 70,577 | 70,742 | 71,063 | 70,964 | 70,854 | 69,380 | 70,906 | 70,477 | |
Weighted Average Number of Shares Outstanding, Diluted | 68,675 | 70,302 | 71,425 | 70,577 | 72,071 | 72,483 | 72,270 | 71,763 | 70,419 | 72,063 | 70,841 | |
[1] | EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Nov. 02, 2018 | Sep. 29, 2018 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||
Derivative, Notional Amount | $ 43,095 | $ 36,404 | |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Notional Amount | $ 43,095 | $ 36,404 | |
Derivative, Term of Contract | 12 months | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Notional Amount | $ 10,900 | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Term of Contract | 12 months |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | $ 29,614 | |||
End of period | 37,249 | $ 29,614 | ||
Allowance for doubtful accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | 79 | 506 | $ 621 | |
Charged to Costs and Expenses | 383 | (136) | (115) | |
Other Additions | 0 | 0 | 0 | |
Other Deductions | [1] | (77) | (291) | 0 |
End of period | 385 | 79 | 506 | |
Inventory reserve [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | 24,639 | 21,080 | 19,073 | |
Charged to Costs and Expenses | 4,897 | 10,925 | 6,676 | |
Other Additions | 0 | 0 | 0 | |
Other Deductions | [2] | (2,647) | (7,366) | (4,669) |
End of period | 26,889 | 24,639 | 21,080 | |
Valuation allowance for deferred taxes [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | 29,614 | 27,381 | 23,128 | |
Charged to Costs and Expenses | [3] | 0 | 0 | 563 |
Other Additions | 7,635 | 2,233 | 3,690 | |
Other Deductions | 0 | 0 | 0 | |
End of period | $ 37,249 | $ 29,614 | $ 27,381 | |
[1] | Represents write-offs of specific accounts receivable. | |||
[2] | Sale or scrap of previously reserved inventory. | |||
[3] | Reflects increase/decrease in the valuation allowance primarily associated with the Company's U.S. and foreign net operating losses and other deferred tax assets. |