DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 02, 2021 | Nov. 12, 2021 | Apr. 03, 2021 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Period End Date | Oct. 2, 2021 | ||
Entity File Number | 0-121 | ||
Entity Registrant Name | KULICKE & SOFFA INDUSTRIES INC | ||
Entity Central Index Key | 0000056978 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Addresses [Line Items] | |||
Entity Address, Address Line One | 23A Serangoon North Avenue 5 | ||
Entity Address, Address Line Two | #01-01 | ||
Entity Address, Country | SG | ||
Entity Address, Postal Zip Code | 554369 | ||
Entity Address, City or Town | Singapore | ||
City Area Code | 215 | ||
Local Phone Number | 784-6000 | ||
Title of 12(b) Security | Common Stock, Without Par Value | ||
Trading Symbol | KLIC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,189.3 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Tax Identification Number | 23-1498399 | ||
ICFR Auditor Attestation Flag | true | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --10-02 | ||
Entity Common Stock, Shares Outstanding | 62,421,143 | ||
Principal Executive Offices | |||
Entity Addresses [Line Items] | |||
Entity Address, Address Line One | 1005 Virginia Dr. | ||
Entity Address, Postal Zip Code | 19034 | ||
Entity Address, State or Province | PA | ||
Entity Address, City or Town | Fort Washington |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 362,788 | $ 188,127 | |
Short-term investments | [1] | 377,000 | 342,000 |
Accounts and notes receivable, net of allowance for doubtful accounts of $687 and $968, respectively | 421,193 | 198,640 | |
Inventories, net | 167,323 | 111,809 | |
Prepaid expenses and other current assets | 23,586 | 19,620 | |
Total current assets | 1,351,890 | 860,196 | |
Property, plant and equipment, net | 67,982 | 59,147 | |
Operating right-of-use assets | 41,592 | 22,688 | |
Goodwill | 72,949 | 56,695 | |
Intangible assets, net | 42,752 | 37,972 | |
Deferred tax assets | 15,715 | 8,147 | |
Equity investments | 6,388 | 7,535 | |
Other assets | 2,363 | 2,186 | |
TOTAL ASSETS | 1,601,631 | 1,054,566 | |
Current liabilities: | |||
Accounts payable | 154,636 | 57,688 | |
Operating lease liabilities | 4,903 | 5,903 | |
Accrued expenses and other current liabilities | 161,570 | 76,762 | |
Income taxes payable | 30,766 | 17,540 | |
Total current liabilities | 351,875 | 157,893 | |
Deferred tax liabilities | 32,828 | 33,005 | |
Income taxes payable | 69,422 | 74,957 | |
Operating lease liabilities | 38,084 | 18,325 | |
Other liabilities | 14,185 | 12,392 | |
TOTAL LIABILITIES | 506,394 | 296,572 | |
Commitments and contingent liabilities (Note 17) | |||
SHAREHOLDERS' EQUITY: | |||
Preferred stock, without par value: | 0 | 0 | |
Authorized 200,000 shares; issued 85,364 and 85,364 respectively; outstanding 61,931 and 61,558 shares, respectively | 550,117 | 539,213 | |
Treasury stock, at cost, 23,433 and 23,806 shares, respectively | (400,412) | (394,817) | |
Retained earnings | 948,554 | 616,119 | |
Accumulated other comprehensive loss | (3,022) | (2,521) | |
TOTAL SHAREHOLDERS' EQUITY | 1,095,237 | 757,994 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,601,631 | $ 1,054,566 | |
[1] | All short-term investments were classified as available-for-sale and were measured at fair value based on Level 1 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 fiscal years ended 2021 and 2020. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts and notes receivable | $ 687 | $ 968 |
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 | 85,364 | 85,364 |
Common stock, shares outstanding | 61,931 | 61,558 |
Treasury stock, shares | 23,433 | 23,806 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Income Statement [Abstract] | |||
Net revenue | $ 1,517,664 | $ 623,176 | $ 540,052 |
Cost of sales | 820,678 | 325,201 | 285,462 |
Gross profit | 696,986 | 297,975 | 254,590 |
Selling, general and administrative | 147,061 | 116,007 | 116,811 |
Research and development | 137,478 | 123,459 | 116,169 |
Operating expenses | 284,539 | 239,466 | 232,980 |
Income from operations | 412,447 | 58,509 | 21,610 |
Interest income | 2,321 | 7,541 | 15,132 |
Interest expense | (218) | (1,716) | (2,055) |
Income before income taxes | 414,550 | 64,334 | 34,687 |
Provision for income taxes | 47,295 | 11,998 | 22,910 |
Share of results of equity-method investee, net of tax | 94 | 36 | 124 |
Net income | $ 367,161 | $ 52,300 | $ 11,653 |
Net income per share: | |||
Basic (in dollars per share) | $ 5.92 | $ 0.83 | $ 0.18 |
Diluted (in dollars per share) | $ 5.78 | $ 0.83 | $ 0.18 |
Weighted average shares outstanding: | |||
Basic (in shares) | 62,009 | 62,828 | 65,286 |
Diluted (in shares) | 63,515 | 63,359 | 65,948 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 367,161 | $ 52,300 | $ 11,653 |
Other comprehensive income: | |||
Foreign currency translation adjustment | 672 | 7,755 | (6,534) |
Unrecognized actuarial (loss) / gain on pension plan, net of tax | 0 | (1,490) | 22 |
Other Comprehensive Income (Loss), Foreign Currency Transaction, Translation Adjustment and unrecognized actuarial (loss), Net of Tax, Portion Attributable to Parent | 672 | 6,265 | (6,512) |
Unrealized gain / (loss) on derivative instruments, net of tax | 24 | 358 | (741) |
Reclassification adjustment for (gain)/ loss on derivative instruments recognized, net of tax | (1,197) | 796 | (1,215) |
Net (decrease) / increase from derivatives designated as hedging instruments, net of tax | (1,173) | 1,154 | 474 |
Total other comprehensive (loss) / income | (501) | 7,419 | (6,038) |
Comprehensive income | $ 366,660 | $ 59,719 | $ 5,615 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (loss) / income |
Beginning Balance (in shares) at Sep. 29, 2018 | 67,143,000 | ||||||
Beginning Balance at Sep. 29, 2018 | $ 880,207 | $ 534 | $ 519,244 | $ (248,664) | $ 613,529 | $ 534 | $ (3,902) |
Issuance of stock for services rendered (in shares) | 37,000 | ||||||
Issuance of stock for services rendered | 834 | $ 834 | |||||
Repurchase of common stock (in shares) | (4,676,000) | ||||||
Repurchase of common stock | (100,548) | (100,548) | |||||
Exercise of stock options (in shares) | 2,000 | ||||||
Exercise of stock options | 14 | $ 14 | |||||
Issuance of shares for equity-based compensation (in shares) | 667,000 | ||||||
Issuance of shares for equity-based compensation | 0 | $ 0 | 0 | ||||
Equity-based compensation expense | 13,498 | $ 13,498 | |||||
Cash dividend declared | (31,091) | (31,091) | |||||
Components of comprehensive income: | |||||||
Net income | 11,653 | 11,653 | |||||
Other comprehensive gain | (6,038) | (6,038) | |||||
Comprehensive income | 5,615 | 11,653 | (6,038) | ||||
Ending Balance (in shares) at Sep. 28, 2019 | 63,173,000 | ||||||
Ending Balance at Sep. 28, 2019 | 769,063 | $ (769) | $ 533,590 | (349,212) | 594,625 | $ (769) | (9,940) |
Issuance of stock for services rendered (in shares) | 37,000 | ||||||
Issuance of stock for services rendered | 850 | $ 491 | 359 | ||||
Repurchase of common stock (in shares) | (2,486,000) | ||||||
Repurchase of common stock | (55,001) | (55,001) | |||||
Issuance of shares for equity-based compensation (in shares) | 834,000 | ||||||
Issuance of shares for equity-based compensation | 0 | $ (9,037) | 9,037 | ||||
Equity-based compensation expense | 14,169 | $ 14,169 | |||||
Cash dividend declared | (30,037) | (30,037) | |||||
Components of comprehensive income: | |||||||
Net income | 52,300 | 52,300 | |||||
Other comprehensive gain | 7,419 | 7,419 | |||||
Comprehensive income | 59,719 | 52,300 | 7,419 | ||||
Ending Balance (in shares) at Oct. 03, 2020 | 61,558,000 | ||||||
Ending Balance at Oct. 03, 2020 | 757,994 | $ 539,213 | (394,817) | 616,119 | (2,521) | ||
Issuance of stock for services rendered (in shares) | 23,000 | ||||||
Issuance of stock for services rendered | $ 818 | $ 616 | 202 | ||||
Repurchase of common stock (in shares) | (215,000) | (215,000) | |||||
Repurchase of common stock | $ (10,182) | (10,182) | |||||
Issuance of shares for equity-based compensation (in shares) | 565,000 | ||||||
Issuance of shares for equity-based compensation | 0 | $ (4,385) | 4,385 | ||||
Equity-based compensation expense | 14,673 | $ 14,673 | |||||
Cash dividend declared | (34,726) | (34,726) | |||||
Components of comprehensive income: | |||||||
Net income | 367,161 | 367,161 | |||||
Other comprehensive gain | (501) | (501) | |||||
Comprehensive income | 366,660 | 367,161 | (501) | ||||
Ending Balance (in shares) at Oct. 02, 2021 | 61,931,000 | ||||||
Ending Balance at Oct. 02, 2021 | $ 1,095,237 | $ 550,117 | $ (400,412) | $ 948,554 | $ (3,022) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 367,161 | $ 52,300 | $ 11,653 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,810 | 19,739 | 20,304 |
Equity-based compensation and employee benefits | 15,491 | 15,019 | 14,332 |
Adjustment for doubtful accounts | (248) | 371 | 212 |
Adjustment for inventory valuation | (2,965) | 4,170 | 2,657 |
Change in the estimation of warranty reserve | 0 | (5,417) | 0 |
Deferred taxes | (9,818) | (827) | 8,825 |
Loss on disposal of property, plant and equipment | 259 | 953 | 20 |
Gain on disposal of equity-method investments | (1,046) | 0 | 0 |
Unrealized foreign currency translation | (378) | 874 | (3,325) |
Share of results of equity-method investee | 94 | 36 | 124 |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable | (221,924) | (1,928) | 47,395 |
Inventory | (52,719) | (26,194) | 24,105 |
Prepaid expenses and other current assets | (4,573) | (3,561) | (490) |
Accounts payable, accrued expenses and other current liabilities | 181,960 | 38,148 | (53,759) |
Income taxes payable | 7,686 | (291) | (7,758) |
Other, net | 1,242 | 1,020 | 1,672 |
Net cash provided by operating activities | 300,032 | 94,412 | 65,967 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of business, net of cash acquired | (26,338) | 0 | 0 |
Purchases of property, plant and equipment | (22,775) | (11,719) | (11,742) |
Proceeds from sales of property, plant and equipment | 291 | 50 | 210 |
Purchase of equity investments | 0 | (1,288) | (5,000) |
Purchase of short term investments | (507,000) | (442,000) | (619,000) |
Maturity of short term investments | 472,000 | 329,000 | 683,000 |
Disposal of equity-method investments | 2,115 | 0 | 0 |
Net cash (used in) / provided by investing activities | (81,707) | (125,957) | 47,468 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment on short term debt | (22,750) | (147,143) | (30,773) |
Proceeds from exercise of common stock options | 0 | 0 | 14 |
Payment for finance leases | (379) | (123) | 0 |
Repurchase of common stock | (10,426) | (54,549) | (99,897) |
Proceeds from short term debt | 22,750 | 86,239 | 90,904 |
Common stock cash dividends paid | (33,453) | (30,233) | (31,566) |
Net cash used in financing activities | (44,258) | (145,809) | (71,318) |
Effect of exchange rate changes on cash and cash equivalents | 594 | 1,297 | 919 |
Changes in cash and cash equivalents | 174,661 | (176,057) | 43,036 |
Cash and cash equivalents at beginning of period | 188,127 | 364,184 | 321,148 |
Cash and cash equivalents at end of period | 362,788 | 188,127 | 364,184 |
CASH PAID FOR: | |||
Interest | 218 | 1,716 | 1,634 |
Income taxes | $ 51,856 | $ 13,271 | $ 22,073 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Oct. 02, 2021 | |
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. 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 2021, 2020, and 2019 fiscal years ended on October 2, 2021, October 3, 2020 and September 28, 2019, 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, the valuation estimates and assessment of impairment and observable price adjustments, income taxes, 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. Due to the coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of October 2, 2021. While there was no material impact to our consolidated financial statements as of and for the year ended October 2, 2021, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 that could result in material impacts to our consolidated financial statements in future reporting periods. The Company reviews its warranty reserve balances as part of its ongoing policy review. At the start of fiscal 2020, the Company determined there was a need to obtain granular data given uncertainty in sales demand. Accordingly , the Company commenced the collection of granular data over the four fiscal quarters in 2020 to establish a more precise estimate of its warranty reserve. This collection was finalized and the information incorporated in the fourth quarter of fiscal 2020. This resulted in a decrease to the reserve for warranty and an increase in net income by $5.4 million for the fiscal year 2020, as well as an increase to net income per share, basic and diluted, by $0.09 and $0.09, respectively. For further information on warranty reserve, see Notes 14 and 17 below. Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of October 2, 2021 and October 3, 2020 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 material. The Company actively monitors its customers' financial strength to reduce the risk of loss, including as a result of COVID-19. 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)). The tax effect of currency translation adjustments related to unremitted foreign earnings no longer deemed to be indefinitely reinvested outside the U.S. is reflected in the determination of the Company's net income or other comprehensive income ("OCI"). 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, 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 1 measurement, or quoted market prices, as defined by ASC No. 820, Fair Value Measurements and Disclosures . Equity Investments The Company invests in equity securities in companies to promote business and strategic objectives. Equity investments are measured and recorded as follows: • Equity method investments are equity securities in investees that provide the Company with the ability to exercise significant influence in which it lacks a controlling financial interest. 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. • Non-marketable equity securities are equity securities without readily determinable fair value that are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. 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, including as a result of COVID-19, additional allowances may be required. If global or regional economic conditions deteriorate or political conditions were to change in some of the countries where the Company does business, including as a result of COVID-19, 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 definite lived intangible assets and property, plant and equipment are 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 October 2, 2021 and October 3, 2020, no "triggering" events occurred. Accounting for Impairment of Goodwill ASC No. 350, Intangibles - Goodwill and Other 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 impairment test is unnecessary. However, if a company concludes otherwise, then it is required to perform the goodwill impairment test. The Company's impairment test is performed by comparing the fair value of a reporting unit with its carrying value, and determining if the carrying amount exceeds its fair value. 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, 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 may lead the Company to perform interim goodwill impairment assessments. For further information on goodwill and other intangible assets, see Note 4 below. Revenue Recognition In accordance with ASC No. 606, Revenue from Contracts with Customers , the Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. The Company recognizes revenue from sales of our products, including sales to our distributors, at a point in time, generally upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order. Control is considered transferred when title and risk of loss pass, when the customer becomes obligated to pay and, where applicable, when the customer has accepted the products or upon expiration of the acceptance period. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. Our business is subject to contingencies related to customer orders, including: • Right of Return : A large portion of our revenue comes from the sale of equipment used in the semiconductor assembly process. Other product sales relate to consumable products, which are sold in high-volume quantities, and are generally maintained at low stock levels at the customers' facility. Customer returns have historically represented a very small percentage of customer sales on an annual basis. • Warranties : Our equipment is generally shipped with a one-year warranty against manufacturing defects. We establish 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 expenses, including product parts replacement, freight charges and labor costs expected to be incurred to correct product failures during the warranty period. • Conditions of Acceptance: Sales of our consumable products generally do not have customer acceptance terms. In certain cases, sales of our equipment have customer acceptance clauses which may require the equipment to perform in accordance with customer specifications or when installed at the customer's facility. In such cases, if the terms of acceptance are satisfied at our facility prior to shipment, the revenue for the equipment will be recognized upon shipment. If the terms of acceptance are satisfied at our customers' facilities, the revenue for the equipment will not be recognized until acceptance, which is typically obtained after installation and testing, is received from the customer. Service revenue is generally recognized over time as the services are performed. For fiscal 2021 and 2020, the service revenue is not material. The Company measures revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Any variable consideration such as sales incentives are recognized as a reduction of net revenue at the time of revenue recognition. The length of time between invoicing and payment is not significant under our payment terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. 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 expected, on a more likely than not basis, to be realized. While the Company has considered future taxable income and 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 deferred tax assets 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 deferred tax assets in the future, an adjustment to deferred tax assets would decrease income in the period when such determination is made. The Company determines the amount of unrecognized tax benefit with respect to uncertain tax positions taken or expected to be taken on its income tax returns in accordance with ASC No. 740 Topic 10, Income Taxes, General (“ASC 740.10”). 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 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 is 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, plant and equipment, deferred revenue, intangible assets and related deferred income taxes, useful lives of property, 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 assumed 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 Financial Instruments 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. We adopted this ASU in the first quarter of fiscal 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements. Collaborative Arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808). This ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. This ASU requires retrospective adoption to the date we adopted ASC 606 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. We adopted this ASU in the first quarter of fiscal 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarify and amend existing guidance. This ASU will be effective for us in the first quarter of 2022. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Short term investments, available-for-sale (1) $ 377,000 $ 342,000 Inventories, net: Raw materials and supplies $ 94,493 $ 60,205 Work in process 55,866 39,753 Finished goods 40,006 43,015 190,365 142,973 Inventory reserves (23,042) (31,164) $ 167,323 $ 111,809 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 23,314 22,830 Leasehold improvements 30,054 23,111 Data processing equipment and software 40,945 38,524 Machinery, equipment, furniture and fixtures 87,994 80,953 Construction in progress 9,562 7,111 194,051 174,711 Accumulated depreciation (126,069) (115,564) $ 67,982 $ 59,147 Accrued expenses and other current liabilities: Accrued customer obligations (2) $ 72,478 $ 22,759 Wages and benefits 66,531 37,237 Commissions and professional fees 6,190 2,716 Dividends payable 8,673 7,397 Severance 31 449 Other 7,667 6,204 $ 161,570 $ 76,762 (1) All short-term investments were classified as available-for-sale and were measured at fair value based on Level 1 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 fiscal years ended 2021 and 2020. (2) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Oct. 02, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATIONS Acquisition of Uniqarta On January 19, 2021, Kulicke and Soffa Industries, Inc. entered into a Stock Purchase Agreement with Uniqarta, Inc. ("Uniqarta") and its equity holders to purchase all of Uniqarta's outstanding equity interests. Upon the closing of the acquisition, Uniqarta became a wholly-owned subsidiary of the Company. Uniqarta is a developer of laser transfer technology and the acquisition expands the Company's presence in the LED end market. The purchase price consisted of $26.5 million in cash paid at closing. The acquisition of Uniqarta was accounted for in accordance with ASC No. 805, Business Combinations , using the acquisition method. The Company has estimated the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on information available. 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 on January 19, 2022. Any changes in these estimates may have a material impact on our Consolidated Statements of Operations or Consolidated Balance Sheets. At October 2, 2021, the Company held $3.5 million in escrow for a period up to eighteen months from the acquisition date as security pending the completion of Uniqarta's obligations as seller under the Agreement. The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the acquisition date: (in thousands) January 19, 2021 Accounts and other receivable $ 7 Prepaid expenses and other current assets 6 Property, plant and equipment, net 539 Goodwill 16,799 Intangible assets 11,200 Accounts payable (77) Accrued expenses and other current liabilities (98) Deferred tax liabilities (2,038) Total purchase price, net of cash acquired $ 26,338 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 in-process research and development ("IPR&D") and others, reflects management’s estimates based on, among other factors, the use of an established valuation method. The intangible assets are valued using a cost replacement method. The IPR&D intangible asset of $9.0 million is not amortized, but rather is reviewed for impairment on an annual basis or more frequently if indicators of impairment are present, until the project is completed, abandoned, or transferred to a third party. The other intangible assets acquired of $2.2 million are amortized over the period of estimated benefit using the straight-line method and the estimated useful life of six 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 Uniqarta 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 Uniqarta, the Company recorded deferred tax liabilities primarily relating to the acquired intangible assets, which are partially offset by the acquired tax attributes. The acquired tax attributes are comprised of net operating losses and research and development credits. For the year ended October 2, 2021, the acquired business contributed a net loss of $0.2 million. During fiscal 2021, the Company incurred $1.7 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 September 29, 2019, 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; and (ii) the associated tax impact on the 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) 2021 2020 Net revenue $ 1,517,664 $ 623,176 Net income 368,546 49,766 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The goodwill established in connection with our acquisitions represents the estimated future economic benefits arising from the assets we acquired that did not qualify to be identified and recognized individually. The goodwill also includes the value of expected future cash flows from the acquisitions, expected synergies with our other affiliates and other unidentifiable intangible assets. 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. The Company performed its annual impairment test in the fourth quarter of fiscal 2021 and concluded that no impairment charge was required. Any future adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a noncash impairment in the future. During the fiscal year ended October 2, 2021, the Company reviewed qualitative factors to ascertain if a "triggering" event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value and concluded that no triggering event had occurred. While we have concluded that a triggering event did not occur during the fiscal year ended October 2, 2021, a prolonged COVID-19 pandemic could impact the results of operations due to changes to assumptions utilized in the determination of the estimated fair values of the reporting units that could be significant enough to trigger an impairment. Net sales and earnings growth rates could be negatively impacted by reductions or changes in demand for our products. The discount rate utilized in our valuation model could also be impacted by changes in the underlying interest rates and risk premiums included in the determination of the cost of capital. The following table summarizes the Company's recorded goodwill by reportable segments as of October 2, 2021 and October 3, 2020: (in thousands) Capital Equipment APS Total Balance at October 3, 2020 30,274 26,421 56,695 Acquired in business combination 16,799 — 16,799 Other (512) (33) (545) Balance at October 2, 2021 46,561 26,388 72,949 During the quarter ended April 3, 2021, the Company recorded goodwill relating to the acquisition of Uniqarta. For further information on the acquisition of Uniqarta, please refer to Note 3. 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, in-process research and development, and trade and brand names. The following table reflects net intangible assets as of October 2, 2021 and October 3, 2020: As of Average estimated (dollar amounts in thousands) October 2, 2021 October 3, 2020 useful lives (in years) Developed technology $ 90,427 $ 91,044 7.0 to 15.0 Accumulated amortization $ (58,494) $ (54,293) Net developed technology $ 31,933 $ 36,751 Customer relationships $ 36,114 $ 36,307 5.0 to 6.0 Accumulated amortization $ (36,114) $ (35,587) Net customer relationships $ — $ 720 In-process research and development $ 8,795 $ — N.A. Accumulated amortization $ — $ — Net in-process research and development $ 8,795 $ — Trade and brand name $ 7,374 $ 7,404 7.0 to 8.0 Accumulated amortization $ (7,275) $ (6,903) Net trade and brand name $ 99 $ 501 Other intangible assets $ 4,700 $ 2,500 1.9 to 6.0 Accumulated amortization $ (2,775) $ (2,500) Net other intangible assets $ 1,925 $ — Net intangible assets $ 42,752 $ 37,972 The following table reflects estimated annual amortization expense related to intangible assets as of October 2, 2021: As of (in thousands) October 2, 2021 Fiscal 2022 $ 6,357 Fiscal 2023 $ 6,258 Fiscal 2024 $ 6,258 Fiscal 2025 $ 6,258 Fiscal 2026 $ 6,258 Fiscal 2027 and thereafter $ 11,363 Total amortization expense $ 42,752 |
CASH, CASH EQUIVALENTS, RESTRIC
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Oct. 02, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH, CASH EQUIVALENTS, 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 and short-term investments consisted of the following as of October 2, 2021: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 269,201 $ — $ — $ 269,201 Cash equivalents: Money market funds (1) 93,598 — (18) 93,580 Time deposits (2) 7 — — 7 Total cash and cash equivalents $ 362,806 $ — $ (18) $ 362,788 Short-term investments (2) : Time deposits $ 377,000 $ — $ — $ 377,000 Total short-term investments $ 377,000 $ — $ — $ 377,000 Total cash, cash equivalents, and short-term investments $ 739,806 $ — $ (18) $ 739,788 (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. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of October 3, 2020: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 42,997 $ — $ — $ 42,997 Cash equivalents: Money market funds (1) 105,133 — (10) 105,123 Time deposits (2) 40,007 — — 40,007 Total cash and cash equivalents $ 188,137 $ — $ (10) $ 188,127 Short-term investments (2) : Time deposits $ 243,000 $ — $ — $ 243,000 Deposits (3) 99,000 — — 99,000 Total short-term investments $ 342,000 $ — $ — $ 342,000 Total cash, cash equivalents, restricted cash and short-term investments $ 530,137 $ — $ (10) $ 530,127 (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. |
EQUITY INVESTMENTS (Notes)
EQUITY INVESTMENTS (Notes) | 12 Months Ended |
Oct. 02, 2021 | |
Equity Investments [Abstract] | |
Equity Investments | EQUITY INVESTMENTS Equity investments consisted of the following as of October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Non-marketable equity securities $ 6,388 $ 6,321 Equity method investments (1) — 1,214 Total $ 6,388 $ 7,535 (1) On March 5, 2021, the Company executed an agreement to sell its interest in an equity method investment. A gain of $1.0 million was recognized in selling, general and administrative expense in the Consolidated Statements of Operations. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Oct. 02, 2021 | |
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 fiscal year ended October 2, 2021. Fair Value Measurements on a Nonrecurring Basis Our non-financial assets such as intangible assets and property, plant and 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 |
Oct. 02, 2021 | |
Derivative financial Instruments [Abstract] | |
Derivative Instruments | 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 is denominated in foreign currencies, primarily in Singapore. The foreign currency exposure of our operating expenses is 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 October 2, 2021 and October 3, 2020 is as follows: As of (in thousands) October 2, 2021 October 3, 2020 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Asset Derivatives (2) Derivatives designated as hedging instruments: Foreign exchange forward contracts (3) $ 57,682 $ (616) $ 37,264 $ 557 Total derivatives $ 57,682 $ (616) $ 37,264 $ 557 (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 fiscal year ended October 2, 2021 and October 3, 2020 was as follows: (in thousands) Fiscal 2021 2020 Foreign exchange forward contract in cash flow hedging relationships: Net gain recognized in OCI, net of tax (1) $ 24 $ 358 Net gain/ (loss) reclassified from accumulated OCI into earnings, net of tax (2) $ 1,197 $ (796) (1) Net change in the fair value of the effective portion classified in OCI. |
LEASES
LEASES | 12 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
LEASES | LEASES We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing, technology, sales support and service centers, equipment, and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option. As of October 2, 2021, three options to extend the lease were recognized as right-of-use ("ROU") assets, and lease liabilities. We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our leased assets and corresponding liabilities. We have elected not to present short-term leases on the Consolidated Balance Sheets as these leases have a lease term of 12 months or less at lease inception. Operating leases are included in operating ROU assets, current and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Balance Sheets. As of October 2, 2021, our finance leases are not material. The following table shows the components of lease expense: (in thousands) Fiscal 2021 2020 Operating lease expense (1) $ 7,629 6,942 (1) Operating lease expense includes short-term lease expense, which is immaterial for the fiscal year ended October 2, 2021. The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating and finance lease liabilities, and, as such, are excluded from the amounts below: (in thousands) Fiscal 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7,211 $ 6,296 The following table shows the weighted-average lease terms and discount rates for operating leases: Fiscal 2021 2020 Operating leases: Weighted-average remaining lease term (in years): 9.6 4.5 Weighted-average discount rate: 5.8 % 4.8 % Future lease payments, excluding short-term leases, as of October 2, 2021, are detailed as follows: (in thousands) Operating leases Fiscal 2022 $ 7,249 Fiscal 2023 6,621 Fiscal 2024 6,224 Fiscal 2025 5,903 Fiscal 2026 5,085 Fiscal 2027 and thereafter 26,372 Total minimum lease payments 57,454 Less: Interest 14,467 Present value of lease obligations 42,987 Less: Current portion 4,903 Long-term portion of lease obligations $ 38,084 |
DEBT AND OTHER OBLIGATIONS
DEBT AND OTHER OBLIGATIONS | 12 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER OBLIGATIONS | DEBT AND OTHER OBLIGATIONS 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 October 2, 2021 and October 3, 2020, the outstanding amount was $3.0 million and $3.3 million respectively. Credit Facilities On February 15, 2019, the Company entered into a Facility Letter and Overdraft Agreement (collectively, the “Facility Agreements”) with MUFG Bank, Ltd., Singapore Branch (the “Bank”). The Facility Agreements provide the Company and one of its subsidiaries with an overdraft facility of up to $150 million (the “Overdraft Facility”) for general corporate purposes. Amounts outstanding under the Overdraft Facility, including interest, are payable upon thirty days' written demand by the Bank. Interest on the Overdraft Facility is calculated on a daily basis, and the applicable interest rate is calculated at the overnight U.S. Dollar LIBOR rate plus a margin of 1.5% per annum. The Overdraft Facility is an unsecured facility per the terms of the Facility Agreements. The Facility Agreements contain customary non-financial covenants, including, without limitation, covenants that restrict the Company’s ability to sell or dispose of its assets, cease owning at least 51% of two of its subsidiaries (the "Subsidiaries"), or encumber its assets with material security interests (including any pledge of monies in the Subsidiaries’ cash deposit account with the Bank). The Facility Agreements also contain typical events of default, including, without limitation, non-payment of financial obligations when due, cross defaults to other material indebtedness of the Company and |
SHAREHOLDERS' EQUITY AND EMPLOY
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS | SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS 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 2021 and 2020: Fiscal (in thousands) 2021 2020 Cash $ 1,780 $ 1,514 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. In 2018 and 2019, the Board of Directors increased the share repurchase authorization under the Program to $200 million and $300 million, respectively. On July 3, 2020, the Board of Directors increased the share repurchase authorization under the Company's existing share repurchase program by an additional $100 million to $400 million, and extended its duration through August 1, 2022. 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. During the fiscal year ended October 2, 2021, the Company repurchased a total of approximately 215.0 thousand shares of common stock at a cost of approximately $10.2 million. The share repurchases were recorded in the periods they were delivered and accounted for as treasury stock in the Company’s Consolidated Balance Sheets. 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 October 2, 2021, our remaining share repurchase authorization under the Program was approximately $132.0 million. Dividends On August 26, 2021, May 28, 2021, March 5, 2021 and December 10, 2020, the Board of Directors declared a quarterly dividend $0.14 per share of common stock. During the fiscal year ended October 2, 2021, the Company declared dividends of $0.56 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 loss reflected on the Consolidated Balance Sheets as of October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Gain from foreign currency translation adjustments $ 682 $ 10 Unrecognized actuarial loss on pension plan, net of tax (3,088) (3,088) Unrealized (loss) / gain on hedging (616) 557 Accumulated other comprehensive loss $ (3,022) $ (2,521) Equity-Based Compensation The Company has a stockholder-approved equity-based compensation plan, the 2021 Omnibus Incentive Plan (the “Plan”) from which employees and directors receive grants. As of October 2, 2021, 3.8 million shares of common stock are available for grant to the Company's employees and directors under the Plan. • Relative TSR Performance Share Units ("Relative TSR PSUs") entitle the employee to receive common shares of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), 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 at the end of the performance period 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. • Revenue Growth Performance Share Units (“Growth PSUs”) entitle the employee to receive common shares of the Company on the award vesting date, typically the third anniversary of the grant date (or as soon as administratively practicable if later), based on organic revenue growth objectives and relative growth performance against named competitors as set by the Management Development and Compensation Committee (“MDCC”) of the Company's Board of Directors. Organic revenue growth is calculated by averaging revenue growth (net of revenues from acquisitions) over a performance period, which is generally three years. Revenues from acquisitions will be included in the calculation after four fiscal quarters after acquisition. Any portion of the grant that does not meet the revenue growth objectives and relative growth performance is forfeited. Vesting percentages range from 0% to 200% of awards granted. • In general, stock options and Time-based Restricted Share Units ("Time-based RSUs") awarded to employees vest ratably over a three-year period on the anniversary of the grant date 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. Equity-based compensation expense recognized in the Consolidated Statements of Operations for fiscal 2021, 2020, and 2019 was based upon awards ultimately expected to vest, with forfeiture accounted for when they occur. The following table reflects total equity-based compensation expense, which includes Relative TSR PSUs, Time-based RSUs, Growth PSUs, and common stock, included in the Consolidated Statements of Operations for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Cost of sales $ 828 $ 744 $ 632 Selling, general and administrative 10,998 11,071 10,503 Research and development 3,676 3,204 3,197 Total equity-based compensation expense $ 15,502 $ 15,019 $ 14,332 The following table reflects equity-based compensation expense, by type of award, for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Relative TSR PSUs $ 3,916 $ 3,266 $ 4,220 Time-based RSUs 10,314 9,519 8,603 Growth PSUs 444 1,384 675 Common stock 828 850 834 Total equity-based compensation expense $ 15,502 $ 15,019 $ 14,332 Equity-Based Compensation: Relative TSR PSUs The following table reflects Relative TSR PSUs activity for fiscal 2021, 2020, and 2019: 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 September 29, 2018 539 $ 4,629 1.1 Granted 166 $ 23.15 Forfeited or expired (27) Vested (117) Relative TSR PSUs outstanding as of September 28, 2019 561 $ 4,136 0.9 Granted 162 $ 28.80 Forfeited or expired (52) Vested (268) Relative TSR PSUs outstanding as of October 3, 2020 403 $ 4,198 1.1 Granted 155 $ 28.21 Forfeited or expired (6) Vested (108) Relative TSR PSUs outstanding as of October 2, 2021 444 $ 4,455 1.1 The following table reflects the assumptions used to calculate compensation expense related to the Company’s Relative TSR PSUs issued during fiscal 2021, 2020, and 2019: Fiscal 2021 2020 2019 Grant price $ 23.88 $ 22.95 $ 20.87 Expected dividend yield 2.01 % 2.09 % 2.30 % Expected stock price volatility 45.15 % 36.29 % 34.20 % Risk-free interest rate 0.21 % 1.49 % 2.92 % Equity-Based Compensation: Time-based RSUs The following table reflects Time-based RSUs activity for fiscal 2021, 2020, and 2019: 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 September 29, 2018 910 $ 9,038 1.4 Granted 521 $ 20.95 Forfeited or expired (42) Vested (442) Time-based RSUs outstanding as of September 28, 2019 947 $ 10,555 1.4 Granted 490 $ 22.93 Forfeited or expired (80) Vested (569) Time-based RSUs outstanding as of October 3, 2020 788 $ 10,480 1.6 Granted 486 $ 24.34 Forfeited or expired (24) Vested (333) Time-based RSUs outstanding as of October 2, 2021 917 $ 11,420 1.4 Equity-Based Compensation: Growth PSUs The following table reflects Growth PSUs activity for fiscal 2021, 2020, and 2019: 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 29, 2018 46 $ 702 2.1 Granted 55 $ 21.07 Forfeited or expired (4) Vested — Special/Growth PSUs outstanding as of September 28, 2019 97 $ 1,128 1.6 Granted 80 $ 23.65 Forfeited or expired (22) Vested (4) Special/Growth PSUs outstanding as of October 3, 2020 151 $ 1,252 1.1 Granted 52 $ 24.01 Forfeited or expired (34) Vested (17) Special/Growth PSUs outstanding as of October 2, 2021 152 $ 1,247 1.0 The following table reflects employee stock option activity for fiscal 2021, 2020, and 2019: Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of September 29, 2018 2 $ 8.64 Exercised (2) $ 8.64 $ 24 Forfeited or expired — $ — Options outstanding as of September 28, 2019 — $ — Exercised — $ — $ — Forfeited or expired — $ — Options outstanding as of October 3, 2020 — $ — Exercised — $ — $ — Forfeited or expired — $ — Options outstanding as of October 2, 2021 — $ — — $ — Options vested and expected to vest as of October 2, 2021 — $ — — $ — Options exercisable as of October 2, 2021 — $ — — In the money exercisable options as of October 2, 2021 — $ — 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. As of October 2, 2021, there were no unvested employee stock options. Equity-Based Compensation: Non-Employee Directors The 2021 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 quarter is that number of common shares closest in value to, without exceeding, $39,500. The following table reflects shares of common stock issued to non-employee directors and the corresponding fair value for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Number of common shares issued 22 37 37 Fair value based upon market price at time of issue $ 828 $ 850 $ 834 Pension Plan The following table reflects the Company's defined benefits pension obligations, mainly in Switzerland and Taiwan, as of October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Switzerland pension obligation $ 3,534 $ 3,572 Taiwan pension obligation 1,443 1,333 |
REVENUE AND CONTRACT LIABILITIE
REVENUE AND CONTRACT LIABILITIES | 12 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND CONTRACT LIABILITIES | REVENUE AND CONTRACT LIABILITIES The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. For the fiscal years ended October 2, 2021, and October 3, 2020, service revenue is not material. Please refer to Note 1: Basis of Presentation- Revenue Recognition , for additional disclosure on the Company's revenue recognition policy. The Company reports revenue based on our reportable segments. The Company believes that reporting revenue on this basis provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 16: Segment Information, for disclosure of revenue by segment. Contract Liabilities Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations, and are reported in the accompanying Consolidated Balance Sheets within accrued expenses and other current liabilities. Contract liabilities increase as a result of receiving new advance payments from customers and decrease as revenue is recognized from product sales under advance payment arrangements upon satisfying the performance obligations. The following table shows the changes in contract liability balances during the fiscal year ended October 2, 2021 and October 3, 2020: Fiscal (in thousands) 2021 2020 Contract liabilities, beginning of period $ 2,958 $ 1,896 Revenue recognized (59,368) (25,207) Additions 72,006 26,269 Contract liabilities, end of period $ 15,596 $ 2,958 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREBasic 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 table reflects a reconciliation of the shares used in the basic and diluted net income per share computation for fiscal 2021, 2020, and 2019: Fiscal (in thousands, except per share) 2021 2020 2019 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 367,161 $ 367,161 $ 52,300 $ 52,300 $ 11,653 $ 11,653 DENOMINATOR: Weighted average shares outstanding - Basic 62,009 62,009 62,828 62,828 65,286 65,286 Dilutive effect of Equity Plans 1,506 531 662 Weighted average shares outstanding - Diluted 63,515 63,359 65,948 EPS: Net income per share - Basic $ 5.92 $ 5.92 $ 0.83 $ 0.83 $ 0.18 $ 0.18 Effect of dilutive shares $ (0.14) $ — $ — Net income per share - Diluted $ 5.78 $ 0.83 $ 0.18 |
OTHER FINANCIAL DATA (Notes)
OTHER FINANCIAL DATA (Notes) | 12 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL DATA | OTHER FINANCIAL DATA The following table reflects other financial data for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Incentive compensation expense $ 39,779 $ 18,524 $ 423 Warranty and retrofit expense 22,068 8,692 13,030 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table reflects U.S. and foreign income (loss) before income taxes for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 United States $ (8,853) $ (14,909) $ (14,125) Foreign 423,403 79,243 48,812 Income before income taxes $ 414,550 $ 64,334 $ 34,687 The following table reflects the current and deferred components of provision for (benefit from) income taxes for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Current: Federal $ 26,563 $ 5,129 $ 6,580 State 261 89 214 Foreign 30,771 6,508 6,384 Deferred: Federal (2,979) (690) 2,959 State — — — Foreign (7,321) 962 6,773 Provision for income taxes $ 47,295 $ 11,998 $ 22,910 The following table reconciles the provision for (benefit from) income taxes with the expected income tax provision computed based on the applicable U.S. federal statutory tax rate for fiscal 2021, 2020, and 2019: Fiscal (dollar amounts in thousands) 2021 2020 2019 Expected income tax provision based on the U.S. federal statutory tax rate $ 86,915 $ 13,510 $ 7,284 Effect of earnings of foreign subsidiaries subject to different tax rates (15,028) (1,634) (4,335) Benefit from tax incentives (45,501) (6,781) (5,084) Benefit from research and development tax credits (2,705) (2,915) (3,041) Benefit from foreign tax credits (20,281) (1,701) (22,744) U.S. one-time transition tax — — 9,369 Remeasurement of deferred taxes — (145) 5,480 Valuation allowance (11,620) 1,224 25,289 Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) 52,414 8,886 8,578 Unrecognized tax benefit (180) 285 156 Non-deductible items 113 1,232 2,248 Other, net 3,168 37 (290) Provision for income taxes $ 47,295 $ 11,998 $ 22,910 Effective tax rate 11.4 % 18.6 % 66.0 % In fiscal 2021, the Company recorded tax expense primarily from domestic and foreign operations, deemed income, and undistributed foreign earnings, partially offset by tax benefits from tax incentives, tax credits and the net release of valuation allowances recorded against certain loss and credit carryforwards. In fiscal 2020, the Company recorded tax expense primarily from domestic and foreign operations, deemed income, undistributed foreign earnings, the net increase of valuation allowances recorded against certain loss and credit carryforwards, and non-deductible expenses, partially offset by tax benefits from tax incentives and net tax credits, inclusive of an out of period adjustment of $3.5 million to correct previously unrecorded income tax expense related to prior years jurisdictional adjustments. The Company determined that the out of period adjustment to the provision for income taxes and income taxes payable was not material to its fiscal 2020 or prior period consolidated financial statements. As of October 2, 2021, a large portion of the Company’s undistributed foreign earnings are not considered to be indefinitely reinvested outside the U.S. and are expected to be available for use in the U.S. without incurring additional U.S. income tax. Further, we operate in a number of foreign jurisdictions, including Singapore, where we have a tax incentive that allows for a reduced tax rate on certain classes of income, provided the Company meets certain employment and investment conditions through the expiration date in fiscal 2025. In fiscal 2021, 2020, and 2019, the tax incentive arrangement helped to reduce the Company’s provision for income taxes by $45.5 million or $0.72 per share, $6.8 million or $0.11 per share and $5.0 million or $0.08 per share, respectively. The following table reflects deferred tax balances based on the tax effects of cumulative temporary differences for fiscal 2021 and 2020: Fiscal (in thousands) 2021 2020 Accruals and reserves $ 11,890 $ 7,631 Tax credit carryforwards (1) 4,230 6,124 Net operating loss carryforwards 28,913 37,921 Gross deferred tax assets $ 45,033 $ 51,676 Valuation allowance (1) $ (34,095) $ (46,561) Deferred tax assets, net of valuation allowance $ 10,938 $ 5,115 Taxes on undistributed foreign earnings (1) $ (28,516) $ (25,676) Fixed and intangible assets 465 (4,297) Deferred tax liabilities $ (28,051) $ (29,973) Net deferred tax liabilities $ (17,113) $ (24,858) Reported as Deferred tax assets $ 15,715 $ 8,147 Deferred tax liabilities (32,828) (33,005) Net deferred tax liabilities $ (17,113) $ (24,858) (1) Certain balances in fiscal 2020 relating to foreign tax credits on undistributed foreign earnings and related valuation allowances have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2020. As of October 2, 2021, the Company has foreign net operating loss carryforwards of $72.8 million, state net operating loss carryforwards of $104.4 million, and U.S. federal and state tax credit carryforwards of $6.8 million that can be used to offset future income tax obligations. These net operating loss and tax credit carryforwards can be utilized prior to their expiration dates in fiscal years 2022 through 2039, except for certain credits and foreign net operating losses that can be carried forward indefinitely. The Company has recorded valuation allowances against certain foreign and state net operating loss carryforwards and state tax credits which are expected to expire unutilized. The following table reconciles the beginning and ending balances of the Company's unrecognized tax benefit, excluding related accrued interest and penalties, for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Unrecognized tax benefit, beginning of year $ 13,064 $ 12,925 $ 13,038 Additions for tax positions, current year 4,003 537 410 Reductions for tax positions, prior year (2,145) (398) (523) Unrecognized tax benefit, end of year $ 14,922 $ 13,064 $ 12,925 The Company recognizes interest and penalties related to potential income tax liabilities as a component of unrecognized tax benefit and in provision for income taxes. The amount of interest and penalties related to unrecognized tax benefit recorded in fiscal 2021 provision for income taxes is not material. As of October 2, 2021, the Company has recognized $1.7 million of accrued interest and penalties related to unrecognized tax benefit within the income tax payable for uncertain tax positions and approximately $15.2 million of unrecognized tax benefit, including related interest and penalties, that if recognized, would impact the Company's effective tax rate. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 02, 2021 | |
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 (the "CODM") in deciding how to allocate resources and assess performance. The Company's Chief Executive Officer is the CODM. The CODM does not review discrete asset information. The Company operates two reportable segments consisting of: (1) Capital Equipment; and (2) Aftermarket Products and Services ("APS"). The following table reflects operating information by segment for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Net revenue: Capital Equipment $ 1,312,576 $ 462,059 $ 386,820 APS 205,088 161,117 153,232 Net revenue 1,517,664 623,176 540,052 Income from operations: Capital Equipment 355,982 22,069 (12,577) APS 56,465 36,440 34,187 Income from operations $ 412,447 $ 58,509 $ 21,610 We have considered: (1) information that is regularly reviewed by our CODM as defined by the authoritative guidance on segment reporting, in evaluating financial performance and (2) other financial data, including information that we include in our earnings releases but which is not included in our financial statements, to disaggregate revenues by end markets served. The principal category we use to disaggregate revenues is by the end markets served in the Capital Equipment segment. The following table reflects net revenue by Capital Equipment end markets served for fiscal 2021, 2020, and 2019 Fiscal (in thousands) 2021 2020 2019 General Semiconductor (1) $ 928,259 $ 290,220 $ 209,885 Automotive & Industrial 129,817 60,169 77,365 LED 187,568 76,574 56,138 Memory 66,932 35,096 43,432 Total Capital Equipment revenue $ 1,312,576 $ 462,059 $ 386,820 (1) The Company noted a growing portion of the general semiconductor and LED end market is increasing in complexity and driving more capital intensity, therefore demanding more advanced packaging solutions. This has reduced the relevance of the advanced packaging end market. In view of this, sales previously defined as advanced packaging will be primarily categorized within the general semiconductor end market. The following tables reflect capital expenditures, depreciation and amortization expense by segment for fiscal 2021, 2020, and 2019. Fiscal (in thousands) 2021 2020 2019 Capital expenditures: Capital Equipment $ 15,257 $ 5,798 $ 5,380 APS 7,298 8,716 6,449 Capital expenditures $ 22,555 $ 14,514 $ 11,829 Fiscal (in thousands) 2021 2020 2019 Depreciation expense: Capital Equipment $ 6,938 $ 6,360 $ 7,584 APS 6,898 6,008 5,308 Depreciation expense $ 13,836 $ 12,368 $ 12,892 Fiscal (in thousands) 2021 2020 2019 Amortization expense: Capital Equipment $ 3,584 $ 4,255 $ 3,977 APS 2,390 3,116 3,435 Amortization expense $ 5,974 $ 7,371 $ 7,412 Geographical information The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Destination sales to unaffiliated customers: China $ 843,470 $ 321,294 $ 252,179 Taiwan 275,251 64,373 63,440 Hong Kong 82,436 43,288 12,096 Malaysia 70,253 40,641 41,568 Korea 58,308 30,848 15,236 United States 54,353 36,186 36,393 Vietnam 36,469 8,699 10,978 Thailand 24,448 9,389 9,941 Philippines 17,651 9,439 12,057 Japan 11,850 9,150 10,341 All other 43,175 49,869 75,823 Total destination sales to unaffiliated customers $ 1,517,664 $ 623,176 $ 540,052 Fiscal (in thousands) 2021 2020 2019 Long-lived assets: Singapore $ 40,470 $ 16,499 $ 25,620 United States (1) 32,684 29,291 24,597 China (1) 25,386 24,899 18,818 Israel (1) 8,597 8,829 6,760 All other (1) 11,187 12,038 5,318 Total long-lived assets $ 118,324 $ 91,556 $ 81,113 (1) Certain balances in fiscal 2020 and 2019 relating to long-lived assets by country have been revised to exclude deferred tax asset balances. The previously included balances are not material and there is no impact to the Consolidated Balance Sheets in fiscal 2020 and 2019. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 12 Months Ended |
Oct. 02, 2021 | |
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 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Reserve for warranty, beginning of period $ 9,576 $ 14,185 $ 14,474 Provision for warranty 18,889 14,004 12,140 Changes in the estimation of warranty reserve — (5,417) — Utilization of reserve (11,504) (13,196) (12,429) Reserve for warranty, end of period $ 16,961 $ 9,576 $ 14,185 For the change in estimation of warranty reserve, see Note 1 for details. O ther Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Balance Sheet as of October 2, 2021: Payments due by fiscal year (in thousands) Total 2022 2023 2024 2025 Thereafter Inventory purchase obligation (1) $ 591,845 $ 591,845 $ — $ — $ — $ — (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. From time to time, the Company is party to or the target of lawsuits, claims, investigations and proceedings, including for personal injury, intellectual property, commercial, contract, and employment matters, which are handled and defended in the ordinary course of business. The Company accrues a contingent loss liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. Concentrations The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2021, 2020, and 2019: Fiscal 2021 2020 2019 ASE Technology Holding 17.4 % * * * Represents less than 10% of total net revenue The following table reflects significant customer concentrations as a percentage of total accounts receivable as of October 2, 2021 and October 3, 2020: As of October 2, 2021 October 3, 2020 Tianshui Huatian Technology Co., Ltd 18.2 % * Haoseng Industrial Co., Ltd (1) 14.3 % * Forehope Electronic Co., Ltd * 20.0 % Regent Manner Limited * 10.3 % * Represents less than 10% of total accounts receivable (1) Distributor of the Company's products |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Oct. 02, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | KULICKE AND SOFFA INDUSTRIES, INC. Schedule II-Valuation and Qualifying Accounts ( in thousands ) Fiscal 2021: Beginning of period Charged to Costs and Expenses Other Additions Other Deductions End of period Allowance for doubtful accounts $ 968 $ (248) $ — $ (33) (1) $ 687 Inventory reserve $ 31,163 $ (2,965) $ — $ (5,156) (2) $ 23,042 Valuation allowance for deferred taxes $ 46,561 $ — $ — $ (12,466) (4) $ 34,095 Fiscal 2020: Allowance for doubtful accounts $ 597 $ 371 $ — $ — (1) $ 968 Inventory reserve $ 29,313 $ 4,170 $ — $ (2,320) (2) $ 31,163 Valuation allowance for deferred taxes $ 58,411 $ 6,887 (3) $ — $ (18,737) (5) $ 46,561 Fiscal 2019: Allowance for doubtful accounts $ 385 $ 212 $ — $ — (1) $ 597 Inventory reserve $ 26,889 $ 2,657 $ — $ (233) (2) $ 29,313 Valuation allowance for deferred taxes $ 37,249 $ — $ 21,162 (3) $ — $ 58,411 (1) Represents write-offs of specific accounts receivable. (2) Sale or scrap of previously reserved inventory. (3) Reflects the net increase in the valuation allowance primarily associated with the Company's U.S. and foreign tax credits, U.S. and foreign net operating losses and other deferred tax assets. (4) Reflects the net decrease in the valuation allowance primarily associated with the Company's utilization of certain foreign net operating losses for which a valuation allowance had previously been recorded, partially offset by an increase for U.S. and foreign tax credits, U.S. and foreign net operating losses and other deferred tax assets. (5) Refer to Note 15: Income Taxes to our consolidated financial statements in Item 8 for disclosure on the reclassification. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Oct. 02, 2021 | |
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. |
Fiscal Year | Fiscal Year |
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, the valuation estimates and assessment of impairment and observable price adjustments, income taxes, 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. Due to the coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of October 2, 2021. While there was no material impact to our consolidated financial statements as of and for the year ended October 2, 2021, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 that could result in material impacts to our consolidated financial statements in future reporting periods. The Company reviews its warranty reserve balances as part of its ongoing policy review. At the start of fiscal 2020, the Company determined there was a need to obtain granular data given uncertainty in sales demand. Accordingly , the Company commenced the collection of granular data over the four fiscal quarters in 2020 to establish a more precise estimate of its warranty reserve. This collection was finalized and the information incorporated in the fourth quarter of fiscal 2020. This resulted in a decrease to the reserve for warranty and an increase in net income by $5.4 million for the fiscal year 2020, as well as an increase to net income per share, basic and diluted, by $0.09 and $0.09, respectively. For further information on warranty reserve, see Notes 14 and 17 below. |
Vulnerability to Certain Concentrations | Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of October 2, 2021 and October 3, 2020 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 material. The Company actively monitors its customers' financial strength to reduce the risk of loss, including as a result of COVID-19. 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 | 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)). The tax effect of currency translation adjustments related to unremitted foreign earnings no longer deemed to be indefinitely reinvested outside the U.S. is reflected in the determination of the Company's net income or other comprehensive income ("OCI"). 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, 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 Financial Instruments | 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 1 measurement, or quoted market prices, as defined by ASC No. 820, Fair Value Measurements and Disclosures |
Equity Investments | Equity Investments The Company invests in equity securities in companies to promote business and strategic objectives. Equity investments are measured and recorded as follows: • Equity method investments are equity securities in investees that provide the Company with the ability to exercise significant influence in which it lacks a controlling financial interest. 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 | 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, including as a result of COVID-19, additional allowances may be required. If global or regional economic conditions deteriorate or political conditions were to change in some of the countries where the Company does business, including as a result of COVID-19, 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. |
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 definite lived intangible assets and property, plant and equipment are 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. |
Accounting for Impairment of Goodwill | Accounting for Impairment of Goodwill ASC No. 350, Intangibles - Goodwill and Other 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 impairment test is unnecessary. However, if a company concludes otherwise, then it is required to perform the goodwill impairment test. The Company's impairment test is performed by comparing the fair value of a reporting unit with its carrying value, and determining if the carrying amount exceeds its fair value. 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, 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 may lead the Company to perform interim goodwill impairment assessments. For further information on goodwill and other intangible assets, see Note 4 below. |
Revenue Recognition | Revenue Recognition In accordance with ASC No. 606, Revenue from Contracts with Customers , the Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. The Company recognizes revenue from sales of our products, including sales to our distributors, at a point in time, generally upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order. Control is considered transferred when title and risk of loss pass, when the customer becomes obligated to pay and, where applicable, when the customer has accepted the products or upon expiration of the acceptance period. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. Our business is subject to contingencies related to customer orders, including: • Right of Return : A large portion of our revenue comes from the sale of equipment used in the semiconductor assembly process. Other product sales relate to consumable products, which are sold in high-volume quantities, and are generally maintained at low stock levels at the customers' facility. Customer returns have historically represented a very small percentage of customer sales on an annual basis. • Warranties : Our equipment is generally shipped with a one-year warranty against manufacturing defects. We establish 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 expenses, including product parts replacement, freight charges and labor costs expected to be incurred to correct product failures during the warranty period. • Conditions of Acceptance: Sales of our consumable products generally do not have customer acceptance terms. In certain cases, sales of our equipment have customer acceptance clauses which may require the equipment to perform in accordance with customer specifications or when installed at the customer's facility. In such cases, if the terms of acceptance are satisfied at our facility prior to shipment, the revenue for the equipment will be recognized upon shipment. If the terms of acceptance are satisfied at our customers' facilities, the revenue for the equipment will not be recognized until acceptance, which is typically obtained after installation and testing, is received from the customer. Service revenue is generally recognized over time as the services are performed. For fiscal 2021 and 2020, the service revenue is not material. The Company measures revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Any variable consideration such as sales incentives are recognized as a reduction of net revenue at the time of revenue recognition. The length of time between invoicing and payment is not significant under our payment terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. 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 expected, on a more likely than not basis, to be realized. While the Company has considered future taxable income and 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 deferred tax assets 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 deferred tax assets in the future, an adjustment to deferred tax assets would decrease income in the period when such determination is made. The Company determines the amount of unrecognized tax benefit with respect to uncertain tax positions taken or expected to be taken on its income tax returns in accordance with ASC No. 740 Topic 10, Income Taxes, General (“ASC 740.10”). 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 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 is 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 |
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 Financial Instruments 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. We adopted this ASU in the first quarter of fiscal 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements. Collaborative Arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808). This ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. This ASU requires retrospective adoption to the date we adopted ASC 606 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. We adopted this ASU in the first quarter of fiscal 2021. The adoption of this ASU did not have a material impact on our consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarify and amend existing guidance. This ASU will be effective for us in the first quarter of 2022. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
Revenue and Contract Liabilities | The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Short term investments, available-for-sale (1) $ 377,000 $ 342,000 Inventories, net: Raw materials and supplies $ 94,493 $ 60,205 Work in process 55,866 39,753 Finished goods 40,006 43,015 190,365 142,973 Inventory reserves (23,042) (31,164) $ 167,323 $ 111,809 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 23,314 22,830 Leasehold improvements 30,054 23,111 Data processing equipment and software 40,945 38,524 Machinery, equipment, furniture and fixtures 87,994 80,953 Construction in progress 9,562 7,111 194,051 174,711 Accumulated depreciation (126,069) (115,564) $ 67,982 $ 59,147 Accrued expenses and other current liabilities: Accrued customer obligations (2) $ 72,478 $ 22,759 Wages and benefits 66,531 37,237 Commissions and professional fees 6,190 2,716 Dividends payable 8,673 7,397 Severance 31 449 Other 7,667 6,204 $ 161,570 $ 76,762 (1) All short-term investments were classified as available-for-sale and were measured at fair value based on Level 1 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 fiscal years ended 2021 and 2020. (2) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Business Combinations [Abstract] | |
Summary of Allocation of Assets Acquired and Liabilities Assumed Based on Fair Values as of Acquisition Date | The following table summarizes the allocation of the assets acquired and liabilities assumed based on the fair values as of the acquisition date: (in thousands) January 19, 2021 Accounts and other receivable $ 7 Prepaid expenses and other current assets 6 Property, plant and equipment, net 539 Goodwill 16,799 Intangible assets 11,200 Accounts payable (77) Accrued expenses and other current liabilities (98) Deferred tax liabilities (2,038) Total purchase price, net of cash acquired $ 26,338 |
Schedule of Pro Forma Results | 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) 2021 2020 Net revenue $ 1,517,664 $ 623,176 Net income 368,546 49,766 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the Company's recorded goodwill by reportable segments as of October 2, 2021 and October 3, 2020: (in thousands) Capital Equipment APS Total Balance at October 3, 2020 30,274 26,421 56,695 Acquired in business combination 16,799 — 16,799 Other (512) (33) (545) Balance at October 2, 2021 46,561 26,388 72,949 |
Net intangible assets | The following table reflects net intangible assets as of October 2, 2021 and October 3, 2020: As of Average estimated (dollar amounts in thousands) October 2, 2021 October 3, 2020 useful lives (in years) Developed technology $ 90,427 $ 91,044 7.0 to 15.0 Accumulated amortization $ (58,494) $ (54,293) Net developed technology $ 31,933 $ 36,751 Customer relationships $ 36,114 $ 36,307 5.0 to 6.0 Accumulated amortization $ (36,114) $ (35,587) Net customer relationships $ — $ 720 In-process research and development $ 8,795 $ — N.A. Accumulated amortization $ — $ — Net in-process research and development $ 8,795 $ — Trade and brand name $ 7,374 $ 7,404 7.0 to 8.0 Accumulated amortization $ (7,275) $ (6,903) Net trade and brand name $ 99 $ 501 Other intangible assets $ 4,700 $ 2,500 1.9 to 6.0 Accumulated amortization $ (2,775) $ (2,500) Net other intangible assets $ 1,925 $ — Net intangible assets $ 42,752 $ 37,972 |
Estimated annual amortization expense related to intangible assets | The following table reflects estimated annual amortization expense related to intangible assets as of October 2, 2021: As of (in thousands) October 2, 2021 Fiscal 2022 $ 6,357 Fiscal 2023 $ 6,258 Fiscal 2024 $ 6,258 Fiscal 2025 $ 6,258 Fiscal 2026 $ 6,258 Fiscal 2027 and thereafter $ 11,363 Total amortization expense $ 42,752 |
CASH, CASH EQUIVALENTS, RESTR_2
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents and short-term investments [Table Text Block] | Cash, cash equivalents and short-term investments consisted of the following as of October 2, 2021: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 269,201 $ — $ — $ 269,201 Cash equivalents: Money market funds (1) 93,598 — (18) 93,580 Time deposits (2) 7 — — 7 Total cash and cash equivalents $ 362,806 $ — $ (18) $ 362,788 Short-term investments (2) : Time deposits $ 377,000 $ — $ — $ 377,000 Total short-term investments $ 377,000 $ — $ — $ 377,000 Total cash, cash equivalents, and short-term investments $ 739,806 $ — $ (18) $ 739,788 (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. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of October 3, 2020: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 42,997 $ — $ — $ 42,997 Cash equivalents: Money market funds (1) 105,133 — (10) 105,123 Time deposits (2) 40,007 — — 40,007 Total cash and cash equivalents $ 188,137 $ — $ (10) $ 188,127 Short-term investments (2) : Time deposits $ 243,000 $ — $ — $ 243,000 Deposits (3) 99,000 — — 99,000 Total short-term investments $ 342,000 $ — $ — $ 342,000 Total cash, cash equivalents, restricted cash and short-term investments $ 530,137 $ — $ (10) $ 530,127 (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. |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Equity Investments [Abstract] | |
Equity Method Investments [Table Text Block] | Equity investments consisted of the following as of October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Non-marketable equity securities $ 6,388 $ 6,321 Equity method investments (1) — 1,214 Total $ 6,388 $ 7,535 (1) On March 5, 2021, the Company executed an agreement to sell its interest in an equity method investment. A gain of $1.0 million was recognized in selling, general and administrative expense in the Consolidated Statements of Operations. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENT (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 and October 3, 2020 is as follows: As of (in thousands) October 2, 2021 October 3, 2020 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Asset Derivatives (2) Derivatives designated as hedging instruments: Foreign exchange forward contracts (3) $ 57,682 $ (616) $ 37,264 $ 557 Total derivatives $ 57,682 $ (616) $ 37,264 $ 557 (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) | The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Operations for the fiscal year ended October 2, 2021 and October 3, 2020 was as follows: (in thousands) Fiscal 2021 2020 Foreign exchange forward contract in cash flow hedging relationships: Net gain recognized in OCI, net of tax (1) $ 24 $ 358 Net gain/ (loss) reclassified from accumulated OCI into earnings, net of tax (2) $ 1,197 $ (796) (1) Net change in the fair value of the effective portion classified in OCI. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended | |
Oct. 02, 2021 | ||
Leases [Abstract] | ||
Lease, Cost | The following table shows the components of lease expense: (in thousands) Fiscal 2021 2020 Operating lease expense (1) $ 7,629 6,942 (1) Operating lease expense includes short-term lease expense, which is immaterial for the fiscal year ended October 2, 2021. The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating and finance lease liabilities, and, as such, are excluded from the amounts below: (in thousands) Fiscal 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7,211 $ 6,296 | [1] |
Assets And Liabilities, Lessee | The following table shows the weighted-average lease terms and discount rates for operating leases: Fiscal 2021 2020 Operating leases: Weighted-average remaining lease term (in years): 9.6 4.5 Weighted-average discount rate: 5.8 % 4.8 % | |
Lessee, Operating Lease, Liability, Maturity | Future lease payments, excluding short-term leases, as of October 2, 2021, are detailed as follows: (in thousands) Operating leases Fiscal 2022 $ 7,249 Fiscal 2023 6,621 Fiscal 2024 6,224 Fiscal 2025 5,903 Fiscal 2026 5,085 Fiscal 2027 and thereafter 26,372 Total minimum lease payments 57,454 Less: Interest 14,467 Present value of lease obligations 42,987 Less: Current portion 4,903 Long-term portion of lease obligations $ 38,084 | |
[1] | Operating lease expense includes short-term lease expense, which is immaterial for the fiscal year ended October 2, 2021. |
SHAREHOLDERS' EQUITY AND EMPL_2
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Company’s matching contributions to the Plan | The following table reflects the Company’s contributions to the Plan during fiscal 2021 and 2020: Fiscal (in thousands) 2021 2020 Cash $ 1,780 $ 1,514 |
Accumulated other comprehensive income reflected on the Consolidated Balance Sheets | The following table reflects accumulated other comprehensive loss reflected on the Consolidated Balance Sheets as of October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Gain from foreign currency translation adjustments $ 682 $ 10 Unrecognized actuarial loss on pension plan, net of tax (3,088) (3,088) Unrealized (loss) / gain on hedging (616) 557 Accumulated other comprehensive loss $ (3,022) $ (2,521) |
Equity-based compensation expense | The following table reflects total equity-based compensation expense, which includes Relative TSR PSUs, Time-based RSUs, Growth PSUs, and common stock, included in the Consolidated Statements of Operations for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Cost of sales $ 828 $ 744 $ 632 Selling, general and administrative 10,998 11,071 10,503 Research and development 3,676 3,204 3,197 Total equity-based compensation expense $ 15,502 $ 15,019 $ 14,332 The following table reflects equity-based compensation expense, by type of award, for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Relative TSR PSUs $ 3,916 $ 3,266 $ 4,220 Time-based RSUs 10,314 9,519 8,603 Growth PSUs 444 1,384 675 Common stock 828 850 834 Total equity-based compensation expense $ 15,502 $ 15,019 $ 14,332 |
Employee market-based restricted stock activity | The following table reflects Relative TSR PSUs activity for fiscal 2021, 2020, and 2019: 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 September 29, 2018 539 $ 4,629 1.1 Granted 166 $ 23.15 Forfeited or expired (27) Vested (117) Relative TSR PSUs outstanding as of September 28, 2019 561 $ 4,136 0.9 Granted 162 $ 28.80 Forfeited or expired (52) Vested (268) Relative TSR PSUs outstanding as of October 3, 2020 403 $ 4,198 1.1 Granted 155 $ 28.21 Forfeited or expired (6) Vested (108) Relative TSR PSUs outstanding as of October 2, 2021 444 $ 4,455 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 2021, 2020, and 2019: Fiscal 2021 2020 2019 Grant price $ 23.88 $ 22.95 $ 20.87 Expected dividend yield 2.01 % 2.09 % 2.30 % Expected stock price volatility 45.15 % 36.29 % 34.20 % Risk-free interest rate 0.21 % 1.49 % 2.92 % |
Employee time-based restricted stock activity | The following table reflects Time-based RSUs activity for fiscal 2021, 2020, and 2019: 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 September 29, 2018 910 $ 9,038 1.4 Granted 521 $ 20.95 Forfeited or expired (42) Vested (442) Time-based RSUs outstanding as of September 28, 2019 947 $ 10,555 1.4 Granted 490 $ 22.93 Forfeited or expired (80) Vested (569) Time-based RSUs outstanding as of October 3, 2020 788 $ 10,480 1.6 Granted 486 $ 24.34 Forfeited or expired (24) Vested (333) Time-based RSUs outstanding as of October 2, 2021 917 $ 11,420 1.4 |
Schedule of Special/Growth Based Restricted Stock Activity | The following table reflects Growth PSUs activity for fiscal 2021, 2020, and 2019: 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 29, 2018 46 $ 702 2.1 Granted 55 $ 21.07 Forfeited or expired (4) Vested — Special/Growth PSUs outstanding as of September 28, 2019 97 $ 1,128 1.6 Granted 80 $ 23.65 Forfeited or expired (22) Vested (4) Special/Growth PSUs outstanding as of October 3, 2020 151 $ 1,252 1.1 Granted 52 $ 24.01 Forfeited or expired (34) Vested (17) Special/Growth PSUs outstanding as of October 2, 2021 152 $ 1,247 1.0 |
Employee stock option activity | The following table reflects employee stock option activity for fiscal 2021, 2020, and 2019: Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of September 29, 2018 2 $ 8.64 Exercised (2) $ 8.64 $ 24 Forfeited or expired — $ — Options outstanding as of September 28, 2019 — $ — Exercised — $ — $ — Forfeited or expired — $ — Options outstanding as of October 3, 2020 — $ — Exercised — $ — $ — Forfeited or expired — $ — Options outstanding as of October 2, 2021 — $ — — $ — Options vested and expected to vest as of October 2, 2021 — $ — — $ — Options exercisable as of October 2, 2021 — $ — — In the money exercisable options as of October 2, 2021 — $ — |
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 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Number of common shares issued 22 37 37 Fair value based upon market price at time of issue $ 828 $ 850 $ 834 |
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 October 2, 2021 and October 3, 2020: As of (in thousands) October 2, 2021 October 3, 2020 Switzerland pension obligation $ 3,534 $ 3,572 Taiwan pension obligation 1,443 1,333 |
REVENUE AND CONTRACT LIABILIT_2
REVENUE AND CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Changes in contract liability balances | The following table shows the changes in contract liability balances during the fiscal year ended October 2, 2021 and October 3, 2020: Fiscal (in thousands) 2021 2020 Contract liabilities, beginning of period $ 2,958 $ 1,896 Revenue recognized (59,368) (25,207) Additions 72,006 26,269 Contract liabilities, end of period $ 15,596 $ 2,958 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of shares used in the basic and diluted net income per share computation | The following table reflects a reconciliation of the shares used in the basic and diluted net income per share computation for fiscal 2021, 2020, and 2019: Fiscal (in thousands, except per share) 2021 2020 2019 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 367,161 $ 367,161 $ 52,300 $ 52,300 $ 11,653 $ 11,653 DENOMINATOR: Weighted average shares outstanding - Basic 62,009 62,009 62,828 62,828 65,286 65,286 Dilutive effect of Equity Plans 1,506 531 662 Weighted average shares outstanding - Diluted 63,515 63,359 65,948 EPS: Net income per share - Basic $ 5.92 $ 5.92 $ 0.83 $ 0.83 $ 0.18 $ 0.18 Effect of dilutive shares $ (0.14) $ — $ — Net income per share - Diluted $ 5.78 $ 0.83 $ 0.18 |
OTHER FINANCIAL DATA (Tables)
OTHER FINANCIAL DATA (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information Disclosure [Table Text Block] | The following table reflects other financial data for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Incentive compensation expense $ 39,779 $ 18,524 $ 423 Warranty and retrofit expense 22,068 8,692 13,030 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
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 U.S. and foreign income (loss) before income taxes for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 United States $ (8,853) $ (14,909) $ (14,125) Foreign 423,403 79,243 48,812 Income before income taxes $ 414,550 $ 64,334 $ 34,687 |
Provision (benefit) for income taxes from continuing operations | The following table reflects the current and deferred components of provision for (benefit from) income taxes for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Current: Federal $ 26,563 $ 5,129 $ 6,580 State 261 89 214 Foreign 30,771 6,508 6,384 Deferred: Federal (2,979) (690) 2,959 State — — — Foreign (7,321) 962 6,773 Provision for income taxes $ 47,295 $ 11,998 $ 22,910 |
Effective income tax rate reconciliation | The following table reconciles the provision for (benefit from) income taxes with the expected income tax provision computed based on the applicable U.S. federal statutory tax rate for fiscal 2021, 2020, and 2019: Fiscal (dollar amounts in thousands) 2021 2020 2019 Expected income tax provision based on the U.S. federal statutory tax rate $ 86,915 $ 13,510 $ 7,284 Effect of earnings of foreign subsidiaries subject to different tax rates (15,028) (1,634) (4,335) Benefit from tax incentives (45,501) (6,781) (5,084) Benefit from research and development tax credits (2,705) (2,915) (3,041) Benefit from foreign tax credits (20,281) (1,701) (22,744) U.S. one-time transition tax — — 9,369 Remeasurement of deferred taxes — (145) 5,480 Valuation allowance (11,620) 1,224 25,289 Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) 52,414 8,886 8,578 Unrecognized tax benefit (180) 285 156 Non-deductible items 113 1,232 2,248 Other, net 3,168 37 (290) Provision for income taxes $ 47,295 $ 11,998 $ 22,910 Effective tax rate 11.4 % 18.6 % 66.0 % |
Net deferred tax balance | The following table reflects deferred tax balances based on the tax effects of cumulative temporary differences for fiscal 2021 and 2020: Fiscal (in thousands) 2021 2020 Accruals and reserves $ 11,890 $ 7,631 Tax credit carryforwards (1) 4,230 6,124 Net operating loss carryforwards 28,913 37,921 Gross deferred tax assets $ 45,033 $ 51,676 Valuation allowance (1) $ (34,095) $ (46,561) Deferred tax assets, net of valuation allowance $ 10,938 $ 5,115 Taxes on undistributed foreign earnings (1) $ (28,516) $ (25,676) Fixed and intangible assets 465 (4,297) Deferred tax liabilities $ (28,051) $ (29,973) Net deferred tax liabilities $ (17,113) $ (24,858) Reported as Deferred tax assets $ 15,715 $ 8,147 Deferred tax liabilities (32,828) (33,005) Net deferred tax liabilities $ (17,113) $ (24,858) |
Unrecognized tax benefits | The following table reconciles the beginning and ending balances of the Company's unrecognized tax benefit, excluding related accrued interest and penalties, for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Unrecognized tax benefit, beginning of year $ 13,064 $ 12,925 $ 13,038 Additions for tax positions, current year 4,003 537 410 Reductions for tax positions, prior year (2,145) (398) (523) Unrecognized tax benefit, end of year $ 14,922 $ 13,064 $ 12,925 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Operating information by segment | The following table reflects operating information by segment for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Net revenue: Capital Equipment $ 1,312,576 $ 462,059 $ 386,820 APS 205,088 161,117 153,232 Net revenue 1,517,664 623,176 540,052 Income from operations: Capital Equipment 355,982 22,069 (12,577) APS 56,465 36,440 34,187 Income from operations $ 412,447 $ 58,509 $ 21,610 |
Revenue from External Customers by Products and Services | The following table reflects net revenue by Capital Equipment end markets served for fiscal 2021, 2020, and 2019 Fiscal (in thousands) 2021 2020 2019 General Semiconductor (1) $ 928,259 $ 290,220 $ 209,885 Automotive & Industrial 129,817 60,169 77,365 LED 187,568 76,574 56,138 Memory 66,932 35,096 43,432 Total Capital Equipment revenue $ 1,312,576 $ 462,059 $ 386,820 |
Capital expenditures and depreciation expense | The following tables reflect capital expenditures, depreciation and amortization expense by segment for fiscal 2021, 2020, and 2019. Fiscal (in thousands) 2021 2020 2019 Capital expenditures: Capital Equipment $ 15,257 $ 5,798 $ 5,380 APS 7,298 8,716 6,449 Capital expenditures $ 22,555 $ 14,514 $ 11,829 Fiscal (in thousands) 2021 2020 2019 Depreciation expense: Capital Equipment $ 6,938 $ 6,360 $ 7,584 APS 6,898 6,008 5,308 Depreciation expense $ 13,836 $ 12,368 $ 12,892 Fiscal (in thousands) 2021 2020 2019 Amortization expense: Capital Equipment $ 3,584 $ 4,255 $ 3,977 APS 2,390 3,116 3,435 Amortization expense $ 5,974 $ 7,371 $ 7,412 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Destination sales to unaffiliated customers: China $ 843,470 $ 321,294 $ 252,179 Taiwan 275,251 64,373 63,440 Hong Kong 82,436 43,288 12,096 Malaysia 70,253 40,641 41,568 Korea 58,308 30,848 15,236 United States 54,353 36,186 36,393 Vietnam 36,469 8,699 10,978 Thailand 24,448 9,389 9,941 Philippines 17,651 9,439 12,057 Japan 11,850 9,150 10,341 All other 43,175 49,869 75,823 Total destination sales to unaffiliated customers $ 1,517,664 $ 623,176 $ 540,052 Fiscal (in thousands) 2021 2020 2019 Long-lived assets: Singapore $ 40,470 $ 16,499 $ 25,620 United States (1) 32,684 29,291 24,597 China (1) 25,386 24,899 18,818 Israel (1) 8,597 8,829 6,760 All other (1) 11,187 12,038 5,318 Total long-lived assets $ 118,324 $ 91,556 $ 81,113 (1) Certain balances in fiscal 2020 and 2019 relating to long-lived assets by country have been revised to exclude deferred tax asset balances. The previously included balances are not material and there is no impact to the Consolidated Balance Sheets in fiscal 2020 and 2019. |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reserve for product warranty activity | The following table reflects the reserve for product warranty activity for fiscal 2021, 2020, and 2019: Fiscal (in thousands) 2021 2020 2019 Reserve for warranty, beginning of period $ 9,576 $ 14,185 $ 14,474 Provision for warranty 18,889 14,004 12,140 Changes in the estimation of warranty reserve — (5,417) — Utilization of reserve (11,504) (13,196) (12,429) Reserve for warranty, end of period $ 16,961 $ 9,576 $ 14,185 |
Obligations not reflected on the Consolidated Balance Sheet | The following table reflects obligations not reflected on the Consolidated Balance Sheet as of October 2, 2021: Payments due by fiscal year (in thousands) Total 2022 2023 2024 2025 Thereafter Inventory purchase obligation (1) $ 591,845 $ 591,845 $ — $ — $ — $ — |
Significant customer concentrations as a percentage of net revenue | The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2021, 2020, and 2019: Fiscal 2021 2020 2019 ASE Technology Holding 17.4 % * * * Represents less than 10% of total net revenue |
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 October 2, 2021 and October 3, 2020: As of October 2, 2021 October 3, 2020 Tianshui Huatian Technology Co., Ltd 18.2 % * Haoseng Industrial Co., Ltd (1) 14.3 % * Forehope Electronic Co., Ltd * 20.0 % Regent Manner Limited * 10.3 % * Represents less than 10% of total accounts receivable (1) Distributor of the Company's products |
BASIS OF PRESENTATION (Use of E
BASIS OF PRESENTATION (Use of Estimates) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Change in warranty reserve methodology | $ 0 | $ 5,417 | $ 0 |
Increase (decrease) in earnings per share, basic (in dollars per share) | $ 0.09 | ||
Increase (decrease) in earnings per share, diluted (in dollars per share) | $ 0.09 |
BASIS OF PRESENTATION (Inventor
BASIS OF PRESENTATION (Inventories) (Narrative) (Details) | 12 Months Ended |
Oct. 02, 2021 | |
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 |
Oct. 02, 2021 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Toolings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
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 | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
BALANCE SHEET COMPONENTS (Compo
BALANCE SHEET COMPONENTS (Components of significant balance sheet accounts) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Short-term investments | [1] | $ 377,000 | $ 342,000 |
Inventories, net: | |||
Raw materials and supplies | 94,493 | 60,205 | |
Work in process | 55,866 | 39,753 | |
Finished goods | 40,006 | 43,015 | |
Inventory, gross | 190,365 | 142,973 | |
Inventory reserves | (23,042) | (31,164) | |
Inventories, net | 167,323 | 111,809 | |
Property, plant and equipment, net: | |||
Land | 2,182 | 2,182 | |
Buildings and building improvements | 23,314 | 22,830 | |
Leasehold improvements | 30,054 | 23,111 | |
Data processing equipment and software | 40,945 | 38,524 | |
Machinery, equipment, furniture and fixtures | 87,994 | 80,953 | |
Construction in Progress, Gross | 9,562 | 7,111 | |
Property, plant and equipment, gross | 194,051 | 174,711 | |
Accumulated depreciation | (126,069) | (115,564) | |
Property, plant and equipment, net | 67,982 | 59,147 | |
Accrued expenses and other current liabilities: | |||
Accrued customer obligations (2) | [2] | 72,478 | 22,759 |
Wages and benefits | 66,531 | 37,237 | |
Commissions and professional fees | 6,190 | 2,716 | |
Dividends payable | 8,673 | 7,397 | |
Severance | 31 | 449 | |
Other | 7,667 | 6,204 | |
Accrued expenses and other current liabilities | $ 161,570 | $ 76,762 | |
[1] | All short-term investments were classified as available-for-sale and were measured at fair value based on Level 1 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 fiscal years ended 2021 and 2020. | ||
[2] | Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BUSINESS COMBINATION (Narrative
BUSINESS COMBINATION (Narrative) (Details) - USD ($) | Jan. 19, 2021 | Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 |
Business Acquisition [Line Items] | ||||
Net loss contributed | $ (367,161,000) | $ (52,300,000) | $ (11,653,000) | |
Uniqarta | ||||
Business Acquisition [Line Items] | ||||
Net loss contributed | 200,000 | |||
Uniqarta | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price | $ 26,500,000 | |||
Amount held in escrow | 3,500,000 | |||
Goodwill deductible for income tax purposes | 0 | |||
Expenses incurred related to the acquisition | $ 1,700,000 | |||
Uniqarta | Other Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 2,200,000 | |||
Estimated useful life | 6 years | |||
Uniqarta | IPR&D | ||||
Business Acquisition [Line Items] | ||||
Indefinite-lived intangible assets acquired | $ 9,000,000 | |||
Uniqarta | Maximum | ||||
Business Acquisition [Line Items] | ||||
Amount held in escrow, period from acquisition date | 18 months |
BUSINESS COMBINATION (Assets Ac
BUSINESS COMBINATION (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 19, 2021 | Oct. 03, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 72,949 | $ 56,695 | |
Uniqarta | |||
Business Acquisition [Line Items] | |||
Accounts and other receivable | $ 7 | ||
Prepaid expenses and other current assets | 6 | ||
Property, plant and equipment, net | 539 | ||
Goodwill | 16,799 | ||
Intangible assets | 11,200 | ||
Accounts payable | (77) | ||
Accrued expenses and other current liabilities | (98) | ||
Deferred tax liabilities | (2,038) | ||
Total purchase price, net of cash acquired | $ 26,338 |
BUSINESS COMBINATION (Pro Forma
BUSINESS COMBINATION (Pro Forma Results) (Details) - Uniqarta - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Business Acquisition [Line Items] | ||
Revenue | $ 1,517,664 | $ 623,176 |
Net income | $ 368,546 | $ 49,766 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Recorded Goodwill) (Details) $ in Thousands | 12 Months Ended |
Oct. 02, 2021USD ($) | |
Goodwill [Line Items] | |
Goodwill beginning balance | $ 56,695 |
Acquired in business combination | 16,799 |
Other | (545) |
Goodwill ending balance | 72,949 |
Capital Equipment | |
Goodwill [Line Items] | |
Goodwill beginning balance | 30,274 |
Acquired in business combination | 16,799 |
Other | (512) |
Goodwill ending balance | 46,561 |
APS | |
Goodwill [Line Items] | |
Goodwill beginning balance | 26,421 |
Acquired in business combination | 0 |
Other | (33) |
Goodwill ending balance | $ 26,388 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Net intangible assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 42,752 | $ 37,972 |
In Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | 8,795 | 0 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 90,427 | 91,044 |
Accumulated amortization | (58,494) | (54,293) |
Net intangible assets | 31,933 | 36,751 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 36,114 | 36,307 |
Accumulated amortization | (36,114) | (35,587) |
Net intangible assets | 0 | 720 |
Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 7,374 | 7,404 |
Accumulated amortization | (7,275) | (6,903) |
Net intangible assets | 99 | 501 |
Other intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 4,700 | 2,500 |
Accumulated amortization | (2,775) | (2,500) |
Net intangible assets | $ 1,925 | $ 0 |
Minimum | Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Minimum | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | |
Minimum | Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Minimum | Other intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 1 year 10 months 24 days | |
Maximum | Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 15 years | |
Maximum | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 6 years | |
Maximum | Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years | |
Maximum | Other intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 6 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Estimated annual amortization expense) (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2022 | $ 6,357 |
Fiscal 2023 | 6,258 |
Fiscal 2024 | 6,258 |
Fiscal 2025 | 6,258 |
Fiscal 2026 | 6,258 |
Fiscal 2027 and thereafter | 11,363 |
Total amortization expense | $ 42,752 |
CASH, CASH EQUIVALENTS, RESTR_3
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 | ||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents, Amortized Cost | $ 362,788 | $ 188,127 | ||
Cash | 269,201 | 42,997 | ||
Total Cash and Cash Equivalents, Amortized Cost | 362,806 | 188,137 | ||
Cash and Cash Equivalents, Gross Unrealized Gain | 0 | 0 | ||
Cash and Cash Equivalents, Gross Unrealized Loss | (18) | (10) | ||
Cash and Cash Equivalents, Estimated Fair Value | 362,788 | 188,127 | ||
Short-term investments | [1] | 377,000 | 342,000 | |
Short-term Investments, Gross Unrealized Gain | 0 | 0 | ||
Short-term Investments, Gross Unrealized Loss | 0 | 0 | ||
Short-term Investments, Estimated Fair Value | 377,000 | 342,000 | ||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments | 739,806 | 530,137 | ||
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 | (18) | (10) | ||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments, Estimated Fair Value | 739,788 | 530,127 | ||
Demand Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Short-term investments | 99,000 | |||
Short-term Investments, Gross Unrealized Gain | 0 | |||
Short-term Investments, Gross Unrealized Loss | 0 | |||
Short-term Investments, Estimated Fair Value | [2],[3] | 99,000 | ||
Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents, Amortized Cost | 269,201 | 42,997 | ||
Cash equivalents, Money market funds [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents, Amortized Cost | 93,598 | [4] | 105,133 | |
Cash Equivalents, Gross Unrealized Gain | 0 | 0 | ||
Cash Equivalents, Gross Unrealized Loss | (18) | [4] | (10) | |
Cash Equivalents, Estimated Fair Value | [4] | 93,580 | 105,123 | |
Cash equivalents, Time deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents, Amortized Cost | 7 | [2] | 40,007 | |
Cash Equivalents, Gross Unrealized Gain | 0 | 0 | ||
Cash Equivalents, Gross Unrealized Loss | 0 | 0 | ||
Cash Equivalents, Estimated Fair Value | [2] | 7 | 40,007 | |
Short-term investments | 377,000 | [2] | 243,000 | |
Short-term Investments, Gross Unrealized Gain | 0 | 0 | ||
Short-term Investments, Gross Unrealized Loss | 0 | 0 | ||
Short-term Investments, Estimated Fair Value | [2] | $ 377,000 | $ 243,000 | |
[1] | All short-term investments were classified as available-for-sale and were measured at fair value based on Level 1 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 fiscal years ended 2021 and 2020. | |||
[2] | Fair value approximates cost basis. | |||
[3] | Represents deposits that require a notice period of three months for withdrawal. | |||
[4] | 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. |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 05, 2021 | Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Equity Investments [Abstract] | |||||
Non-marketable equity securities | $ 6,388 | $ 6,321 | |||
Equity method investments(1) | 0 | [1] | 1,214 | ||
Total | 6,388 | 7,535 | |||
Gain on disposal of equity-method investments | $ 1,000 | $ 1,046 | $ 0 | $ 0 | |
[1] | On March 5, 2021, the Company executed an agreement to sell its interest in an equity method investment. A gain of $1.0 million was recognized in selling, general and administrative expense in the Consolidated Statements of Operations. |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENT - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | $ 57,682 | $ 37,264 | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||
Accrued expenses and other current liabilities | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value Liability Derivatives | $ (616) | ||
Prepaid Expenses and Other Current Assets | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 557 | ||
Foreign Exchange Forward | Designated as Hedging Instrument | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Term of Contract | 12 months | ||
Derivative, Notional Amount | [1] | $ 57,682 | 37,264 |
Foreign Exchange Forward | Designated as Hedging Instrument | Accrued expenses and other current liabilities | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value Liability Derivatives | [1],[2] | $ (616) | |
Foreign Exchange Forward | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [1],[3] | $ 557 | |
[1] | Hedged amounts expected to be recognized into earnings within the next twelve months. | ||
[2] | 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. | ||
[3] | 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. |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENT - Effect of Derivative Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (1,173) | $ 1,154 | $ 474 | |
Other Comprehensive Income (Loss) [Member] | Foreign Exchange Forward | Designated as Hedging Instrument | Cash Flow Hedging [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | [1] | 24 | 358 | |
Selling, General and Administrative Expenses [Member] | Foreign Exchange Forward | Designated as Hedging Instrument | 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 | [2] | $ 1,197 | $ (796) | |
[1] | Net change in the fair value of the effective portion classified in OCI. | |||
[2] | Effective portion classified as selling, general and administrative expense. |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 12 Months Ended |
Oct. 02, 2021renewal_option | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Number Of Renewal Options | 3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 20 years |
LEASES (Components of Lease Exp
LEASES (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | ||
Leases [Abstract] | |||
Operating Lease, Expense | [1] | $ 7,629 | $ 6,942 |
[1] | Operating lease expense includes short-term lease expense, which is immaterial for the fiscal year ended October 2, 2021. |
LEASES (Cash Paid for Amounts I
LEASES (Cash Paid for Amounts Included in the Measurement of Lease Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 7,211 | $ 6,296 |
LEASES (Weighted-Average Lease
LEASES (Weighted-Average Lease Terms and Discount Rate for Operating Leases) (Details) | Oct. 02, 2021 | Oct. 03, 2020 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 9 years 7 months 6 days | 4 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 5.80% | 4.80% |
LEASES (Future Lease Payments,
LEASES (Future Lease Payments, Excluding Short-term Leases) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Leases [Abstract] | ||
Fiscal 2022 | $ 7,249 | |
Fiscal 2023 | 6,621 | |
Fiscal 2024 | 6,224 | |
Fiscal 2025 | 5,903 | |
Fiscal 2026 | 5,085 | |
Fiscal 2027 and thereafter | 26,372 | |
Total minimum lease payments | 57,454 | |
Less: Interest | 14,467 | |
Present value of lease obligations | 42,987 | |
Less: Current portion | 4,903 | $ 5,903 |
Long-term portion of lease obligations | $ 38,084 | $ 18,325 |
DEBT AND OTHER OBLIGATIONS (Nar
DEBT AND OTHER OBLIGATIONS (Narrative) (Details) - USD ($) $ in Millions | Feb. 15, 2019 | Oct. 02, 2021 | Oct. 03, 2020 | Nov. 22, 2013 |
Citibank [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 | |||
Long-term Line of Credit | $ 3 | $ 3.3 | ||
MUFG Bank, Ltd., Singapore Branch [Member] | Facility Agreements | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150 | |||
MUFG Bank, Ltd., Singapore Branch [Member] | Overdraft Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term Line of Credit | $ 0 | |||
London Interbank Offered Rate (LIBOR) [Member] | MUFG Bank, Ltd., Singapore Branch [Member] | Facility Agreements | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
SHAREHOLDERS' EQUITY AND EMPL_3
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Matching contributions to the Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Cash | $ 1,780 | $ 1,514 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 4.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% |
SHAREHOLDERS' EQUITY AND EMPL_4
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Accumulated other comprehensive income) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Share-based Payment Arrangement [Abstract] | ||
Gain from foreign currency translation adjustments | $ 682 | $ 10 |
Unrecognized actuarial loss on pension plan, net of tax | (3,088) | (3,088) |
Unrealized (loss) / gain on hedging | (616) | 557 |
Accumulated other comprehensive loss | $ (3,022) | $ (2,521) |
SHAREHOLDERS' EQUITY AND EMPL_5
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Total equity-based compensation expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | $ 15,502 | $ 15,019 | $ 14,332 |
Relative TSR PSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 3,916 | 3,266 | 4,220 |
Time-based RSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 10,314 | 9,519 | 8,603 |
Growth PSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 444 | 1,384 | 675 |
Common Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 828 | 850 | 834 |
Cost of sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 828 | 744 | 632 |
Selling, general and administrative (1) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 10,998 | 11,071 | 10,503 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | $ 3,676 | $ 3,204 | $ 3,197 |
SHAREHOLDERS' EQUITY AND EMPL_6
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee market-based restricted stock activity) (Details) - Relative TSR PSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
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) | 403 | 561 | 539 | |
Number of shares, Granted (in shares) | 155 | 162 | 166 | |
Number of shares, Forfeited or expired (in shares) | (6) | (52) | (27) | |
Number of shares, Vested (in shares) | (108) | (268) | (117) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 444 | 403 | 561 | 539 |
Unrecognized compensation expense | $ 4,455 | $ 4,198 | $ 4,136 | $ 4,629 |
Average remaining service period (in years) | 1 year 1 month 6 days | 1 year 1 month 6 days | 10 months 24 days | 1 year 1 month 6 days |
Weighted average grant date fair value per share | $ 28.21 | $ 28.80 | $ 23.15 |
SHAREHOLDERS' EQUITY AND EMPL_7
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee time-based restricted stock activity) (Details) - Time-based RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
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) | 788 | 947 | 910 | |
Number of shares, Granted (in shares) | 486 | 490 | 521 | |
Number of shares, Forfeited or expired (in shares) | (24) | (80) | (42) | |
Number of shares, Vested (in shares) | (333) | (569) | (442) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 917 | 788 | 947 | 910 |
Unrecognized compensation expense | $ 11,420 | $ 10,480 | $ 10,555 | $ 9,038 |
Average remaining service period (in years) | 1 year 4 months 24 days | 1 year 7 months 6 days | 1 year 4 months 24 days | 1 year 4 months 24 days |
Weighted average grant date fair value per share | $ 24.34 | $ 22.93 | $ 20.95 |
SHAREHOLDERS' EQUITY AND EMPL_8
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee performance-based and special growth restricted stock activity) (Details) - Special/Growth PSU's - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | Sep. 29, 2018 | |
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) | 151 | 97 | 46 | |
Number of shares, Granted (in shares) | 52 | 80 | 55 | |
Number of shares, Forfeited or expired (in shares) | (34) | (22) | (4) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (17) | (4) | 0 | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 152 | 151 | 97 | 46 |
Unrecognized compensation expense | $ 1,247 | $ 1,252 | $ 1,128 | $ 702 |
Average remaining service period (in years) | 1 year | 1 year 1 month 6 days | 1 year 7 months 6 days | 2 years 1 month 6 days |
Weighted average grant date fair value per share | $ 24.01 | $ 23.65 | $ 21.07 |
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 | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares, Options outstanding, beginning balance (in shares) | 0 | 0 | 2 |
Number of shares, Exercised (in shares) | 0 | 0 | (2) |
Number of shares, Forfeited or expired (in shares) | 0 | 0 | 0 |
Number of shares, Options outstanding, ending balance (in shares) | 0 | 0 | 0 |
Number of shares, Options vested and expected to vest (in shares) | 0 | ||
Number of shares, Options exercisable (in shares) | 0 | ||
Number of shares, In the money exercisable options (in shares) | 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) | $ 0 | $ 0 | $ 8.64 |
Weighted average exercise price, Exercised (in dollars per share) | 0 | 0 | 8.64 |
Weighted average exercise price, Forfeited or expired (in dollars per share) | 0 | 0 | 0 |
Weighted average exercise price, Options outstanding, ending balance (in dollars per share) | 0 | $ 0 | $ 0 |
Weighted average exercise price, Options vested and expected to vest (in dollars per share) | 0 | ||
Weighted average exercise price, Options exercisable (in dollars per share) | $ 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 | ||
Aggregate intrinsic value, Exercised | $ 0 | $ 0 | $ 24 |
Aggregate intrinsic value, Options outstanding | 0 | ||
Aggregate intrinsic value, Options vested and expected to vest | 0 | ||
Aggregate intrinsic value, In the money exercisable options | $ 0 | ||
Average remaining contractual life, Options exercisable (in years) | 0 years |
SHAREHOLDERS' EQUITY AND EMP_10
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Common stock issued to non-employee directors) (Details) - Non Employee Director - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of common shares issued | 22 | 37 | 37 |
Fair value based upon market price at time of issue | $ 828 | $ 850 | $ 834 |
SHAREHOLDERS' EQUITY AND EMP_11
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Defined benefits pension obligations and pension expenses) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Switzerland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 3,534 | $ 3,572 |
Taiwan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 1,443 | $ 1,333 |
SHAREHOLDERS' EQUITY AND EMP_12
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | Aug. 26, 2021 | May 28, 2021 | Mar. 05, 2021 | Dec. 10, 2020 | Oct. 02, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends declared (in usd per share) | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.56 |
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 TSR PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vesting Period | 3 years | ||||
Relative Total Shareholder Return Average Stock Price Calculation Period | 90 days | ||||
Relative Total Shareholder Return Average Stock Price Calculation Period | 90 days | ||||
Total Shareholder Return Award Performance Measurement Period | 3 years | ||||
Revenue Growth Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vesting Period | 3 years | ||||
Total Shareholder Return Award Performance Measurement Period | 3 years | ||||
Stock Options and Time-based Restricted Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vesting Period | 3 years | ||||
Total Shareholder Return Award Performance Measurement Period | 3 years | ||||
Minimum | Relative TSR PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 0.00% | ||||
Minimum | Revenue Growth Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 0.00% | ||||
Maximum | Relative TSR PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 200.00% | ||||
Maximum | Revenue Growth Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 200.00% | ||||
Omnibus Incentive Plan 2021 | |||||
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 | 3.8 | ||||
Non Employee Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant of common shares, upon initial election to board, value | $ 120,000 | ||||
Grant of common shares, upon initial election to board, quarterly, value | $ 39,500 |
SHAREHOLDERS' EQUITY AND EMP_13
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Assumptions Used to Calculate Compensation Expense) (Details) - Relative TSR PSUs - $ / shares | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
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 | $ 23.88 | $ 22.95 | $ 20.87 |
Expected dividend yield | 2.01% | 2.09% | 2.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 45.15% | 36.29% | 34.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.21% | 1.49% | 2.92% |
SHAREHOLDERS' EQUITY AND EMP_14
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS Share Repurchase Program (Details) - USD ($) | Jul. 03, 2020 | Oct. 02, 2021 | Jan. 31, 2019 | Jul. 10, 2018 | Aug. 15, 2017 |
Share Repurchases [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 400,000,000 | $ 300,000,000 | $ 200,000,000 | ||
Increase (Decrease) In Stock Repurchase Program, Authorized Amount | $ 100,000,000 | ||||
Repurchase of common stock (in shares) | (215,000) | ||||
Stock Repurchased During Period, Value | $ 10,200,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 132,000,000 | ||||
August 2017 Share Repurchase Program [Member] | |||||
Share Repurchases [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 100,000,000 |
REVENUE AND CONTRACT LIABILIT_3
REVENUE AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities, beginning of period | $ 2,958 | $ 1,896 |
Revenue recognized | (59,368) | (25,207) |
Additions | 72,006 | 26,269 |
Contract liabilities, end of period | $ 15,596 | $ 2,958 |
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 | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
NUMERATOR: | |||
Net income | $ 367,161 | $ 52,300 | $ 11,653 |
DENOMINATOR: | |||
Weighted average shares outstanding - Basic (in shares) | 62,009 | 62,828 | 65,286 |
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | $ 1,506 | $ 531 | $ 662 |
Weighted average shares outstanding - Diluted (1) | 63,515 | 63,359 | 65,948 |
EPS: | |||
Net income per share - Basic (in dollars per share) | $ 5.92 | $ 0.83 | $ 0.18 |
Effect of dilutive shares (in dollars per share) | (0.14) | 0 | 0 |
Net income per share - Diluted (in dollars per share) | $ 5.78 | $ 0.83 | $ 0.18 |
OTHER FINANCIAL DATA Other Fina
OTHER FINANCIAL DATA Other Financial Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Incentive Compensation Expense | $ 39,779 | $ 18,524 | $ 423 |
Warranty and Retrofit Expense | $ 22,068 | $ 8,692 | $ 13,030 |
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 | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (8,853) | $ (14,909) | $ (14,125) |
Foreign | 423,403 | 79,243 | 48,812 |
Income before income taxes | 414,550 | 64,334 | 34,687 |
Income tax expenses / (benefit) | $ 47,295 | $ 11,998 | $ 22,910 |
Effective tax rate | 11.40% | 18.60% | 66.00% |
INCOME TAXES (Provision (benefi
INCOME TAXES (Provision (benefit) for income taxes from continuing operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Current: | |||
Federal | $ 26,563 | $ 5,129 | $ 6,580 |
State | 261 | 89 | 214 |
Foreign | 30,771 | 6,508 | 6,384 |
Deferred: | |||
Federal | (2,979) | (690) | 2,959 |
State | 0 | 0 | 0 |
Foreign | (7,321) | 962 | 6,773 |
Provision for income taxes | $ 47,295 | $ 11,998 | $ 22,910 |
INCOME TAXES (Effective income
INCOME TAXES (Effective income tax rate reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax provision based on the U.S. federal statutory tax rate | $ 86,915 | $ 13,510 | $ 7,284 |
Effect of earnings of foreign subsidiaries subject to different tax rates | (15,028) | (1,634) | (4,335) |
Benefit from tax incentives | (45,501) | (6,781) | (5,084) |
Benefit from research and development tax credits | (2,705) | (2,915) | (3,041) |
Benefit from foreign tax credits | (20,281) | (1,701) | (22,744) |
U.S. one-time transition tax | 0 | 0 | 9,369 |
Remeasurement of deferred taxes | 0 | (145) | 5,480 |
Valuation allowance | (11,620) | 1,224 | 25,289 |
Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) | 52,414 | 8,886 | 8,578 |
Unrecognized tax benefit | (180) | 285 | 156 |
Non-deductible items | 113 | 1,232 | 2,248 |
Other, net | 3,168 | 37 | (290) |
Provision for income taxes | $ 47,295 | $ 11,998 | $ 22,910 |
Effective Income Tax Rate Reconciliation, Percent | 11.40% | 18.60% | 66.00% |
INCOME TAXES (Net deferred tax
INCOME TAXES (Net deferred tax balance) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | |||
Accruals and reserves | $ 11,890 | $ 7,631 | |
Tax credit carryforwards (1) | 4,230 | 6,124 | [1] |
Net operating loss carryforwards | 28,913 | 37,921 | |
Deferred Tax Assets, Gross | 45,033 | 51,676 | |
Valuation allowance (1) | (34,095) | (46,561) | [1] |
Deferred tax assets, net of valuation allowance | 10,938 | 5,115 | |
Taxes on undistributed foreign earnings (1) | (28,516) | (25,676) | |
Fixed and intangible assets | 465 | 4,297 | |
Deferred tax liabilities | (28,051) | (29,973) | |
Net deferred tax liabilities | (17,113) | (24,858) | |
Deferred tax assets | 15,715 | 8,147 | |
Deferred tax liabilities | $ (32,828) | $ (33,005) | |
[1] | Certain balances in fiscal 2020 relating to foreign tax credits on undistributed foreign earnings and related valuation allowances have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2020. |
INCOME TAXES (Unrecognized tax
INCOME TAXES (Unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning of year | $ 13,064 | $ 12,925 | $ 13,038 |
Additions for tax positions, current year | 4,003 | 537 | 410 |
Reductions for tax positions, prior year | (2,145) | (398) | (523) |
Unrecognized tax benefit, end of year | $ 14,922 | $ 13,064 | $ 12,925 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Cumulative tax effects of jurisdictional adjustments | $ 3.5 | ||
Tax incentive arrangement, benefit to income tax provision | $ 45.5 | $ 6.8 | $ 5 |
Tax incentive arrangement, benefit to income tax provision, earnings per share impact (in dollars per share) | $ 0.72 | $ 0.11 | $ 0.08 |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 72.8 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 104.4 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 6.8 | ||
Unrecognized tax benefits, accrued interest and penalties | 1.7 | ||
Unrecognized tax benefit that if recognized would impact effective tax rate | $ 15.2 | ||
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforward, Foreign, Statute Of Limitions | 4 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforward, Foreign, Statute Of Limitions | 6 years |
SEGMENT INFORMATION (Operating
SEGMENT INFORMATION (Operating information by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Net revenue: | |||
Net revenue | $ 1,517,664 | $ 623,176 | $ 540,052 |
Income from operations: | |||
Income from operations | 412,447 | 58,509 | 21,610 |
Capital Equipment | |||
Net revenue: | |||
Net revenue | 1,312,576 | 462,059 | 386,820 |
Income from operations: | |||
Income from operations | 355,982 | 22,069 | (12,577) |
APS | |||
Net revenue: | |||
Net revenue | 205,088 | 161,117 | 153,232 |
Income from operations: | |||
Income from operations | $ 56,465 | $ 36,440 | $ 34,187 |
SEGMENT INFORMATION (Net Revenu
SEGMENT INFORMATION (Net Revenue by Capital Equipment End Markets Served) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 1,517,664 | $ 623,176 | $ 540,052 | |
Capital Equipment | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 1,312,576 | 462,059 | 386,820 | |
Capital Equipment | General Semiconductor | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | [1] | 928,259 | 290,220 | 209,885 |
Capital Equipment | Automotive & Industrial | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 129,817 | 60,169 | 77,365 | |
Capital Equipment | LED | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 187,568 | 76,574 | 56,138 | |
Capital Equipment | Memory | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 66,932 | $ 35,096 | $ 43,432 | |
[1] | The Company noted a growing portion of the general semiconductor and LED end market is increasing in complexity and driving more capital intensity, therefore demanding more advanced packaging solutions. This has reduced the relevance of the advanced packaging end market. In view of this, sales previously defined as advanced packaging will be primarily categorized within the general semiconductor end market. |
SEGMENT INFORMATION (Capital ex
SEGMENT INFORMATION (Capital expenditures, depreciation, and amortization expense by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Capital expenditures: | |||
Capital expenditures | $ 22,555 | $ 14,514 | $ 11,829 |
Depreciation expense: | |||
Depreciation expense | 13,836 | 12,368 | 12,892 |
Amortization expense: | |||
Amortization expense | 5,974 | 7,371 | 7,412 |
Capital Equipment | |||
Capital expenditures: | |||
Capital expenditures | 15,257 | 5,798 | 5,380 |
Depreciation expense: | |||
Depreciation expense | 6,938 | 6,360 | 7,584 |
Amortization expense: | |||
Amortization expense | 3,584 | 4,255 | 3,977 |
APS | |||
Capital expenditures: | |||
Capital expenditures | 7,298 | 8,716 | 6,449 |
Depreciation expense: | |||
Depreciation expense | 6,898 | 6,008 | 5,308 |
Amortization expense: | |||
Amortization expense | $ 2,390 | $ 3,116 | $ 3,435 |
SEGMENT INFORMATION Sales by co
SEGMENT INFORMATION Sales by country (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 1,517,664 | $ 623,176 | $ 540,052 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 843,470 | 321,294 | 252,179 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 275,251 | 64,373 | 63,440 |
HONG KONG | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 82,436 | 43,288 | 12,096 |
Malaysia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 70,253 | 40,641 | 41,568 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 54,353 | 36,186 | 36,393 |
KOREA, REPUBLIC OF | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 58,308 | 30,848 | 15,236 |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 36,469 | 8,699 | 10,978 |
Philippines | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 17,651 | 9,439 | 12,057 |
THAILAND | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 24,448 | 9,389 | 9,941 |
JAPAN | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 11,850 | 9,150 | 10,341 |
All Other Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 43,175 | $ 49,869 | $ 75,823 |
SEGMENT INFORMATION Long-lived
SEGMENT INFORMATION Long-lived assets by countries (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-Lived Assets | $ 118,324 | $ 91,556 | $ 81,113 | ||
Singapore | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-Lived Assets | 40,470 | 16,499 | 25,620 | ||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-Lived Assets | 32,684 | 29,291 | [1] | 24,597 | [1] |
China | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-Lived Assets | 25,386 | 24,899 | [1] | 18,818 | [1] |
Israel | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-Lived Assets | 8,597 | 8,829 | [1] | 6,760 | [1] |
All Other Segments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-Lived Assets | $ 11,187 | $ 12,038 | [1] | $ 5,318 | [1] |
[1] | Certain balances in fiscal 2020 and 2019 relating to long-lived assets by country have been revised to exclude deferred tax asset balances. The previously included balances are not material and there is no impact to the Consolidated Balance Sheets in fiscal 2020 and 2019 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Reserve for product warranty activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Reserve for warranty, beginning of period | $ 9,576 | $ 14,185 | $ 14,474 |
Provision for warranty | 18,889 | 14,004 | 12,140 |
Change in the estimation of warranty reserve | 0 | (5,417) | 0 |
Utilization of reserve | (11,504) | (13,196) | (12,429) |
Reserve for warranty, end of period | $ 16,961 | $ 9,576 | $ 14,185 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Obligations not reflected on the Consolidated Balance Sheet) (Details) $ in Thousands | Oct. 02, 2021USD ($) | [1] |
Commitments and Contingencies Disclosure [Abstract] | ||
Inventory purchase obligation | $ 591,845 | |
Inventory purchase obligation, payments due by fiscal year 2022 | 591,845 | |
Inventory purchase obligation, Payments due by fiscal year 2023 | 0 | |
Inventory purchase obligation, Payments due by fiscal year 2024 | 0 | |
Inventory purchase obligation, Payments due by fiscal year 2025 | 0 | |
Inventory purchase obligation, Payments due by fiscal year thereafter | $ 0 | |
[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. |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of net revenue) (Details) | 12 Months Ended |
Oct. 02, 2021 | |
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | ASE Technology Holding | |
Concentration Risk [Line Items] | |
Customer concentrations risk percentage | 17.40% |
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 | ||
Oct. 02, 2021 | Oct. 03, 2020 | ||
Forehope Electronic (Ningbo) Co Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | 20.00% | ||
Regent Manner Limited [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | 10.30% | ||
Huatian Technology Group | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | 18.20% | ||
Haoseng Industrial Co., Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | [1] | 14.30% | |
[1] | Distributor of the Company's products |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Narrative) (Details) | 12 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Period Of Warranty For Manufacturing Defects | 1 year |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Beginning of period | [1] | $ 46,561 | |||||
End of period | 34,095 | $ 46,561 | [1] | ||||
Allowance for doubtful accounts [Member] | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Beginning of period | 968 | 597 | $ 385 | ||||
Charged to Costs and Expenses | (248) | 371 | 212 | ||||
Other Additions | 0 | 0 | 0 | ||||
Other Deductions | [2] | (33) | 0 | 0 | |||
End of period | 687 | 968 | 597 | ||||
Inventory reserve [Member] | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Beginning of period | 31,163 | 29,313 | 26,889 | ||||
Charged to Costs and Expenses | (2,965) | 4,170 | 2,657 | ||||
Other Additions | 0 | 0 | 0 | ||||
Other Deductions | [3] | (5,156) | (2,320) | (233) | |||
End of period | 23,042 | 31,163 | 29,313 | ||||
Valuation allowance for deferred taxes [Member] | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Beginning of period | 46,561 | 58,411 | 37,249 | ||||
Charged to Costs and Expenses | 0 | [4] | 6,887 | [4] | 0 | ||
Other Additions | 0 | 0 | 21,162 | [4] | |||
Other Deductions | (12,466) | [5] | (18,737) | [6] | 0 | ||
End of period | $ 34,095 | $ 46,561 | $ 58,411 | ||||
[1] | Certain balances in fiscal 2020 relating to foreign tax credits on undistributed foreign earnings and related valuation allowances have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2020. | ||||||
[2] | Represents write-offs of specific accounts receivable. | ||||||
[3] | Sale or scrap of previously reserved inventory. | ||||||
[4] | Reflects the net increase in the valuation allowance primarily associated with the Company's U.S. tax credits, U.S. and foreign net operating losses and other deferred tax assets. | ||||||
[5] | Represents the net decrease in the valuation allowance primarily associated with the Company's utilization of foreign net operating losses for which a valuation allowance had previously been recorded, partially offset by an increase for U.S tax credits, U.S. and foreign net operating losses and other deferred tax assets. | ||||||
[6] | Refer to Note 15: Income Taxes to our consolidated financial statements in Item 8 for disclosure on the reclassification. |