DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 13, 2023 | Apr. 01, 2023 | |
Entity Addresses [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 000-00121 | ||
Entity Registrant Name | KULICKE AND SOFFA INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-1498399 | ||
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 Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,987.5 | ||
Entity Common Stock, Shares Outstanding | 56,720,044 | ||
Entity Central Index Key | 0000056978 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Principal Executive Offices | |||
Entity Addresses [Line Items] | |||
Entity Address, Address Line One | 1005 Virginia Dr. | ||
Entity Address, Postal Zip Code | 19034 | ||
Entity Address, City or Town | Fort Washington | ||
Entity Address, State or Province | PA |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Singapore |
Auditor Firm ID | 1093 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 529,402 | $ 555,537 |
Short-term investments | 230,000 | 220,000 |
Accounts and notes receivable, net of allowance for doubtful accounts of $49 and $0, respectively | 158,601 | 309,323 |
Inventories, net | 217,304 | 184,986 |
Prepaid expenses and other current assets | 53,751 | 62,200 |
Total current assets | 1,189,058 | 1,332,046 |
Property, plant and equipment, net | 110,051 | 80,908 |
Operating right-of-use assets | 47,148 | 41,767 |
Goodwill | 88,673 | 68,096 |
Intangible assets, net | 29,357 | 31,939 |
Deferred tax assets | 31,551 | 25,572 |
Equity investments | 716 | 5,397 |
Other assets | 3,223 | 2,874 |
TOTAL ASSETS | 1,499,777 | 1,588,599 |
Current liabilities: | ||
Accounts payable | 49,302 | 67,311 |
Operating lease liabilities | 6,574 | 6,766 |
Accrued expenses and other current liabilities | 103,005 | 134,541 |
Income taxes payable | 22,670 | 40,063 |
Total current liabilities | 181,551 | 248,681 |
Deferred tax liabilities | 37,264 | 34,037 |
Income taxes payable | 52,793 | 64,634 |
Operating lease liabilities | 41,839 | 34,927 |
Other liabilities | 11,769 | 11,670 |
TOTAL LIABILITIES | 325,216 | 393,949 |
Commitments and contingent liabilities (Note 17) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, without par value: | 0 | 0 |
Common stock, no par value: | 577,727 | 561,684 |
Treasury stock, at cost, 29,054 and 28,236 shares, respectively | (737,214) | (675,800) |
Retained earnings | 1,355,810 | 1,341,666 |
Accumulated other comprehensive loss | (21,762) | (32,900) |
TOTAL SHAREHOLDERS’ EQUITY | 1,174,561 | 1,194,650 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,499,777 | $ 1,588,599 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 49 | $ 0 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares, issued | 85,364 | 85,364 |
Common stock, shares, outstanding | 56,310 | 57,128 |
Treasury stock, shares | 29,054 | 28,236 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Income Statement [Abstract] | |||
Net revenue | $ 742,491 | $ 1,503,620 | $ 1,517,664 |
Cost of sales | 383,836 | 755,300 | 820,678 |
Gross profit | 358,655 | 748,320 | 696,986 |
Selling, general and administrative | 152,982 | 140,050 | 147,061 |
Research and development | 144,701 | 136,852 | 137,478 |
Impairment charges | 21,535 | 1,346 | 0 |
Operating expenses | 319,218 | 278,248 | 284,539 |
Income from operations | 39,437 | 470,072 | 412,447 |
Interest income | 32,906 | 7,124 | 2,321 |
Interest expense | (142) | (208) | (218) |
Income before income taxes | 72,201 | 476,988 | 414,550 |
Provision for income taxes | 15,053 | 43,443 | 47,295 |
Share of results of equity-method investee, net of tax | 0 | 0 | 94 |
Net income | $ 57,148 | $ 433,545 | $ 367,161 |
Net income per share: | |||
Basic (in dollars per share) | $ 1.01 | $ 7.21 | $ 5.92 |
Diluted (in dollars per share) | $ 0.99 | $ 7.09 | $ 5.78 |
Weighted average shares outstanding: | |||
Basic (in shares) | 56,682 | 60,164 | 62,009 |
Diluted (in shares) | 57,548 | 61,182 | 63,515 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 57,148 | $ 433,545 | $ 367,161 |
Other comprehensive income / (loss): | |||
Foreign currency translation adjustment | 9,676 | (30,536) | 672 |
Unrecognized actuarial (loss) / gain on pension plan, net of tax | (49) | 2,276 | 0 |
Other comprehensive income / (loss): | 9,627 | (28,260) | 672 |
Unrealized gain / (loss) on derivative instruments, net of tax | 2,381 | (2,694) | 24 |
Reclassification adjustment for (gain) / loss on derivative instruments recognized, net of tax | (870) | 1,076 | (1,197) |
Net increase / (decrease) from derivatives designated as hedging instruments, net of tax | 1,511 | (1,618) | (1,173) |
Total other comprehensive income / (loss) | 11,138 | (29,878) | (501) |
Comprehensive income | $ 68,286 | $ 403,667 | $ 366,660 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Retained earnings | Accumulated Other Comprehensive (loss) / income |
Beginning Balance (in shares) at Oct. 03, 2020 | 61,558,000 | ||||
Beginning 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) | ||||
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 | 14,673 | $ 14,673 | |||
Cash dividend declared | (34,726) | (34,726) | |||
Components of comprehensive income: | |||||
Net income | 367,161 | 367,161 | |||
Other comprehensive income | (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) |
Issuance of stock for services rendered (in shares) | 18,000 | ||||
Issuance of stock for services rendered | 949 | $ 774 | 175 | ||
Repurchase of common stock (in shares) | (5,576,000) | ||||
Repurchase of common stock | (282,807) | (282,807) | |||
Issuance of shares for equity-based compensation (in shares) | 755,000 | ||||
Issuance of shares for equity-based compensation | 0 | $ (7,244) | 7,244 | ||
Equity-based compensation | 18,037 | $ 18,037 | |||
Cash dividend declared | (40,433) | (40,433) | |||
Components of comprehensive income: | |||||
Net income | 433,545 | 433,545 | |||
Other comprehensive income | (29,878) | (29,878) | |||
Comprehensive income | 403,667 | 433,545 | (29,878) | ||
Ending Balance (in shares) at Oct. 01, 2022 | 57,128,000 | ||||
Ending Balance at Oct. 01, 2022 | 1,194,650 | $ 561,684 | (675,800) | 1,341,666 | (32,900) |
Issuance of stock for services rendered (in shares) | 21,000 | ||||
Issuance of stock for services rendered | $ 1,000 | $ 798 | 202 | ||
Repurchase of common stock (in shares) | (1,515,000) | (1,515,000) | |||
Repurchase of common stock | $ (68,115) | (68,115) | |||
Issuance of shares for equity-based compensation (in shares) | 676,000 | ||||
Issuance of shares for equity-based compensation | 0 | $ (6,499) | 6,499 | ||
Equity-based compensation | 21,744 | $ 21,744 | |||
Cash dividend declared | (43,004) | (43,004) | |||
Components of comprehensive income: | |||||
Net income | 57,148 | 57,148 | |||
Other comprehensive income | 11,138 | 11,138 | |||
Comprehensive income | 68,286 | 57,148 | 11,138 | ||
Ending Balance (in shares) at Sep. 30, 2023 | 56,310,000 | ||||
Ending Balance at Sep. 30, 2023 | $ 1,174,561 | $ 577,727 | $ (737,214) | $ 1,355,810 | $ (21,762) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 57,148 | $ 433,545 | $ 367,161 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 28,857 | 21,293 | 19,810 |
Impairment charges | 21,535 | 1,346 | 0 |
Equity-based compensation and employee benefits | 22,744 | 18,986 | 15,491 |
Adjustment for doubtful accounts | 49 | (245) | (248) |
Adjustment for inventory valuation | 5,214 | (2,613) | (2,965) |
Deferred taxes | (4,478) | (8,648) | (9,818) |
(Gain) / loss on disposal of property, plant and equipment | (499) | (253) | 259 |
Gain on disposal of equity-method investments | 0 | 0 | (1,046) |
Unrealized fair value changes on equity investment | (323) | 0 | 0 |
Unrealized foreign currency translation | 85 | (7,278) | (378) |
Share of results of equity-method investee | 0 | 0 | 94 |
Changes in operating assets and liabilities, net of assets and liabilities assumed in businesses combinations: | |||
Accounts and notes receivable | 152,667 | 113,340 | (221,924) |
Inventory | (35,755) | (14,924) | (52,719) |
Prepaid expenses and other current assets | 8,619 | (37,907) | (4,573) |
Accounts payable, accrued expenses and other current liabilities | (52,333) | (128,734) | 181,960 |
Income taxes payable | (29,312) | 4,946 | 7,686 |
Other, net | (1,460) | (2,666) | 1,242 |
Net cash provided by operating activities | 173,404 | 390,188 | 300,032 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of business, net of cash acquired | (36,881) | 0 | (26,338) |
Purchases of property, plant and equipment | (44,406) | (22,985) | (22,775) |
Proceeds from sales of property, plant and equipment | 591 | 181 | 291 |
Investment in private equity fund | (642) | (397) | 0 |
Purchase of short term investments | (595,000) | (469,000) | (507,000) |
Maturity of short term investments | 585,000 | 626,000 | 472,000 |
Disposal of equity-method investments | 0 | 0 | 2,115 |
Net cash provided by / (used in) investing activities | (91,338) | 133,799 | (81,707) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment on short term debt | 0 | (54,500) | (22,750) |
Payment for finance leases | (629) | (509) | (379) |
Repurchase of common stock | (69,210) | (281,319) | (10,426) |
Proceeds from short term debt | 0 | 54,500 | 22,750 |
Common stock cash dividends paid | (42,037) | (39,363) | (33,453) |
Net cash used in financing activities | (111,876) | (321,191) | (44,258) |
Effect of exchange rate changes on cash and cash equivalents | 3,675 | (10,047) | 594 |
Changes in cash and cash equivalents | (26,135) | 192,749 | 174,661 |
Cash and cash equivalents at beginning of period | 555,537 | 362,788 | 188,127 |
Cash and cash equivalents at end of period | 529,402 | 555,537 | 362,788 |
CASH PAID FOR: | |||
Interest | 142 | 208 | 218 |
Income taxes | $ 56,254 | $ 50,309 | $ 51,856 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2023 | |
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 2023, 2022, and 2021 fiscal years ended on September 30, 2023, October 1, 2022 and October 2, 2021, respectively. Nature of Business The Company designs, develops, 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 integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), foundry service providers, and other electronics manufacturers and 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, solutions and services, including those sold or provided 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, accrual for customer credit programs, 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. In light of the macroeconomic headwinds, 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 September 30, 2023. While there was no material impact to our consolidated financial statements as of and for the year ended September 30, 2023, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to the macroeconomic headwinds that could materially impact our consolidated financial statements in future reporting periods. Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of September 30, 2023 and October 1, 2022 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’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, especially in light of the current macroeconomic headwinds. 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. Non-marketable equity securities are equity securities without readily determinable fair value that are measured and recorded as follows: • Either using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes, or; • Using the published or estimated Net Asset Value (“NAV”) for investments that qualify as a practical expedient to determine the fair values of equity securities. The fair values of the underlying investments are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. Changes in the fair value of the investments are recognized as gains and losses in earnings. 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 the existing macroeconomic headwinds, 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, 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, spare parts and tools. 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 September 30, 2023 and October 1, 2022, 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. Government Incentives The Company receives government incentives for qualifying research and development, and other activities as defined by the relevant government entities awarding the grants. Government grants, including non-income tax incentives, are recognized when there is reasonable assurance that the grant will be received and the Company will comply with the conditions specified in the grant agreement. The Company records operating grants as a reduction to expense in the same line item on the consolidated statements of income as the expenditure for which the grant is intended to compensate. The Company recognized an immaterial benefit for operating grants in fiscal 2023. 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 the distributors’ 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 manufacturing defects 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 agreed specifications, customer specifications or subject to satisfactory installation 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 2023 and 2022, 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. Contract Assets A contract asset is the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer. ASC 606, Revenue from Contracts with Customers , distinguishes between a contract asset and a receivable based on whether receipt of the consideration is conditional on something other than the passage of time. When the Company transfers control of goods or services to a customer before the customer pays consideration, the Company records either a contract asset or a receivable depending on the nature of the Company’s right to consideration for its performance. The point at which a contract asset becomes an account receivable may be earlier than the point at which an invoice is issued. The Company assesses a contract asset for impairment in accordance with ASC 310, Receivables . 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 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 stock outstanding during the period. Diluted EPS include the weighted average number of common stock and the dilutive effect of stock options, performance share units and restricted share units outstanding during the period, when such instruments are dilutive. Accelerated Share Repurchase From time to time, the Company may enter into accelerated share repurchase (“ASR”) agreements with third-party financial institutions to repurchase shares of the Company’s common stock. Under an ASR agreement, in exchange for an up-front payment, the counterparty makes an initial delivery of shares of the Company’s common stock during the purchase period of the relevant ASR. This initial delivery of shares represents the minimum number of shares that the Company may receive under an ASR agreement. Upon settlement of an ASR agreement, the counterparty may deliver additional shares, with the final number of shares delivered determined based on the volume-weighted average price of the Company’s common stock over the term of such ASR agreement, less an agreed-upon discount. The transactions are accounted for as equity transactions and are included in Treasury Stock when the shares are received, at which time there is an immediate reduction in the weighted-average common stock calculation for basic and diluted earnings per share. 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, 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 Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which aims at increasing the transparency of government assistance received by most business entities. The standard requires business entities to make annual disclosures about the nature of the transactions and the related accounting policy used to account for the transactions, the line items and applicable amounts on the balance sheet and income statement that are affected by the transactions, and significant terms and conditions of the transactions, including commitments and contingencies. If an entity omits any required disclosures because it is legally prohibited, it must disclose that fact. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2021, which for the Company is the first quarter of fiscal 2023. The adoption of this ASU did not have a material impact on our consolidated financial statements. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606: Revenue from Contracts with Customers . The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments with early adoption permitted. We elected for an early adoption of this ASU in fiscal year 2023. The adoption of this ASU did not have a material impact on our consolidated financial statements. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS The following tables reflect the components of significant balance sheet accounts as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Inventories, net: Raw materials and supplies $ 114,827 $ 118,833 Work in process 74,555 40,114 Finished goods 49,207 45,277 238,589 204,224 Inventory reserves (21,285) (19,238) $ 217,304 $ 184,986 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 23,105 22,783 Leasehold improvements 82,927 32,400 Data processing equipment and software 37,483 38,223 Machinery, equipment, furniture and fixtures 95,692 90,151 Construction in progress 11,099 25,004 252,488 210,743 Accumulated depreciation (142,437) (129,835) $ 110,051 $ 80,908 Accrued expenses and other current liabilities: Accrued customer obligations (1) $ 35,701 $ 58,916 Wages and benefits 33,096 50,279 Commissions and professional fees 4,091 5,019 Dividends payable 10,710 9,743 Accrued leasehold renovations 11,005 — Other 8,402 10,584 $ 103,005 $ 134,541 (1) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Acquisition of Advanced Jet Automation Co., Ltd. On September 8, 2022, the Company through one of its subsidiaries, Kulicke and Soffa Luxembourg S.À R.L, entered into a definitive agreement (the “Definitive Agreement”) for the acquisition of Advanced Jet Automation Co., Ltd. (“AJA”), a technology company headquartered in Taiwan. On February 22, 2023 (the “Closing Date”), pursuant to the Definitive Agreement, the Company completed its acquisition of AJA, including the material business and assets formerly owned by AJA’s affiliate, Samurai Spirit Inc., a leading developer and manufacturer of high-precision micro-dispensing equipment and solutions in Taiwan. AJA became a wholly-owned subsidiary of the Company and on March 30, 2023, AJA was renamed Kulicke and Soffa Hi-Tech Co., Ltd. (“K&S Hi-Tech”). The newly acquired business of K&S Hi-Tech will operate as a business unit (“advanced dispensing solutions”), deemed a separate operating segment which is reported under the “All Others” category. The acquisition broadens the Company’s existing semiconductor, electronic assembly and advanced display portfolio, increasing opportunities across several exciting growth areas including mini and micro-LED, which support both backlighting and direct-emissive approaches. The purchase price consisted of $38.1 million in cash paid at closing (the “Purchase Price”) and additional potential earn-out payments based on certain revenue and earnings before interest, tax, depreciation and amortization (“EBITDA”) benchmarks established for the dispensing business unit. As at September 30, 2023, the Company held $4.0 million in escrow and will continue to hold such sums for a period of twenty-four (24) months from the Closing Date, as security pending the completion of Ruo Chuan Inc.’s obligations as the seller under the Definitive Agreement. The Company has estimated the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on current 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 of February 21, 2024. Any changes in these estimates may have a material impact on our Consolidated Statements of Operations or Consolidated Balance Sheets. The acquisition of AJA was accounted for in accordance with ASC No. 805, Business Combinations , using the acquisition method. 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) February 22, 2023 Cash and cash equivalents $ 1,238 Account and other receivables, net 1,156 Inventory 1,581 Property, plant and equipment, net 1,462 Right-of-use assets 989 Other assets 127 Goodwill 27,975 Intangible assets 7,768 Accounts and other payables (965) Accrued expenses and other liabilities (251) Contract liabilities (187) Lease liability (989) Deferred tax liabilities (1,785) Total purchase price, net of cash acquired $ 38,119 Excluding inventory and property, plant and equipment, all other tangible net assets (liabilities) were valued at their respective carrying amounts, which the Company believes approximate their current fair values at the Closing Date. In connection with the acquisition of AJA, the Company recorded deferred tax liabilities primarily relating to the acquired 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 AJA 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. The following table summarizes the fair value, useful life and valuation methodology of each identifiable intangible asset. (in thousands) Fair Value Useful Lives Developed technology (1) $ 4,261 8 Customer relationships (2) 2,131 8 In-process research and development (“IPR&D”) (3) 459 N.A. Patents (3) 524 8 Order Backlog (4) 393 1 Total identifiable intangible assets $ 7,768 (1) The fair value of developed technology was determined using the Relief-from-Royalty Method under the income approach. (2) Customer relationships represent the fair value of the existing relationships using the Multi-Period Excess Earnings Method under the income approach. (3) The fair value of IPR&D and Patents were determined using the Replacement Cost Method, a form of the cost approach. (4) Order backlog represents primarily the fair value of purchase arrangements with customers using the Multi-Period Excess Earnings Method under the income approach. IPR&D is recorded as an indefinite-lived intangible asset and 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. Developed technology, customer relationships, patents and order backlog are amortized using a straight-line method, representing the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets. For fiscal 2023, the acquired dispensing business unit contributed to a net loss of $3.0 million. For fiscal 2023, the Company incurred $0.5 million of expenses related to the acquisition, which is included within selling, general and administrative expense in the Consolidated Statements of Operations. The acquisition did not result in material contributions to revenue and net income in the consolidated financial statements for fiscal 2023. Additionally, pro forma financial information is not provided for consolidated revenue and net income as such amounts attributable to AJA were insignificant to the Company’s consolidated financial statements taken as a whole. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2023 | |
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. During the fiscal year ended September 30, 2023, 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. The Company concluded that a triggering event had occurred during the third quarter in the fiscal year ended September 30, 2023 in connection with the Lithography reporting unit, which is grouped within the “All Others” category. The triggering event occurred based on the long-term financial and business outlook for the Lithography reporting unit updated as part of the Company’s annual strategic planning process performed during the third quarter. This updated outlook projected that the near-term projected cash flows are expected to be lower than previously forecasted due to a shift in market penetration timeline and increase in cost of materials being purchased. Under ASC 350, the Company is required to test its goodwill and other intangible assets for impairment annually or when a triggering event has occurred that would indicate it is more likely than not that the fair value of the reporting unit is less than the carrying value including goodwill and other intangible assets. Accordingly, the Company has performed the goodwill impairment test for the Lithography reporting unit with reference to the guidance under ASC 350. The Company used a discounted cash flow model to determine the fair value of the Lithography reporting unit. The cash flow projections used within the discounted cash flow model were prepared using the forecasted financial results of the reporting unit, which was based upon underlying estimates of the total market size using independent third party industry reports, and market share data developed using the combination of independent third-party data and our internal data. Significant assumptions used to determine the fair value of the Lithography reporting unit include revenue forecasts, terminal growth rate of 2.5%, working capital, tax rate and a weighted average cost of capital (discount rate) of 11.7%. In accordance with the guidance under ASC 350, the Company’s impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. Based on the calculation, the Company determined that the carrying value exceeded the fair value of this reporting unit which resulted in a goodwill impairment charge of $9.8 million, representing the entire goodwill assigned to this reporting unit. This goodwill impairment charge, which is a non-cash charge, has been reflected in the Company’s Consolidated Statements of Operations for the fiscal year ended September 30, 2023. While we have concluded that a triggering event for the other reporting units did not occur during the fiscal year ended September 30, 2023, the persistent macroeconomic headwinds 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 based on its reportable segments as of September 30, 2023 and October 1, 2022: (in thousands) Wedge Bonding Equipment APS All Others Total Balance at October 1, 2022 (1) 18,280 25,907 23,909 68,096 Acquired in business combination — — 27,975 27,975 Impairment charges — — (9,794) (9,794) Other — 202 2,194 2,396 Balance at September 30, 2023 18,280 26,109 44,284 88,673 (1) Cumulative goodwill impairment as of October 1, 2022 was approximately $35.2 million. 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. In connection with the evaluation of the goodwill impairment in the Lithography reporting unit performed during the third quarter of fiscal year ended September 30, 2023, the Company assessed tangible and intangible assets for impairment prior to performing the first step of the goodwill impairment test. The Company first compared the carrying value to the undiscounted cash flows of the reporting unit which was lower. Subsequently, the Company proceeded to measure the impairment loss by comparing the carrying value against the discounted cash flow model to determine the fair value of the asset group for the Lithography reporting unit, where significant assumptions include revenue forecasts, terminal growth rate of 2.5%, working capital, tax rate and a weighted average cost of capital (discount rate) of 11.7%. As a result of the analysis, the Company determined an impairment charge of $6.9 million on the developed technology reported within the “All Others” category for the fiscal year ended September 30, 2023. The impairment of intangible assets is a non-cash charge which has been reflected in the Company’s Consolidated Statements of Operations for the fiscal year ended September 30, 2023. The following table reflects net intangible assets as of September 30, 2023 and October 1, 2022: As of Average estimated (dollar amounts in thousands) September 30, 2023 October 1, 2022 useful lives (in years) Developed technology $ 80,959 $ 89,017 6.0 to 15.0 Accumulated amortization $ (55,877) $ (58,636) Net developed technology $ 25,082 $ 30,381 Customer relationships $ 36,764 $ 33,515 5.0 to 8.0 Accumulated amortization $ (34,789) $ (33,515) Net customer relationships $ 1,975 $ — In-process research and development $ 459 $ — N.A. Net in-process research and development $ 459 $ — Trade and brand name $ 7,130 $ 6,945 7.0 to 8.0 Accumulated amortization $ (7,130) $ (6,945) Net trade and brand name $ — $ — Other intangible assets $ 5,617 $ 4,700 1.0 to 8.0 Accumulated amortization $ (3,776) $ (3,142) Net other intangible assets $ 1,841 $ 1,558 Net intangible assets $ 29,357 $ 31,939 The following table reflects estimated annual amortization expense related to intangible assets as of September 30, 2023: As of (in thousands) September 30, 2023 Fiscal 2024 $ 5,154 Fiscal 2025 $ 4,990 Fiscal 2026 $ 4,990 Fiscal 2027 $ 4,715 Fiscal 2028 $ 4,290 Fiscal 2029 and thereafter $ 5,218 Total amortization expense $ 29,357 |
CASH, CASH EQUIVALENTS, AND SHO
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS | 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 September 30, 2023: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 37,292 $ — $ — $ 37,292 Cash equivalents: Money market funds (1) 202,113 — (10) 202,103 Time deposits (2) 290,007 — — 290,007 Total cash and cash equivalents $ 529,412 $ — $ (10) $ 529,402 Short-term investments: Time deposits (2) $ 230,000 $ — $ — $ 230,000 Total short-term investments $ 230,000 $ — $ — $ 230,000 Total cash, cash equivalents, and short-term investments $ 759,412 $ — $ (10) $ 759,402 (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) All short-term investments were classified as available-for-sale and the fair value approximates cost basis. The Company did not recognize any realized gains or losses on the sale of investments during the fiscal years ended 2023 and 2022. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of October 1, 2022: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 173,402 $ — $ — $ 173,402 Cash equivalents: Money market funds (1) 157,145 — (20) 157,125 Time deposits (2) 225,010 — — 225,010 Total cash and cash equivalents $ 555,557 $ — $ (20) $ 555,537 Short-term investments: Time deposits (2) 220,000 — — 220,000 Total short-term investments $ 220,000 $ — $ — $ 220,000 Total cash, cash equivalents, restricted cash and short-term investments $ 775,557 $ — $ (20) $ 775,537 (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. |
EQUITY INVESTMENTS (Notes)
EQUITY INVESTMENTS (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Equity Investments [Abstract] | |
Equity Investments | EQUITY INVESTMENTS Equity investments consisted of the following as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Non-marketable equity securities $ 716 $ 5,397 During the year ended September 30, 2023, the Company recorded an impairment of $5.0 million on a non-marketable equity security without a readily determinable fair value. The entire amount of the investment in the non-marketable equity security was impaired due to a significant deterioration in the earnings performance of the equity investee. The impairment amount is recorded within “Selling, general and administrative expense” in the Consolidated Statement of Operations. Net Asset Value (“NAV”) (Private Equity Fund) : Equity investments in affiliated investment funds are valued based on the NAV reported by the investment fund in accordance with ASC Topic 820-10. Investments held by the affiliated investment fund include a diversified portfolio of investments in the global semiconductor industry. The Company receives distributions through the liquidation of the underlying investments by the affiliated investment fund. However, the period of time over which the underlying investments are expected to be liquidated is unknown. Additionally, the Company’s ability to withdraw from the fund is subject to restrictions. The term of the fund will continue until March 18, 2032 unless dissolved earlier or extended by the General Partner. In accordance with ASC Topic 820-10, this investment is measured at fair value using the NAV per share (or its equivalent) practical expedient has not been classified in the fair value hierarchy. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023. 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. Fair Value of Financial Instruments Amounts reported as accounts receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENT (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Derivative financial Instruments [Abstract] | |
DERIVATIVE FINANCIAL 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 Sheets as of September 30, 2023 and October 1, 2022 is as follows: As of (in thousands) September 30, 2023 October 1, 2022 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Liability Derivatives (1) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 54,590 $ (723) $ 57,570 $ (2,234) Total derivatives $ 54,590 $ (723) $ 57,570 $ (2,234) (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 Sheets. (2) 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 years ended September 30, 2023 and October 1, 2022 was as follows: (in thousands) Fiscal 2023 2022 Foreign exchange forward contract in cash flow hedging relationships: Net gain/(loss) recognized in OCI, net of tax (1) $ 2,381 $ (2,694) Net gain/(loss) reclassified from accumulated OCI into earnings, net of tax (2) $ 870 $ (1,076) (1) Net change in the fair value of the effective portion classified in OCI. |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASESWe 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 September 30, 2023, four option 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 September 30, 2023, our finance leases are not material. The following table shows the components of lease expense: (in thousands) Fiscal 2023 2022 Operating lease expense (1) $ 10,746 8,625 (1) Operating lease expense includes short-term lease expense, which is immaterial for the fiscal year ended September 30, 2023. 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 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 9,314 $ 7,908 The following table shows the weighted-average lease terms and discount rates for operating leases: Fiscal 2023 2022 Operating leases: Weighted-average remaining lease term (in years): 7.7 8.0 Weighted-average discount rate: 6.7 % 5.8 % Future lease payments, excluding short-term leases, as of September 30, 2023, are detailed as follows: (in thousands) Operating leases Fiscal 2024 $ 9,553 Fiscal 2025 9,180 Fiscal 2026 8,702 Fiscal 2027 6,796 Fiscal 2028 6,357 Fiscal 2029 and thereafter 22,307 Total minimum lease payments 62,895 Less: Interest 14,482 Present value of lease obligations 48,413 Less: Current portion 6,574 Long-term portion of lease obligations $ 41,839 |
DEBT AND OTHER OBLIGATIONS
DEBT AND OTHER OBLIGATIONS | 12 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and October 1, 2022, the outstanding amount was $3.1 million and $2.9 million respectively. Credit Facilities |
SHAREHOLDERS' EQUITY AND EMPLOY
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2023 | |
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 “401(k) Plan”) for eligible U.S. employees. The 401(k) 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 401(k) Plan during fiscal 2023 and 2022: Fiscal (in thousands) 2023 2022 Cash $ 2,001 $ 1,973 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, 2019 and 2020, the Board of Directors increased the share repurchase authorization under the Program to $200 million, $300 million and $400 million, respectively. On March 3, 2022, the Board of Directors increased the share repurchase authorization under the Program by an additional $400 million to $800 million, and extended its duration through August 1, 2025. On May 7, 2022, the Company entered into a written trading plan under Rule 10b5-1 of the Exchange Act to facilitate repurchases under the Program. This trading plan was most recently modified on May 29, 2023. 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 September 30, 2023, the Company repurchased a total of approximately 1,515.0 thousand shares of common stock at a cost of approximately $68.1 million. The stock 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 September 30, 2023, our remaining stock repurchase authorization under the Program was approximately $181.0 million. Dividends On August 23, 2023, June 8, 2023, March 2, 2023 and November 16, 2022, the Board of Directors declared a quarterly dividend $0.19 per share of common stock. During the fiscal year ended September 30, 2023, the Company declared dividends of $0.76 per share of common stock. The declaration of any future cash dividend is at the discretion of the Board of Directors, subject to applicable laws, 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 the accumulated other comprehensive loss reflected on the Consolidated Balance Sheets as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Loss from foreign currency translation adjustments $ (20,178) $ (29,854) Unrecognized actuarial loss on pension plan, net of tax (861) (812) Unrealized loss on hedging (723) (2,234) Accumulated other comprehensive loss $ (21,762) $ (32,900) 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 September 30, 2023, 2.5 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 stock 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 stock 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, 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. Equity-based compensation expense recognized in the Consolidated Statements of Operations for fiscal 2023, 2022, and 2021 was based upon awards ultimately expected to vest, with forfeiture accounted for when they occur. The following table reflects the 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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Cost of sales $ 1,192 $ 960 $ 828 Selling, general and administrative 16,239 13,911 10,998 Research and development 5,313 4,115 3,676 Total equity-based compensation expense $ 22,744 $ 18,986 $ 15,502 The following table reflects the equity-based compensation expense, by type of award, for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Relative TSR PSUs 4,949 4,255 3,916 Time-based RSUs 14,304 11,655 10,314 Growth PSUs 2,491 2,127 444 Common stock 1,000 949 828 Total equity-based compensation expense $ 22,744 $ 18,986 $ 15,502 Equity-Based Compensation: Relative TSR PSUs The following table reflects the Relative TSR PSUs activity for fiscal 2023, 2022, and 2021: Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Relative TSR PSUs outstanding as of October 3, 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 Granted 152 $ 52.18 Forfeited or expired (11) Vested (205) Relative TSR PSUs outstanding as of October 1, 2022 380 $ 4,619 0.9 Granted 187 $ 48.35 Forfeited or expired (3) Vested (197) Relative TSR PSUs outstanding as of September 30, 2023 367 $ 5,939 1.0 The following table reflects the assumptions used to calculate compensation expense related to the Company’s Relative TSR PSUs issued during fiscal 2023, 2022, and 2021: Fiscal 2023 2022 2021 Grant price $ 37.50 $ 49.20 $ 23.88 Expected dividend yield 1.81 % 1.14 % 2.01 % Expected stock price volatility 53.79 % 48.50 % 45.15 % Risk-free interest rate 4.42 % 0.68 % 0.21 % Equity-Based Compensation: Time-based RSUs The following table reflects the Time-based RSUs activity for fiscal 2023, 2022, and 2021: Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Time-based RSUs outstanding as of October 3, 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 Granted 301 $ 49.47 Forfeited or expired (29) Vested (453) Time-based RSUs outstanding as of October 1, 2022 736 $ 13,752 1.2 Granted 513 $ 37.64 Forfeited or expired (28) Vested (389) Time-based RSUs outstanding as of September 30, 2023 832 $ 17,693 1.5 Equity-Based Compensation: Growth PSUs The following table reflects the Growth PSUs activity for fiscal 2023, 2022, and 2021: 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 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 Granted 79 $ 49.26 Forfeited or expired (4) Vested (100) Special/Growth PSUs outstanding as of October 1, 2022 127 $ 1,405 0.9 Granted 91 $ 37.55 Forfeited or expired (1) Vested (95) Special/Growth PSUs outstanding as of September 30, 2023 122 $ 1,626 1.0 As of September 30, 2023, there were no employee stock options. Equity-Based Compensation: Non-Employee Directors The 2021 Equity Plan provides for the grant of common stock 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 stock 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 stock 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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Number of common stock issued 21 18 22 Fair value based upon market price at time of issue $ 1,000 $ 949 $ 828 Pension Plan The following table reflects the Company’s defined benefits pension obligations, mainly in Switzerland and Taiwan, as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Switzerland pension obligation $ 1,119 $ 1,038 Taiwan pension obligation 1,257 1,189 |
REVENUE AND CONTRACT BALANCES
REVENUE AND CONTRACT BALANCES | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND CONTRACT BALANCES | REVENUE AND CONTRACT BALANCES 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 September 30, 2023, and October 1, 2022, 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 and end markets, which 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 segments and end markets. Contract Balances Our contract assets relate to our rights to consideration for revenue with collection dependent on events other than the passage of time, such as the achievement of specified payment milestones. The contract assets will be transferred to net account receivables as our right to consideration for these contract assets become unconditional. Contracts assets are reported in the accompanying Consolidated Balance Sheets within prepaid expenses and other current assets. 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 asset balances during the fiscal years ended September 30, 2023 and October 1, 2022: Fiscal (in thousands) 2023 2022 Contract assets, beginning of period $ 26,317 $ — Additions 4,230 51,774 Transferred to accounts receivable or collected (20,366) (25,457) Contract assets, end of period $ 10,181 $ 26,317 The following table shows the changes in contract liability balances during the fiscal years ended September 30, 2023 and October 1, 2022: Fiscal (in thousands) 2023 2022 Contract liabilities, beginning of period $ 3,160 $ 15,596 Revenue recognized (38,435) (116,399) Additions 40,072 103,963 Contract liabilities, end of period $ 4,797 $ 3,160 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic income per share is calculated using the weighted average number of shares of common stock outstanding during the period. 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 2023, 2022, and 2021: Fiscal (in thousands, except per share) 2023 2022 2021 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 57,148 $ 57,148 $ 433,545 $ 433,545 $ 367,161 $ 367,161 DENOMINATOR: Weighted average shares outstanding - Basic 56,682 56,682 60,164 60,164 62,009 62,009 Dilutive effect of Equity Plans 866 1,018 1,506 Weighted average shares outstanding - Diluted 57,548 61,182 63,515 EPS: Net income per share - Basic $ 1.01 $ 1.01 $ 7.21 $ 7.21 $ 5.92 $ 5.92 Effect of dilutive shares $ (0.02) $ (0.12) $ (0.14) Net income per share - Diluted $ 0.99 $ 7.09 $ 5.78 Anti-dilutive shares (1) 15 1 2 (1) Represents the Relative TSR PSUs and Growth PSUs that are excluded from the calculation of diluted earnings per share for fiscal 2023, 2022, and 2021 as the effect would have been anti-dilutive. |
OTHER FINANCIAL DATA (Notes)
OTHER FINANCIAL DATA (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL DATA | OTHER FINANCIAL DATA The following table reflects the other financial data for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Incentive compensation expense $ 10,424 $ 27,011 $ 39,779 Warranty and retrofit expense 13,729 16,349 22,068 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table reflects the U.S. and foreign income (loss) before income taxes for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 United States $ (5,635) $ (11,415) $ (8,853) Foreign 77,836 488,403 423,403 Income before income taxes $ 72,201 $ 476,988 $ 414,550 The following table reflects the current and deferred components of provision for (benefit from) income taxes for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Current: Federal $ 10,412 $ 14,975 $ 26,563 State (128) 246 261 Foreign 8,830 37,448 30,771 Deferred: Federal 1,304 (5,809) (2,979) State — — — Foreign (5,365) (3,417) (7,321) Provision for income taxes $ 15,053 $ 43,443 $ 47,295 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 2023, 2022, and 2021: Fiscal (dollar amounts in thousands) 2023 2022 2021 Expected income tax provision based on the U.S. federal statutory tax rate $ 15,162 $ 100,212 $ 86,915 Effect of earnings of foreign subsidiaries subject to different tax rates (8,448) (17,936) (15,028) Benefit from tax incentives (11,198) (50,113) (45,501) Benefit from research and development tax credits (4,038) (2,995) (2,705) Benefit from foreign tax credits (7,834) (26,021) (20,281) Valuation allowance 3,127 (5,830) (11,620) Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) 24,450 45,421 52,414 Goodwill impairment 2,517 — — Other, net (1) 1,315 705 3,101 Provision for income taxes $ 15,053 $ 43,443 $ 47,295 Effective tax rate 20.8 % 9.1 % 11.4 % (1) Certain balances in fiscal 2022 and 2021 have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2022 and 2021. As of September 30, 2023, 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. Determination of the amount of unrecognized deferred tax liabilities related to the indefinitely reinvested undistributed foreign earnings is not practicable. 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 2023, 2022, and 2021, the tax incentive arrangement helped to reduce the Company’s provision for income taxes by $11.2 million or $0.19 per share, $50.1 million or $0.82 per share and $45.5 million or $0.72 per share, respectively. The following table reflects the deferred tax balances based on the tax effects of cumulative temporary differences for fiscal 2023 and 2022: Fiscal (in thousands) 2023 2022 Accruals and reserves $ 13,118 $ 14,168 Capitalized Research (1) 12,529 25,105 Tax credit carryforwards 5,026 3,893 Net operating loss carryforwards 26,607 15,329 Gross deferred tax assets $ 57,280 $ 58,495 Valuation allowance $ (21,483) $ (21,750) Deferred tax assets, net of valuation allowance $ 35,797 $ 36,745 Fixed and intangible assets (1) $ (16,357) $ (19,142) Taxes on undistributed foreign earnings (25,153) (26,068) Deferred tax liabilities $ (41,510) $ (45,210) Net deferred tax liabilities $ (5,713) $ (8,465) Reported as Deferred tax assets $ 31,551 $ 25,572 Deferred tax liabilities (37,264) (34,037) Net deferred tax liabilities $ (5,713) $ (8,465) (1) Certain balances in fiscal 2022 have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2022. As of September 30, 2023, the Company has foreign net operating loss carryforwards of $89.7 million, state net operating loss carryforwards of $35.0 million, and U.S. federal and state tax credit carryforwards of $7.8 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 2024 through 2042, 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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Unrecognized tax benefit, beginning of year $ 16,623 $ 14,922 $ 13,064 Additions for tax positions, current year 1,493 2,288 4,003 Reductions for tax positions, prior year (1,497) (587) (2,145) Unrecognized tax benefit, end of year $ 16,619 $ 16,623 $ 14,922 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 2023 provision for income taxes is not material. As of September 30, 2023, the Company has recognized $2.8 million of accrued interest and penalties related to unrecognized tax benefit within the income tax payable for uncertain tax positions and approximately $17.9 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 |
Sep. 30, 2023 | |
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 four reportable segments consisting of: (1) Ball Bonding Equipment, (2) Wedge Bonding Equipment, (3) Advanced Solutions, and (4) Aftermarket Products and Services (“APS”). The four reportable segments are disclosed below: Ball Bonding Equipment : Reflects the results of the Company from the design, development, manufacture and sale of ball bonding equipment and wafer level bonding equipment. Wedge Bonding Equipment : Reflects the results of the Company from the design, development, manufacture and sale of wedge bonding equipment. Advanced Solutions : Reflects the results of the Company from the design, development, manufacture and sale of certain advanced display, die-attach and thermocompression systems and solutions. APS : Reflects the results of the Company from the design, development, manufacture and sale of a variety of tools, spares and services for our equipment. Any other operating segments that have not been aggregated within the reportable segments described above which do not meet the quantitative threshold to be disclosed as a separate reportable segment have been grouped within an “All Others” category. This group is reflective of the results of the Company from the design, development, manufacture and sale of certain advanced display, advanced dispense, electronics assembly, die-attach and lithography systems and solutions. Results for the “All Others” category and other corporate expenses are included as a reconciling item between the Company’s reportable segments and its consolidated results of operations. The following table reflects the operating information by reportable segment for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Net revenue: Ball Bonding Equipment $ 287,465 $ 909,428 $ 1,016,663 Wedge Bonding Equipment 175,550 194,086 138,836 Advanced Solutions 72,256 94,683 35,123 APS 160,718 197,152 205,088 All Others 46,502 108,271 121,954 Net revenue 742,491 1,503,620 1,517,664 Income/(loss) from operations: Ball Bonding Equipment $ 81,929 385,276 401,450 Wedge Bonding Equipment 63,088 66,649 34,563 Advanced Solutions (32,530) (15,389) (40,759) APS 47,654 82,473 75,400 All Others (36,797) 25,732 20,565 Corporate Expenses (83,907) (74,669) (78,772) Income from Operations 39,437 470,072 412,447 We have considered: (1) information that is regularly reviewed by our CODM in evaluating financial performance and how to allocate resources; 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. The following table reflects the net revenue by end markets served for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 General Semiconductor $ 333,937 $ 843,763 $ 928,259 Automotive & Industrial 175,249 198,138 129,817 LED 50,166 137,077 187,568 Memory 22,421 127,490 66,932 APS 160,718 197,152 205,088 Total revenue $ 742,491 $ 1,503,620 $ 1,517,664 The following tables reflect the capital expenditures, depreciation and amortization expense by reportable segment for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Capital expenditures: Ball Bonding Equipment $ 1,087 $ 978 $ 1,627 Wedge Bonding Equipment 436 1,450 387 Advanced Solutions 30,522 19,036 6,090 APS 5,298 4,964 5,286 All Others $ 658 $ 1,364 $ 1,046 Corporate Expenses 9,701 4,441 8,119 Capital expenditures $ 47,702 $ 32,233 $ 22,555 Fiscal (in thousands) 2023 2022 2021 Depreciation expense: Ball Bonding Equipment $ 1,538 $ 1,398 $ 1,153 Wedge Bonding Equipment 1,169 981 940 Advanced Solutions 7,706 2,034 845 APS 6,166 6,632 5,969 All Others $ 1,505 1,047 1,179 Corporate Expenses 4,674 4,284 3,750 Depreciation expense $ 22,758 $ 16,376 $ 13,836 Fiscal (in thousands) 2023 2022 2021 Amortization expense: Ball Bonding Equipment $ — $ — $ — Wedge Bonding Equipment — — — Advanced Solutions — — — APS 896 994 2,319 All Others $ 4,837 3,557 3,369 Corporate Expenses 366 366 286 Amortization expense $ 6,099 $ 4,917 $ 5,974 Geographical information The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Destination sales to unaffiliated customers: China $ 335,393 $ 855,345 $ 843,470 United States 65,705 83,906 54,353 Taiwan 66,358 123,995 275,251 Malaysia 64,013 126,520 70,253 Japan 35,849 18,092 11,850 Philippines 31,527 44,510 17,651 Korea 17,977 87,647 58,308 Hong Kong 13,933 27,216 82,436 All other (1) 111,736 136,389 104,092 Total destination sales to unaffiliated customers $ 742,491 $ 1,503,620 $ 1,517,664 (1) Certain balances in fiscal 2022 and 2021 have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2022 and 2021. Fiscal (in thousands) 2023 2022 Long-lived assets: Singapore $ 95,489 $ 59,672 United States 24,894 31,469 China 17,717 19,548 Israel 9,264 10,610 All others 13,774 9,647 Total long-lived assets $ 161,138 $ 130,946 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 17: 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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Reserve for warranty, beginning of period $ 13,443 $ 16,961 $ 9,576 Provision for warranty 12,850 12,907 18,889 Utilization of reserve (15,836) (16,425) (11,504) Reserve for warranty, end of period $ 10,457 $ 13,443 $ 16,961 O ther Commitments and Contingencies The following table reflects the obligations not reflected on the Consolidated Balance Sheets as of September 30, 2023: Payments due by fiscal year (in thousands) Total 2024 2025 2026 2027 Thereafter Inventory purchase obligation (1) $ 182,567 $ 182,567 $ — $ — $ — $ — (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. Unfunded Capital Commitments As of September 30, 2023, the Company also has an obligation to fund uncalled capital commitments of approximately $9.0 million, as and when required, in relation to its investment in a private equity fund. Concentrations The following table reflect the significant customer concentrations as a percentage of net revenue for fiscal 2023, 2022, and 2021: Fiscal 2023 2022 2021 ASE Technology Holding * * 17.4 % * Represents less than 10% of total net revenue The following table reflects the significant customer concentrations as a percentage of total accounts receivable as of September 30, 2023 and October 1, 2022: As of September 30, 2023 October 1, 2022 Tianshui Huatian Technology Co., Ltd. * 16.7 % Haoseng Industrial Co., Ltd. (1) * 12.6 % (1) Distributor of the Company's products * Represents less than 10% of total accounts receivables |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2023 | |
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 2023: Beginning of period Charged to Costs and Expenses Other Additions Other Deductions End of period Allowance for doubtful accounts $ — $ 49 $ — $ — (1) $ 49 Inventory reserve $ 19,238 $ 4,284 $ — $ (2,237) (2) $ 21,285 Valuation allowance for deferred taxes $ 21,750 $ — $ — $ (267) (3) $ 21,483 Fiscal 2022: Allowance for doubtful accounts $ 687 $ (245) $ — $ (442) (1) $ — Inventory reserve $ 23,042 $ (2,171) $ — $ (1,633) (2) $ 19,238 Valuation allowance for deferred taxes $ 34,095 $ — $ — $ (12,345) (3) $ 21,750 Fiscal 2021: 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) (3) $ 34,095 (1) Represents write-offs of specific accounts receivable. (2) Sale or scrap of previously reserved inventory. (3) Reflects the net decrease in the valuation allowance primarily associated with the Company’s utilization of certain U.S. and 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 57,148 | $ 433,545 | $ 367,161 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
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, develops, 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 integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), foundry service providers, and other electronics manufacturers and 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, solutions and services, including those sold or provided 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, accrual for customer credit programs, 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. |
Vulnerability to Certain Concentrations | Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of September 30, 2023 and October 1, 2022 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’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, especially in light of the current macroeconomic headwinds. 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. |
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. Non-marketable equity securities are equity securities without readily determinable fair value that are measured and recorded as follows: • Either using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes, or; |
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 the existing macroeconomic headwinds, 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, 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. |
Government Incentives | Government Incentives The Company receives government incentives for qualifying research and development, and other activities as defined by the relevant government entities awarding the grants. Government grants, including non-income tax incentives, are recognized when there is reasonable assurance that the grant will be received and the Company will comply with the conditions specified in the grant agreement. The Company records operating grants as a reduction to expense in the same line item on the consolidated statements of income as the expenditure for which the grant is intended to compensate. The Company recognized an immaterial benefit for operating grants in fiscal 2023. |
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 the distributors’ 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 manufacturing defects 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 agreed specifications, customer specifications or subject to satisfactory installation 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 2023 and 2022, 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. Contract Assets A contract asset is the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer. ASC 606, Revenue from Contracts with Customers , distinguishes between a contract asset and a receivable based on whether receipt of the consideration is conditional on something other than the passage of time. When the Company transfers control of goods or services to a customer before the customer pays consideration, the Company records either a contract asset or a receivable depending on the nature of the Company’s right to consideration for its performance. The point at which a contract asset becomes an account receivable may be earlier than the point at which an invoice is issued. The Company assesses a contract asset for impairment in accordance with ASC 310, Receivables . |
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 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 stock outstanding during the period. Diluted EPS include the weighted average number of common stock and the dilutive effect of stock options, performance share units and restricted share units outstanding during the period, when such instruments are dilutive. |
Accelerated Share Repurchase | Accelerated Share Repurchase From time to time, the Company may enter into accelerated share repurchase (“ASR”) agreements with third-party financial institutions to repurchase shares of the Company’s common stock. Under an ASR agreement, in exchange for an up-front payment, the counterparty makes an initial delivery of shares of the Company’s common stock during the purchase period of the relevant ASR. This initial delivery of shares represents the minimum number of shares that the Company may receive under an ASR agreement. Upon settlement of an ASR agreement, the counterparty may deliver additional shares, with the final number of shares delivered determined based on the volume-weighted average price of the Company’s common stock over the term of such ASR agreement, less an agreed-upon discount. The transactions are accounted for as equity transactions and are included in Treasury Stock when the shares are received, at which time there is an immediate reduction in the weighted-average common stock calculation for basic and diluted earnings per share. |
Accounting for Business Acquisitions | Accounting for Business Acquisitions The Company accounts for business acquisitions in accordance with ASC No. 805, Business Combinations . The fair value of the net assets acquired and the results of operations of the acquired businesses are included in the consolidated financial statements from the acquisition date forward. The Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property, plant and equipment, 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 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 Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which aims at increasing the transparency of government assistance received by most business entities. The standard requires business entities to make annual disclosures about the nature of the transactions and the related accounting policy used to account for the transactions, the line items and applicable amounts on the balance sheet and income statement that are affected by the transactions, and significant terms and conditions of the transactions, including commitments and contingencies. If an entity omits any required disclosures because it is legally prohibited, it must disclose that fact. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2021, which for the Company is the first quarter of fiscal 2023. The adoption of this ASU did not have a material impact on our consolidated financial statements. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606: Revenue from Contracts with Customers . The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments with early adoption permitted. We elected for an early adoption of this ASU in fiscal year 2023. The adoption of this ASU did not have a material impact on our consolidated financial statements. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of significant balance sheet accounts | The following tables reflect the components of significant balance sheet accounts as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Inventories, net: Raw materials and supplies $ 114,827 $ 118,833 Work in process 74,555 40,114 Finished goods 49,207 45,277 238,589 204,224 Inventory reserves (21,285) (19,238) $ 217,304 $ 184,986 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements 23,105 22,783 Leasehold improvements 82,927 32,400 Data processing equipment and software 37,483 38,223 Machinery, equipment, furniture and fixtures 95,692 90,151 Construction in progress 11,099 25,004 252,488 210,743 Accumulated depreciation (142,437) (129,835) $ 110,051 $ 80,908 Accrued expenses and other current liabilities: Accrued customer obligations (1) $ 35,701 $ 58,916 Wages and benefits 33,096 50,279 Commissions and professional fees 4,091 5,019 Dividends payable 10,710 9,743 Accrued leasehold renovations 11,005 — Other 8,402 10,584 $ 103,005 $ 134,541 (1) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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) February 22, 2023 Cash and cash equivalents $ 1,238 Account and other receivables, net 1,156 Inventory 1,581 Property, plant and equipment, net 1,462 Right-of-use assets 989 Other assets 127 Goodwill 27,975 Intangible assets 7,768 Accounts and other payables (965) Accrued expenses and other liabilities (251) Contract liabilities (187) Lease liability (989) Deferred tax liabilities (1,785) Total purchase price, net of cash acquired $ 38,119 The following table summarizes the fair value, useful life and valuation methodology of each identifiable intangible asset. (in thousands) Fair Value Useful Lives Developed technology (1) $ 4,261 8 Customer relationships (2) 2,131 8 In-process research and development (“IPR&D”) (3) 459 N.A. Patents (3) 524 8 Order Backlog (4) 393 1 Total identifiable intangible assets $ 7,768 (1) The fair value of developed technology was determined using the Relief-from-Royalty Method under the income approach. (2) Customer relationships represent the fair value of the existing relationships using the Multi-Period Excess Earnings Method under the income approach. (3) The fair value of IPR&D and Patents were determined using the Replacement Cost Method, a form of the cost approach. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes the Company’s recorded goodwill based on its reportable segments as of September 30, 2023 and October 1, 2022: (in thousands) Wedge Bonding Equipment APS All Others Total Balance at October 1, 2022 (1) 18,280 25,907 23,909 68,096 Acquired in business combination — — 27,975 27,975 Impairment charges — — (9,794) (9,794) Other — 202 2,194 2,396 Balance at September 30, 2023 18,280 26,109 44,284 88,673 (1) Cumulative goodwill impairment as of October 1, 2022 was approximately $35.2 million. |
Net intangible assets | The following table reflects net intangible assets as of September 30, 2023 and October 1, 2022: As of Average estimated (dollar amounts in thousands) September 30, 2023 October 1, 2022 useful lives (in years) Developed technology $ 80,959 $ 89,017 6.0 to 15.0 Accumulated amortization $ (55,877) $ (58,636) Net developed technology $ 25,082 $ 30,381 Customer relationships $ 36,764 $ 33,515 5.0 to 8.0 Accumulated amortization $ (34,789) $ (33,515) Net customer relationships $ 1,975 $ — In-process research and development $ 459 $ — N.A. Net in-process research and development $ 459 $ — Trade and brand name $ 7,130 $ 6,945 7.0 to 8.0 Accumulated amortization $ (7,130) $ (6,945) Net trade and brand name $ — $ — Other intangible assets $ 5,617 $ 4,700 1.0 to 8.0 Accumulated amortization $ (3,776) $ (3,142) Net other intangible assets $ 1,841 $ 1,558 Net intangible assets $ 29,357 $ 31,939 |
Estimated annual amortization expense related to intangible assets | The following table reflects estimated annual amortization expense related to intangible assets as of September 30, 2023: As of (in thousands) September 30, 2023 Fiscal 2024 $ 5,154 Fiscal 2025 $ 4,990 Fiscal 2026 $ 4,990 Fiscal 2027 $ 4,715 Fiscal 2028 $ 4,290 Fiscal 2029 and thereafter $ 5,218 Total amortization expense $ 29,357 |
CASH, CASH EQUIVALENTS, AND S_2
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents and short-term investments | Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2023: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 37,292 $ — $ — $ 37,292 Cash equivalents: Money market funds (1) 202,113 — (10) 202,103 Time deposits (2) 290,007 — — 290,007 Total cash and cash equivalents $ 529,412 $ — $ (10) $ 529,402 Short-term investments: Time deposits (2) $ 230,000 $ — $ — $ 230,000 Total short-term investments $ 230,000 $ — $ — $ 230,000 Total cash, cash equivalents, and short-term investments $ 759,412 $ — $ (10) $ 759,402 (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) All short-term investments were classified as available-for-sale and the fair value approximates cost basis. The Company did not recognize any realized gains or losses on the sale of investments during the fiscal years ended 2023 and 2022. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of October 1, 2022: (dollar amounts in thousands) Amortized Unrealized Unrealized Estimated Fair Value Current assets: Cash $ 173,402 $ — $ — $ 173,402 Cash equivalents: Money market funds (1) 157,145 — (20) 157,125 Time deposits (2) 225,010 — — 225,010 Total cash and cash equivalents $ 555,557 $ — $ (20) $ 555,537 Short-term investments: Time deposits (2) 220,000 — — 220,000 Total short-term investments $ 220,000 $ — $ — $ 220,000 Total cash, cash equivalents, restricted cash and short-term investments $ 775,557 $ — $ (20) $ 775,537 (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. |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Equity Investments [Abstract] | |
Disclosure of equity method investments | Equity investments consisted of the following as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Non-marketable equity securities $ 716 $ 5,397 During the year ended September 30, 2023, the Company recorded an impairment of $5.0 million on a non-marketable equity security without a readily determinable fair value. The entire amount of the investment in the non-marketable equity security was impaired due to a significant deterioration in the earnings performance of the equity investee. The impairment amount is recorded within “Selling, general and administrative expense” in the Consolidated Statement of Operations. Net Asset Value (“NAV”) (Private Equity Fund) : Equity investments in affiliated investment funds are valued based on the NAV reported by the investment fund in accordance with ASC Topic 820-10. Investments held by the affiliated investment fund include a diversified portfolio of investments in the global semiconductor industry. The Company receives distributions through the liquidation of the underlying investments by the affiliated investment fund. However, the period of time over which the underlying investments are expected to be liquidated is unknown. Additionally, the Company’s ability to withdraw from the fund is subject to restrictions. The term of the fund will continue until March 18, 2032 unless dissolved earlier or extended by the General Partner. In accordance with ASC Topic 820-10, this investment is measured at fair value using the NAV per share (or its equivalent) practical expedient has not been classified in the fair value hierarchy. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Derivative financial Instruments [Abstract] | |
Schedule of fair value of derivative instruments on balance sheet | The fair value of derivative instruments on our Consolidated Balance Sheets as of September 30, 2023 and October 1, 2022 is as follows: As of (in thousands) September 30, 2023 October 1, 2022 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Liability Derivatives (1) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 54,590 $ (723) $ 57,570 $ (2,234) Total derivatives $ 54,590 $ (723) $ 57,570 $ (2,234) (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 Sheets. (2) 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 years ended September 30, 2023 and October 1, 2022 was as follows: (in thousands) Fiscal 2023 2022 Foreign exchange forward contract in cash flow hedging relationships: Net gain/(loss) recognized in OCI, net of tax (1) $ 2,381 $ (2,694) Net gain/(loss) reclassified from accumulated OCI into earnings, net of tax (2) $ 870 $ (1,076) (1) Net change in the fair value of the effective portion classified in OCI. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of leases, cost | The following table shows the components of lease expense: (in thousands) Fiscal 2023 2022 Operating lease expense (1) $ 10,746 8,625 (1) Operating lease expense includes short-term lease expense, which is immaterial for the fiscal year ended September 30, 2023. 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 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 9,314 $ 7,908 |
Schedule of lessee assets and liabilities | The following table shows the weighted-average lease terms and discount rates for operating leases: Fiscal 2023 2022 Operating leases: Weighted-average remaining lease term (in years): 7.7 8.0 Weighted-average discount rate: 6.7 % 5.8 % |
Schedule of operating lease liability, maturity | Future lease payments, excluding short-term leases, as of September 30, 2023, are detailed as follows: (in thousands) Operating leases Fiscal 2024 $ 9,553 Fiscal 2025 9,180 Fiscal 2026 8,702 Fiscal 2027 6,796 Fiscal 2028 6,357 Fiscal 2029 and thereafter 22,307 Total minimum lease payments 62,895 Less: Interest 14,482 Present value of lease obligations 48,413 Less: Current portion 6,574 Long-term portion of lease obligations $ 41,839 |
SHAREHOLDERS' EQUITY AND EMPL_2
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Company’s matching contributions to the Plan | The following table reflects the Company’s contributions to the 401(k) Plan during fiscal 2023 and 2022: Fiscal (in thousands) 2023 2022 Cash $ 2,001 $ 1,973 |
Accumulated other comprehensive income reflected on the Consolidated Balance Sheets | The following table reflects the accumulated other comprehensive loss reflected on the Consolidated Balance Sheets as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Loss from foreign currency translation adjustments $ (20,178) $ (29,854) Unrecognized actuarial loss on pension plan, net of tax (861) (812) Unrealized loss on hedging (723) (2,234) Accumulated other comprehensive loss $ (21,762) $ (32,900) |
Equity-based compensation expense | The following table reflects the 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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Cost of sales $ 1,192 $ 960 $ 828 Selling, general and administrative 16,239 13,911 10,998 Research and development 5,313 4,115 3,676 Total equity-based compensation expense $ 22,744 $ 18,986 $ 15,502 The following table reflects the equity-based compensation expense, by type of award, for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Relative TSR PSUs 4,949 4,255 3,916 Time-based RSUs 14,304 11,655 10,314 Growth PSUs 2,491 2,127 444 Common stock 1,000 949 828 Total equity-based compensation expense $ 22,744 $ 18,986 $ 15,502 |
Employee market-based restricted stock activity | The following table reflects the Relative TSR PSUs activity for fiscal 2023, 2022, and 2021: Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Relative TSR PSUs outstanding as of October 3, 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 Granted 152 $ 52.18 Forfeited or expired (11) Vested (205) Relative TSR PSUs outstanding as of October 1, 2022 380 $ 4,619 0.9 Granted 187 $ 48.35 Forfeited or expired (3) Vested (197) Relative TSR PSUs outstanding as of September 30, 2023 367 $ 5,939 1.0 |
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 2023, 2022, and 2021: Fiscal 2023 2022 2021 Grant price $ 37.50 $ 49.20 $ 23.88 Expected dividend yield 1.81 % 1.14 % 2.01 % Expected stock price volatility 53.79 % 48.50 % 45.15 % Risk-free interest rate 4.42 % 0.68 % 0.21 % |
Employee time-based restricted stock activity | The following table reflects the Time-based RSUs activity for fiscal 2023, 2022, and 2021: Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Time-based RSUs outstanding as of October 3, 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 Granted 301 $ 49.47 Forfeited or expired (29) Vested (453) Time-based RSUs outstanding as of October 1, 2022 736 $ 13,752 1.2 Granted 513 $ 37.64 Forfeited or expired (28) Vested (389) Time-based RSUs outstanding as of September 30, 2023 832 $ 17,693 1.5 |
Schedule of special/growth based restricted stock activity | The following table reflects the Growth PSUs activity for fiscal 2023, 2022, and 2021: 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 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 Granted 79 $ 49.26 Forfeited or expired (4) Vested (100) Special/Growth PSUs outstanding as of October 1, 2022 127 $ 1,405 0.9 Granted 91 $ 37.55 Forfeited or expired (1) Vested (95) Special/Growth PSUs outstanding as of September 30, 2023 122 $ 1,626 1.0 |
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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Number of common stock issued 21 18 22 Fair value based upon market price at time of issue $ 1,000 $ 949 $ 828 |
Defined benefits pension obligations and pension expenses | The following table reflects the Company’s defined benefits pension obligations, mainly in Switzerland and Taiwan, as of September 30, 2023 and October 1, 2022: As of (in thousands) September 30, 2023 October 1, 2022 Switzerland pension obligation $ 1,119 $ 1,038 Taiwan pension obligation 1,257 1,189 |
REVENUE AND CONTRACT BALANCES (
REVENUE AND CONTRACT BALANCES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Changes in contract assets and liabilities | The following table shows the changes in contract asset balances during the fiscal years ended September 30, 2023 and October 1, 2022: Fiscal (in thousands) 2023 2022 Contract assets, beginning of period $ 26,317 $ — Additions 4,230 51,774 Transferred to accounts receivable or collected (20,366) (25,457) Contract assets, end of period $ 10,181 $ 26,317 The following table shows the changes in contract liability balances during the fiscal years ended September 30, 2023 and October 1, 2022: Fiscal (in thousands) 2023 2022 Contract liabilities, beginning of period $ 3,160 $ 15,596 Revenue recognized (38,435) (116,399) Additions 40,072 103,963 Contract liabilities, end of period $ 4,797 $ 3,160 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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 2023, 2022, and 2021: Fiscal (in thousands, except per share) 2023 2022 2021 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 57,148 $ 57,148 $ 433,545 $ 433,545 $ 367,161 $ 367,161 DENOMINATOR: Weighted average shares outstanding - Basic 56,682 56,682 60,164 60,164 62,009 62,009 Dilutive effect of Equity Plans 866 1,018 1,506 Weighted average shares outstanding - Diluted 57,548 61,182 63,515 EPS: Net income per share - Basic $ 1.01 $ 1.01 $ 7.21 $ 7.21 $ 5.92 $ 5.92 Effect of dilutive shares $ (0.02) $ (0.12) $ (0.14) Net income per share - Diluted $ 0.99 $ 7.09 $ 5.78 Anti-dilutive shares (1) 15 1 2 (1) Represents the Relative TSR PSUs and Growth PSUs that are excluded from the calculation of diluted earnings per share for fiscal 2023, 2022, and 2021 as the effect would have been anti-dilutive. |
OTHER FINANCIAL DATA (Tables)
OTHER FINANCIAL DATA (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional financial information disclosure | The following table reflects the other financial data for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Incentive compensation expense $ 10,424 $ 27,011 $ 39,779 Warranty and retrofit expense 13,729 16,349 22,068 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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 the U.S. and foreign income (loss) before income taxes for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 United States $ (5,635) $ (11,415) $ (8,853) Foreign 77,836 488,403 423,403 Income before income taxes $ 72,201 $ 476,988 $ 414,550 |
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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Current: Federal $ 10,412 $ 14,975 $ 26,563 State (128) 246 261 Foreign 8,830 37,448 30,771 Deferred: Federal 1,304 (5,809) (2,979) State — — — Foreign (5,365) (3,417) (7,321) Provision for income taxes $ 15,053 $ 43,443 $ 47,295 |
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 2023, 2022, and 2021: Fiscal (dollar amounts in thousands) 2023 2022 2021 Expected income tax provision based on the U.S. federal statutory tax rate $ 15,162 $ 100,212 $ 86,915 Effect of earnings of foreign subsidiaries subject to different tax rates (8,448) (17,936) (15,028) Benefit from tax incentives (11,198) (50,113) (45,501) Benefit from research and development tax credits (4,038) (2,995) (2,705) Benefit from foreign tax credits (7,834) (26,021) (20,281) Valuation allowance 3,127 (5,830) (11,620) Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) 24,450 45,421 52,414 Goodwill impairment 2,517 — — Other, net (1) 1,315 705 3,101 Provision for income taxes $ 15,053 $ 43,443 $ 47,295 Effective tax rate 20.8 % 9.1 % 11.4 % |
Net deferred tax balance | The following table reflects the deferred tax balances based on the tax effects of cumulative temporary differences for fiscal 2023 and 2022: Fiscal (in thousands) 2023 2022 Accruals and reserves $ 13,118 $ 14,168 Capitalized Research (1) 12,529 25,105 Tax credit carryforwards 5,026 3,893 Net operating loss carryforwards 26,607 15,329 Gross deferred tax assets $ 57,280 $ 58,495 Valuation allowance $ (21,483) $ (21,750) Deferred tax assets, net of valuation allowance $ 35,797 $ 36,745 Fixed and intangible assets (1) $ (16,357) $ (19,142) Taxes on undistributed foreign earnings (25,153) (26,068) Deferred tax liabilities $ (41,510) $ (45,210) Net deferred tax liabilities $ (5,713) $ (8,465) Reported as Deferred tax assets $ 31,551 $ 25,572 Deferred tax liabilities (37,264) (34,037) Net deferred tax liabilities $ (5,713) $ (8,465) |
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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Unrecognized tax benefit, beginning of year $ 16,623 $ 14,922 $ 13,064 Additions for tax positions, current year 1,493 2,288 4,003 Reductions for tax positions, prior year (1,497) (587) (2,145) Unrecognized tax benefit, end of year $ 16,619 $ 16,623 $ 14,922 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Operating information by segment | The following table reflects the operating information by reportable segment for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Net revenue: Ball Bonding Equipment $ 287,465 $ 909,428 $ 1,016,663 Wedge Bonding Equipment 175,550 194,086 138,836 Advanced Solutions 72,256 94,683 35,123 APS 160,718 197,152 205,088 All Others 46,502 108,271 121,954 Net revenue 742,491 1,503,620 1,517,664 Income/(loss) from operations: Ball Bonding Equipment $ 81,929 385,276 401,450 Wedge Bonding Equipment 63,088 66,649 34,563 Advanced Solutions (32,530) (15,389) (40,759) APS 47,654 82,473 75,400 All Others (36,797) 25,732 20,565 Corporate Expenses (83,907) (74,669) (78,772) Income from Operations 39,437 470,072 412,447 |
Revenue from external customers by products and services | The following table reflects the net revenue by end markets served for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 General Semiconductor $ 333,937 $ 843,763 $ 928,259 Automotive & Industrial 175,249 198,138 129,817 LED 50,166 137,077 187,568 Memory 22,421 127,490 66,932 APS 160,718 197,152 205,088 Total revenue $ 742,491 $ 1,503,620 $ 1,517,664 |
Capital expenditures and depreciation expense | The following tables reflect the capital expenditures, depreciation and amortization expense by reportable segment for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Capital expenditures: Ball Bonding Equipment $ 1,087 $ 978 $ 1,627 Wedge Bonding Equipment 436 1,450 387 Advanced Solutions 30,522 19,036 6,090 APS 5,298 4,964 5,286 All Others $ 658 $ 1,364 $ 1,046 Corporate Expenses 9,701 4,441 8,119 Capital expenditures $ 47,702 $ 32,233 $ 22,555 Fiscal (in thousands) 2023 2022 2021 Depreciation expense: Ball Bonding Equipment $ 1,538 $ 1,398 $ 1,153 Wedge Bonding Equipment 1,169 981 940 Advanced Solutions 7,706 2,034 845 APS 6,166 6,632 5,969 All Others $ 1,505 1,047 1,179 Corporate Expenses 4,674 4,284 3,750 Depreciation expense $ 22,758 $ 16,376 $ 13,836 Fiscal (in thousands) 2023 2022 2021 Amortization expense: Ball Bonding Equipment $ — $ — $ — Wedge Bonding Equipment — — — Advanced Solutions — — — APS 896 994 2,319 All Others $ 4,837 3,557 3,369 Corporate Expenses 366 366 286 Amortization expense $ 6,099 $ 4,917 $ 5,974 |
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 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Destination sales to unaffiliated customers: China $ 335,393 $ 855,345 $ 843,470 United States 65,705 83,906 54,353 Taiwan 66,358 123,995 275,251 Malaysia 64,013 126,520 70,253 Japan 35,849 18,092 11,850 Philippines 31,527 44,510 17,651 Korea 17,977 87,647 58,308 Hong Kong 13,933 27,216 82,436 All other (1) 111,736 136,389 104,092 Total destination sales to unaffiliated customers $ 742,491 $ 1,503,620 $ 1,517,664 (1) Certain balances in fiscal 2022 and 2021 have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2022 and 2021. Fiscal (in thousands) 2023 2022 Long-lived assets: Singapore $ 95,489 $ 59,672 United States 24,894 31,469 China 17,717 19,548 Israel 9,264 10,610 All others 13,774 9,647 Total long-lived assets $ 161,138 $ 130,946 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reserve for product warranty activity | The following table reflects the reserve for product warranty activity for fiscal 2023, 2022, and 2021: Fiscal (in thousands) 2023 2022 2021 Reserve for warranty, beginning of period $ 13,443 $ 16,961 $ 9,576 Provision for warranty 12,850 12,907 18,889 Utilization of reserve (15,836) (16,425) (11,504) Reserve for warranty, end of period $ 10,457 $ 13,443 $ 16,961 |
Obligations not reflected on the Consolidated Balance Sheet | The following table reflects the obligations not reflected on the Consolidated Balance Sheets as of September 30, 2023: Payments due by fiscal year (in thousands) Total 2024 2025 2026 2027 Thereafter Inventory purchase obligation (1) $ 182,567 $ 182,567 $ — $ — $ — $ — |
Significant customer concentrations as a percentage of net revenue | The following table reflect the significant customer concentrations as a percentage of net revenue for fiscal 2023, 2022, and 2021: Fiscal 2023 2022 2021 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 the significant customer concentrations as a percentage of total accounts receivable as of September 30, 2023 and October 1, 2022: As of September 30, 2023 October 1, 2022 Tianshui Huatian Technology Co., Ltd. * 16.7 % Haoseng Industrial Co., Ltd. (1) * 12.6 % (1) Distributor of the Company's products * Represents less than 10% of total accounts receivables |
BASIS OF PRESENTATION (Inventor
BASIS OF PRESENTATION (Inventories) (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Equipment | |
Inventory [Line Items] | |
Reserves for inventory in excess of demand inventory future consumption period | 18 months |
Spare Parts | |
Inventory [Line Items] | |
Reserves for inventory in excess of demand inventory future consumption period | 24 months |
Expendable tools | |
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) | Sep. 30, 2023 |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful life | 25 years |
Toolings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 1 year |
Computer software costs | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
BALANCE SHEET COMPONENTS (Compo
BALANCE SHEET COMPONENTS (Components of significant balance sheet accounts) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Short-term investments | $ 230,000 | $ 220,000 |
Inventories, net: | ||
Raw materials and supplies | 114,827 | 118,833 |
Work in process | 74,555 | 40,114 |
Finished goods | 49,207 | 45,277 |
Inventory, gross | 238,589 | 204,224 |
Inventory reserves | (21,285) | (19,238) |
Inventories, net | 217,304 | 184,986 |
Property, plant and equipment, net: | ||
Land | 2,182 | 2,182 |
Buildings and building improvements | 23,105 | 22,783 |
Leasehold improvements | 82,927 | 32,400 |
Data processing equipment and software | 37,483 | 38,223 |
Machinery, equipment, furniture and fixtures | 95,692 | 90,151 |
Construction in progress | 11,099 | 25,004 |
Property, plant and equipment, gross | 252,488 | 210,743 |
Accumulated depreciation | (142,437) | (129,835) |
Property, plant and equipment, net | 110,051 | 80,908 |
Accrued expenses and other current liabilities: | ||
Accrued customer obligations | 35,701 | 58,916 |
Wages and benefits | 33,096 | 50,279 |
Commissions and professional fees | 4,091 | 5,019 |
Dividends payable | 10,710 | 9,743 |
Accrued leasehold renovations | 11,005 | 0 |
Other | 8,402 | 10,584 |
Accrued expenses and other current liabilities | $ 103,005 | $ 134,541 |
BUSINESS COMBINATIONS (Narrativ
BUSINESS COMBINATIONS (Narrative) (Details) - Advanced Jet Automation Co. Ltd - USD ($) $ in Millions | 12 Months Ended | |
Feb. 23, 2023 | Sep. 30, 2023 | |
Business Acquisition [Line Items] | ||
Cash purchase price | $ 38.1 | |
Amount held in escrow | $ 4 | |
Amount held in escrow, period from acquisition date | 24 months | |
Net loss contributed | $ 3 | |
Expenses incurred related to the acquisition | $ 0.5 |
BUSINESS COMBINATIONS (Assets A
BUSINESS COMBINATIONS (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Feb. 22, 2023 | Oct. 01, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 88,673 | $ 68,096 | |
Advanced Jet Automation Co. Ltd | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,238 | ||
Account and other receivables, net | 1,156 | ||
Inventory | 1,581 | ||
Property, plant and equipment, net | 1,462 | ||
Right-of-use assets | 989 | ||
Other assets | 127 | ||
Goodwill | 27,975 | ||
Intangible assets | 7,768 | ||
Accounts and other payables | (965) | ||
Accrued expenses and other liabilities | (251) | ||
Contract liabilities | (187) | ||
Lease liability | (989) | ||
Deferred tax liabilities | (1,785) | ||
Total purchase price, net of cash acquired | $ 38,119 |
BUSINESS COMBINATIONS (Intangib
BUSINESS COMBINATIONS (Intangible assets acquired) (Details) - Advanced Jet Automation Co. Ltd $ in Thousands | Feb. 22, 2023 USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 7,768 |
Developed technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 4,261 |
Useful Lives | 8 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets | $ 2,131 |
Useful Lives | 8 years |
In-process research and development | |
Business Acquisition [Line Items] | |
Intangible assets | $ 459 |
Patents | |
Business Acquisition [Line Items] | |
Intangible assets | $ 524 |
Useful Lives | 8 years |
Order Backlog | |
Business Acquisition [Line Items] | |
Intangible assets | $ 393 |
Useful Lives | 1 year |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Line Items] | |
Impairment charges | $ 9,794 |
Developed technology | |
Goodwill [Line Items] | |
Cumulative impairment | 6,900 |
All Others | |
Goodwill [Line Items] | |
Impairment charges | $ 9,794 |
Terminal growth rate | |
Goodwill [Line Items] | |
Measurement input | 2.50% |
Discount rate | |
Goodwill [Line Items] | |
Measurement input | 11.70% |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Recorded Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Goodwill [Line Items] | ||
Goodwill beginning balance | $ 68,096 | |
Acquired in business combination | 27,975 | |
Impairment charges | (9,794) | |
Other | 2,396 | |
Goodwill ending balance | 88,673 | |
Goodwill, cumulative impairment | $ 35,200 | |
Wedge Bonding Equipment | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 18,280 | |
Acquired in business combination | 0 | |
Impairment charges | 0 | |
Other | 0 | |
Goodwill ending balance | 18,280 | |
APS | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 25,907 | |
Acquired in business combination | 0 | |
Impairment charges | 0 | |
Other | 202 | |
Goodwill ending balance | 26,109 | |
All Others | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 23,909 | |
Acquired in business combination | 27,975 | |
Impairment charges | (9,794) | |
Other | 2,194 | |
Goodwill ending balance | $ 44,284 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Net intangible assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 29,357 | $ 31,939 |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | 459 | 0 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 80,959 | 89,017 |
Accumulated amortization | (55,877) | (58,636) |
Impairment charges | (6,900) | |
Net intangible assets | 25,082 | 30,381 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 36,764 | 33,515 |
Accumulated amortization | (34,789) | (33,515) |
Net intangible assets | 1,975 | 0 |
Trade and brand name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 7,130 | 6,945 |
Accumulated amortization | (7,130) | (6,945) |
Net intangible assets | 0 | 0 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 5,617 | 4,700 |
Accumulated amortization | (3,776) | (3,142) |
Net intangible assets | $ 1,841 | $ 1,558 |
Minimum | Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 6 years | |
Minimum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | |
Minimum | Trade and brand name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Minimum | Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 1 year | |
Maximum | Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 15 years | |
Maximum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years | |
Maximum | Trade and brand name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years | |
Maximum | Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Estimated annual amortization expense) (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2024 | $ 5,154 |
Fiscal 2025 | 4,990 |
Fiscal 2026 | 4,990 |
Fiscal 2027 | 4,715 |
Fiscal 2028 | 4,290 |
Fiscal 2029 and thereafter | 5,218 |
Total amortization expense | $ 29,357 |
CASH, CASH EQUIVALENTS, AND S_3
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, Amortized Cost | $ 529,402 | $ 555,537 |
Cash | 37,292 | 173,402 |
Total cash and cash equivalents, Amortized Cost | 529,412 | 555,557 |
Total cash and cash equivalents, Unrealized Gains | 0 | 0 |
Total cash and cash equivalents, Unrealized Losses | (10) | (20) |
Total cash and cash equivalents, Estimated Fair Value | 529,402 | 555,537 |
Short-term investments | 230,000 | 220,000 |
Short-term investments, Unrealized Gains | 0 | 0 |
Short-term investments, Unrealized Losses | 0 | 0 |
Short-term investments, Estimated Fair Value | 230,000 | 220,000 |
Total cash, cash equivalents, restricted cash and short-term investments | 759,412 | 775,557 |
Total cash, cash equivalents, restricted cash and short-term investments, Unrealized Gains | 0 | 0 |
Total cash, cash equivalents, restricted cash and short-term investments, Unrealized Losses | (10) | (20) |
Total cash, cash equivalents, restricted cash and short-term investments, Estimated Fair Value | 759,402 | 775,537 |
Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 37,292 | 173,402 |
Cash equivalents, Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 202,113 | 157,145 |
Cash equivalents, Unrealized Gains | 0 | 0 |
Cash equivalents, Unrealized Losses | (10) | (20) |
Cash equivalents, Estimated Fair Value | 202,103 | 157,125 |
Cash equivalents, Time deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 290,007 | 225,010 |
Cash equivalents, Unrealized Gains | 0 | 0 |
Cash equivalents, Unrealized Losses | 0 | 0 |
Cash equivalents, Estimated Fair Value | 290,007 | 225,010 |
Short-term investments | 230,000 | 220,000 |
Short-term investments, Unrealized Gains | 0 | 0 |
Short-term investments, Unrealized Losses | 0 | 0 |
Short-term investments, Estimated Fair Value | $ 230,000 | $ 220,000 |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Equity Investments [Abstract] | ||
Non-marketable equity securities | $ 716 | $ 5,397 |
EQUITY INVESTMENTS - Narrative
EQUITY INVESTMENTS - Narrative (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Equity Investments [Abstract] | |
Impairment loss on non-marketable equity securities | $ 5 |
Equity securities funded | 1 |
Unrealized fair value loss | $ 0.3 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 54,590 | $ 57,570 |
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 | $ (723) | (2,234) |
Foreign exchange forward contratct | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Term of contract | 12 months | |
Notional Amount | $ 54,590 | 57,570 |
Foreign exchange forward contratct | Designated as hedging instrument | Accrued expenses and other current liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value Liability Derivatives | $ (723) | $ (2,234) |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Derivative Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized gain / (loss) on derivative instruments, net of tax | $ 2,381 | $ (2,694) | $ 24 |
Reclassification adjustment for (gain) / loss on derivative instruments recognized, net of tax | 870 | (1,076) | $ 1,197 |
Other comprehensive income (loss) | Foreign exchange forward contratct | Designated as hedging instrument | Cash flow hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Unrealized gain / (loss) on derivative instruments, net of tax | 2,381 | (2,694) | |
Selling, general and administrative expenses | Foreign exchange forward contratct | Designated as hedging instrument | Cash flow hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Reclassification adjustment for (gain) / loss on derivative instruments recognized, net of tax | $ 870 | $ (1,076) |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2023 renewal_option | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | 4 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease renewal term | 20 years |
LEASES (Components of Lease Exp
LEASES (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 10,746 | $ 8,625 |
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 | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 9,314 | $ 7,908 |
LEASES (Weighted-Average Lease
LEASES (Weighted-Average Lease Terms and Discount Rate for Operating Leases) (Details) | Sep. 30, 2023 | Oct. 01, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years): | 7 years 8 months 12 days | 8 years |
Weighted-average discount rate: | 6.70% | 5.80% |
LEASES (Future Lease Payments,
LEASES (Future Lease Payments, Excluding Short-term Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Leases [Abstract] | ||
Fiscal 2024 | $ 9,553 | |
Fiscal 2025 | 9,180 | |
Fiscal 2026 | 8,702 | |
Fiscal 2027 | 6,796 | |
Fiscal 2028 | 6,357 | |
Fiscal 2029 and thereafter | 22,307 | |
Total minimum lease payments | 62,895 | |
Less: Interest | 14,482 | |
Present value of lease obligations | 48,413 | |
Less: Current portion | 6,574 | $ 6,766 |
Long-term portion of lease obligations | $ 41,839 | $ 34,927 |
DEBT AND OTHER OBLIGATIONS (Nar
DEBT AND OTHER OBLIGATIONS (Narrative) (Details) - USD ($) $ in Millions | Feb. 15, 2019 | Sep. 30, 2023 | Oct. 01, 2022 | Nov. 22, 2013 |
Citibank | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 5 | |||
Long-term line of credit | $ 3.1 | $ 2.9 | ||
MUFG Bank, Ltd., Singapore branch | Facility agreements | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150 | |||
MUFG Bank, Ltd., Singapore branch | Overdraft facility | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | $ 0 | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | MUFG Bank, Ltd., Singapore branch | Facility agreements | ||||
Debt Instrument [Line Items] | ||||
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 | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Cash | $ 2,001 | $ 1,973 |
SHAREHOLDERS' EQUITY AND EMPL_4
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Accumulated other comprehensive income) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Share-Based Payment Arrangement [Abstract] | ||
Loss from foreign currency translation adjustments | $ (20,178) | $ (29,854) |
Unrecognized actuarial loss on pension plan, net of tax | (861) | (812) |
Unrealized loss on hedging | (723) | (2,234) |
Accumulated other comprehensive loss | $ (21,762) | $ (32,900) |
SHAREHOLDERS' EQUITY AND EMPL_5
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Total equity-based compensation expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | $ 22,744 | $ 18,986 | $ 15,502 |
Relative TSR PSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 4,949 | 4,255 | 3,916 |
Time-based RSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 14,304 | 11,655 | 10,314 |
Growth PSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 2,491 | 2,127 | 444 |
Common Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 1,000 | 949 | 828 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 1,192 | 960 | 828 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | 16,239 | 13,911 | 10,998 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total equity-based compensation expense (reversal) | $ 5,313 | $ 4,115 | $ 3,676 |
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 | |||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | Oct. 03, 2020 | |
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) | 380 | 444 | 403 | |
Number of shares, Granted (in shares) | 187 | 152 | 155 | |
Number of shares, Forfeited or expired (in shares) | (3) | (11) | (6) | |
Number of shares, Vested (in shares) | (197) | (205) | (108) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 367 | 380 | 444 | 403 |
Unrecognized compensation expense | $ 5,939 | $ 4,619 | $ 4,455 | $ 4,198 |
Average remaining service period (in years) | 1 year | 10 months 24 days | 1 year 1 month 6 days | 1 year 1 month 6 days |
Weighted average grant date fair value per share | $ 48.35 | $ 52.18 | $ 28.21 |
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 | |||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | Oct. 03, 2020 | |
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) | 736 | 917 | 788 | |
Number of shares, Granted (in shares) | 513 | 301 | 486 | |
Number of shares, Forfeited or expired (in shares) | (28) | (29) | (24) | |
Number of shares, Vested (in shares) | (389) | (453) | (333) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 832 | 736 | 917 | 788 |
Unrecognized compensation expense | $ 17,693 | $ 13,752 | $ 11,420 | $ 10,480 |
Average remaining service period (in years) | 1 year 6 months | 1 year 2 months 12 days | 1 year 4 months 24 days | 1 year 7 months 6 days |
Weighted average grant date fair value per share | $ 37.64 | $ 49.47 | $ 24.34 |
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 | |||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | Oct. 03, 2020 | |
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) | 127 | 152 | 151 | |
Number of shares, Granted (in shares) | 91 | 79 | 52 | |
Number of shares, Forfeited or expired (in shares) | (1) | (4) | (34) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (95) | (100) | (17) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 122 | 127 | 152 | 151 |
Unrecognized compensation expense | $ 1,626 | $ 1,405 | $ 1,247 | $ 1,252 |
Average remaining service period (in years) | 1 year | 10 months 24 days | 1 year | 1 year 1 month 6 days |
Weighted average grant date fair value per share | $ 37.55 | $ 49.26 | $ 24.01 |
SHAREHOLDERS' EQUITY AND EMPL_9
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 | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of common stock issued | 21 | 18 | 22 |
Fair value based upon market price at time of issue | $ 1,000 | $ 949 | $ 828 |
SHAREHOLDERS' EQUITY AND EMP_10
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Defined benefits pension obligations and pension expenses) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Switzerland pension obligation | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 1,119 | $ 1,038 |
Taiwan pension obligation | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 1,257 | $ 1,189 |
SHAREHOLDERS' EQUITY AND EMP_11
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Aug. 23, 2023 | Jun. 08, 2023 | Mar. 02, 2023 | Nov. 16, 2022 | Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends declared per share (in USD per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.76 |
Relative TSR PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
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] | |||||
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] | |||||
Vesting period | 3 years | ||||
Total shareholder return award performance measurement period | 3 years | ||||
Growth PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | 0 | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employer matching contribution percentage | 4% | ||||
Minimum | Relative TSR PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 0% | ||||
Minimum | Revenue growth performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 0% | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employer matching contribution percentage | 6% | ||||
Maximum | Relative TSR PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 200% | ||||
Maximum | Revenue growth performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 200% | ||||
Omnibus incentive plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 2,500,000 | ||||
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_12
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Assumptions Used to Calculate Compensation Expense) (Details) - Relative TSR PSUs - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant price | $ 37.50 | $ 49.20 | $ 23.88 |
Expected dividend yield | 1.81% | 1.14% | 2.01% |
Expected stock price volatility | 53.79% | 48.50% | 45.15% |
Risk-free interest rate | 4.42% | 0.68% | 0.21% |
SHAREHOLDERS' EQUITY AND EMP_13
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS Share Repurchase Program (Details) - USD ($) | 12 Months Ended | |||||
Mar. 03, 2022 | Sep. 30, 2023 | Jul. 03, 2020 | Jan. 31, 2019 | Jul. 10, 2018 | Aug. 15, 2017 | |
Share Repurchases [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 800,000,000 | $ 400,000,000 | $ 300,000,000 | $ 200,000,000 | ||
Increase (decrease) in stock repurchase program, authorized amount | $ 400,000,000 | |||||
Repurchase of common stock (in shares) | (1,515,000) | |||||
Stock repurchased during period | $ 68,100,000 | |||||
Remaining authorized repurchase amount | $ 181,000,000 | |||||
August 2017 share repurchase program | ||||||
Share Repurchases [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 100,000,000 |
REVENUE AND CONTRACT BALANCES -
REVENUE AND CONTRACT BALANCES - contract assets (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||
Contract assets, beginning of period | $ 26,317,000 | $ 0 |
Additions | 4,230,000 | 51,774,000 |
Transferred to accounts receivable or collected | (20,366,000) | (25,457,000) |
Contract assets, end of period | $ 10,181,000 | $ 26,317,000 |
REVENUE AND CONTRACT BALANCES_2
REVENUE AND CONTRACT BALANCES - Contract liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, beginning of period | $ 3,160 | $ 15,596 |
Revenue recognized | (38,435) | (116,399) |
Additions | 40,072 | 103,963 |
Contract liabilities, end of period | $ 4,797 | $ 3,160 |
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, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
NUMERATOR: | |||
Net income | $ 57,148 | $ 433,545 | $ 367,161 |
DENOMINATOR: | |||
Weighted average shares outstanding - Basic (in shares) | 56,682,000 | 60,164,000 | 62,009,000 |
Dilutive effect of equity plans (in shares) | 866,000 | 1,018,000 | 1,506,000 |
Weighted average shares outstanding - Diluted (in shares) | 57,548,000 | 61,182,000 | 63,515,000 |
EPS: | |||
Net income per share - Basic (in dollars per share) | $ 1.01 | $ 7.21 | $ 5.92 |
Effect of dilutive shares (in dollars per share) | (0.02) | (0.12) | (0.14) |
Net income per share - Diluted (in dollars per share) | $ 0.99 | $ 7.09 | $ 5.78 |
Antidilutive shares (in shares) | 15,000 | 1,000 | 2,000 |
OTHER FINANCIAL DATA Other Fina
OTHER FINANCIAL DATA Other Financial Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Incentive compensation expense | $ 10,424 | $ 27,011 | $ 39,779 |
Warranty and retrofit expense | $ 13,729 | $ 16,349 | $ 22,068 |
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 | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (5,635) | $ (11,415) | $ (8,853) |
Foreign | 77,836 | 488,403 | 423,403 |
Income before income taxes | 72,201 | 476,988 | 414,550 |
Income tax expenses / (benefit) | $ 15,053 | $ 43,443 | $ 47,295 |
Effective tax rate | 20.80% | 9.10% | 11.40% |
INCOME TAXES (Provision (benefi
INCOME TAXES (Provision (benefit) for income taxes from continuing operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Current: | |||
Federal | $ 10,412 | $ 14,975 | $ 26,563 |
State | (128) | 246 | 261 |
Foreign | 8,830 | 37,448 | 30,771 |
Deferred: | |||
Federal | 1,304 | (5,809) | (2,979) |
State | 0 | 0 | 0 |
Foreign | (5,365) | (3,417) | (7,321) |
Provision for income taxes | $ 15,053 | $ 43,443 | $ 47,295 |
INCOME TAXES (Effective income
INCOME TAXES (Effective income tax rate reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax provision based on the U.S. federal statutory tax rate | $ 15,162 | $ 100,212 | $ 86,915 |
Effect of earnings of foreign subsidiaries subject to different tax rates | (8,448) | (17,936) | (15,028) |
Benefit from tax incentives | (11,198) | (50,113) | (45,501) |
Benefit from research and development tax credits | (4,038) | (2,995) | (2,705) |
Benefit from foreign tax credits | (7,834) | (26,021) | (20,281) |
Valuation allowance | 3,127 | (5,830) | (11,620) |
Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) | 24,450 | 45,421 | 52,414 |
Goodwill impairment | 2,517 | 0 | 0 |
Other, net | 1,315 | 705 | 3,101 |
Provision for income taxes | $ 15,053 | $ 43,443 | $ 47,295 |
Effective tax rate | 20.80% | 9.10% | 11.40% |
INCOME TAXES (Net deferred tax
INCOME TAXES (Net deferred tax balance) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Income Tax Disclosure [Abstract] | ||
Accruals and reserves | $ 13,118 | $ 14,168 |
Capitalized Research | 12,529 | 25,105 |
Tax credit carryforwards | 5,026 | 3,893 |
Net operating loss carryforwards | 26,607 | 15,329 |
Gross deferred tax assets | 57,280 | 58,495 |
Valuation allowance | (21,483) | (21,750) |
Deferred tax assets, net of valuation allowance | 35,797 | 36,745 |
Fixed and intangible assets | (16,357) | (19,142) |
Taxes on undistributed foreign earnings | (25,153) | (26,068) |
Deferred tax liabilities | (41,510) | (45,210) |
Net deferred tax liabilities | (5,713) | (8,465) |
Deferred tax assets | 31,551 | 25,572 |
Deferred tax liabilities | $ (37,264) | $ (34,037) |
INCOME TAXES (Unrecognized tax
INCOME TAXES (Unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning of year | $ 16,623 | $ 14,922 | $ 13,064 |
Additions for tax positions, current year | 1,493 | 2,288 | 4,003 |
Reductions for tax positions, prior year | (1,497) | (587) | (2,145) |
Unrecognized tax benefit, end of year | $ 16,619 | $ 16,623 | $ 14,922 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Tax incentive arrangement, benefit to income tax provision | $ 11.2 | $ 50.1 | $ 45.5 |
Tax incentive arrangement, benefit to income tax provision, earnings per share impact (in dollars per share) | $ 0.19 | $ 0.82 | $ 0.72 |
Operating loss carryforwards, foreign | $ 89.7 | ||
Operating loss carryforwards, state and local | 35 | ||
Tax credit carryforwards | 7.8 | ||
Unrecognized tax benefits, accrued interest and penalties | 2.8 | ||
Unrecognized tax benefit that if recognized would impact effective tax rate | $ 17.9 | ||
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward, foreign, statute of limitations | 4 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward, foreign, statute of limitations | 6 years |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 12 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
SEGMENT INFORMATION (Operating
SEGMENT INFORMATION (Operating information by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Net revenue: | |||
Net revenue | $ 742,491 | $ 1,503,620 | $ 1,517,664 |
Income from operations: | |||
Income from Operations | 39,437 | 470,072 | 412,447 |
Ball Bonding Equipment | |||
Net revenue: | |||
Net revenue | 287,465 | 909,428 | 1,016,663 |
Income from operations: | |||
Income from Operations | 81,929 | 385,276 | 401,450 |
Wedge Bonding Equipment | |||
Net revenue: | |||
Net revenue | 175,550 | 194,086 | 138,836 |
Income from operations: | |||
Income from Operations | 63,088 | 66,649 | 34,563 |
Advanced Solutions | |||
Net revenue: | |||
Net revenue | 72,256 | 94,683 | 35,123 |
Income from operations: | |||
Income from Operations | (32,530) | (15,389) | (40,759) |
APS | |||
Net revenue: | |||
Net revenue | 160,718 | 197,152 | 205,088 |
Income from operations: | |||
Income from Operations | 47,654 | 82,473 | 75,400 |
All Others | |||
Net revenue: | |||
Net revenue | 46,502 | 108,271 | 121,954 |
Income from operations: | |||
Income from Operations | (36,797) | 25,732 | 20,565 |
Corporate Expenses | |||
Income from operations: | |||
Income from Operations | $ (83,907) | $ (74,669) | $ (78,772) |
SEGMENT INFORMATION (Net Revenu
SEGMENT INFORMATION (Net Revenue by Capital Equipment End Markets Served) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 742,491 | $ 1,503,620 | $ 1,517,664 |
General Semiconductor | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 333,937 | 843,763 | 928,259 |
Automotive & Industrial | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 175,249 | 198,138 | 129,817 |
LED | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 50,166 | 137,077 | 187,568 |
Memory | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 22,421 | 127,490 | 66,932 |
APS | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 160,718 | 197,152 | 205,088 |
Ball Bonding Equipment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 287,465 | $ 909,428 | $ 1,016,663 |
SEGMENT INFORMATION (Capital ex
SEGMENT INFORMATION (Capital expenditures, depreciation, and amortization expense by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Capital expenditures: | |||
Capital expenditures | $ 47,702 | $ 32,233 | $ 22,555 |
Depreciation expense: | |||
Depreciation expense | 22,758 | 16,376 | 13,836 |
Amortization expense: | |||
Amortization expense | 6,099 | 4,917 | 5,974 |
Ball Bonding Equipment | |||
Capital expenditures: | |||
Capital expenditures | 1,087 | 978 | 1,627 |
Depreciation expense: | |||
Depreciation expense | 1,538 | 1,398 | 1,153 |
Amortization expense: | |||
Amortization expense | 0 | 0 | 0 |
APS | |||
Capital expenditures: | |||
Capital expenditures | 5,298 | 4,964 | 5,286 |
Depreciation expense: | |||
Depreciation expense | 6,166 | 6,632 | 5,969 |
Amortization expense: | |||
Amortization expense | 896 | 994 | 2,319 |
Wedge Bonding Equipment | |||
Capital expenditures: | |||
Capital expenditures | 436 | 1,450 | 387 |
Depreciation expense: | |||
Depreciation expense | 1,169 | 981 | 940 |
Amortization expense: | |||
Amortization expense | 0 | 0 | 0 |
Advanced Solutions | |||
Capital expenditures: | |||
Capital expenditures | 30,522 | 19,036 | 6,090 |
Depreciation expense: | |||
Depreciation expense | 7,706 | 2,034 | 845 |
Amortization expense: | |||
Amortization expense | 0 | 0 | 0 |
All Others | |||
Capital expenditures: | |||
Capital expenditures | 658 | 1,364 | 1,046 |
Depreciation expense: | |||
Depreciation expense | 1,505 | 1,047 | 1,179 |
Amortization expense: | |||
Amortization expense | 4,837 | 3,557 | 3,369 |
Corporate Expenses | |||
Capital expenditures: | |||
Capital expenditures | 9,701 | 4,441 | 8,119 |
Depreciation expense: | |||
Depreciation expense | 4,674 | 4,284 | 3,750 |
Amortization expense: | |||
Amortization expense | $ 366 | $ 366 | $ 286 |
SEGMENT INFORMATION Sales by co
SEGMENT INFORMATION Sales by country (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | $ 742,491 | $ 1,503,620 | $ 1,517,664 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 335,393 | 855,345 | 843,470 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 65,705 | 83,906 | 54,353 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 66,358 | 123,995 | 275,251 |
Malaysia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 64,013 | 126,520 | 70,253 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 35,849 | 18,092 | 11,850 |
Philippines | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 31,527 | 44,510 | 17,651 |
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 17,977 | 87,647 | 58,308 |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | 13,933 | 27,216 | 82,436 |
All others | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total destination sales to unaffiliated customers | $ 111,736 | $ 136,389 | $ 104,092 |
SEGMENT INFORMATION Long-lived
SEGMENT INFORMATION Long-lived assets by countries (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Oct. 01, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 161,138 | $ 130,946 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 95,489 | 59,672 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 24,894 | 31,469 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 17,717 | 19,548 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 9,264 | 10,610 |
All others | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 13,774 | $ 9,647 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Narrative) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Other Commitments [Line Items] | |
Period of warranty for manufacturing defects | 1 year |
Unfunded capital commitments | |
Other Commitments [Line Items] | |
Other commitment | $ 9 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Reserve for product warranty activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Reserve for warranty, beginning of period | $ 13,443 | $ 16,961 | $ 9,576 |
Provision for warranty | 12,850 | 12,907 | 18,889 |
Utilization of reserve | (15,836) | (16,425) | (11,504) |
Reserve for warranty, end of period | $ 10,457 | $ 13,443 | $ 16,961 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Obligations not reflected on the Consolidated Balance Sheet) (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Inventory purchase obligation | $ 182,567 |
Inventory purchase obligation, Payments due by fiscal year 2024 | 182,567 |
Inventory purchase obligation, Payments due by fiscal year 2025 | 0 |
Inventory purchase obligation, Payments due by fiscal year 2026 | 0 |
Inventory purchase obligation, Payments due by fiscal year 2027 | 0 |
Inventory purchase obligation, Payments due by fiscal year thereafter | $ 0 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of net revenue) (Details) | 12 Months Ended |
Oct. 02, 2021 | |
Sales revenue net | Customer concentration risk | ASE Technology Holding | |
Concentration Risk [Line Items] | |
Customer concentrations risk percentage | 17.40% |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of total accounts receivable) (Details) - Accounts receivable - Customer concentration risk | 12 Months Ended |
Oct. 01, 2022 | |
Tianshui Huatian Technology Co., Ltd. | |
Concentration Risk [Line Items] | |
Customer concentrations risk percentage | 16.70% |
Haoseng Industrial Co., Ltd | |
Concentration Risk [Line Items] | |
Customer concentrations risk percentage | 12.60% |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | $ 21,750 | ||
End of period | 21,483 | $ 21,750 | |
Allowance for doubtful accounts [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | 0 | 687 | $ 968 |
Charged to Costs and Expenses | 49 | (245) | (248) |
Other Additions | 0 | 0 | 0 |
Other Deductions | 0 | (442) | (33) |
End of period | 49 | 0 | 687 |
Inventory reserve [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | 19,238 | 23,042 | 31,163 |
Charged to Costs and Expenses | 4,284 | (2,171) | (2,965) |
Other Additions | 0 | 0 | 0 |
Other Deductions | (2,237) | (1,633) | (5,156) |
End of period | 21,285 | 19,238 | 23,042 |
Valuation allowance for deferred taxes [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of period | 21,750 | 34,095 | 46,561 |
Charged to Costs and Expenses | 0 | 0 | 0 |
Other Additions | 0 | 0 | 0 |
Other Deductions | (267) | (12,345) | (12,466) |
End of period | $ 21,483 | $ 21,750 | $ 34,095 |