Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 06, 2023 | Jul. 02, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | ONTO INNOVATION INC. | ||
Trading Symbol | ONTO | ||
Entity Central Index Key | 0000704532 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 48,754,780 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,072,410,193 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-39110 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 16 Jonspin Road | ||
Entity Address, City or Town | Wilmington | ||
Entity Address, State or Province | MA | ||
City Area Code | 978 | ||
Local Phone Number | 253-6200 | ||
Entity Address, Postal Zip Code | 01887 | ||
Entity Tax Identification Number | 94-2276314 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Iselin, New Jersey | ||
Auditor Firm ID | 42 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K incorporate by reference information from the definitive proxy statement for the registrant’s annual meeting of stockholders scheduled to be held on May 9, 2023. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 1,005,183 | $ 788,899 | $ 556,496 |
Cost of revenue | 465,962 | 359,813 | 278,043 |
Gross profit | 539,221 | 429,086 | 278,453 |
Operating expenses: | |||
Research and development | 111,953 | 96,118 | 84,584 |
Sales and marketing | 65,688 | 57,235 | 48,136 |
General and administrative | 69,582 | 67,960 | 65,310 |
Amortization | 55,284 | 51,366 | 53,746 |
Total operating expenses | 302,507 | 272,679 | 251,776 |
Operating income (loss) | 236,714 | 156,407 | (26,677) |
Interest income, net | 5,011 | 1,163 | 2,899 |
Other income (expense), net | (141) | (1,888) | (2,708) |
Income (loss) before provision (benefit) for income taxes | 241,584 | 155,682 | (26,868) |
Provision (benefit) for income taxes | 18,250 | 13,333 | (4,157) |
Net income | $ 223,334 | $ 142,349 | $ 31,025 |
Earnings per share: | |||
Basic | $ 4.52 | $ 2.89 | $ 0.63 |
Diluted | $ 4.49 | $ 2.86 | $ 0.63 |
Weighted average number of shares outstanding: | |||
Basic | 49,424 | 49,242 | 49,136 |
Diluted | 49,764 | 49,728 | 49,475 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 223,334 | $ 142,349 | $ 31,025 |
Other comprehensive income (loss), net of tax: | |||
Change in net unrealized gains (losses) on available-for-sale marketable securities | (2,447) | (537) | 123 |
Change in currency translation adjustments | (8,879) | (2,715) | 5,043 |
Total other comprehensive income (loss), net of tax | (11,326) | (3,252) | 5,166 |
Total comprehensive income | $ 212,008 | $ 139,097 | $ 36,191 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 175,872 | $ 169,602 |
Marketable securities | 371,912 | 341,741 |
Accounts receivable, less allowance of $1,303 at January 1, 2022 and $784 at December 26, 2020 | 241,395 | 177,205 |
Inventories | 324,282 | 243,108 |
Prepaid expenses and other current assets | 21,411 | 16,433 |
Total current assets | 1,134,872 | 948,089 |
Property, plant and equipment, net | 91,980 | 82,094 |
Goodwill | 315,811 | 315,811 |
Identifiable intangible assets, net | 222,197 | 277,281 |
Deferred income taxes | 4,778 | 4,822 |
Other assets | 25,225 | 21,716 |
Total assets | 1,794,863 | 1,649,813 |
Current liabilities: | ||
Accounts payable | 54,526 | 53,345 |
Accrued liabilities | 48,836 | 43,042 |
Deferred revenue | 30,163 | 29,979 |
Other current liabilities | 27,033 | 28,160 |
Total current liabilities | 160,558 | 154,526 |
Deferred and other tax liabilities | 7,366 | 40,281 |
Other non-current liabilities | 30,513 | 28,951 |
Total liabilities | 198,437 | 223,758 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 3,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 97,000 shares authorized, 49,300 and 48,758 issued and outstanding at January 1, 2022 and December 26, 2020, respectively. | 49 | 49 |
Additional paid-in capital | 1,243,631 | 1,256,179 |
Accumulated other comprehensive income | (10,010) | 1,316 |
Accumulated earnings | 362,756 | 168,511 |
Total stockholders’ equity | 1,596,426 | 1,426,055 |
Total liabilities and stockholders’ equity | $ 1,794,863 | $ 1,649,813 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 1,572 | $ 1,303 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 97,000,000 | 97,000,000 |
Common stock, shares issued | 48,684,000 | 49,300,000 |
Common stock, shares outstanding | 48,684,000 | 49,300,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||||
Net income | $ 223,334 | $ 142,350 | $ 31,025 | ||
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||||
Depreciation | 9,378 | 14,435 | 13,832 | ||
Amortization of intangibles | 55,284 | 51,366 | $ 51,366 | 53,746 | |
Share-based compensation | 24,426 | 19,542 | 17,662 | ||
Research and Development Asset Acquired Other than Through Business Combination, Written-off | 5,652 | 0 | 0 | ||
Acquired inventory step-up amortization | 0 | 393 | 10,678 | ||
Provision for inventory valuation | 9,313 | 8,175 | 14,703 | ||
Deferred income taxes | (33,601) | (12,618) | (11,631) | ||
Other, net | (563) | 2,267 | 4,711 | ||
Change in operating assets and liabilities net of assets acquired and liabilities assumed in merger and acquisition: | |||||
Accounts receivable | (65,140) | (27,829) | (25,816) | ||
Income taxes | (5,006) | 1,307 | 1,196 | ||
Inventories | (93,905) | (57,175) | (42,409) | ||
Prepaid expenses and other assets | (4,954) | (768) | 11,409 | ||
Accounts payable | 1,181 | 12,142 | (11,403) | ||
Accrued and other liabilities | 11,304 | 21,694 | (17,867) | ||
Net cash and cash equivalents provided by operating activities | 136,703 | 175,281 | 105,984 | ||
Cash flows from investing activities: | |||||
Purchases of marketable securities | (371,287) | (361,022) | (313,027) | ||
Proceeds from maturities and sales of marketable securities | 338,645 | 255,063 | 265,409 | ||
Purchases of property, plant and equipment | (18,405) | (12,039) | (3,829) | ||
Purchase of business, net of cash acquired | (4,644) | (23,795) | 0 | ||
Cash received from convertible note receivable | 0 | 0 | 2,848 | ||
Net cash and cash equivalents provided by (used in) investing activities | (55,691) | (141,793) | 48,599 | ||
Cash flows from financing activities: | |||||
Purchases of common stock | (65,257) | 0 | (52,000) | ||
Tax payments related to shares withheld for share-based compensation plans | (8,874) | (7,403) | (4,052) | ||
Payment of contingent consideration for acquired business | (2,287) | 0 | (569) | ||
Issuance of shares through share-based compensation plans | 8,068 | 10,073 | 2,919 | ||
Net cash and cash equivalents provided by (used in) financing activities | (68,350) | 2,670 | (53,702) | ||
Effect of exchange rate changes on cash and cash equivalents | (6,391) | (3,276) | 2,364 | ||
Net increase in cash and cash equivalents | 6,270 | 32,882 | 6,047 | ||
Cash and cash equivalents at beginning of year | 169,602 | 136,720 | 130,673 | ||
Cash and cash equivalents at end of year | 175,872 | 169,602 | $ 169,602 | $ 136,720 | $ 130,673 |
Supplemental disclosure of cash flow information: | |||||
Income taxes paid (received), net | $ 58,687 | $ 23,766 | $ (6,415) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income/ (Loss) [Member] | Accumulated Earnings / (Deficit) [Member] |
Balance at Dec. 31, 2019 | $ 1,264,026 | $ 50 | $ 1,269,437 | $ (598) | $ (4,863) |
Balance, Shares at Dec. 31, 2019 | 50,184,000 | ||||
Issuance of shares through share-based compensation plans, net | 2,919 | $ 1 | 2,918 | ||
Issuance of shares through share-based compensation plans, net, Shares | 668,000 | ||||
Repurchase of common stock | (52,000) | $ (2) | (51,998) | ||
Repurchase of common stock, Shares | (1,882,000) | ||||
Net income | 31,025 | 31,025 | |||
Share-based compensation | 17,662 | 17,662 | |||
Share-based compensation plan withholdings | (4,052) | (4,052) | |||
Share-based compensation plan withholdings, Shares | (118,000) | ||||
Other | 0 | ||||
Other, Shares | (94,000) | ||||
Currency translation | 5,043 | 5,043 | |||
Unrealized gain (loss) on investments | 123 | 123 | |||
Balance at Dec. 26, 2020 | 1,264,746 | $ 49 | 1,233,967 | 4,568 | 26,162 |
Balance, shares at Dec. 26, 2020 | 48,758,000 | ||||
Issuance of shares through share-based compensation plans, net | 10,072 | 10,072 | |||
Issuance of shares through share-based compensation plans, net, Shares | 650,000 | ||||
Net income | 142,349 | 142,349 | |||
Share-based compensation | 19,542 | 19,542 | |||
Share-based compensation plan withholdings | (7,402) | (7,402) | |||
Share-based compensation plan withholdings, Shares | (108,000) | ||||
Currency translation | (2,715) | (2,715) | |||
Unrealized gain (loss) on investments | (537) | (537) | |||
Balance at Jan. 01, 2022 | $ 1,426,055 | $ 49 | 1,256,179 | 1,316 | 168,511 |
Balance, shares at Jan. 01, 2022 | 49,300,000 | 49,300,000 | |||
Issuance of shares through share-based compensation plans, net | $ 8,068 | $ 1 | 8,067 | ||
Issuance of shares through share-based compensation plans, net, Shares | 509,000 | ||||
Repurchase of common stock | (65,257) | $ (1) | (36,167) | (29,089) | |
Repurchase of common stock, Shares | (1,018,000) | ||||
Net income | 223,334 | 223,334 | |||
Share-based compensation | 24,426 | 24,426 | |||
Share-based compensation plan withholdings | (8,874) | (8,874) | |||
Share-based compensation plan withholdings, Shares | (107,000) | ||||
Currency translation | (8,879) | (8,879) | |||
Unrealized gain (loss) on investments | (2,447) | (2,447) | |||
Balance at Dec. 31, 2022 | $ 1,596,426 | $ 49 | $ 1,243,631 | $ (10,010) | $ (362,756) |
Balance, shares at Dec. 31, 2022 | 48,684,000 | 48,684,000 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization And Nature Of Operations [Abstract] | |
Organization and Nature of Operations | 1. Organization and Nature of Operations: Onto Innovation Inc. (“Onto Innovation” or the “Company”) is a worldwide leader in the design, development, manufacture and support of process control tools that perform macro-defect inspection and metrology, lithography systems, and process control analytical software used by semiconductor and advanced packaging device manufacturers. The Company delivers comprehensive solutions throughout the semiconductor fabrication process with our families of proprietary products that provide critical yield-enhancing information, enabling microelectronic device manufacturers to drive down costs and time to market of their devices. The Company provides process and yield management solutions used in both wafer processing facilities, often referred to as “front-end” manufacturing, and in device packaging and test facilities, commonly referred to as “back-end” manufacturing. The Company’s advanced process control software portfolio includes powerful solutions for standalone tools, groups of tools, or factory-wide suites to enhance productivity and achieve significant cost savings. Onto Innovation’s systems are backed by worldwide customer service and applications support. The Company has branch sales and service offices or subsidiaries in Korea, Japan, China, Taiwan, Singapore, Malaysia, Vietnam and in several countries in Europe. The Company operates in a single reportable segment and is a provider of process characterization equipment and software for wafer fabs and advanced packaging facilities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies: Consolidation. The consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Fiscal Year. The fiscal year of 2022 began on January 2, 2022 and ended December 31, 2022. The fiscal year of 2021 began on December 27, 2020 and ended January 1, 2022. The fiscal year of 2020 began on January 1, 2020 and ended December 26, 2020. Revenue Recognition . Revenue is recognized when control of the promised goods or services are transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company has elected to account for shipping and handling activities as the fulfillment of a promise to transfer goods to the customer and therefore records these activities under the caption “Cost of revenue.” Sales tax and any other taxes collected concurrent with revenue producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. These accounting policy elections are consistent with the manner in which the Company has historically recorded these items. Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers or the expected cost-plus margin. Systems and Software Revenue Revenue from systems is recognized when the Company transfers control of the product to the customer. To indicate transfer of control, the Company must have a present right to payment, legal title must have passed to the customer and the customer must have the significant risks and rewards of ownership. The Company generally transfers control for system sales when the customer or the customer’s agent picks up the system at the Company’s facility. The Company provides an assurance warranty on its systems for a period of twelve to fourteen months against defects in material and workmanship. The Company provides for the estimated cost of product warranties at the time revenue is recognized. Depending on the terms of the systems arrangement, the Company may also defer the recognition of a portion of the consideration expected to be received because the Company has to satisfy a future obligation (e.g., installation and extended warranties). The Company uses an observable price to determine the standalone selling price for separate performance obligations or a cost-plus margin approach when one is not available. Revenue from software licenses provides the customer with a right to use the software as it exists when made available to the customer. Revenue from software licenses, which is primarily sold with our systems, is recognized upfront at the point in time when the software is made available to the customer. Revenue from licensing support and maintenance is recognized as the support and maintenance are provided, which is over the contract period. Parts Revenue Revenue from parts is recognized when the Company transfers control of the product, which typically occurs when the Company ships the product from its facilities to the customer. Services Revenue Revenue from services primarily consists of service contracts, which provide additional maintenance coverage beyond the Company’s assurance warranty on its products, service labor, consulting and training. Revenue from service contracts is recognized ratably over the term of the service contract. Revenue from service labor and consulting is recognized as services are performed. Revenue from installation services is recognized at a point in time when installation is complete. Practical Expedients The Company generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general and administrative expenses. The Company does not adjust the amount of consideration for the effects of a significant financing components, if any, as the payment terms are one year or less. The Company does not disclose the value of remaining performance obligations for contracts with an original expected length of one year or less and contracts for which the Company recognizes revenue in the amount to which it has the right to invoice. For additional information on the Company’s revenue recognition, see Note 9 of Notes to the Consolidated Financial Statements. Business Combinations. The Company accounts for business combinations under the acquisition method of accounting, which requires us to recognize separately from goodwill the assets acquired, and the liabilities assumed at their acquisition date fair values. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in its consolidated statements of operations. Accounting for business combinations requires the Company’s management to make significant estimates and assumptions, especially at the acquisition date including its estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although the Company believes the assumptions and estimates it has made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Estimates in valuing certain acquired intangible assets under the income approach include growth in future expected cash flows from product sales, acquired technologies, technology obsolescence rates, estimated cash flows from the projects when completed and discount rates. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made by management include the allowance for credit losses, excess and obsolete inventory, fair value of assets acquired and liabilities assumed in a business combination, recoverability and useful lives of property, plant and equipment and identifiable intangible assets, recoverability of goodwill, recoverability of deferred tax assets, liabilities for product warranty, contingencies, including litigation reserves and share-based payments and liabilities for tax uncertainties. Actual results could differ from those estimates. These estimates and assumptions are based on historical experience and on various other factors which the Company believes to be reasonable under the circumstances. The Company may engage third-party valuation specialists to assist with estimates related to the valuation of financial instruments, assets and stock awards associated with various contractual arrangements. Such estimates often require the selection of appropriate valuation methodologies and significant judgment. Actual results could differ from these estimates under different assumptions or circumstances and such differences could be material. Cash and Cash Equivalents. Cash and cash equivalents include cash and highly liquid debt instruments with original maturities of three months or less when purchased. Marketable Securities. The Company determined that all of its investment securities are to be classified as available-for-sale. Available-for-sale debt securities are carried at fair value, with the unrealized gains and losses reported in stockholders’ equity under the caption “Accumulated other comprehensive loss.” Realized gains and losses and, interest and dividends on available-for-sale securities are included in interest income and other, net. Available-for-sale securities are classified as current assets regardless of their maturity date if they are available for use in current operations. The Company reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, credit quality and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. When a decline in fair value is determined to be other-than-temporary, unrealized losses on available-for-sale securities are charged against earnings. The specific identification method is used to determine the gains and losses on marketable securities. For additional information on the Company’s marketable securities, see Note 4 of Notes to the Consolidated Financial Statements. Allowance for Credit Losses. The Company maintains an allowance for credit losses that is estimated based on a combination of factors including write-off history, aging analysis, forecast of future economic conditions and any specific known troubled accounts. The Company believes the allowance is adequate to cover expected losses on trade receivables. Provisions for expected credit losses are classified as selling, general and administrative expense in the Consolidated Statements of Operations. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Inventories . Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less predictable costs of completion, disposal and transportation. Cost is generally determined on a first-in, first-out basis, and includes material, labor and manufacturing overhead costs. The Company reviews and sets standard costs as needed, but at a minimum, on an annual basis, at current manufacturing costs in order to approximate actual costs. The Company evaluates inventories for excess quantities and obsolescence. The Company establishes inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about historical and future demand for the Company’s products and market conditions. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering design changes. Once a reserve has been established, it is maintained until the item to which it relates is scrapped or sold. The Company regularly evaluates its ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales, product end-of-life dates, estimated current and future market values and new product introductions. When recorded, reserves are intended to reduce the carrying value of the Company’s inventory to its net realizable value. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those that the Company projects, additional reserves may be required. Property, Plant and Equipment. Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed using the straight-line method over the estimated useful lives of the assets, which are five to twenty-two years for buildings, three to ten years for machinery and equipment, three to ten years for furniture and fixtures, three years for computer equipment, and three to seven years for software. Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the related asset. Repairs and maintenance costs are expensed as incurred and major renewals and betterments are capitalized. Long-Lived Assets and Finite-Lived Acquired Intangible Assets. Long-lived assets, such as property, plant, and equipment, and identifiable acquired intangible assets with finite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. There were no impairments of long-lived assets for the years ended December 31, 2022, January 1, 2022 and December 26, 2020. Goodwill and Indefinite Lived Intangible Assets. Goodwill and indefinite lived intangible assets are tested for impairment on an annual basis or when an event or changes in circumstances indicate that its carrying value may not be recoverable. Goodwill impairment is tested at the reporting unit level, which is defined as an operating segment or one level below the operating segment. The Company has three reporting units and one operating segment. No goodwill impairment occurred in fiscal years 2022, 2021, or 2020. Goodwill is reviewed for impairment using either a qualitative assessment or a quantitative goodwill impairment test. If the Company chooses to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. When the Company performs the quantitative goodwill impairment test, it compares fair value to carrying value, which includes goodwill. If fair value exceeds carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, the difference would be recognized as an impairment loss. Intangible assets with indefinite lives, including in-process research and development (“IPR&D”), are tested for impairment if impairment indicators arise and, at a minimum, annually. However, the Company is permitted to first assess qualitative factors to determine if a quantitative impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that an indefinite-lived intangible asset’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. The indefinite-lived intangible asset impairment test consists of a one-step analysis that compares the fair value of the intangible asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. We consider many factors in evaluating whether the value of intangible assets with indefinite lives may not be recoverable, including, but not limited to estimates of future cash flows, the discount rate, terminal growth rates, general economic conditions, our outlook and market performance of our industry and recent and forecasted financial performance. There was no impairment of goodwill or IPR&D for the years ended December 31, 2022, January 1, 2022 and December 26, 2020. For additional information on the Company’s goodwill and purchased intangible assets, see Note 5 of Notes to the Consolidated Financial Statements. Concentration of Credit Risk. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of accounts receivable, cash and cash equivalents and marketable securities. The Company maintains cash and cash equivalents and marketable securities with higher credit quality issuers and monitors the amount of credit exposure to any one issuer. The Company's investment policy provides guidelines and limits regarding credit quality, investment concentration, investment type, and maturity that the Company believes will provide liquidity while reducing risk of loss of capital. Investments are of a short-term nature and include investments in commercial paper, corporate debt securities, asset-backed securities, U.S. Treasury, U.S. Government, and U.S. Agency debt. The Company’s accounts receivable result primarily from the sale of semiconductor equipment, related accessories and replacement parts. The Company’s customer base is highly concentrated and historically, a relatively small number of customers have accounted for a significant portion of its revenues. Write-offs of uncollectible accounts have historically not been material. The Company actively monitors its customers' financial strength to reduce the risk of loss. Warranties. The Company generally provides a warranty on its products for a period of twelve to fourteen months against defects in material and workmanship. The Company provides for the estimated cost of product warranties at the time revenue is recognized. The estimated future warranty obligations are affected by the warranty periods, sales volumes, product failure rates, material usage and labor and replacement costs incurred in correcting a product failure. If actual product failure rates, material usage, labor or replacement costs differ from the Company’s estimates, revisions to the estimated warranty obligations would be required. The warranty accrual represents the best estimate of the amount necessary to settle future and existing claims on products sold as of the balance sheet date. The Company periodically assesses the adequacy of its recorded warranty reserve and adjusts the amounts in accordance with changes in these factors. Income Taxes . The Company accounts for income taxes using the asset and liability approach for deferred taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. A valuation allowance is recorded to reduce a deferred tax asset to that portion which more likely than not will be realized. For additional information on the Company’s income taxes, see Note 12 of Notes to the Consolidated Financial Statements. Translation of Foreign Currencies. The Company’s international branches and subsidiaries primarily generate and expend cash in their local functional currency. Accordingly, all balance sheet accounts of these local functional currency branches and subsidiaries are translated into U.S. dollars at the fiscal period-end exchange rate, and income and expense accounts are translated into U.S. dollars using average rates in effect for the period. The resulting translation adjustments are recorded as cumulative translation adjustments and are recorded directly as a separate component of stockholders’ equity under the caption, “Accumulated other comprehensive loss.” The Company had accumulated exchange losses resulting from the translation of foreign operation financial statements of $ 7,115 and $ 1,764 as of December 31, 2022 and January 1, 2022, respectively. Share-based Compensation . The Company measures the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. Compensation expense is recognized using the straight-line attribution method to recognize share-based compensation over the service period of the award, with adjustments recorded for forfeitures as they occur. For additional information on the Company’s share-based compensation plans, see Note 10 of Notes to the Consolidated Financial Statements. Research and Development Costs . Expenditures for research and development are expensed as incurred. Derivative Instruments and Hedging Activities . The Company’s policy is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated business exposures. The Company has a policy that allows for the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on forecasted revenue and net monetary assets or liabilities denominated in various foreign currencies. The Company carries derivative financial instruments (derivatives) on the balance sheet at their fair values, in either prepaid expenses and other current assets or other current liabilities in the Consolidated Balance Sheets. The Company does not use derivatives for trading or speculative purposes. The Company does not believe that it is exposed to more than a nominal amount of credit risk in its foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. The Company’s exposures are in liquid currencies (Japanese yen, euros, Korean won, Taiwanese dollars, Chinese renminbi, Singapore dollars and Israeli shekel), so there is minimal risk that appropriate derivatives to maintain the Company’s hedging program would not be available in the future. To hedge foreign currency risks, the Company uses foreign currency exchange forward contracts, where possible and prudent. These hedge contracts are valued using standard valuation formulas with assumptions about future foreign currency exchange rates derived from existing exchange rates, interest rates, and other market factors. The dollar equivalent of the U.S. dollar forward contracts and related fair values as of December 31, 2022 and January 1, 2022 were as follows: December 31, January 1, 2022 2022 Notional amount $ 27,923 $ 32,293 Fair value of liability 135 26 During the years ended December 31, 2022 and January 1, 2022, the Company recognized losses of $ 3,487 and $ 1,650 on maturities of forward contracts, respectively. During the year ended December 26, 2020, the Company recognized a gain of $ 510 on maturities of forward contracts. The aggregate notional amounts of matured contracts were $ 365,985 , $ 420,460 and $ 373,749 for 2022, 2021 and 2020, respectively. Contingencies and Litigation . The Company is subject to the possibility of losses from various contingencies, including certain legal proceedings, lawsuits and other claims. The Company accrues for a loss contingency when it concludes that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. If the Company concludes that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. The Company expenses as incurred the costs of defending legal claims against the Company. The Company does not recognize gain contingencies until realized. See Note 8 of the Notes to the Consolidated Financial Statements, “Commitments and Contingencies” for a detailed description. Recent Accounting Pronouncements. Recently Adopted and Issued Recently adopted and issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements: Fair Value of Financial Instruments The Company has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short-term maturity of these instruments. Fair Value Hierarchy The Company applies a three-level valuation hierarchy for fair value measurements. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 inputs are unobservable inputs based on management’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s fair value measurement classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following tables provide the assets and liabilities carried at fair value measured on a recurring basis at December 31, 2022 and January 1, 2022: Fair Value Measurements Using Carrying Quoted Prices in Significant Significant December 31, 2022 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 178,868 $ — $ 178,868 $ — Asset-backed securities 1,534 — 1,534 — Certificates of deposit 52,095 — 52,095 — Commercial paper 80,079 — 80,079 — Corporate bonds 59,335 — 59,335 — Total assets $ 371,912 $ — $ 371,912 $ — Liabilities: Foreign currency forward contracts 135 $ — 135 $ — Total liabilities $ 135 $ — $ 135 $ — Fair Value Measurements Using Carrying Quoted Prices in Significant Significant January 1, 2022 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 170,980 $ — $ 170,980 $ — Asset-backed securities 2,009 — 2,009 — Certificates of deposit 33,192 — 33,192 — Commercial paper 73,113 — 73,113 — Corporate bonds 62,447 — 62,447 — Total assets $ 341,741 $ — $ 341,741 $ — Liabilities: Foreign currency forward contracts $ 26 $ — $ 26 $ — Total liabilities $ 26 $ — $ 26 $ — Available-for-sale debt securities classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. The foreign currency forward contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. Investment prices are obtained from third party pricing providers, which model prices utilizing the above observable inputs, for each asset class. See Note 4 for additional discussion regarding the fair value of the Company’s marketable securities. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities: At December 31, 2022 and January 1, 2022, marketable securities are categorized as follows: Amortized Gross Gross Fair December 31, 2022 Municipal notes and bonds $ 181,196 $ 27 $ 2,355 $ 178,868 Asset-backed securities 1,555 — 21 1,534 Certificates of deposit 52,190 24 118 52,095 Commercial paper 80,199 16 136 80,079 Corporate bonds 60,334 4 1,003 59,335 Total marketable securities $ 375,474 $ 71 $ 3,633 $ 371,912 January 1, 2022 Municipal notes and bonds $ 171,203 $ 38 $ 261 $ 170,980 Asset-backed securities 2,009 — — 2,009 Certificates of deposit 33,200 2 10 33,192 Commercial paper 73,152 2 41 73,113 Corporate bonds 62,634 29 216 62,447 Total marketable securities $ 342,198 $ 71 $ 528 $ 341,741 The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Consolidated Balance Sheet classification, is as follows at December 31, 2022 and January 1, 2022: December 31, 2022 January 1, 2022 Amortized Fair Amortized Fair Due within one year $ 311,934 $ 309,385 $ 219,353 $ 219,211 Due after one through five years 63,540 62,527 122,845 122,530 Due after five through ten years — — — — Due after ten years — — — — Total marketable securities $ 375,474 $ 371,912 $ 342,198 $ 341,741 The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position, at December 31, 2022 and January 1, 2022. In Unrealized Loss Position In Unrealized Loss Position Fair Gross Fair Gross December 31, 2022 Municipal notes and bonds $ 96,301 $ 1,273 $ 69,159 $ 1,082 Asset-backed securities 1,555 21 — — Certificates of deposit 22,400 118 — — Commercial paper 50,550 136 — — Corporate bonds 28,975 637 28,769 366 Total marketable securities $ 199,781 $ 2,185 $ 97,928 $ 1,448 January 1, 2022 Municipal notes and bonds $ 113,790 $ 262 $ — $ — Certificates of deposit 16,300 10 — — Commercial paper 58,681 40 — — Corporate bonds 53,661 150 2,587 66 Total marketable securities $ 242,432 $ 462 $ 2,587 $ 66 See Note 3 for additional discussion regarding the fair value of the Company’s marketable securities. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | 5. Goodwill and Purchased Intangible Assets: Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and considers other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. The Company performed its annual assessment in the fourth quarter of fiscal 2022 and concluded that no impairment charge was required. Goodwill The changes in the carrying amount of goodwill are as follows: Balance at December 26, 2020 $ 306,632 Goodwill from Inspectrology acquisition 9,179 Balance at January 1, 2022 315,811 Goodwill adjustment — Balance at December 31, 2022 $ 315,811 Purchased Intangible Assets Purchased intangible assets as of December 31, 2022 and January 1, 2022 are as follows: Gross Carrying Amount Accumulated Amortization Net December 31, 2022 Finite-lived intangible assets: Developed technology $ 378,197 $ 205,386 $ 172,811 Customer and distributor relationships 73,321 30,195 43,126 Trademarks and trade names 14,171 7,911 6,260 Total identifiable intangible assets $ 465,689 $ 243,492 $ 222,197 January 1, 2022 Finite-lived intangible assets: Developed technology $ 377,997 $ 155,976 $ 222,021 Customer and distributor relationships 73,321 25,608 47,713 Trademarks and trade names 14,171 6,624 7,547 Total identifiable intangible assets $ 465,489 $ 188,208 $ 277,281 Intangible asset amortization expense amounted to $ 55,284 , $ 51,366 and $ 53,746 for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, respectively. Assuming no change in the gross carrying value of identifiable intangible assets and estimated lives, estimated amortization expenses are $ 54,823 for 2023, $ 49,137 for 2024, $ 32,587 for 2025, $ 31,394 for 2026 and $ 23,173 for 2027. |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Leasing Arrangements | 6. Leasing Arrangements: The Company determines if an arrangement is a lease at its inception. Operating lease arrangements are comprised primarily of real estate and equipment agreements for which the right-of-use assets are included in “Other assets” and the corresponding lease liabilities, depending on their maturity, are included in “Other current liabilities” or “Other non-current liabilities” in the Consolidated Balance Sheets. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that the option will be exercised. Lease agreements frequently require the Company to pay real estate taxes, insurance and maintenance costs. Leases with a term of one year or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized on a straight-line basis over the lease term. The Company uses its estimated incremental borrowing rate in determining the present value of lease payments considering the term of the lease, which is derived from information available at the lease commencement date, giving consideration to publicly available data for instruments with similar characteristics. The Company accounts for the lease and non-lease components as a single lease component. Lease costs for operating leases were $ 6,368 and $ 5,964 for the years ended December 31, 2022 and January 1, 2022, respectively. Operating lease costs are generally recognized over the lease term. The Company elected the practical expedient to not provide comparable presentation for periods prior to adoption. Details of the Company’s operating leases are as follows: Year Ended Cash Flow Information December 31, January 1, Cash paid for operating lease liabilities $ 6,368 $ 6,247 Right-of-use assets obtained in exchange for operating lease liabilities $ 9,295 $ 304 December 31, January 1, Operating Lease Information 2022 2022 Weighted average remaining lease term 4.5 5.3 Weighted average discount rate 3.8 % 4.5 % As of December 31, 2022, there was an insignificant amount of commitments for operating leases that have not yet commenced. The reconciliation of the maturities of operating leases to the lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2022 is as follows: Fiscal Year 2023 $ 6,721 2024 5,799 2025 4,646 2026 2,905 2027 1,905 Thereafter 2,399 Total undiscounted operating lease payments 24,375 Less: imputed interest 2,030 Present value of operating lease liabilities $ 22,345 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | 7. Balance Sheet Components: Inventories Inventories are comprised of the following: December 31, January 1, 2022 2022 Materials $ 231,029 $ 157,343 Work-in-process 69,072 60,415 Finished goods 24,181 25,350 Total inventories $ 324,282 $ 243,108 Property, Plant and Equipment Property, plant and equipment, net, is comprised of the following: December 31, January 1, 2022 2022 Land and building $ 50,344 $ 48,297 Machinery and equipment 56,924 50,226 Furniture and fixtures 2,949 2,534 Computer equipment and software 15,415 13,856 Leasehold improvements 18,539 13,710 144,171 128,623 Accumulated depreciation ( 52,191 ) ( 46,529 ) Total property, plant and equipment, net $ 91,980 $ 82,094 Other assets Other assets is comprised of the following: December 31, January 1, 2022 2022 Operating lease right-of-use assets $ 20,746 $ 17,488 Other 4,479 4,228 Total other assets $ 25,225 $ 21,716 Accrued liabilities Accrued liabilities is comprised of the following: December 31, January 1, 2022 2022 Payroll and related expenses $ 36,529 $ 32,581 Warranty 10,890 9,093 Other 1,417 1,368 Total accrued liabilities $ 48,836 $ 43,042 Other current liabilities Other current liabilities is comprised of the following: December 31, January 1, 2022 2022 Customer deposits $ 12,482 $ 9,459 Current operating lease obligations 5,678 3,968 Income tax payable 1,910 6,315 Accrued professional fees 968 912 Other 5,995 7,506 Total other current liabilities $ 27,033 $ 28,160 Other non-current liabilities Other non-current liabilities is comprised of the following: December 31, January 1, 2022 2022 Non-current operating lease obligations $ 16,345 $ 13,754 Unrecognized tax benefits (including interest) 7,693 7,861 Deferred revenue 2,852 1,693 Other 3,623 5,643 Total non-current liabilities $ 30,513 $ 28,951 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies: Factoring The Company maintains arrangements under which eligible accounts receivable in Japan are sold without recourse to unrelated third-party financial institutions. The Company sold $ 32,385 of receivables during the year ended December 31, 2022. There were no material gains or losses on the sale of such receivables. There were no amounts due from such third-party financial institutions at December 31, 2022. Intellectual property Indemnification Obligations The Company has entered into agreements with customers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third-party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers. Historically, the Company has not made any indemnification payments under such agreements and no amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification guarantees. Warranty Reserves The Company generally provides a warranty on its products for a period of 12 to 14 months against defects in material and workmanship. The Company estimates the costs that may be incurred during the warranty period and records a liability in the amount of such costs at the time revenue is recognized. The Company’s estimate is based primarily on historical experience. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Settlements of warranty reserves are generally associated with sales that occurred during the 12 to 14 months prior to the year-end and warranty accruals are related to sales during the same year. Changes in the Company’s warranty reserves are as follows: Year Ended December 31, January 1, Balance, beginning of the period $ 9,682 $ 6,485 Accruals 16,040 11,892 Warranty liability assumed from Inspectrology acquisition — 407 Usage ( 13,893 ) ( 9,102 ) Balance, end of the period $ 11,830 $ 9,682 Legal Matters From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. The following reflects an overview of the material developments with regard to the Company’s pending material legal proceedings. Optical Solutions Inc. v. Nanometrics Incorporated (Case No. 18-cv-00417-BLF): On August 2, 2017, Nanometrics was named as defendant in a complaint filed in New Hampshire Superior Court (the “Complaint”). The Complaint, brought by Optical Solutions, Inc. (“OSI”), alleges claims arising from a purported exclusive purchase contract between OSI and Nanometrics pertaining to certain products. The relief sought is the award of damages in an amount to be proven at trial, attorney’s fees and cost as well as other relief the court deems just and proper. On September 18, 2017, Nanometrics removed the action to the United States District Court for the District of New Hampshire (the “District of New Hampshire”). On September 25, 2017, Nanometrics moved to transfer the Complaint to the United States District Court for the Northern District of California (the “Northern District of California”). On December 20, 2017, Nanometrics filed its complaint against OSI in the California Superior Court for the County of Santa Clara alleging claims arising from OSI’s breach of certain purchase orders. The relief sought is the award of damages in an amount to be proven at trial including pre- and post-judgment interest, punitive damages, restitution for benefits unjustly received by OSI, attorney’s fees and cost as well as other relief the court deems just and proper. Nanometrics’ complaint was later removed by OSI to the Northern District of California. On May 29, 2018, the District of New Hampshire issued an order granting Nanometrics’ motion to transfer the Complaint to the Northern District of California and denying Nanometrics’ motion to dismiss the Complaint without prejudice. On June 14, 2018, the Complaint was consolidated with Nanometrics’ complaint against OSI. On August 9, 2018, OSI filed an Amended Complaint. On September 19, 2018, Nanometrics filed a motion to dismiss OSI’s Amended Complaint for failure to state a claim. Nanometrics’ motion to dismiss was heard on February 28, 2019. On March 5, 2019, the Northern District of California granted Nanometrics’ motion to dismiss with leave to amend. OSI filed a Second Amended Complaint on March 29, 2019. Nanometrics filed a motion to dismiss OSI’s Second Amended Complaint on May 31, 2019. In October 2019, Nanometrics was renamed Onto Innovation Inc. as a result of the Merger. Thereafter, the Company’s second motion to dismiss was heard on November 14, 2019. On November 26, 2019, the Northern District of California granted the Company’s motion to dismiss with leave to amend. OSI filed a Third Amended Complaint on January 21, 2020. On March 2, 2020, the Company filed a motion to dismiss OSI’s Third Amended Complaint and a hearing on the motion was held on June 11, 2020. On June 23, 2020, the Northern District of California granted the Company’s motion to dismiss with prejudice with regard to two claims asserted by OSI and dismissed two other claims asserted by OSI with leave to amend. Thereafter, on July 7, 2020, OSI filed a Fourth Amended Complaint. On August 14, 2020, the Company filed a motion to dismiss with regard to one of the two remaining claims. On December 1, 2020, the Northern District of California denied this final motion to dismiss and as a result the Company filed its Answer in this matter on December 22, 2020. Discovery is now closed and the trial date is set for December 4, 2023. At this time, the loss contingency in this matter is remote and the Company does not anticipate the outcome of the matter to have a material impact on its financial position, results of operations, or cash flows. Open and Committed Purchase Orders As of December 31, 2022, the Company has open and committed purchase orders of $ 417,148 , of which $ 348,984 is for less than one year. Line of Credit The Company has a credit agreement with a bank that provides for a line of credit which is secured by the marketable securities the Company has with the bank. The Company is permitted to borrow up to 70 % of the value of eligible securities held at the time the line of credit is accessed. The available line of credit as of December 31, 2022 was approximately $ 108,375 with an available interest rate of 6.0 %. The credit agreement is available to the Company until such time that either party terminates the arrangement at their discretion. The Company has not utilized the line of credit to date. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 9. Revenue The following table represents a disaggregation of revenue by timing of revenue: Year Ended December 31, January 1, Point-in-time $ 958,409 $ 749,276 Over-time 46,773 39,623 Total revenue $ 1,005,183 $ 788,899 See Note 14 of the Notes to the Consolidated Financial Statements for additional discussion of the Company’s disaggregated revenue in detail. Contract Liabilities The Company records contract liabilities when the customer has been billed in advance of the Company completing its performance obligations primarily related to service contracts and installation. For contracts that have a duration of one year or less, these amounts are recorded as current deferred revenue in the Consolidated Balance Sheets. As of December 31, 2022 and January 1, 2022, the Company carried a long-term deferred revenue balance of $ 2,852 and $ 1,693 , respectively, in “other non-current liabilities” on the Consolidated Balance Sheets. Changes in deferred revenue were as follows: Year Ended December 31, January 1, Balance, beginning of the period $ 31,672 $ 15,627 Deferred revenue assumed from Inspectrology acquisition — 386 Deferral of revenue 81,772 69,656 Recognition of deferred revenue ( 80,430 ) ( 53,997 ) Balance, ending of the period $ 33,014 $ 31,672 |
Share-Based Compensation and Em
Share-Based Compensation and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation and Employee Benefit Plans | 10. Share-Based Compensation and Employee Benefit Plans: Share-Based Compensation Plans The Company’s share-based compensation plans are intended to attract and retain employees and to provide an incentive for them to assist the Company to achieve long-range performance goals and to enable them to participate in long-term growth of the Company. The Company settles restricted stock unit awards, employee stock purchase option exercises and stock option exercises with newly issued common shares. Onto Innovation Inc. 2020 Stock Plan (the “2020 Plan”) . The 2020 Plan provides for the grant of 3,744 stock options and other stock awards to employees, directors and consultants at an exercise price equal to the fair market value of the common stock on the date of grant. Options granted under the 2020 Plan typically grade vest over a three-year period and expire ten years from the date of grant. Restricted stock units granted under the 2020 Plan typically vest over a three-year period for employees and one year for directors; however, other vesting periods are allowable under the 2020 Plan. Restricted stock units (“RSU”) granted to employees have time based or performance-based vesting. As of December 31, 2022, there were 3,086 shares of common stock available for issuance pursuant to future grants under the 2020 Plan. Onto Innovation Inc. 2020 Employee Stock Purchase Plan (the “2020 ESPP”). Under the terms of the 2020 ESPP, eligible employees may have up to 10 % of eligible compensation deducted from their pay and applied to the purchase of shares of Company common stock. The price the employee pays for each share of stock is 85 % of the lesser of the fair market value of Company common stock at the beginning or the end of the applicable six-month purchase period. The 2020 ESPP is intended to qualify under Section 423 of the Internal Revenue Code and is a compensatory plan as defined by FASB ASC 718, “Stock Compensation.” Through the Company’s employee stock purchase plans, employees purchased 142 , 242 and 91 shares during the twelve months ended December 31, 2022, January 1, 2022 and December 26, 2020, respectively. As of December 31, 2022 and January 1, 2022, there were 1,116 and 1,258 , shares available for issuance under the Company’s employee stock purchase plan, respectively. The following table reflects share-based compensation expense by type of award: Year Ended December 31, January 1, December 26, Share-based compensation expense: Restricted stock units, including all performance and market $ 21,729 $ 17,174 $ 15,780 Stock options and employee stock purchase options 2,697 2,368 1,882 Total share-based compensation 24,426 19,542 17,662 Tax effect on share-based compensation 5,237 4,255 3,849 Net effect on net income $ 19,189 $ 15,287 $ 13,813 Effect on earnings per share: Basic $ ( 0.39 ) $ ( 0.31 ) $ ( 0.28 ) Diluted $ ( 0.39 ) $ ( 0.31 ) $ ( 0.28 ) Restricted Stock Units During fiscal years 2022, 2021 and 2020, the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”). Service-based RSUs typically vest over a period of 3 years or less. Market-based PRSUs generally vest three years from the grant date if certain performance criteria are achieved and require continued employment. Based upon the terms of such awards, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of a designated benchmark index, ranging from 0 % to 200 % of target. The designated benchmark index was the Philadelphia Semiconductor Sector Index for market-based PRSUs issued in 2022, 2021 and 2020. The stock price performance or market price performance is measured using the closing price for the 20 -trading days prior to the dates the performance period begins and ends. The following table summarizes the Company’s combined service-based RSUs and market-based PRSUs: Number of Weighted Nonvested at December 31, 2019 1,107 $ 28.89 Granted 498 $ 34.71 Vested ( 498 ) $ 29.46 Forfeited ( 143 ) $ 29.99 Nonvested at December 26, 2020 964 $ 31.37 Granted 338 $ 69.82 Vested ( 441 ) $ 30.90 Forfeited ( 96 ) $ 42.40 Nonvested at January 1, 2022 765 $ 48.25 Granted 410 $ 82.48 Vested ( 373 ) $ 42.87 Forfeited ( 59 ) $ 58.98 Nonvested at December 31, 2022 743 $ 69.01 Of the 743 shares outstanding at December 31, 2022, 644 are service-based RSUs and 99 are market-based PRSUs. The fair value of the Company’s service-based RSUs was calculated based on the fair market value of the Company’s stock at the date of grant. The fair value of the Company’s market-based PRSUs granted during fiscal years 2022, 2021, and 2020 was calculated using a Monte Carlo simulation model at the date of the grant, resulting in a weighted average grant-date fair value per share of $ 85.49 , $ 80.04 , and $ 47.86 , respectively. As of December 31, 2022, there was $ 28,653 of total unrecognized compensation cost related to restricted stock units granted under the plans. That cost is expected to be recognized over a weighted average period of 1.5 years. 401(k) Savings Plan The Company has a 401(k) savings plan that allows employees to contribute up to 100 % of their annual compensation to the Plan on a pre-tax or after-tax basis, limited to a maximum annual amount as set periodically by the Internal Revenue Service. The plan provides a 50 % match of all employee contributions up to 6 percent of the employee’s salary. Matching contributions to the plan totaled $ 2,965 , $ 2,544 and $ 2,315 for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, respectively. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income Expense [Abstract] | |
Other Income (Expense), Net | 11. Other Expense, Net: Other expense, net is comprised of the following: Year Ended December 31, January 1, December 26, Foreign currency exchange losses, net $ ( 73 ) $ ( 2,020 ) $ ( 3,070 ) Other ( 68 ) 132 362 Total other expense, net $ ( 141 ) $ ( 1,888 ) $ ( 2,708 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes: The components of income tax expense are as follows: Year Ended December 31, January 1, December 26, Current: Federal $ 47,963 $ 21,791 $ 1,466 State 987 1,007 371 Foreign 2,901 3,153 5,637 51,851 25,951 7,474 Deferred: Federal ( 31,622 ) ( 9,475 ) ( 10,355 ) State ( 1,506 ) ( 540 ) ( 1,036 ) Foreign ( 473 ) ( 2,603 ) ( 240 ) ( 33,601 ) ( 12,618 ) ( 11,631 ) Total income tax expense (benefit) $ 18,250 $ 13,333 $ ( 4,157 ) The income before tax is comprised of the following: Year Ended December 31, January 1, December 26, Domestic operations $ 239,527 $ 136,143 $ ( 120 ) Foreign operations $ 2,057 $ 19,539 $ 26,988 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21 % for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, to income before provision for income taxes as follows: Year Ended December 31, January 1, December 26, Federal income tax provision at statutory rate $ 50,732 $ 32,693 $ 5,642 State taxes, net of federal effect 467 1,066 126 Foreign taxes, net of federal effect ( 481 ) ( 3,817 ) 596 Foreign Derived Intangible Income ( “ FDII ” ) Deduction ( 25,445 ) ( 11,061 ) ( 4,262 ) US tax on foreign source income 1,423 1,721 2,013 Non-deductible officer's compensation 1,910 689 213 Research and development tax credit ( 7,146 ) ( 3,607 ) ( 4,858 ) Tax impact of audit and statue closures ( 1,526 ) ( 1,987 ) ( 2,905 ) Impact of the CARES Act — ( 732 ) ( 1,141 ) Other ( 1,684 ) ( 1,632 ) ( 419 ) Provision (benefit) for income taxes $ 18,250 $ 13,333 $ ( 4,157 ) Effective tax rate 8 % 9 % ( 16 )% Deferred tax assets and liabilities are comprised of the following: December 31, January 1, Deferred tax assets: Reserves and accruals $ 17,231 $ 15,084 Deferred revenue 3,512 4,729 Share-based compensation 3,942 3,023 Tax credit carryforward 12,197 10,339 Net operating losses 1,643 3,254 Depreciation and amortization 125 368 Operating lease liabilities 4,162 3,575 Other 4,044 2,364 Gross deferred tax assets 46,856 42,736 Less: valuation allowance ( 11,772 ) ( 10,948 ) Total deferred tax assets after valuation allowance 35,084 31,788 Deferred tax liabilities: Depreciation and amortization ( 32,693 ) ( 63,554 ) Operating lease right of use assets ( 4,890 ) ( 3,469 ) Other ( 89 ) ( 224 ) Gross deferred tax liabilities ( 37,672 ) ( 67,247 ) Net deferred tax liabilities $ ( 2,588 ) $ ( 35,459 ) At December 31, 2022 and January 1, 2022, the Company had recorded valuation allowances of $ 11,772 and 10,948 , respectively, on a certain portion of the Company’s deferred tax assets to reflect the deferred tax assets at the net amount that is more likely than not to be realized. The Company maintains a valuation allowance against a portion of its federal and foreign tax credit carryforwards and state net operating losses and research and development credits of $ 1,601 and $ 10,171 , respectively. In assessing the realizability of deferred tax assets, the Company uses a more likely than not standard. If it is determined that it is more-likely-than-not that deferred tax assets will not be realized, a valuation allowance must be established against the deferred tax assets. The ultimate realization of the assets is dependent on the generation of future taxable income during the periods in which the associated temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies when making this assessment. In making the determination that it is more likely than not that the Company’s deferred tax assets will be realized as of December 31, 2022, the Company relied primarily on the reversal of deferred tax liabilities as well as projected future taxable income. At December 31, 2022, the Company had tax effected state and foreign net operating loss carryforwards of $ 1,168 and $ 475 , respectively. The federal, state and foreign net operating loss carryforwards expire on various dates beginning in 2023 through 2037. At December 31, 2022, the Company had foreign tax credit carryforwards and state research & development credits of $ 1,601 , and $ 14,797 , respectively. The foreign tax credit carryforwards are set to expire at various dates beginning December 31, 2029 . The state research & development credits have no expiration dates. As of December 31, 2022, the Company has provided U.S. income taxes on all its foreign earnings. The Company continues to permanently reinvest the cash held offshore to support its working capital needs. The Company has accrued $ 82 for additional foreign withholding taxes that may be required from its United Kingdom and China entities in the event of a cash distribution. The total amount of unrecognized tax benefits are as follows: Year Ended December 31, January 1, December 26, Balance, beginning of the period $ 12,373 $ 13,486 $ 15,143 Gross increases—tax positions in prior period 456 156 347 Gross decreases—tax positions in prior period — ( 204 ) — Gross increases—current-period tax positions 1,729 1,193 1,048 Closure of audit/statute limitation ( 1,548 ) ( 2,258 ) ( 3,052 ) Balance, end of the period $ 13,010 $ 12,373 $ 13,486 The unrecognized tax benefits at December 31, 2022 and January 1, 2022 were $ 13,010 and $ 12,373 , respectively, of which $ 7,614 and $ 7,832 , respectively, would be reflected as an adjustment to income tax expense if recognized. The year over year increase from 2021 to 2022 is primarily due to additional unrecognized tax benefits related to federal and state tax exposures, offset by expiring tax statues. It is reasonably possible that certain amounts of unrecognized tax benefits may reverse in the next 12 months; however, the Company does not expect such reversals to have a significant impact on its results of operations or financial position. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2022, January 1, 2022 and December 26, 2020, the Company recognized approximately $ 149 , $( 814 ) and $( 193 ), respectively, in interest and penalties (benefit) expense associated with uncertain tax positions. As of December 31, 2022 and January 1, 2022, the Company had accrued interest and penalties expense included in the table of unrecognized tax benefits of $ 628 and $ 430 , respectively. The Company is subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. The Company is subject to ordinary statute of limitation rules of three and four years for federal and state returns, respectively. However, due to tax attribute carryforwards, the Company is subject to examination for tax years 2012 forward for U.S. federal tax purposes with respect to carryforward amounts. The Company is also subject to examination in various states for tax years 2003 forward with respect to carryforward amounts. The Company is subject to examination for tax years 2014 forward for various foreign jurisdictions. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from any future examinations of these years. In the normal course of business, the Company is subject to tax audits in various jurisdictions, and such jurisdictions may assess additional income taxes or other taxes against it. Although the Company believes its tax estimates are reasonable, the final determination of tax audits and any related litigation could be materially different from the Company’s historical income tax provisions and accruals. The results of an audit or litigation could have a material adverse effect on the Company’s results of operations or cash flows in the period or periods for which that determination is made. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Income) Loss | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Income) Loss | 13. Accumulated Other Comprehensive Income (Loss): Comprehensive income includes net income, foreign currency translation adjustments, and net unrealized gains and losses on available-for-sale debt securities. See the Consolidated Statements of Comprehensive Income for the effect of the components of comprehensive income on the Company’s net income. The components of accumulated other comprehensive income (loss), net of tax, are as follows: Foreign currency Net unrealized Accumulated Balance at December 26, 2020 $ 4,479 $ 89 $ 4,568 Net current period other comprehensive income ( 2,715 ) ( 537 ) ( 3,252 ) Reclassifications — — — Balance at January 1, 2022 1,764 ( 448 ) 1,316 Net current period other comprehensive loss ( 8,879 ) ( 2,447 ) ( 11,326 ) Reclassifications — — — Balance at December 31, 2022 $ ( 7,115 ) $ ( 2,895 ) $ ( 10,010 ) |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | 14. Segment Reporting and Geographic Information: The Company is engaged in the design, development, manufacture and support of high-performance control metrology, defect inspection, lithography and data analysis systems used by microelectronics device manufacturers. The Company and its subsidiaries currently operate in a single operating segment: the design, development, manufacture and support of high-performance process control defect inspection and metrology, lithography and process control software systems used by microelectronics device manufacturers. Therefore, the Company has one reportable segment. The Company’s chief operating decision maker is the Chief Executive Officer (the “CEO”). The CEO allocates resources and assesses performance of the business and other activities at the reportable segment level. The following table lists the different sources of revenue: Year Ended December 31, January 1, December 26, Systems and software $ 865,707 86 % $ 669,114 85 % $ 450,459 80 % Parts 84,266 8 % 72,753 9 % 65,444 12 % Services 55,210 6 % 47,032 6 % 40,593 8 % Total revenue $ 1,005,183 100 % $ 788,899 100 % $ 556,496 100 % The Company’s significant operations outside the United States include sales, service and application offices in Asia and Europe. For geographical revenue reporting, revenue is attributed to the geographic location to which the product is shipped. Revenue by geographic region is as follows: Year Ended December 31, January 1, December 26, Revenue from third parties: China $ 250,968 $ 151,027 $ 125,023 South Korea 224,172 160,373 90,193 Taiwan 199,104 194,458 120,959 United States 121,487 123,858 81,708 Europe 80,256 64,943 49,697 Japan 58,133 61,186 59,295 Southeast Asia 71,062 33,054 29,621 Total revenue $ 1,005,183 $ 788,899 $ 556,496 The following chart identifies our customers that represented 10% or more of total revenue for each of the last three fiscal years: 2022 2021 2020 Taiwan Semiconductor Manufacturing Co. Ltd. 15 % 18 % 14 % Samsung Semiconductor 13 % 16 % 15 % SK Hynix Inc. 11 % ^ ^ ^ The customer accounted for less than 10% of total revenue during the period. At December 31, 2022, two customers, Samsung Semiconductor and Taiwan Semiconductor Manufacturing Co. Ltd., accounted for more than 10 % of net accounts receivable. At January 1, 2022, one customer, Taiwan Semiconductor Manufacturing Co. Ltd., accounted for more than 10 % of net accounts receivable. Substantially all of the Company’s long-lived assets are located within the United States of America. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. 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 units and stock options are included in the calculation of diluted earnings per share, except when their effect would be anti-dilutive. The Company’s basic and diluted earnings per share amounts are as follows: December 31, January 1, December 26, Numerator: Net income $ 223,334 $ 142,349 $ 31,025 Denominator: Basic earnings per share - weighted average shares 49,424 49,242 49,136 Effect of potential dilutive securities: Restricted stock units, employee stock purchase grants and stock 340 486 339 Diluted earnings per share - weighted average shares 49,764 49,728 49,475 Earnings per share: Basic $ 4.52 $ 2.89 $ 0.63 Diluted $ 4.49 $ 2.86 $ 0.63 |
Share Repurchase Authorization
Share Repurchase Authorization | 12 Months Ended |
Dec. 31, 2022 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Authorization | 16. Share Repurchase Authorization: In November 2020, the Onto Innovation Board of Directors approved a share repurchase authorization, which allows the Company to repurchase up to $ 100,000 worth of shares of its common stock. Repurchases may be made through both public market and private transactions from time to time with shares purchased being subsequently retired. During the twelve months ended December 31, 2022, the Company repurchased and retired 1,018 shares of its common stock under this repurchase authorization and those shares were subsequently retired. At December 31, 2022, there was $ 34,773 available for future share repurchases under this share repurchase authorization. The following table summarizes the Company’s stock repurchases: Year Ended December 31, January 1, December 26, Shares of common stock repurchased 1,018 — 1,882 Cost of stock repurchased $ 65,257 $ — $ 52,000 Average price paid per share $ 64.09 $ — $ 27.62 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (In thousands) Column A Column B Column C Column D Column E Description Balance at Charged to (Recovery Charged to Other Deductions Balance at Fiscal Year 2022: Allowance for credit losses $ 1,303 $ 356 $ — $ 87 $ 1,572 Deferred tax valuation 10,948 824 — — 11,772 Fiscal Year 2021: Allowance for credit losses $ 784 $ 955 $ — $ 436 $ 1,303 Deferred tax valuation 14,238 ( 3,290 ) — — 10,948 Fiscal Year 2020: Allowance for credit losses $ 1,247 $ 327 $ — $ 790 $ 784 Deferred tax valuation 14,160 78 — — 14,238 Allowance for convertible 2,000 — — 2,000 — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Consolidation | Consolidation. The consolidated financial statements reflect the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year. The fiscal year of 2022 began on January 2, 2022 and ended December 31, 2022. The fiscal year of 2021 began on December 27, 2020 and ended January 1, 2022. The fiscal year of 2020 began on January 1, 2020 and ended December 26, 2020. |
Revenue Recognition | Revenue Recognition . Revenue is recognized when control of the promised goods or services are transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company has elected to account for shipping and handling activities as the fulfillment of a promise to transfer goods to the customer and therefore records these activities under the caption “Cost of revenue.” Sales tax and any other taxes collected concurrent with revenue producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. These accounting policy elections are consistent with the manner in which the Company has historically recorded these items. Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers or the expected cost-plus margin. Systems and Software Revenue Revenue from systems is recognized when the Company transfers control of the product to the customer. To indicate transfer of control, the Company must have a present right to payment, legal title must have passed to the customer and the customer must have the significant risks and rewards of ownership. The Company generally transfers control for system sales when the customer or the customer’s agent picks up the system at the Company’s facility. The Company provides an assurance warranty on its systems for a period of twelve to fourteen months against defects in material and workmanship. The Company provides for the estimated cost of product warranties at the time revenue is recognized. Depending on the terms of the systems arrangement, the Company may also defer the recognition of a portion of the consideration expected to be received because the Company has to satisfy a future obligation (e.g., installation and extended warranties). The Company uses an observable price to determine the standalone selling price for separate performance obligations or a cost-plus margin approach when one is not available. Revenue from software licenses provides the customer with a right to use the software as it exists when made available to the customer. Revenue from software licenses, which is primarily sold with our systems, is recognized upfront at the point in time when the software is made available to the customer. Revenue from licensing support and maintenance is recognized as the support and maintenance are provided, which is over the contract period. Parts Revenue Revenue from parts is recognized when the Company transfers control of the product, which typically occurs when the Company ships the product from its facilities to the customer. Services Revenue Revenue from services primarily consists of service contracts, which provide additional maintenance coverage beyond the Company’s assurance warranty on its products, service labor, consulting and training. Revenue from service contracts is recognized ratably over the term of the service contract. Revenue from service labor and consulting is recognized as services are performed. Revenue from installation services is recognized at a point in time when installation is complete. Practical Expedients The Company generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general and administrative expenses. The Company does not adjust the amount of consideration for the effects of a significant financing components, if any, as the payment terms are one year or less. The Company does not disclose the value of remaining performance obligations for contracts with an original expected length of one year or less and contracts for which the Company recognizes revenue in the amount to which it has the right to invoice. For additional information on the Company’s revenue recognition, see Note 9 of Notes to the Consolidated Financial Statements. |
Business Combinations | Business Combinations. The Company accounts for business combinations under the acquisition method of accounting, which requires us to recognize separately from goodwill the assets acquired, and the liabilities assumed at their acquisition date fair values. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in its consolidated statements of operations. Accounting for business combinations requires the Company’s management to make significant estimates and assumptions, especially at the acquisition date including its estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although the Company believes the assumptions and estimates it has made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Estimates in valuing certain acquired intangible assets under the income approach include growth in future expected cash flows from product sales, acquired technologies, technology obsolescence rates, estimated cash flows from the projects when completed and discount rates. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made by management include the allowance for credit losses, excess and obsolete inventory, fair value of assets acquired and liabilities assumed in a business combination, recoverability and useful lives of property, plant and equipment and identifiable intangible assets, recoverability of goodwill, recoverability of deferred tax assets, liabilities for product warranty, contingencies, including litigation reserves and share-based payments and liabilities for tax uncertainties. Actual results could differ from those estimates. These estimates and assumptions are based on historical experience and on various other factors which the Company believes to be reasonable under the circumstances. The Company may engage third-party valuation specialists to assist with estimates related to the valuation of financial instruments, assets and stock awards associated with various contractual arrangements. Such estimates often require the selection of appropriate valuation methodologies and significant judgment. Actual results could differ from these estimates under different assumptions or circumstances and such differences could be material. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents include cash and highly liquid debt instruments with original maturities of three months or less when purchased. |
Marketable Securities | Marketable Securities. The Company determined that all of its investment securities are to be classified as available-for-sale. Available-for-sale debt securities are carried at fair value, with the unrealized gains and losses reported in stockholders’ equity under the caption “Accumulated other comprehensive loss.” Realized gains and losses and, interest and dividends on available-for-sale securities are included in interest income and other, net. Available-for-sale securities are classified as current assets regardless of their maturity date if they are available for use in current operations. The Company reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, credit quality and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. When a decline in fair value is determined to be other-than-temporary, unrealized losses on available-for-sale securities are charged against earnings. The specific identification method is used to determine the gains and losses on marketable securities. For additional information on the Company’s marketable securities, see Note 4 of Notes to the Consolidated Financial Statements. |
Allowance for Credit Losses | Allowance for Credit Losses. The Company maintains an allowance for credit losses that is estimated based on a combination of factors including write-off history, aging analysis, forecast of future economic conditions and any specific known troubled accounts. The Company believes the allowance is adequate to cover expected losses on trade receivables. Provisions for expected credit losses are classified as selling, general and administrative expense in the Consolidated Statements of Operations. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. |
Inventories | Inventories . Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less predictable costs of completion, disposal and transportation. Cost is generally determined on a first-in, first-out basis, and includes material, labor and manufacturing overhead costs. The Company reviews and sets standard costs as needed, but at a minimum, on an annual basis, at current manufacturing costs in order to approximate actual costs. The Company evaluates inventories for excess quantities and obsolescence. The Company establishes inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about historical and future demand for the Company’s products and market conditions. In addition, inventories are evaluated for potential obsolescence due to the effect of known and anticipated engineering design changes. Once a reserve has been established, it is maintained until the item to which it relates is scrapped or sold. The Company regularly evaluates its ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales, product end-of-life dates, estimated current and future market values and new product introductions. When recorded, reserves are intended to reduce the carrying value of the Company’s inventory to its net realizable value. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those that the Company projects, additional reserves may be required. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed using the straight-line method over the estimated useful lives of the assets, which are five to twenty-two years for buildings, three to ten years for machinery and equipment, three to ten years for furniture and fixtures, three years for computer equipment, and three to seven years for software. Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the related asset. Repairs and maintenance costs are expensed as incurred and major renewals and betterments are capitalized. |
Long-Lived Assets and Finite-Lived Acquired Intangible Assets | Long-Lived Assets and Finite-Lived Acquired Intangible Assets. Long-lived assets, such as property, plant, and equipment, and identifiable acquired intangible assets with finite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. There were no impairments of long-lived assets for the years ended December 31, 2022, January 1, 2022 and December 26, 2020. |
Goodwill and Indefinite Lived Intangible Assets | Goodwill and Indefinite Lived Intangible Assets. Goodwill and indefinite lived intangible assets are tested for impairment on an annual basis or when an event or changes in circumstances indicate that its carrying value may not be recoverable. Goodwill impairment is tested at the reporting unit level, which is defined as an operating segment or one level below the operating segment. The Company has three reporting units and one operating segment. No goodwill impairment occurred in fiscal years 2022, 2021, or 2020. Goodwill is reviewed for impairment using either a qualitative assessment or a quantitative goodwill impairment test. If the Company chooses to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. When the Company performs the quantitative goodwill impairment test, it compares fair value to carrying value, which includes goodwill. If fair value exceeds carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, the difference would be recognized as an impairment loss. Intangible assets with indefinite lives, including in-process research and development (“IPR&D”), are tested for impairment if impairment indicators arise and, at a minimum, annually. However, the Company is permitted to first assess qualitative factors to determine if a quantitative impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that an indefinite-lived intangible asset’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. The indefinite-lived intangible asset impairment test consists of a one-step analysis that compares the fair value of the intangible asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. We consider many factors in evaluating whether the value of intangible assets with indefinite lives may not be recoverable, including, but not limited to estimates of future cash flows, the discount rate, terminal growth rates, general economic conditions, our outlook and market performance of our industry and recent and forecasted financial performance. There was no impairment of goodwill or IPR&D for the years ended December 31, 2022, January 1, 2022 and December 26, 2020. For additional information on the Company’s goodwill and purchased intangible assets, see Note 5 of Notes to the Consolidated Financial Statements. |
Concentration of Credit Risk | Concentration of Credit Risk. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of accounts receivable, cash and cash equivalents and marketable securities. The Company maintains cash and cash equivalents and marketable securities with higher credit quality issuers and monitors the amount of credit exposure to any one issuer. The Company's investment policy provides guidelines and limits regarding credit quality, investment concentration, investment type, and maturity that the Company believes will provide liquidity while reducing risk of loss of capital. Investments are of a short-term nature and include investments in commercial paper, corporate debt securities, asset-backed securities, U.S. Treasury, U.S. Government, and U.S. Agency debt. The Company’s accounts receivable result primarily from the sale of semiconductor equipment, related accessories and replacement parts. The Company’s customer base is highly concentrated and historically, a relatively small number of customers have accounted for a significant portion of its revenues. Write-offs of uncollectible accounts have historically not been material. The Company actively monitors its customers' financial strength to reduce the risk of loss. |
Warranties | Warranties. The Company generally provides a warranty on its products for a period of twelve to fourteen months against defects in material and workmanship. The Company provides for the estimated cost of product warranties at the time revenue is recognized. The estimated future warranty obligations are affected by the warranty periods, sales volumes, product failure rates, material usage and labor and replacement costs incurred in correcting a product failure. If actual product failure rates, material usage, labor or replacement costs differ from the Company’s estimates, revisions to the estimated warranty obligations would be required. The warranty accrual represents the best estimate of the amount necessary to settle future and existing claims on products sold as of the balance sheet date. The Company periodically assesses the adequacy of its recorded warranty reserve and adjusts the amounts in accordance with changes in these factors. |
Income Taxes | Income Taxes . The Company accounts for income taxes using the asset and liability approach for deferred taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. A valuation allowance is recorded to reduce a deferred tax asset to that portion which more likely than not will be realized. For additional information on the Company’s income taxes, see Note 12 of Notes to the Consolidated Financial Statements. |
Translation of Foreign Currencies | Translation of Foreign Currencies. The Company’s international branches and subsidiaries primarily generate and expend cash in their local functional currency. Accordingly, all balance sheet accounts of these local functional currency branches and subsidiaries are translated into U.S. dollars at the fiscal period-end exchange rate, and income and expense accounts are translated into U.S. dollars using average rates in effect for the period. The resulting translation adjustments are recorded as cumulative translation adjustments and are recorded directly as a separate component of stockholders’ equity under the caption, “Accumulated other comprehensive loss.” The Company had accumulated exchange losses resulting from the translation of foreign operation financial statements of $ 7,115 and $ 1,764 as of December 31, 2022 and January 1, 2022, respectively. |
Share-based Compensation | Share-based Compensation . The Company measures the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. Compensation expense is recognized using the straight-line attribution method to recognize share-based compensation over the service period of the award, with adjustments recorded for forfeitures as they occur. For additional information on the Company’s share-based compensation plans, see Note 10 of Notes to the Consolidated Financial Statements. |
Research and Development Costs | Research and Development Costs . Expenditures for research and development are expensed as incurred. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities . The Company’s policy is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated business exposures. The Company has a policy that allows for the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on forecasted revenue and net monetary assets or liabilities denominated in various foreign currencies. The Company carries derivative financial instruments (derivatives) on the balance sheet at their fair values, in either prepaid expenses and other current assets or other current liabilities in the Consolidated Balance Sheets. The Company does not use derivatives for trading or speculative purposes. The Company does not believe that it is exposed to more than a nominal amount of credit risk in its foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. The Company’s exposures are in liquid currencies (Japanese yen, euros, Korean won, Taiwanese dollars, Chinese renminbi, Singapore dollars and Israeli shekel), so there is minimal risk that appropriate derivatives to maintain the Company’s hedging program would not be available in the future. To hedge foreign currency risks, the Company uses foreign currency exchange forward contracts, where possible and prudent. These hedge contracts are valued using standard valuation formulas with assumptions about future foreign currency exchange rates derived from existing exchange rates, interest rates, and other market factors. The dollar equivalent of the U.S. dollar forward contracts and related fair values as of December 31, 2022 and January 1, 2022 were as follows: December 31, January 1, 2022 2022 Notional amount $ 27,923 $ 32,293 Fair value of liability 135 26 During the years ended December 31, 2022 and January 1, 2022, the Company recognized losses of $ 3,487 and $ 1,650 on maturities of forward contracts, respectively. During the year ended December 26, 2020, the Company recognized a gain of $ 510 on maturities of forward contracts. The aggregate notional amounts of matured contracts were $ 365,985 , $ 420,460 and $ 373,749 for 2022, 2021 and 2020, respectively. |
Contingencies and Litigation | Contingencies and Litigation . The Company is subject to the possibility of losses from various contingencies, including certain legal proceedings, lawsuits and other claims. The Company accrues for a loss contingency when it concludes that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. If the Company concludes that loss contingencies that could be material to any one of its financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company discloses the nature of the loss contingencies, together with an estimate of the range of possible loss or a statement that such loss is not reasonably estimable. The Company expenses as incurred the costs of defending legal claims against the Company. The Company does not recognize gain contingencies until realized. See Note 8 of the Notes to the Consolidated Financial Statements, “Commitments and Contingencies” for a detailed description. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Recently Adopted and Issued Recently adopted and issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Forward Contracts and Related Fair Values | The dollar equivalent of the U.S. dollar forward contracts and related fair values as of December 31, 2022 and January 1, 2022 were as follows: December 31, January 1, 2022 2022 Notional amount $ 27,923 $ 32,293 Fair value of liability 135 26 |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis | The following tables provide the assets and liabilities carried at fair value measured on a recurring basis at December 31, 2022 and January 1, 2022: Fair Value Measurements Using Carrying Quoted Prices in Significant Significant December 31, 2022 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 178,868 $ — $ 178,868 $ — Asset-backed securities 1,534 — 1,534 — Certificates of deposit 52,095 — 52,095 — Commercial paper 80,079 — 80,079 — Corporate bonds 59,335 — 59,335 — Total assets $ 371,912 $ — $ 371,912 $ — Liabilities: Foreign currency forward contracts 135 $ — 135 $ — Total liabilities $ 135 $ — $ 135 $ — Fair Value Measurements Using Carrying Quoted Prices in Significant Significant January 1, 2022 Assets: Available-for-sale debt securities: Municipal notes and bonds $ 170,980 $ — $ 170,980 $ — Asset-backed securities 2,009 — 2,009 — Certificates of deposit 33,192 — 33,192 — Commercial paper 73,113 — 73,113 — Corporate bonds 62,447 — 62,447 — Total assets $ 341,741 $ — $ 341,741 $ — Liabilities: Foreign currency forward contracts $ 26 $ — $ 26 $ — Total liabilities $ 26 $ — $ 26 $ — |
Marketable Securities - (Tables
Marketable Securities - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities by Category | At December 31, 2022 and January 1, 2022, marketable securities are categorized as follows: Amortized Gross Gross Fair December 31, 2022 Municipal notes and bonds $ 181,196 $ 27 $ 2,355 $ 178,868 Asset-backed securities 1,555 — 21 1,534 Certificates of deposit 52,190 24 118 52,095 Commercial paper 80,199 16 136 80,079 Corporate bonds 60,334 4 1,003 59,335 Total marketable securities $ 375,474 $ 71 $ 3,633 $ 371,912 January 1, 2022 Municipal notes and bonds $ 171,203 $ 38 $ 261 $ 170,980 Asset-backed securities 2,009 — — 2,009 Certificates of deposit 33,200 2 10 33,192 Commercial paper 73,152 2 41 73,113 Corporate bonds 62,634 29 216 62,447 Total marketable securities $ 342,198 $ 71 $ 528 $ 341,741 |
Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities Classified by Maturity Date | The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Consolidated Balance Sheet classification, is as follows at December 31, 2022 and January 1, 2022: December 31, 2022 January 1, 2022 Amortized Fair Amortized Fair Due within one year $ 311,934 $ 309,385 $ 219,353 $ 219,211 Due after one through five years 63,540 62,527 122,845 122,530 Due after five through ten years — — — — Due after ten years — — — — Total marketable securities $ 375,474 $ 371,912 $ 342,198 $ 341,741 The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, |
Summary of Estimated Fair Value and Gross Unrealized Holding Losses of Marketable Securities in Unrealized Loss Position | aggregated by investment instrument and period of time in an unrealized loss position, at December 31, 2022 and January 1, 2022. In Unrealized Loss Position In Unrealized Loss Position Fair Gross Fair Gross December 31, 2022 Municipal notes and bonds $ 96,301 $ 1,273 $ 69,159 $ 1,082 Asset-backed securities 1,555 21 — — Certificates of deposit 22,400 118 — — Commercial paper 50,550 136 — — Corporate bonds 28,975 637 28,769 366 Total marketable securities $ 199,781 $ 2,185 $ 97,928 $ 1,448 January 1, 2022 Municipal notes and bonds $ 113,790 $ 262 $ — $ — Certificates of deposit 16,300 10 — — Commercial paper 58,681 40 — — Corporate bonds 53,661 150 2,587 66 Total marketable securities $ 242,432 $ 462 $ 2,587 $ 66 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: Balance at December 26, 2020 $ 306,632 Goodwill from Inspectrology acquisition 9,179 Balance at January 1, 2022 315,811 Goodwill adjustment — Balance at December 31, 2022 $ 315,811 |
Schedule of Purchased Intangible Assets | Purchased intangible assets as of December 31, 2022 and January 1, 2022 are as follows: Gross Carrying Amount Accumulated Amortization Net December 31, 2022 Finite-lived intangible assets: Developed technology $ 378,197 $ 205,386 $ 172,811 Customer and distributor relationships 73,321 30,195 43,126 Trademarks and trade names 14,171 7,911 6,260 Total identifiable intangible assets $ 465,689 $ 243,492 $ 222,197 January 1, 2022 Finite-lived intangible assets: Developed technology $ 377,997 $ 155,976 $ 222,021 Customer and distributor relationships 73,321 25,608 47,713 Trademarks and trade names 14,171 6,624 7,547 Total identifiable intangible assets $ 465,489 $ 188,208 $ 277,281 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Summary of Maturity of Lease Liabilities | As of December 31, 2022, there was an insignificant amount of commitments for operating leases that have not yet commenced. The reconciliation of the maturities of operating leases to the lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2022 is as follows: Fiscal Year 2023 $ 6,721 2024 5,799 2025 4,646 2026 2,905 2027 1,905 Thereafter 2,399 Total undiscounted operating lease payments 24,375 Less: imputed interest 2,030 Present value of operating lease liabilities $ 22,345 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Components [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following: December 31, January 1, 2022 2022 Materials $ 231,029 $ 157,343 Work-in-process 69,072 60,415 Finished goods 24,181 25,350 Total inventories $ 324,282 $ 243,108 |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, is comprised of the following: December 31, January 1, 2022 2022 Land and building $ 50,344 $ 48,297 Machinery and equipment 56,924 50,226 Furniture and fixtures 2,949 2,534 Computer equipment and software 15,415 13,856 Leasehold improvements 18,539 13,710 144,171 128,623 Accumulated depreciation ( 52,191 ) ( 46,529 ) Total property, plant and equipment, net $ 91,980 $ 82,094 |
Schedule of Other Assets | Other assets Other assets is comprised of the following: December 31, January 1, 2022 2022 Operating lease right-of-use assets $ 20,746 $ 17,488 Other 4,479 4,228 Total other assets $ 25,225 $ 21,716 |
Schedule of Accrued Liabilities | Accrued liabilities is comprised of the following: December 31, January 1, 2022 2022 Payroll and related expenses $ 36,529 $ 32,581 Warranty 10,890 9,093 Other 1,417 1,368 Total accrued liabilities $ 48,836 $ 43,042 |
Schedule of Other Current Liabilities | Other current liabilities is comprised of the following: December 31, January 1, 2022 2022 Customer deposits $ 12,482 $ 9,459 Current operating lease obligations 5,678 3,968 Income tax payable 1,910 6,315 Accrued professional fees 968 912 Other 5,995 7,506 Total other current liabilities $ 27,033 $ 28,160 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities is comprised of the following: December 31, January 1, 2022 2022 Non-current operating lease obligations $ 16,345 $ 13,754 Unrecognized tax benefits (including interest) 7,693 7,861 Deferred revenue 2,852 1,693 Other 3,623 5,643 Total non-current liabilities $ 30,513 $ 28,951 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Warranty Reserves | Changes in the Company’s warranty reserves are as follows: Year Ended December 31, January 1, Balance, beginning of the period $ 9,682 $ 6,485 Accruals 16,040 11,892 Warranty liability assumed from Inspectrology acquisition — 407 Usage ( 13,893 ) ( 9,102 ) Balance, end of the period $ 11,830 $ 9,682 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table represents a disaggregation of revenue by timing of revenue: Year Ended December 31, January 1, Point-in-time $ 958,409 $ 749,276 Over-time 46,773 39,623 Total revenue $ 1,005,183 $ 788,899 |
Schedule of Changes in Deferred Revenue | Changes in deferred revenue were as follows: Year Ended December 31, January 1, Balance, beginning of the period $ 31,672 $ 15,627 Deferred revenue assumed from Inspectrology acquisition — 386 Deferral of revenue 81,772 69,656 Recognition of deferred revenue ( 80,430 ) ( 53,997 ) Balance, ending of the period $ 33,014 $ 31,672 |
Share-Based Compensation and _2
Share-Based Compensation and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-based Compensation Expense by Type of Award | The following table reflects share-based compensation expense by type of award: Year Ended December 31, January 1, December 26, Share-based compensation expense: Restricted stock units, including all performance and market $ 21,729 $ 17,174 $ 15,780 Stock options and employee stock purchase options 2,697 2,368 1,882 Total share-based compensation 24,426 19,542 17,662 Tax effect on share-based compensation 5,237 4,255 3,849 Net effect on net income $ 19,189 $ 15,287 $ 13,813 Effect on earnings per share: Basic $ ( 0.39 ) $ ( 0.31 ) $ ( 0.28 ) Diluted $ ( 0.39 ) $ ( 0.31 ) $ ( 0.28 ) |
Summary of Service-Based RSUs and Market-Based PRSUs Activity | The following table summarizes the Company’s combined service-based RSUs and market-based PRSUs: Number of Weighted Nonvested at December 31, 2019 1,107 $ 28.89 Granted 498 $ 34.71 Vested ( 498 ) $ 29.46 Forfeited ( 143 ) $ 29.99 Nonvested at December 26, 2020 964 $ 31.37 Granted 338 $ 69.82 Vested ( 441 ) $ 30.90 Forfeited ( 96 ) $ 42.40 Nonvested at January 1, 2022 765 $ 48.25 Granted 410 $ 82.48 Vested ( 373 ) $ 42.87 Forfeited ( 59 ) $ 58.98 Nonvested at December 31, 2022 743 $ 69.01 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income Expense [Abstract] | |
Schedule of Other Income (Expense), Net | Other expense, net is comprised of the following: Year Ended December 31, January 1, December 26, Foreign currency exchange losses, net $ ( 73 ) $ ( 2,020 ) $ ( 3,070 ) Other ( 68 ) 132 362 Total other expense, net $ ( 141 ) $ ( 1,888 ) $ ( 2,708 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense are as follows: Year Ended December 31, January 1, December 26, Current: Federal $ 47,963 $ 21,791 $ 1,466 State 987 1,007 371 Foreign 2,901 3,153 5,637 51,851 25,951 7,474 Deferred: Federal ( 31,622 ) ( 9,475 ) ( 10,355 ) State ( 1,506 ) ( 540 ) ( 1,036 ) Foreign ( 473 ) ( 2,603 ) ( 240 ) ( 33,601 ) ( 12,618 ) ( 11,631 ) Total income tax expense (benefit) $ 18,250 $ 13,333 $ ( 4,157 ) |
Income before Tax | The income before tax is comprised of the following: Year Ended December 31, January 1, December 26, Domestic operations $ 239,527 $ 136,143 $ ( 120 ) Foreign operations $ 2,057 $ 19,539 $ 26,988 |
Income Before Provision for Income Taxes | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21 % for the years ended December 31, 2022, January 1, 2022 and December 26, 2020, to income before provision for income taxes as follows: Year Ended December 31, January 1, December 26, Federal income tax provision at statutory rate $ 50,732 $ 32,693 $ 5,642 State taxes, net of federal effect 467 1,066 126 Foreign taxes, net of federal effect ( 481 ) ( 3,817 ) 596 Foreign Derived Intangible Income ( “ FDII ” ) Deduction ( 25,445 ) ( 11,061 ) ( 4,262 ) US tax on foreign source income 1,423 1,721 2,013 Non-deductible officer's compensation 1,910 689 213 Research and development tax credit ( 7,146 ) ( 3,607 ) ( 4,858 ) Tax impact of audit and statue closures ( 1,526 ) ( 1,987 ) ( 2,905 ) Impact of the CARES Act — ( 732 ) ( 1,141 ) Other ( 1,684 ) ( 1,632 ) ( 419 ) Provision (benefit) for income taxes $ 18,250 $ 13,333 $ ( 4,157 ) Effective tax rate 8 % 9 % ( 16 )% |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are comprised of the following: December 31, January 1, Deferred tax assets: Reserves and accruals $ 17,231 $ 15,084 Deferred revenue 3,512 4,729 Share-based compensation 3,942 3,023 Tax credit carryforward 12,197 10,339 Net operating losses 1,643 3,254 Depreciation and amortization 125 368 Operating lease liabilities 4,162 3,575 Other 4,044 2,364 Gross deferred tax assets 46,856 42,736 Less: valuation allowance ( 11,772 ) ( 10,948 ) Total deferred tax assets after valuation allowance 35,084 31,788 Deferred tax liabilities: Depreciation and amortization ( 32,693 ) ( 63,554 ) Operating lease right of use assets ( 4,890 ) ( 3,469 ) Other ( 89 ) ( 224 ) Gross deferred tax liabilities ( 37,672 ) ( 67,247 ) Net deferred tax liabilities $ ( 2,588 ) $ ( 35,459 ) |
Unrecognized Tax Benefits | The total amount of unrecognized tax benefits are as follows: Year Ended December 31, January 1, December 26, Balance, beginning of the period $ 12,373 $ 13,486 $ 15,143 Gross increases—tax positions in prior period 456 156 347 Gross decreases—tax positions in prior period — ( 204 ) — Gross increases—current-period tax positions 1,729 1,193 1,048 Closure of audit/statute limitation ( 1,548 ) ( 2,258 ) ( 3,052 ) Balance, end of the period $ 13,010 $ 12,373 $ 13,486 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Income) Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive (Income) Loss, Net of Tax | The components of accumulated other comprehensive income (loss), net of tax, are as follows: Foreign currency Net unrealized Accumulated Balance at December 26, 2020 $ 4,479 $ 89 $ 4,568 Net current period other comprehensive income ( 2,715 ) ( 537 ) ( 3,252 ) Reclassifications — — — Balance at January 1, 2022 1,764 ( 448 ) 1,316 Net current period other comprehensive loss ( 8,879 ) ( 2,447 ) ( 11,326 ) Reclassifications — — — Balance at December 31, 2022 $ ( 7,115 ) $ ( 2,895 ) $ ( 10,010 ) |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers by Products and Services | The following table lists the different sources of revenue: Year Ended December 31, January 1, December 26, Systems and software $ 865,707 86 % $ 669,114 85 % $ 450,459 80 % Parts 84,266 8 % 72,753 9 % 65,444 12 % Services 55,210 6 % 47,032 6 % 40,593 8 % Total revenue $ 1,005,183 100 % $ 788,899 100 % $ 556,496 100 % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | For geographical revenue reporting, revenue is attributed to the geographic location to which the product is shipped. Revenue by geographic region is as follows: Year Ended December 31, January 1, December 26, Revenue from third parties: China $ 250,968 $ 151,027 $ 125,023 South Korea 224,172 160,373 90,193 Taiwan 199,104 194,458 120,959 United States 121,487 123,858 81,708 Europe 80,256 64,943 49,697 Japan 58,133 61,186 59,295 Southeast Asia 71,062 33,054 29,621 Total revenue $ 1,005,183 $ 788,899 $ 556,496 |
Schedule of Revenue by Major Customer by Reporting Segments | The following chart identifies our customers that represented 10% or more of total revenue for each of the last three fiscal years: 2022 2021 2020 Taiwan Semiconductor Manufacturing Co. Ltd. 15 % 18 % 14 % Samsung Semiconductor 13 % 16 % 15 % SK Hynix Inc. 11 % ^ ^ ^ The customer accounted for less than 10% of total revenue during the period. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The Company’s basic and diluted earnings per share amounts are as follows: December 31, January 1, December 26, Numerator: Net income $ 223,334 $ 142,349 $ 31,025 Denominator: Basic earnings per share - weighted average shares 49,424 49,242 49,136 Effect of potential dilutive securities: Restricted stock units, employee stock purchase grants and stock 340 486 339 Diluted earnings per share - weighted average shares 49,764 49,728 49,475 Earnings per share: Basic $ 4.52 $ 2.89 $ 0.63 Diluted $ 4.49 $ 2.86 $ 0.63 |
Share Repurchase Authorization
Share Repurchase Authorization (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Repurchase Program [Abstract] | |
Summary of Stock Repurchases | The following table summarizes the Company’s stock repurchases: Year Ended December 31, January 1, December 26, Shares of common stock repurchased 1,018 — 1,882 Cost of stock repurchased $ 65,257 $ — $ 52,000 Average price paid per share $ 64.09 $ — $ 27.62 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Textual (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) Segment | Jan. 01, 2022 USD ($) | Dec. 26, 2020 USD ($) | Dec. 26, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Property plant and equipment method | straight-line method | ||||
Impairment of long-lived assets | $ 0 | $ 0 | |||
Number of operating segments | Segment | 1 | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | 0 | $ 0 |
Accumulated exchange losses resulting from translation of foreign operation | (7,115,000) | (1,764,000) | |||
Derivative instruments, (loss) gains recognized in income, net | 3,487,000 | 1,650,000 | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Liabilities, Current | ||||
Aggregate notional amounts | 27,923,000 | 32,293,000 | |||
Forward Contracts Matured [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Aggregate notional amounts | 365,985,000 | 420,460,000 | $ 373,749,000 | 373,749,000 | |
IPR&D [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | $ 0 | ||
Computer Equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 3 years | ||||
Minimum [Member] | Building [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 5 years | ||||
Minimum [Member] | Machinery and equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 3 years | ||||
Minimum [Member] | Furniture and fixtures [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 3 years | ||||
Minimum [Member] | Software [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 3 years | ||||
Maximum [Member] | Building [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 22 years | ||||
Maximum [Member] | Machinery and equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 10 years | ||||
Maximum [Member] | Furniture and fixtures [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 10 years | ||||
Maximum [Member] | Software [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of depreciable assets | 7 years | ||||
Systems Revenue [Member] | Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assurance warranty period against defects | 12 months | ||||
Systems Revenue [Member] | Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assurance warranty period against defects | 14 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Forward Contracts and Related Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional amount | $ 27,923 | $ 32,293 |
Fair value of liability | $ (135) | $ 26 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 371,912 | $ 341,741 |
Foreign currency forward contracts | 135 | 26 |
Total liabilities | 135 | 26 |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 178,868 | 170,980 |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 1,534 | 2,009 |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 52,095 | 33,192 |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 80,079 | 73,113 |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 59,335 | 62,447 |
Available-for-sale debt securities | 371,912 | 341,741 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 371,912 | 341,741 |
Foreign currency forward contracts | 135 | 26 |
Total liabilities | 135 | 26 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 178,868 | 170,980 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 1,534 | 2,009 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 52,095 | 33,192 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 80,079 | 73,113 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 59,335 | 62,447 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Municipal notes and bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 0 | $ 0 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 375,474 | $ 342,198 |
Gross Unrealized Holding Gains | 71 | 71 |
Gross Unrealized Holding Losses | 3,633 | 528 |
Fair Value | 371,912 | 341,741 |
Municipal notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 181,196 | 171,203 |
Gross Unrealized Holding Gains | 27 | 38 |
Gross Unrealized Holding Losses | 2,355 | 261 |
Fair Value | 178,868 | 170,980 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,555 | 2,009 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 21 | 0 |
Fair Value | 1,534 | 2,009 |
Certificates of deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 52,190 | 33,200 |
Gross Unrealized Holding Gains | 24 | 2 |
Gross Unrealized Holding Losses | 118 | 10 |
Fair Value | 52,095 | 33,192 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 80,199 | 73,152 |
Gross Unrealized Holding Gains | 16 | 2 |
Gross Unrealized Holding Losses | 136 | 41 |
Fair Value | 80,079 | 73,113 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 60,334 | 62,634 |
Gross Unrealized Holding Gains | 4 | 29 |
Gross Unrealized Holding Losses | 1,003 | 216 |
Fair Value | $ 59,335 | $ 62,447 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities Classified by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Amortized Cost, Due within one year | $ 311,934 | $ 219,353 |
Amortized Cost, Due after one through five years | 63,540 | 122,845 |
Amortized Cost, Due after five through ten years | 0 | 0 |
Amortized Cost, Due after ten years | 0 | 0 |
Amortized Cost | 375,474 | 342,198 |
Fair Value, Due within one year | 309,385 | 219,211 |
Fair Value, Due after one through five years | 62,527 | 122,530 |
Fair Value, Due after five through ten years | 0 | 0 |
Fair Value, Due after ten years | 0 | 0 |
Fair Value, Total marketable securities | $ 371,912 | $ 341,741 |
Marketable Securities - Summary
Marketable Securities - Summary of Estimated Fair Value and Gross Unrealized Holding Losses of Marketable Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | $ 199,781 | $ 242,432 |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 2,185 | 462 |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 97,928 | 2,587 |
In Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | 1,448 | 66 |
Municipal notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | 96,301 | 113,790 |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 1,273 | 262 |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 69,159 | 0 |
In Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | 1,082 | 0 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | 1,555 | |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 21 | |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 0 | |
In Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | 0 | |
Certificates of deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | 22,400 | 16,300 |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 118 | 10 |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 0 | 0 |
In Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | 50,550 | 58,681 |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 136 | 40 |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 0 | 0 |
In Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
In Unrealized Loss Position For Less Than 12 Months, Fair Value | 28,975 | 53,661 |
In Unrealized Loss Position For Less Than 12 Months, Gross Unrealized Losses | 637 | 150 |
In Unrealized Loss Position For Greater Than 12 Months, Fair Value | 28,769 | 2,587 |
In Unrealized Loss Position For Greater Than 12 Months, Gross Unrealized Losses | $ 366 | $ 66 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets - Textual (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment charge | $ 0 | |||
Amortization of intangibles | 55,284,000 | $ 51,366,000 | $ 51,366,000 | $ 53,746,000 |
Estimated amortization expense, 2022 | 54,823,000 | |||
Estimated amortization expense, 2023 | 49,137,000 | |||
Estimated amortization expense, 2024 | 32,587,000 | |||
Estimated amortization expense, 2025 | 31,394,000 | |||
Estimated amortization expense, 2026 | $ 23,173,000 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill [Line Items] | ||
Beginning balance | $ 315,811 | $ 306,632 |
Goodwill adjustments | 0 | |
Ending balance | $ 315,811 | 315,811 |
Inspectrology, LLC [Member] | ||
Goodwill [Line Items] | ||
Goodwill from Inspectrology acquisition | $ 9,179 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets - Schedule of Purchased Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 |
Finite Lived Intangible Assets [Line Items] | |||
Identifiable intangibles assets, Gross Carrying Amount | $ 465,489 | $ 465,689 | |
Identifiable intangibles assets, Accumulated Amortization | 188,208 | 243,492 | |
Identifiable intangibles assets, Net | $ 222,197 | 277,281 | $ 222,197 |
Developed technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangibles assets, Gross Carrying Amount | 378,197 | 377,997 | |
Finite-lived intangibles assets, Accumulated Amortization | 205,386 | 155,976 | |
Finite-lived intangibles assets, Net | 172,811 | 222,021 | |
Customer and distributor relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangibles assets, Gross Carrying Amount | 73,321 | 73,321 | |
Finite-lived intangibles assets, Accumulated Amortization | 30,195 | 25,608 | |
Finite-lived intangibles assets, Net | 43,126 | 47,713 | |
Trademarks and trade names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangibles assets, Gross Carrying Amount | 14,171 | 14,171 | |
Finite-lived intangibles assets, Accumulated Amortization | 7,911 | 6,624 | |
Finite-lived intangibles assets, Net | $ 6,260 | $ 7,547 |
Leasing Arrangements - Textual
Leasing Arrangements - Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Lessee Disclosure [Abstract] | ||
Operating lease, term of contract | 1 year | |
Operating lease, options to extend | true | |
Operating lease cost | $ 6,368 | $ 5,964 |
Leasing Arrangements - Summary
Leasing Arrangements - Summary of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Lessee Disclosure [Abstract] | ||
Cash paid for operating lease liabilities | $ 6,368 | $ 6,247 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 9,295 | $ 304 |
Leasing Arrangements - Summar_2
Leasing Arrangements - Summary of Operating Lease Information (Details) | Dec. 31, 2022 | Jan. 01, 2022 |
Lessee Disclosure [Abstract] | ||
Weighted average remaining lease term | 4 years 6 months | 5 years 3 months 18 days |
Weighted average discount rate | 3.80% | 4.50% |
Leasing Arrangements - Summar_3
Leasing Arrangements - Summary of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Lessee Disclosure [Abstract] | ||
2022 | $ 6,721 | |
2023 | 5,799 | |
2024 | 4,646 | |
2025 | 2,905 | |
2026 | 1,905 | |
Thereafter | 2,399 | |
Total undiscounted operating lease payments | $ 24,375 | |
Less: imputed interest | 2,030 | |
Present value of operating lease liabilities | $ 22,345 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total undiscounted operating lease payments |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Inventory Details [Abstract] | ||
Materials | $ 231,029 | $ 157,343 |
Work-in-process | 69,072 | 60,415 |
Finished goods | 24,181 | 25,350 |
Total inventories | $ 324,282 | $ 243,108 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 |
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 128,623 | $ 144,171 | |
Accumulated depreciation | $ (52,191) | (46,529) | |
Total property, plant and equipment, net | 91,980 | 82,094 | $ 91,980 |
Land and building [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 50,344 | 48,297 | |
Machinery and equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 56,924 | 50,226 | |
Furniture and fixtures [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 2,949 | 2,534 | |
Computer equipment and software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | 15,415 | 13,856 | |
Leasehold improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 18,539 | $ 13,710 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 |
Other Assets [Abstract] | |||
Operating lease right-of-use assets | $ 20,746 | $ 17,488 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets | Total other assets | |
Other | $ 4,479 | $ 4,228 | |
Total other assets | $ 25,225 | $ 21,716 | $ 25,225 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Payroll and related expenses | $ 36,529 | $ 32,581 |
Warranty | 10,890 | 9,093 |
Other | 1,417 | 1,368 |
Total accrued liabilities | $ 48,836 | $ 43,042 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Other Liabilities, Current [Abstract] | ||
Customer deposits | $ 12,482 | $ 9,459 |
Current operating lease obligations | $ 5,678 | $ 3,968 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total other current liabilities | Total other current liabilities |
Income tax payable | $ 1,910 | $ 6,315 |
Accrued professional fees | 968 | 912 |
Other | 5,995 | 7,506 |
Total other current liabilities | $ 27,033 | $ 28,160 |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 |
Other Liabilities, Noncurrent [Abstract] | |||
Non-current operating lease obligations | $ 16,345 | $ 13,754 | |
Unrecognized tax benefits (including interest) | $ 7,693 | $ 7,861 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total non-current liabilities | Total non-current liabilities | |
Deferred revenue | $ 2,852 | $ 1,693 | |
Other | 3,623 | 5,643 | |
Total non-current liabilities | $ 30,513 | $ 28,951 | $ 30,513 |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments And Contingencies [Line Items] | |
Sold receivables amount | $ 32,385,000 |
Due from unrelated third parties | 0 |
Liabilities recorded for obligations | 0 |
Purchase commitment, remaining minimum amount committed | 417,148,000 |
Purchase commitment, remaining minimum amount committed less than one year | $ 348,984,000 |
Percentage of maximum borrowing capacity of value of eligible securities | 70% |
Available line of credit | $ 108,375,000 |
Available interest rate on line of credit | 6% |
Minimum [Member] | |
Commitments And Contingencies [Line Items] | |
Warranty period | 12 months |
Maximum [Member] | |
Commitments And Contingencies [Line Items] | |
Warranty period | 14 months |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance, beginning of the period | $ 9,682 | $ 6,485 |
Accruals | 16,040 | 11,892 |
Warranty liability assumed from Inspectrology acquisition (Note 3) | 0 | 407 |
Usage | (13,893) | (9,102) |
Balance, end of the period | $ 11,830 | $ 9,682 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue by Timing of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 1,005,183 | $ 788,899 | $ 788,899 | $ 556,496 |
Transferred at Point in Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 958,409 | 749,276 | ||
Transferred over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 46,773 | $ 39,623 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Long-term deferred revenue | $ 2,852 | $ 1,693 |
Revenue - Schedule of Changes i
Revenue - Schedule of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Deferred Revenue Disclosure [Line Items] | ||
Balance, beginning of the period | $ 31,672 | $ 15,627 |
Deferred revenue assumed from Inspectrology acquisition (Note 3) | 0 | |
Deferral of revenue | 81,772 | 69,656 |
Recognition of deferred revenue | (80,430) | (53,997) |
Balance, ending of the period | $ 33,014 | 31,672 |
Inspectrology, LLC [Member] | ||
Deferred Revenue Disclosure [Line Items] | ||
Deferred revenue assumed from Inspectrology acquisition (Note 3) | $ 386 |
Share-Based Compensation and _3
Share-Based Compensation and Employee Benefit Plans - Textual (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Tradingday $ / shares shares | Jan. 01, 2022 USD ($) $ / shares shares | Dec. 26, 2020 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of common stock available for issuance pursuant to future grants | 3,086 | ||
Shares purchased under ESPP | 142 | 242 | 91 |
Employee stock purchase plan available | 1,116 | 1,258 | |
Number of trading days for closing stock price performance or market price performance | Tradingday | 20 | ||
Total unrecognized compensation cost related to restricted stock units granted | $ | $ 28,653 | ||
Unrecognized compensation cost related to restricted stock units, weighted average period | 1 year 6 months | ||
Weighted average grant-date fair value per share | $ / shares | $ 69.01 | ||
Percentage of contribution for annual compensation | 100% | ||
Percentage of match of all employee contribution | 50% | ||
Total matching contribution to plan | $ | $ 2,965 | $ 2,544 | $ 2,315 |
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of common Stock price performance compared to market price performance designated as bench mark | 200% | ||
Percentage of match on employee salary | 6% | ||
Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of common Stock price performance compared to market price performance designated as bench mark | 0% | ||
Onto Innovation 2020 Employee Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Price of common stock as percentage of fair market value | 85% | ||
Onto Innovation 2020 Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Eligible compensation deduction percentage on pay for purchase of common stock | 10% | ||
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of vesting | 3 years | ||
Performance Restricted Stock Units (PRSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of vesting | 3 years | ||
Weighted average grant-date fair value per share | $ / shares | $ 85.49 | $ 80.04 | $ 47.86 |
Onto Innovation 2020 Stock Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share authorized available for grants | 3,744 | ||
Period of vesting | 3 years | ||
Options expiration period | 10 years | ||
Onto Innovation 2020 Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | Employees [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of vesting | 3 years | ||
Onto Innovation 2020 Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of vesting | 1 year |
Share-Based Compensation and _4
Share-Based Compensation and Employee Benefit Plans - Summary of Share-based Compensation Expense by Type of Award (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | $ 19,542 | $ 24,426 | $ 17,662 | |
Tax effect on share-based compensation | $ 5,237 | 4,255 | 3,849 | |
Net effect on net income | $ 15,287 | $ 19,189 | $ 13,813 | |
Effect on earnings per share: | ||||
Basic | $ 0.39 | $ (0.31) | $ (0.28) | |
Diluted | $ 0.39 | $ (0.31) | $ (0.28) | |
Restricted Stock Units, Including All Performance and Market Based Awards [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | $ 21,729 | $ 17,174 | $ 15,780 | |
Stock Options and Employee Stock Purchase Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | $ 2,697 | $ 2,368 | $ 1,882 |
Share-Based Compensation and _5
Share-Based Compensation and Employee Benefit Plans - Summary of Service-Based RSUs and Market-Based PRSUs Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Activity for RSUs [Roll Forward] | |||
Number of Shares, Granted (in shares) | 410,000 | ||
Number of Shares, Vested (in shares) | (373,000) | ||
Number of Shares, Forfeited (in shares) | (59,000) | ||
Weighted Average Grant Date Fair Value for RSUs [Roll Forward] | |||
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ 82.48 | ||
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 42.87 | ||
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 58.98 | ||
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ 69.01 | ||
Service-Based RSUs and Market-Based PRSUs [Member] | |||
Activity for RSUs [Roll Forward] | |||
Number of shares, Beginning Balance (in shares) | 1,107,000 | ||
Number of Shares, Granted (in shares) | 338,000 | 498,000 | |
Number of Shares, Vested (in shares) | (441,000) | (498,000) | |
Number of Shares, Forfeited (in shares) | (96,000) | (143,000) | |
Number of Shares, Ending balance (in shares) | 743,000 | 765,000 | 964,000 |
Weighted Average Grant Date Fair Value for RSUs [Roll Forward] | |||
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ 48.25 | $ 31.37 | $ 28.89 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 69.82 | 34.71 | |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 30.90 | 29.46 | |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 42.40 | 29.99 | |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | 48.25 | 31.37 | |
Restricted Stock Units (RSUs) [Member] | |||
Activity for RSUs [Roll Forward] | |||
Number of Shares, Ending balance (in shares) | 644,000 | ||
Performance Restricted Stock Units [Member] | |||
Activity for RSUs [Roll Forward] | |||
Number of Shares, Ending balance (in shares) | 99,000 | ||
Weighted Average Grant Date Fair Value for RSUs [Roll Forward] | |||
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ 80.04 | 47.86 | |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ 85.49 | $ 80.04 | $ 47.86 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Other Income Expense [Abstract] | |||
Foreign currency exchange gains (losses), net | $ 73 | $ (2,020) | $ (3,070) |
Other | 68 | 132 | 362 |
Total other income (expense), net | $ (141) | $ (1,888) | $ (2,708) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 31, 2019 | |
Current: | ||||
Federal | $ 47,963 | $ 21,791 | $ 1,466 | |
State | 987 | 1,007 | 371 | |
Foreign | 2,901 | 3,153 | 5,637 | |
Total current | 25,951 | 7,474 | $ 51,851 | |
Deferred: | ||||
Federal | 31,622 | (9,475) | (10,355) | |
State | 1,506 | (540) | (1,036) | |
Foreign | 473 | (2,603) | (240) | |
Total deferred | (12,618) | (11,631) | (33,601) | |
Total income tax expense (benefit) | $ 18,250 | $ 13,333 | $ (4,157) | $ (18,250) |
Income Taxes - Income before Ta
Income Taxes - Income before Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 239,527 | $ 136,143 | $ (120) |
Foreign operations | $ 2,057 | $ 19,539 | $ 26,988 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
U.S. federal income tax rate, percent | 21% | 21% | 21% | |
Deferred tax assets, valuation allowance | $ 11,772 | $ 10,948 | ||
Maximum amount company recognize from unrecognized tax benefit | 13,010 | 12,373 | $ 13,486 | $ 15,143 |
Unrecognized tax benefits that would reflect as adjustment to income tax expense if recognized | 7,614 | 7,832 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 149 | (814) | $ (193) | |
Unrecognized tax benefits, income tax penalties and interest accrued | 628 | $ 430 | ||
Accrued Foreign Withholding Taxes | 82 | |||
Foreign [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 475 | |||
Foreign [Member] | Research and Development Credit [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward expiration date | Dec. 31, 2029 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets, valuation allowance | $ 1,601 | |||
Research and development tax credit carryforward | 1,601 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets, valuation allowance | 10,171 | |||
Operating loss carryforwards | 1,168 | |||
Research and development tax credit carryforward | $ 14,797 |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Federal income tax provision (benefit) at statutory rate | $ 50,732 | $ 32,693 | $ 5,642 | |
State taxes, net of federal effect | 467 | 1,066 | 126 | |
Foreign taxes, net of federal effect | (481) | (3,817) | 596 | |
Foreign Derived Intangible Income ("FDII") Deduction | 25,445 | (11,061) | (4,262) | |
US tax on foreign source income | (1,423) | 1,721 | 2,013 | |
Non-deductible officer's compensation | 1,910 | 689 | 213 | |
Research & development tax credit | (7,146) | (3,607) | (4,858) | |
Tax impact of audit and statue closures | 1,526 | (1,987) | (2,905) | |
Impact of the CARES Act | 0 | 732 | 1,141 | |
Other | 1,684 | 1,632 | 419 | |
Total income tax expense (benefit) | $ 18,250 | $ 13,333 | $ (4,157) | $ (18,250) |
Effective tax rate | 8% | 9% | 16% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 |
Deferred tax assets: | |||
Reserves and accruals | $ 17,231 | $ 15,084 | |
Deferred revenue | 3,512 | 4,729 | |
Share-based compensation | 3,942 | 3,023 | |
Tax credit carryforward | 12,197 | 10,339 | |
Net operating losses | 1,643 | 3,254 | |
Depreciation and amortization | 125 | 368 | |
Operating lease liabilities | 4,162 | 3,575 | |
Other | 4,044 | 2,364 | |
Gross deferred tax assets | 42,736 | $ 46,856 | |
Less: valuation allowance | (11,772) | (10,948) | |
Total deferred tax assets after valuation allowance | 31,788 | 35,084 | |
Deferred tax liabilities: | |||
Depreciation and amortization | 32,693 | (63,554) | |
Operating lease right of use assets | 4,890 | (3,469) | |
Other | $ 89 | (224) | |
Gross deferred tax liabilities | (67,247) | (37,672) | |
Net deferred tax liabilities | $ (35,459) | $ (2,588) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the period | $ 12,373 | $ 13,486 | $ 15,143 |
Gross increases—tax positions in prior period | 456 | 156 | 347 |
Gross decreases—tax positions in prior period | 0 | (204) | 0 |
Gross increases—current-period tax positions | 1,729 | 1,193 | 1,048 |
Closure of audit/statute limitation | (1,548) | (2,258) | (3,052) |
Balance, end of the period | $ 13,010 | $ 12,373 | $ 13,486 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Income) Loss - Components of Accumulated Other Comprehensive (Income) Loss, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | $ 1,426,055 | $ 1,264,746 |
Balance | 1,596,426 | 1,426,055 |
Accumulated Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | 1,764 | 4,479 |
Net current period other comprehensive income (loss) | (8,879) | (2,715) |
Reclassifications | 0 | 0 |
Balance | (7,115) | 1,764 |
Accumulated Net Unrealized Gains (Losses) on Available-for-sale Marketable Securities [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (448) | 89 |
Net current period other comprehensive income (loss) | (2,447) | (537) |
Reclassifications | 0 | 0 |
Balance | (2,895) | (448) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | 1,316 | 4,568 |
Net current period other comprehensive income (loss) | (11,326) | (3,252) |
Reclassifications | 0 | 0 |
Balance | $ (10,010) | $ 1,316 |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Information - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 Customer Segment | Jan. 01, 2022 Customer | |
Concentration Risk [Line Items] | ||
Number of reportable segments | Segment | 1 | |
Significant Customer [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Number of major customer | Customer | 2 | 1 |
Customer concentration risk percentage | 10% |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Information - Schedule of Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,005,183 | $ 788,899 | $ 788,899 | $ 556,496 |
Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | |
Systems and Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 865,707 | $ 669,114 | $ 450,459 | |
Systems and Software [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 86% | 85% | 80% | |
Parts Revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 84,266 | $ 72,753 | $ 65,444 | |
Parts Revenue [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 8% | 9% | 12% | |
Service Revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 55,210 | $ 47,032 | $ 40,593 | |
Service Revenue [Member] | Sales [Member] | Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 6% | 6% | 8% |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,005,183 | $ 788,899 | $ 788,899 | $ 556,496 |
Taiwan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 199,104 | 194,458 | 120,959 | |
South Korea [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 224,172 | 160,373 | 90,193 | |
China [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 250,968 | 151,027 | 125,023 | |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 121,487 | 123,858 | 81,708 | |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 80,256 | 64,943 | 49,697 | |
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 58,133 | 61,186 | 59,295 | |
Southeast Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 71,062 | $ 33,054 | $ 29,621 |
Segment Reporting and Geograp_6
Segment Reporting and Geographic Information - Schedule of Revenue by Major Customer by Reporting Segments (Details) - Customer Concentration Risk [Member] - Sales [Member] | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Taiwan Semiconductor Manufacturing Co. Ltd. [Member] | ||||
Concentration Risk [Line Items] | ||||
Customer concentration risk percentage | 15% | 18% | 14% | |
Significant Customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Customer concentration risk percentage | 10% | |||
Samsung Semiconductor [Member] | ||||
Concentration Risk [Line Items] | ||||
Customer concentration risk percentage | 13% | 16% | 15% | |
SK Hynix Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Customer concentration risk percentage | 11% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 26, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 223,334 | $ 142,349 | $ 31,025 | $ 31,025 | $ 223,334 |
Basic earnings per share - weighted average shares outstanding | 49,424 | 49,242 | 49,136 | ||
Restricted stock units, employee stock purchase grants and stock options - dilutive shares | 340 | 486 | 339 | ||
Diluted earnings per share - weighted average shares outstanding | 49,764 | 49,728 | 49,475 | 49,764 | |
Earning Per Share Basic And Diluted [Abstract] | |||||
Basic | $ 4.52 | $ 2.89 | $ 0.63 | ||
Diluted | $ 4.49 | $ 2.86 | $ 0.63 |
Share Repurchase Authorizatio_2
Share Repurchase Authorization - Textual (Details) - USD ($) | Dec. 31, 2022 | Nov. 30, 2020 |
Shares Repurchase Authorization [Line Items] | ||
Amount available for future repurchase | $ 34,773,000 | |
Maximum [Member] | ||
Shares Repurchase Authorization [Line Items] | ||
Stock repurchase, authorized amount | $ 100,000,000 |
Share Repurchase Authorizatio_3
Share Repurchase Authorization - Summary of Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Disclosure Share Repurchase Authorization Summary Of Stock Repurchases Details [Abstract] | ||||
Shares of common stock repurchased | 1,018,000 | 0 | 1,882,000 | |
Cost of stock repurchased | $ 65,257 | $ 0 | $ 52,000 | |
Average price paid per share | $ 64.09 | $ 0 | $ 27.62 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Dec. 26, 2020 | |
Allowance For Doubtful Accounts [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,303,000 | $ 784,000 | $ 1,247,000 |
Charged to (Recovery of) Costs and Expense | 356,000 | 955,000 | 327,000 |
Charged to Other Accounts (net) | 0 | 0 | 0 |
Deductions | 87,000 | 436,000 | 790,000 |
Balance at End of Period | 1,572,000 | 1,303,000 | 784,000 |
Deferred Tax Valuation Allowance [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 10,948,000 | 14,238,000 | 14,160,000 |
Charged to (Recovery of) Costs and Expense | 824,000 | (3,290,000) | 78,000 |
Charged to Other Accounts (net) | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 11,772,000 | 10,948,000 | 14,238,000 |
Allowance for Convertible Notes Receivable [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 0 | 2,000,000 | |
Charged to (Recovery of) Costs and Expense | 0 | ||
Charged to Other Accounts (net) | 0 | ||
Deductions | 2,000,000 | ||
Balance at End of Period | $ 0 |