Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-20388 | |
Entity Registrant Name | LITTELFUSE INC /DE | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3795742 | |
Entity Address, Address Line One | 8755 West Higgins Road | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60631 | |
City Area Code | 773 | |
Local Phone Number | 628-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | LFUS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,784,449 | |
Entity Central Index Key | 0000889331 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents (Note 1) | $ 562,153 | $ 555,513 |
Short-term investments | 231 | 235 |
Trade receivables, less allowances of $76,496 and $84,696 at March 30, 2024 and December 30, 2023, respectively | 295,876 | 287,018 |
Inventories (Note 3) | 456,135 | 474,607 |
Prepaid income taxes and income taxes receivable | 8,574 | 8,701 |
Prepaid expenses and other current assets | 121,142 | 82,526 |
Total current assets | 1,444,111 | 1,408,600 |
Net property, plant, and equipment (Note 4) | 479,435 | 493,153 |
Intangible assets, net of amortization (Note 5) | 584,631 | 606,136 |
Goodwill (Note 5) | 1,294,737 | 1,309,998 |
Investments | 24,204 | 24,821 |
Deferred income taxes | 10,798 | 10,486 |
Right of use lease assets | 63,718 | 62,370 |
Other long-term assets | 41,827 | 79,711 |
Total assets | 3,943,461 | 3,995,275 |
Current liabilities: | ||
Accounts payable | 172,809 | 173,535 |
Accrued liabilities (Note 6) | 124,288 | 149,214 |
Accrued income taxes | 42,051 | 38,725 |
Current portion of long-term debt (Note 8) | 65,824 | 14,020 |
Total current liabilities | 404,972 | 375,494 |
Long-term debt, less current portion (Note 8) | 800,849 | 857,915 |
Deferred income taxes | 100,755 | 110,820 |
Accrued post-retirement benefits | 34,049 | 34,422 |
Non-current lease liabilities | 50,791 | 49,472 |
Other long-term liabilities | 80,752 | 86,671 |
Total liabilities | 1,472,168 | 1,514,794 |
Commitments and contingencies (Note 15) | ||
Shareholders’ equity: | ||
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, March 30, 2024–26,634,597; December 30, 2023–26,624,071 | 262 | 262 |
Additional paid-in capital | 1,017,311 | 1,012,325 |
Treasury stock, at cost: 1,781,633 and 1,711,290 shares, respectively | (275,398) | (259,263) |
Accumulated other comprehensive loss | (86,108) | (55,817) |
Retained earnings | 1,814,916 | 1,782,662 |
Littelfuse, Inc. shareholders’ equity | 2,470,983 | 2,480,169 |
Non-controlling interest | 310 | 312 |
Total equity | 2,471,293 | 2,480,481 |
Total liabilities and equity | $ 3,943,461 | $ 3,995,275 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 76,496 | $ 84,696 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 34,000,000 | 34,000,000 |
Common stock, issued (in shares) | 26,634,597 | 26,624,071 |
Treasury stock (in shares) | 1,781,633 | 1,711,290 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 535,385 | $ 609,782 |
Cost of sales | 347,577 | 364,825 |
Gross profit | 187,808 | 244,957 |
Selling, general, and administrative expenses | 86,127 | 88,310 |
Research and development expenses | 27,667 | 27,290 |
Amortization of intangibles | 15,825 | 16,866 |
Restructuring, impairment, and other charges | 3,237 | 1,850 |
Total operating expenses | 132,856 | 134,316 |
Operating income | 54,952 | 110,641 |
Interest expense | 9,611 | 9,646 |
Foreign exchange gain | (5,042) | (1,675) |
Other income, net | (5,321) | (6,233) |
Income before income taxes | 55,704 | 108,903 |
Income taxes | 7,252 | 20,158 |
Net income | $ 48,452 | $ 88,745 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.95 | $ 3.58 |
Diluted (in dollars per share) | $ 1.93 | $ 3.54 |
Weighted-average shares and equivalent shares outstanding: | ||
Basic (in shares) | 24,911 | 24,782 |
Diluted (in shares) | 25,124 | 25,062 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 48,452 | $ 88,745 |
Other comprehensive income (loss): | ||
Defined benefit pension plan and other adjustments, net of tax | 344 | 6 |
Cash flow hedge, net of tax | 1,926 | (2,518) |
Foreign currency translation adjustments | (32,561) | 15,795 |
Comprehensive income | $ 18,161 | $ 102,028 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
OPERATING ACTIVITIES | ||
Net income | $ 48,452 | $ 88,745 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 16,668 | 17,616 |
Amortization of intangibles | 15,825 | 16,866 |
Deferred revenue | (918) | 639 |
Impairment charges | 933 | 0 |
Stock-based compensation | 3,617 | 3,730 |
Loss (gain) on investments and other assets | 379 | (1,779) |
Deferred income taxes | (8,811) | 1,624 |
Other | 1,036 | (6,138) |
Changes in operating assets and liabilities: | ||
Trade receivables | (12,723) | (13,176) |
Inventories | 16,179 | (1,535) |
Accounts payable | 345 | (16,246) |
Accrued liabilities and income taxes | (28,042) | (43,578) |
Prepaid expenses and other assets | 4,210 | 6,639 |
Net cash provided by operating activities | 57,150 | 53,407 |
INVESTING ACTIVITIES | ||
Acquisitions of businesses, net of cash acquired | 0 | (158,260) |
Purchases of property, plant, and equipment | (15,547) | (25,665) |
Net proceeds from sale of property, plant and equipment, and other | 7,064 | 737 |
Net cash used in investing activities | (8,483) | (183,188) |
FINANCING ACTIVITIES | ||
Repayments of other debts | (678) | (668) |
Payments of term loan | (1,875) | (1,875) |
Net proceeds related to stock-based award activities | 1,364 | 5,219 |
Repurchases of common stock | (16,131) | 0 |
Cash dividends paid | (16,200) | (14,880) |
Net cash used in financing activities | (33,520) | (12,204) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (8,550) | 4,571 |
Increase (decrease) in cash, cash equivalents, and restricted cash | 6,597 | (137,414) |
Cash, cash equivalents, and restricted cash at beginning of period | 557,123 | 564,939 |
Cash, cash equivalents, and restricted cash at end of period | 563,720 | 427,525 |
Supplementary Cash Flow Information | ||
Cash and cash equivalents | 562,153 | 425,127 |
Restricted cash included in prepaid expenses and other current assets | 0 | 812 |
Restricted cash included in other long-term assets | 1,567 | 1,586 |
Cash paid during the period for interest | 13,235 | 11,027 |
Capital expenditures, not yet paid | $ 9,968 | $ 7,523 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Addl. Paid in Capital | Treasury Stock | Accum. Other Comp. (Loss) Income | Retained Earnings | Non-controlling Interest |
Balance at the beginning at Dec. 31, 2022 | $ 2,211,378 | $ 261 | $ 974,097 | $ (252,866) | $ (95,764) | $ 1,585,466 | $ 184 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 88,745 | 88,745 | |||||
Other comprehensive (loss) income, net of tax | 13,283 | 13,283 | |||||
Stock-based compensation | 3,730 | 3,730 | |||||
Non-controlling interest | 0 | (66) | 66 | ||||
Withheld shares on restricted share units for withholding taxes | (18) | (18) | |||||
Stock options exercised | 5,238 | 5,238 | |||||
Repurchases of common stock | 0 | ||||||
Cash dividends paid | (14,880) | (14,880) | |||||
Balance at the end at Apr. 01, 2023 | 2,307,476 | 261 | 983,065 | (252,884) | (82,481) | 1,659,265 | 250 |
Balance at the beginning at Dec. 30, 2023 | 2,480,481 | 262 | 1,012,325 | (259,263) | (55,817) | 1,782,662 | 312 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 48,452 | 48,452 | |||||
Other comprehensive (loss) income, net of tax | (30,291) | (30,291) | |||||
Stock-based compensation | 3,617 | 3,617 | |||||
Non-controlling interest | 0 | 2 | (2) | ||||
Withheld shares on restricted share units for withholding taxes | (4) | (4) | |||||
Stock options exercised | 1,369 | 1,369 | |||||
Repurchases of common stock | (16,131) | (16,131) | |||||
Cash dividends paid | (16,200) | (16,200) | |||||
Balance at the end at Mar. 30, 2024 | $ 2,471,293 | $ 262 | $ 1,017,311 | $ (275,398) | $ (86,108) | $ 1,814,916 | $ 310 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 30, 2024 | Dec. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid, per share (in dollars per share) | $ 0.65 | $ 0.60 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Other Information | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Other Information | Summary of Significant Accounting Policies and Other Information Nature of Operations Founded in 1927, Littelfuse is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximate ly 16,000 glob al associates, the Company partners with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, the Company’s products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Basis of Presentation The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statements of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results. Revenue Recognition Revenue Disaggregation The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 30, 2024 and April 1, 2023: Three Months Ended March 30, 2024 (in thousands) Electronics Transportation Industrial Electronics – Semiconductor $ 157,871 $ — $ — $ 157,871 Electronics – Passive Products and Sensors 133,234 — — 133,234 Commercial Vehicle Products — 79,514 — 79,514 Passenger Car Products — 70,262 — 70,262 Automotive Sensors — 20,591 — 20,591 Industrial Products — — 73,913 73,913 Total $ 291,105 $ 170,367 $ 73,913 $ 535,385 Three Months Ended April 1, 2023 (in thousands) Electronics Transportation Industrial Total Electronics – Semiconductor $ 209,995 $ — $ — $ 209,995 Electronics – Passive Products and Sensors 148,598 — — 148,598 Commercial Vehicle Products — 84,146 — 84,146 Passenger Car Products — 61,697 — 61,697 Automotive Sensors — 20,798 — 20,798 Industrial Products — — 84,548 84,548 Total $ 358,593 $ 166,641 $ 84,548 $ 609,782 See Note 14, Segment Information, for net sales by segment and countries. Revenue Recognition The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowances, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors. The Company has elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Revenue and Billing The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. Ship and Debit Program Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historical activity, distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue. Return to Stock The Company has a return to stock policy whereby certain customers, with prior authorization from the Company's management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historical activity. Sales revenue and cost of sales are reduced to anticipate estimated returns. Volume Rebates The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash at March 30, 2024 and December 30, 2023 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. (in thousands) March 30, 2024 December 30, 2023 Cash and cash equivalents $ 562,153 $ 555,513 Restricted cash included in other long-term assets 1,567 1,610 Total cash, cash equivalents, and restricted cash $ 563,720 $ 557,123 Recently Adopted Accounting Standards In March 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU")ASU No. 2023-01, "Leases (Topic 842): Common Control Arrangements". The standard requires that leasehold improvements associated with common control leases be: 1) Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2) Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment. This standard is effective for fiscal years beginning after December 15, 2023 including interim periods within those fiscal years. The adoption of ASU 2023-01 did not have a material impact on the Company's Condensed Consolidated Financial Statements. Recently Issued Accounting Standards In March 2024, the Securities and Exchange Commission (SEC) issued a final rule that requires registrants to provide climate disclosures in annual reports and registration statements. The climate-related final rule requires disclosures in the footnotes to the financial statements, including: 1) specified financial statement effects of severe weather events and other natural conditions, 2) certain carbon offsets and renewable energy credits or certificates if used as a material component of a registrant's plans to achieve its disclosed climate-related targets or goals, 3) material impacts on financial estimates and assumptions in the financial statements if they would materially impacted by risks and uncertainties associated with severe weather events and other natural conditions, previously disclosed climate-related targets, and transition plans. The financial statement disclosure requirements are effective beginning with annual reports for the fiscal year beginning in calendar year 2025, for the Company as a large accelerated filer. These disclosures will be subject to existing audit requirement for financial statements. On April 4, 2024, the SEC chose to stay its climate disclosure rules pending judicial review. The adoption of this rule will increase the Company's disclosures in its Consolidated Financial Statements. The Company is currently evaluating and is in the process of performing its initial assessment of the potential impact on its Condensed Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". The amendments in this update provide more transparency about income tax information through improvements to the income tax disclosure primarily related to the income tax rate reconciliation and income taxes paid information. These requirements include: (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The other amendments in this update improve the effectiveness and comparability of disclosures by (3) adding disclosures of pretax income (or loss) and income tax expense (or benefit), and (4) removing disclosures that are no longer considered cost beneficial or relevant. The guidance is effective for fiscal years beginning after December 15, 2024 with early adoption permitted. The adoption of this guidance will modify the Company's disclosures in its Condensed Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". The amendments in this update require additional detailed and enhanced information about reportable segments' expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on annual basis as well as an explanation of how CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of this guidance will modify the Company's disclosures in its Condensed Consolidated Financial Statements. In October 2023, the FASB issued ASU No. 2023-06, "Disclosure Improvements". The amendments in this update represent changes to clarify or improve the disclosure or presentation requirements of a variety of Topics in the ASC. The Company may be affected by one or more of those amendments. The amendments in this ASU should be applied prospectively and will not be effective until June 30, 2027. The company is currently evaluating the potential effects of these amendments on its Condensed Consolidated Financial Statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Condensed Consolidated Financial Statements from the date of the acquisition. Dortmund Fab On June 28, 2023, the Company entered into a definitive purchase agreement to acquire a 200mm wafer fab located in Dortmund, Germany (“Dortmund Fab”) from Elmos Semiconductor SE. The acquisition of the Dortmund Fab is expected to close in early fiscal year 2025. The total purchase price for the Dortmund Fab is approximately 93 million Euro, of which 37.2 million Euro down payment (approximately $40.5 million) recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets was paid in the third quarter of 2023 after regulatory approvals and approximately 56 million Euro will be paid at closing. The transaction is not expected to have a material impact on the Company’s fiscal year 2024 financial results and will be reported in the Electronics-Semiconductor business within the Company’s Electronics segment. Western Automation On February 3, 2023, the Company completed the acquisition of Western Automation Research and Development Limited (“Western Automation”) for approximately $162 million in cash. Headquartered in Galway, Ireland, Western Automation is a designer and manufacturer of electrical shock protection devices used across a broad range of high-growth end markets, including e-Mobility off-board charging infrastructure, industrial safety and renewables. At the time the Company and Western Automation entered into the definitive agreement, Western Automation had annualized sales of approximately $25 million. The business is reported within the Company’s Industrial segment. The acquisition was funded with cash on hand. The total purchase consideration of $158.3 million, net of cash acquired, has been allocated to assets acquired and liabilities assumed, as of the completion of the acquisition, based on estimated fair values. The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Western Automation acquisition: (in thousands) Purchase Price Total purchase consideration: Cash, net of cash acquired $ 158,260 Allocation of consideration to assets acquired and liabilities assumed: Trade receivables 3,359 Inventories 3,678 Other current assets 718 Property, plant, and equipment 1,328 Intangible assets 68,000 Goodwill 93,937 Other long-term assets 573 Current liabilities (4,335) Other long-term liabilities (8,998) $ 158,260 All Western Automation assets and liabilities were recorded in the Industrial segment and are primarily reflected in the Europe geographic area. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synerg ies from combining Western Automation’s products and technology with the Company’s existing Industrial products portfolio. Goodwill resulting from the Western Automation acquisition is not expected to be deductible for tax purposes. During the three months ended April 1, 2023, the Company incurred approximately $1.4 million of legal and professional fees related to the Western Automation acquisition recognized as Selling, general, and administrative expenses . These costs were reflected as other non-segment costs. Pro Forma Results The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Western Automation as though the acquisition had occurred as of January 2, 2022. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Western Automation acquisition occurred as of January 2, 2022, or of future consolidated operating results. For the Three Months Ended (in thousands, except per share amounts) April 1, 2023 Net sales $ 611,668 Income before income taxes 110,613 Net income 90,241 Net income per share — basic 3.64 Net income per share — diluted 3.60 Pro forma results presented above primarily reflect the following adjustments: For the Three Months Ended (in thousands) April 1, 2023 Amortization (a) $ (479) Transaction costs (b) 1,397 Income tax expense of above items (115) (a) The amortization adjustment for the three months ended April 1, 2023 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values. (b) The transaction cost adjustments reflect the reversal of certain legal and professional fees from the three months ended April 1, 2023, and recognition of those fees during the three months ended April 2, 2022. |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories at March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Raw materials $ 201,625 $ 201,984 Work in process 142,598 137,688 Finished goods 173,149 195,886 Inventory reserves (61,237) (60,951) Total $ 456,135 $ 474,607 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Mar. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment The components of net property, plant, and equipment at March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Land and land improvements $ 18,529 $ 22,212 Building and building improvements 196,292 202,764 Machinery and equipment 862,653 859,060 Accumulated depreciation (598,039) (590,883) Total $ 479,435 $ 493,153 The Company recorded depreciation expense of $16.7 million and $17.6 million for the three months ended March 30, 2024 and April 1, 2023, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying value of goodwill by segment for the three months ended March 30, 2024 are as follows: (in thousands) Electronics Transportation Industrial Total Net goodwill as of December 30, 2023 Gross goodwill as of December 30, 2023 $ 936,505 $ 237,115 $ 179,117 $ 1,352,737 Accumulated impairment losses as of December 30, 2023 — (34,004) (8,735) (42,739) Total 936,505 203,111 170,382 1,309,998 Changes during 2024: Foreign currency translation adjustments (13,103) (2,003) (155) (15,261) Net goodwill as of March 30, 2024 Gross goodwill as of March 30, 2024 923,402 234,620 178,761 1,336,783 Accumulated impairment losses as of March 30, 2024 — (33,512) $ (8,534) (42,046) Total $ 923,402 $ 201,108 $ 170,227 $ 1,294,737 The components of other intangible assets as of March 30, 2024 and December 30, 2023 are as follows: As of March 30, 2024 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 17,298 $ 2,864 $ 14,434 Patents, licenses, and software 271,905 167,403 104,502 Distribution network 41,917 41,917 — Customer relationships, trademarks, and tradenames 681,982 216,287 465,695 Total $ 1,013,102 $ 428,471 $ 584,631 December 30, 2023 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 17,621 $ 2,786 $ 14,835 Patents, licenses, and software 275,337 163,799 111,538 Distribution network 43,210 43,210 — Customer relationships, trademarks, and tradenames 689,244 209,481 479,763 Total $ 1,025,412 $ 419,276 $ 606,136 During the three months ended March 30, 2024 and April 1, 2023, the Company recorded amortization expense of $15.8 million and $16.9 million, respectively. Estimated annual amortization expense related to intangible assets with definite lives as of March 30, 2024 is as follows: (in thousands) Amount Remainder of 2024 $ 47,167 2025 62,662 2026 51,823 2027 49,755 2028 49,135 2029 and thereafter 324,089 Total $ 584,631 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities as of March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Employee-related liabilities $ 56,285 $ 72,635 Current lease liability 11,531 12,110 Other non-income taxes 7,828 7,855 Other customer reserves 5,399 5,998 Professional services 5,229 5,282 Interest 3,191 6,387 Restructuring liability 2,081 2,141 Current benefit liability 1,482 1,482 Deferred revenue 1,400 2,198 Other 29,862 33,126 Total $ 124,288 $ 149,214 Employee-related liabilities consist primarily of payroll, sales commissions, bonus, employee benefit accruals and workers’ compensation. Bonus accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals and other customer-related liabilities. |
Restructuring, Impairment, and
Restructuring, Impairment, and Other Charges | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Charges | Restructuring, Impairment, and Other Charges The Company recorded restructuring, impairment, and other charges for the three months ended March 30, 2024 and April 1, 2023 as follows: Three Months Ended March 30, 2024 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 544 $ 1,190 $ 435 $ 2,169 Other restructuring charges 52 78 5 135 Total restructuring charges 596 1,268 440 2,304 Impairment — 933 — 933 Total $ 596 $ 2,201 $ 440 $ 3,237 Three Months Ended April 1, 2023 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 672 $ 582 $ 317 $ 1,571 Other restructuring charges 7 272 — 279 Total $ 679 $ 854 $ 317 $ 1,850 2024 For the three months ended March 30, 2024, the Company recorded total restructuring charges of $2.3 million, primarily for employee termination costs. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions within the Transportation segment’s commercial vehicle business, and the reorganization of certain selling and administrative functions within the Electronics and Industrial segments. In addition, during the first quarter of 2024, the Company recognized a $0.9 million impairment charge related to certain machinery and equipment in the commercial vehicle business within the Transportation segment. 2023 For the three months ended April 1, 2023, the Company recorded total restructuring charges of $1.9 million, primarily for employee termination costs. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions within the Transportation segment’s commercial vehicle business and the reorganization of certain selling and administrative functions within the Electronics segment due to the C&K acquisition. The restructuring reserves as of both March 30, 2024 and December 30, 2023 is $2.1 million. The restructuring liability is included within accrued liabilities in the Condensed Consolidated Balance Sheets. The Company anticipates the remaining payments associated with employee terminations will primarily be completed in the fourth quarter fiscal year 2024. |
Debt
Debt | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying amounts of debt at March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Revolving credit facility $ 100,000 $ 100,000 Term loan 286,875 288,750 Euro Senior Notes, Series B due 2028 102,458 105,246 U.S. Senior Notes, Series B due 2027 100,000 100,000 U.S. Senior Notes, Series A due 2025 50,000 50,000 U.S. Senior Notes, Series B due 2030 125,000 125,000 U.S. Senior Notes, due 2032 100,000 100,000 Other 5,857 6,709 Unamortized debt issuance costs (3,517) (3,770) Total debt 866,673 871,935 Less: Current maturities (65,824) (14,020) Total long-term debt $ 800,849 $ 857,915 Revolving Credit Facility and Term Loan On June 30, 2022, the Company amended and restated its Credit Agreement, dated as of April 3, 2020 (the “Credit Agreement”) to effect certain changes, including, among other changes: (i) adding a $300 million unsecured term loan credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company and its subsidiaries; (iii) replacing LIBOR-based interest rate benchmarks and modifying performance-based interest rate margins; and (iv) extending the maturity date to June 30, 2027 (the “Maturity Date”). Pursuant to the Credit Agreement, the Company may, from time to time, increase the size of the revolving credit facility or enter into one or more tranches of term loans in minimum increments of $25 million if there is no event of default and the Company is in compliance with certain financial covenants. Loans made under the available credit facility pursuant to the Credit Agreement ("the Credit Facility") bear interest at the Company’s option, at either Secured Overnight Financing Rate ("SOFR"), fixed for interest periods of one, two, three or six-month periods, plus 1.00% to 1.75%, plus a SOFR adjustment of 0.10% or at the bank’s Base Rate, as defined in the Credit Agreement, plus —% to 0.75%, based upon the Company’s Consolidated Leverage Ratio, as defined in the Credit Agreement. The Company is also required to pay commitment fees on unused portions of the Credit Facility ranging from 0.10% to 0.175%, based on the Consolidated Leverage Ratio, as defined in the Credit Agreement. The Credit Agreement includes representations, covenants and events of default that are customary for financing transactions of this nature. Under the Credit Agreement, revolving loans may be borrowed, repaid and reborrowed until the Maturity Date, at which time all amounts borrowed must be repaid. The Company borrowed $300.0 million under a term loan on June 30, 2022. The principal balance of the term loans must be repaid in quarterly installments on the last day of each calendar quarter in the amount of $1.9 million commencing September 30, 2022, through June 30, 2024, and in the amount of $3.8 million commencing September 30, 2024, through March 31, 2027, with the remaining outstanding principal balance payable in full on the Maturity Date. Accrued interest on the loans is payable in arrears on each interest payment date applicable thereto and at such other times as may be specified in the Credit Agreement. Subject to certain conditions, (i) the Company may terminate or reduce the Aggregate Revolving Commitments, as defined in the Credit Agreement, in whole or in part, and (ii) the Company may prepay the revolving loans or the term loans at any time, without premium or penalty. During the three months ended March 30, 2024, the Company made payments of $1.9 million on its term loan. The revolving loan and term loan balance under the Credit Facility was $100.0 million and $286.9 million, respectively, as of March 30, 2024. On May 12, 2022, the Company entered into an interest rate swap agreement to manage interest rate risk exposure, effectively converting the interest rate on the Company's SOFR based floating-rate loans to a fixed-rate. The interest rate swap, with a notional value of $200 million, was designated as a cash flow hedge against the variability of cash flows associated with the Company's SOFR based loans scheduled to mature on June 30, 2027. As of March 30, 2024, the effective interest rate on unhedged portion of the outstanding borrowings under the credit facility was 6.68%, and 4.13% on the hedged portion. As of March 30, 2024, the Company had $0.2 million outstanding letters of credit under the Credit Facility and had $599.8 million of borrowing capacity available under the revolving credit facility. As of March 30, 2024, the Company was in compliance with all covenants under the Credit Agreement. Senior Notes On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). During the fourth quarter of 2023, the Company paid off €117 million of Euro Senior Notes, Series A due on December 8, 2023. Interest on the Euro Senior Notes due 2028 is payable semiannually on June 8 and December 8, commencing June 8, 2017. On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) were funded. During the first quarter of 2022, the Company paid off $25 million of U.S. Senior Notes, Series A due on February 15, 2022. Interest on the U.S. Senior Notes due 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017. On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together, the “U.S. Senior Notes due 2025 and 2030”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 is payable semiannually on February 15 and August 15, commencing on August 15, 2018. On May 18, 2022, the above note purchase agreements were amended to, among other things, update certain terms, including financial covenants to be consistent with the terms of the restated Credit Agreement and the 2022 Purchase Agreement, as defined below. On May 18, 2022, the Company entered into a Note Purchase Agreement (“2022 Purchase Agreement”) pursuant to which the Company issued and funded on July 18, 2022 $100 million in aggregate principal amount of 4.33% Senior Notes, due June 30, 2032 (“U.S. Senior Notes, due 2032”) (together with the U.S. Senior Notes due 2025 and 2030, the Euro Senior Notes and the U.S. Senior Notes due 2022 and 2027, the “Senior Notes”). Interest on the U.S. Senior Notes due 2032 is payable semiannually on June 30 and December 30, commencing on December 30, 2022. The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company. The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At March 30, 2024, the Company was in compliance with all covenants under the Senior Notes. The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control. Interest paid on all Company debt was $13.2 million and $11.0 million for the three months ended March 30, 2024 and April 1, 2023, respectively. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows: Level 1 —Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 —Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and Level 3 —Valuations based upon one or more significant unobservable inputs . There were no transfers in or out of Level 1, Level 2 and Level 3 during the period. Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy. Cash Equivalents Cash equivalents primarily consist of money market funds, certificates of deposit, and short-term time deposits, which are held with institutions with sound credit ratings and are highly liquid. The Company classified cash equivalents as Level 1 and are valued at cost which approximates fair value. Investments in Equity Securities Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy and recorded in Investments and Other long-term assets. Derivatives Designated as Hedging Instruments On May 12, 2022, the Company entered into an interest rate swap agreement to manage interest rate risk exposure, effectively converting the interest rate on the Company's SOFR based floating-rate loans to a fixed-rate. The interest rate swap, with a notional value of $200 million, was designated as a cash flow hedge against the variability of cash flows associated with the Company's SOFR based loans scheduled to mature on June 30, 2027. The fair value of the interest rate swap was valued using an independent third-party valuation model. Pursuant to this model, c hanges in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other comprehensive loss u ntil the underlying transactions are recognized in earnings. The primary inputs into the valuation of the interest rate swap are interest yield curves, interest rate volatility, credit risk, credit spreads and other market information. The interest rate swap is classified within Level 2 of the fair value hierarchy, since all significant inputs are corroborated by market observable data. The use of derivatives creates exposure to credit risk relating to potential losses that could be recognized in the event that the counterparties to these instruments fail to perform their obligations under the contracts. The Company seeks to minimize this risk by limiting its counterparties to major financial institutions with acceptable credit ratings and monitoring the total value of positions with individual counterparties. In the event of a default by one of its counterparties, the Company may not receive payments provided for under the terms of its derivatives. Derivatives Not Designated as Hedging Instruments On July 14, 2022, the Company entered into a foreign currency exchange forward contract to mitigate the currency fluctuation risk between the Euro and U.S. dollar on its Euro denominated Senior Notes, Series A due 2023. The notional value of the forward contract at July 14, 2022 was €117.0 million and expired on December 7, 2023 with the final settlement value of $6.3 million which the Company used to convert USD to Euro to pay down the €117.0 million of Euro Senior Notes, Series A due 2023. The foreign currency contract was not designated as a hedge instrument and was marked to market on a monthly basis. As a result, changes in fair value during 2023 were reported in Foreign exchange gain in the Condensed Consolidated Statements of Net Income. The fair value of the foreign currency forward contract was valued using market exchange rates by a third party and classified as a Level 2 input under the fair value hierarchy. As of March 30, 2024 and December 30, 2023, the fair values of the Company's derivative financial instrument and their classifications on the Condensed Consolidated Balance Sheets were as follows: (in thousands) Condensed Consolidated Balance Sheet Classification March 30, 2024 December 30, 2023 Derivatives designated as hedging instruments Interest rate swap agreement: Designated as cash flow hedge Prepaid expenses and other current assets $ 3,952 $ 3,712 Other long-term assets $ 4,434 $ 2,140 The pre-tax gains recognized on derivative financial instruments in the Condensed Consolidated Statements of Net Income for the three months ended March 30, 2024 and April 1, 2023 were as follows: Three Months Ended (in thousands) Classification of Gain Recognized in the Condensed Consolidated Statements of Net Income March 30, 2024 April 1, 2023 Derivatives designated as cash flow hedges Interest rate swap agreement Interest expense $ (1,280) $ (975) Derivatives not designated as hedging instruments Foreign exchange forward contract Foreign exchange gain $ — $ (819) The pre-tax (gains) recognized on derivative financial instruments in the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 30, 2024 and April 1, 2023 was as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Derivatives designated as cash flow hedges Interest rate swap agreement $ (2,534) $ (5,366) The pre-tax gain of $4.2 million from accumulated other comprehensive loss to earnings is expected to be recognized during the next twelve months. Mutual Funds The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value and recorded in Other long-term assets . There we re no changes during the quarter ended March 30, 2024 to the Company’s valuation techniques used to measure asset and liability fair values o n a recurring basis. As of March 30, 2024 and December 30, 2023, the Company did not hold any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis. The following table presents assets measured at fair value by classification within the fair value hierarchy as of March 30, 2024: Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash equivalents $ 452,453 $ — $ — $ 452,453 Investments in equity securities 10,178 — — 10,178 Mutual funds 21,509 — — 21,509 Total $ 484,140 $ — $ — $ 484,140 The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 30, 2023: Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash equivalents $ 415,788 $ — $ — $ 415,788 Investments in equity securities 10,832 — — 10,832 Mutual funds 20,148 — — 20,148 Total $ 446,768 $ — $ — $ 446,768 In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, accounts receivable and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and accounts receivable approximate their fair values. The Company’s revolving and term loan debt facilities' fair values approximate book value at March 30, 2024 and December 30, 2023, as the rates on these borrowings are variable in nature. The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of March 30, 2024 and December 30, 2023 were as follows: March 30, 2024 December 30, 2023 (in thousands) Carrying Estimated Carrying Estimated Euro Senior Notes, Series B due 2028 $ 102,458 $ 93,470 $ 105,246 $ 96,532 USD Senior Notes, Series B due 2027 100,000 95,654 100,000 96,127 USD Senior Notes, Series A due 2025 50,000 49,203 50,000 49,070 USD Senior Notes, Series B due 2030 125,000 114,269 125,000 115,687 USD Senior Notes, due 2032 100,000 91,365 100,000 93,228 |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 30, 2024 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has Company-sponsored and mandatory defined benefit pension plans covering employees in the United Kingdom ("U.K."), Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is generally based on years of service and final average pay. The Company recognizes interest cost, expected return on plan assets, and amortization of prior service, net within Other income, net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three months ended March 30, 2024 and April 1, 2023 were as follows: For the Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Components of net periodic benefit cost: Service cost $ 795 $ 692 Interest cost 995 937 Expected return on plan assets (518) (469) Amortization of prior service and net actuarial loss 46 11 Net periodic benefit cost $ 1,318 $ 1,171 The Company expects to make approximately $2.2 million of contributions to the plans and pay $2.1 million of benefits directly in 2024. The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. The Company recorded expense of $0.7 million and $0.4 million for the three months ended March 30, 2024 and April 1, 2023 , respectively, in Cost of Sales and Other income, net within the Condensed Consolidated Statements of Net Income. The pre-tax (gains) losses amount recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were $0.3 million and nominal for the three months ended March 30, 2024 and April 1, 2023, respectively. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Changes in other comprehensive income (loss) by component were as follows: (in thousands) Three Months Ended Three Months Ended Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Defined benefit pension plan and other adjustments $ 360 $ (16) $ 344 $ 24 $ (18) $ 6 Cash flow hedge 2,534 (608) 1,926 (3,313) 795 (2,518) Foreign currency translation adjustments (a) (33,170) 609 (32,561) 16,068 (273) 15,795 Total change in other comprehensive (loss) income $ (30,276) $ (15) $ (30,291) $ 12,779 $ 504 $ 13,283 (a) The tax shown above within the foreign currency translation adjustments is the U.S. tax associated with the foreign currency translation adjustments of earnings of non-U.S. subsidiaries which have been previously taxed in the U.S. and are not permanently reinvested. The following tables set forth the changes i n accumulated other comprehensive loss by compon ent for the three months ended March 30, 2024 and April 1, 2023: (in thousands) Defined benefit pension plan and other adjustments Cash flow hedge Foreign currency Accumulated other Balance at December 30, 2023 $ (7,613) $ 4,448 $ (52,652) $ (55,817) Activity in the period 344 1,926 (32,561) (30,291) Balance at March 30, 2024 $ (7,269) $ 6,374 $ (85,213) $ (86,108) (in thousands) Defined benefit pension plan and other adjustments Cash flow hedge Foreign currency translation adjustment Accumulated other comprehensive loss Balance at December 31, 2022 $ (2,193) $ 6,596 $ (100,167) $ (95,764) Activity in the period 6 (2,518) 15,795 13,283 Balance at April 1, 2023 $ (2,187) $ 4,078 $ (84,372) $ (82,481) Amounts reclassified from accumulated other comprehensive loss to e arnings for the three months ended March 30, 2024 and April 1, 2023 were as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Pension and postemployment plans: Amortization of prior service and net actuarial loss (gain) $ 356 $ (11) The Company recognizes the amortization of prior service costs in Other income, net within the Condensed Consolidated Statements of Net Income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended March 30, 2024 was 13.0%, compared to the effective tax rate for the three months ended April 1, 2023 of 18.5%. The effective tax rate for the first quarter of 2024 is lower than the effective tax rate for the comparable 2023 period primarily due to the lapse in the statute of limitations for previously unrecognized tax benefits. The effective tax rate for 2023 is lower than the statutory tax rate primarily due to income earned in lower tax jurisdictions, and the effective tax rate for 2024 is lower than the statutory tax rate primarily due to the lapse in the statute of limitations for previously unrecognized tax benefits. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) March 30, 2024 April 1, 2023 Numerator: Net income as reported $ 48,452 $ 88,745 Denominator: Weighted average shares outstanding Basic 24,911 24,782 Effect of dilutive securities 213 280 Diluted 25,124 25,062 Earnings Per Share: Basic earnings per share $ 1.95 $ 3.58 Diluted earnings per share $ 1.93 $ 3.54 Potential shares of common stock relating to stock options and restricted share units excluded from the earnings per share calculation because their effect would be anti-dilutive were 175,411 and 90,297 for the three months ended March 30, 2024 and April 1, 2023, respectively. Share Repurchase Program The Company’s Board of Directors authorized the repurchase of up to $300.0 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 (2021 program). During the three months ended March 30, 2024, the Company repurchased 70,280 shares of its common stock totaling $16.1 million. The Company did not repurchase shares of its common stock for the three months ended April 1, 2023. On April 25, 2024, the Company announced that the Board of Directors authorized a new three year program to repurchase up to $300.0 million in the aggregate of shares of the Company's stock for the period May 1, 2024 to April 30, 2027 to replace its 2021 program. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company and its subsidiaries design, manufacture and sell component, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety. The Company reports its operations by the following segments: Electronics, Transportation, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information. Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole. • Electronics Segment : Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon and silicon carbide metal-oxide-semiconductor field effect transistors (“MOSFETs”) and diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics. • Transportation Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy-duty truck and bus, off-road and recreational vehicles, material handling equipment, agricultural machinery, construction equipment and other commercial vehicle end markets. Passenger vehicle products are used in internal combustion engine, hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products designed to monitor the occupant’s safety and environment as well as the vehicle’s powertrain. Commercial vehicle products include fuses, switches, circuit breakers, relays, and power distribution modules and units used in applications serving a number of end markets, including heavy-duty truck and bus, construction, agriculture, material handling and marine. • Industrial Segment: Consists of industrial circuit protection (industrial fuses), industrial controls (protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, and arc fault detection devices) and temperature sensors for use in various applications such as renewable energy and energy storage systems, industrial safety, factory automation, electr ic vehicle infrastructure, HVAC systems, non-residential construction, MRO, and mining. Segment information is summarized as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Net sales Electronics $ 291,105 $ 358,593 Transportation 170,367 166,641 Industrial 73,913 84,548 Total net sales $ 535,385 $ 609,782 Depreciation and amortization Electronics $ 19,841 $ 19,788 Transportation 8,631 11,291 Industrial 4,021 3,403 Total depreciation and amortization $ 32,493 $ 34,482 Operating income (loss) Electronics $ 37,803 $ 90,162 Transportation 16,206 8,532 Industrial 4,796 17,141 Other (a) (3,853) (5,194) Total operating income 54,952 110,641 Interest expense 9,611 9,646 Foreign exchange gain (5,042) (1,675) Other income, net (5,321) (6,233) Income before income taxes $ 55,704 $ 108,903 (a) Included in “Other” Operating income for the first quarter of 2024 was $2.3 million of restructuring charges primarily related to employee termination costs and a $0.9 million impairment charge related to certain machinery and equipment in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, during the first quarter of 2024, the Company recognized $0.9 million of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, partially offset by a gain of $0.3 million recorded for the sale of a building in the commercial vehicle business within the Transportation segment. Included in “Other” Operating income for the first quarter of 2023 was $3.3 million of legal and professional fees and other integration expenses related to completed acquisitions, and $1.9 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. The Company’s net sales by country were as follows, classified according to the country where the customer is located: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Net sales United States $ 190,433 $ 212,195 China 115,169 133,467 Other countries (a) 229,783 264,120 Total net sales $ 535,385 $ 609,782 The Company’s long-lived assets represent Net property, plant, and equipment, and are classified according to the country where the asset is located were as follows: (in thousands) March 30, 2024 December 30, 2023 Long-lived assets United States $ 67,614 $ 73,126 China 135,255 139,736 Mexico 100,830 102,218 Germany 48,084 47,217 Philippines 71,327 73,217 Other countries 56,325 57,639 Total long-lived assets $ 479,435 $ 493,153 The Company’s additions to long-lived assets by country were as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Additions to long-lived assets United States $ 4,806 $ 4,091 China 2,408 8,403 Mexico 2,330 3,744 Germany 3,230 1,234 Philippines 1,338 1,398 Other countries 2,212 2,593 Total additions to long-lived assets $ 16,324 $ 21,463 (a) Each country included in other countries is less than 10% of net sales. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance Sheet Arrangements As of March 30, 2024, the Company did not have any off-balance sheet arrangements, as defined under SEC rules. Specifically, the Company was not liable for guarantees of indebtedness owed by third parties, the Company was not directly liable for the debt of any unconsolidated entity and the Company did not have any retained or contingent interest in assets. The Company does not participate in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities. Product Warranty Liabilities The company's policy is to accrue for warranty claims when a loss is both probable and estimable. Liabilities for warranty claims have historically not been material and in limited instances, customers may make claims for costs they incurred or other damages related to a claim. The Company carries insurance for potential product liability claims at coverage levels based on the Company's prior claims experience. This coverage is subject to deductibles, and various terms and conditions. The Company cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in its businesses, now or in the future, or that such coverage always will be available should the Company, now or in the future, wish to extend, increase or otherwise adjust its insurance. The Company has been notified by one of its customers of a product recall potentially due to certain fuses provided by Littelfuse and incorporated in such products. The Company is currently working with its customer to investigate the cause and level of responsibility for this recall. The Company has determined pursuant to ASC 450, "Contingencies ", that a loss is reasonably possible. However, the Company continues to evaluate this matter and the ultimate costs of the recall and range of the potential loss cannot be determined at this time. Accordingly, no accrual has been made yet for this matter. Factors that will impact the amount of such losses include the per vehicle cost of fuse replacement, the determination of the relative liability among the customer, the Company, and any relevant third parties, as well as actual insurance recoveries . Environmental Remediation Liabilities The company's operations and facilities are subject to U.S. and non-U.S. laws and regulations governing the protection of the environment and its employees, including those governing air emissions, chemical usage, water discharges, the management and disposal of hazardous substances and wastes, and the cleanup of contaminated sites. The Company could incur significant costs, including cleanup costs, fines, civil or criminal sanctions, or third-party property damage or personal injury claims, in the event of violations or liabilities under these laws and regulations, or non-compliance with the environmental permits required at its facilities. Potentially significant expenditures could be required in order to comply with environmental laws that may be adopted or imposed in the future. The Company is, however, not aware of any threatened or pending material environmental investigations, lawsuits, or claims involving the Company or its operations. Legal Proceedings In the ordinary course of business, the Company may be involved in a number of claims and litigation matters. While it is not feasible to predict the outcome of these matters, based upon the Company's experience and current information known, the Company does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on its results of operations, financial position, and/or cash flows. The Company accounts for litigation and claims losses in accordance with ASC 450, "Contingencies " where loss contingency provisions are recognized for probable and estimable losses at the Company's best estimate of a loss or, when a best estimate cannot be made, at its estimate of the minimum loss. These estimates require the application of considerable judgment and are refined each accounting period as additional information becomes known. If the Company is initially unable to develop a best estimate of loss and therefore the minimum amount, which could be an immaterial amount, is recognized. As information becomes known, either the minimum loss amount is increased, or a best estimate can be made, resulting in additional loss provisions. A best estimate may be changed when events result in an expectation different than previously expected. Pending Litigation and Claims There are no material pending litigation or claims outstanding as of March 30, 2024. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has equity ownership in various investments that are accounted for under the equity method. The following is a description of the investments and related party transactions. Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (“Powersem”), a module manufacturer based in Germany. EB-Tech Co., Ltd.: The Company owns approximately 19% of the outstanding equity of EB Tech Co., Ltd. (“EB Tech”), a company with expertise in radiation technology based in South Korea. Automated Technology (Phil), Inc. : The Company owns approximately 24% of the outstanding common shares of Automated Technology (Phil), Inc. (“ATEC”), a supplier located in the Philippines that provides assembly and test services. One member of the Company's Board of Directors serves on the Board of Directors of ATEC. Three Months Ended March 30, 2024 Three Months Ended April 1, 2023 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.5 $ — $ — $ 0.5 $ — $ — Purchase material/service from related party 1.2 0.2 2.1 1.0 0.1 2.7 March 30, 2024 December 30, 2023 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Accounts receivable balance $ 0.1 $ — $ — $ — $ — $ — Accounts payable balance $ 0.8 $ 0.1 $ 1.5 $ 0.5 $ — $ 1.0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 48,452 | $ 88,745 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the three months ended March 30, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1 Plan”), were as follows: Name Title Action Date Adopted Expiration Date Aggregate # of securities to be Sold David Heinzmann (1) President and Chief Executive Officer Adoption 2/6/2024 4/25/2025 23,061 (1) David Heinzmann, President and Chief Executive Officer, entered into a pre-arranged stock trading plan pursuant to Rule 10b5-1 on February 6, 2024. Mr. Heinzmann’s plan provides for the potential exercise of vested stock options and the associated sale of up to 23,061 shares of the Company’s common stock. The stock options covered by the plan expire on April 25, 2025 if they have not been exercised. Consequently, the plan expires on April 25, 2025, or upon the earlier completion of all authorized transactions under the plan. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
David Heinzmann [Member] | |
Trading Arrangements, by Individual | |
Name | David Heinzmann |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 6, 2024 |
Arrangement Duration | 444 days |
Aggregate Available | 23,061 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Other Information (Policies) | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statements of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowances, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors. The Company has elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Revenue and Billing The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. Ship and Debit Program Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historical activity, distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue. Return to Stock The Company has a return to stock policy whereby certain customers, with prior authorization from the Company's management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historical activity. Sales revenue and cost of sales are reduced to anticipate estimated returns. Volume Rebates The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In March 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU")ASU No. 2023-01, "Leases (Topic 842): Common Control Arrangements". The standard requires that leasehold improvements associated with common control leases be: 1) Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2) Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment. This standard is effective for fiscal years beginning after December 15, 2023 including interim periods within those fiscal years. The adoption of ASU 2023-01 did not have a material impact on the Company's Condensed Consolidated Financial Statements. Recently Issued Accounting Standards In March 2024, the Securities and Exchange Commission (SEC) issued a final rule that requires registrants to provide climate disclosures in annual reports and registration statements. The climate-related final rule requires disclosures in the footnotes to the financial statements, including: 1) specified financial statement effects of severe weather events and other natural conditions, 2) certain carbon offsets and renewable energy credits or certificates if used as a material component of a registrant's plans to achieve its disclosed climate-related targets or goals, 3) material impacts on financial estimates and assumptions in the financial statements if they would materially impacted by risks and uncertainties associated with severe weather events and other natural conditions, previously disclosed climate-related targets, and transition plans. The financial statement disclosure requirements are effective beginning with annual reports for the fiscal year beginning in calendar year 2025, for the Company as a large accelerated filer. These disclosures will be subject to existing audit requirement for financial statements. On April 4, 2024, the SEC chose to stay its climate disclosure rules pending judicial review. The adoption of this rule will increase the Company's disclosures in its Consolidated Financial Statements. The Company is currently evaluating and is in the process of performing its initial assessment of the potential impact on its Condensed Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". The amendments in this update provide more transparency about income tax information through improvements to the income tax disclosure primarily related to the income tax rate reconciliation and income taxes paid information. These requirements include: (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The other amendments in this update improve the effectiveness and comparability of disclosures by (3) adding disclosures of pretax income (or loss) and income tax expense (or benefit), and (4) removing disclosures that are no longer considered cost beneficial or relevant. The guidance is effective for fiscal years beginning after December 15, 2024 with early adoption permitted. The adoption of this guidance will modify the Company's disclosures in its Condensed Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". The amendments in this update require additional detailed and enhanced information about reportable segments' expense, including significant segment expenses and other segment items that bridge segment revenue, significant expenses to segment profit or loss. The ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) on annual basis as well as an explanation of how CODM uses the reported measures and other disclosures. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of this guidance will modify the Company's disclosures in its Condensed Consolidated Financial Statements. In October 2023, the FASB issued ASU No. 2023-06, "Disclosure Improvements". The amendments in this update represent changes to clarify or improve the disclosure or presentation requirements of a variety of Topics in the ASC. The Company may be affected by one or more of those amendments. The amendments in this ASU should be applied prospectively and will not be effective until June 30, 2027. The company is currently evaluating the potential effects of these amendments on its Condensed Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Other Information (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Disaggregation | The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 30, 2024 and April 1, 2023: Three Months Ended March 30, 2024 (in thousands) Electronics Transportation Industrial Electronics – Semiconductor $ 157,871 $ — $ — $ 157,871 Electronics – Passive Products and Sensors 133,234 — — 133,234 Commercial Vehicle Products — 79,514 — 79,514 Passenger Car Products — 70,262 — 70,262 Automotive Sensors — 20,591 — 20,591 Industrial Products — — 73,913 73,913 Total $ 291,105 $ 170,367 $ 73,913 $ 535,385 Three Months Ended April 1, 2023 (in thousands) Electronics Transportation Industrial Total Electronics – Semiconductor $ 209,995 $ — $ — $ 209,995 Electronics – Passive Products and Sensors 148,598 — — 148,598 Commercial Vehicle Products — 84,146 — 84,146 Passenger Car Products — 61,697 — 61,697 Automotive Sensors — 20,798 — 20,798 Industrial Products — — 84,548 84,548 Total $ 358,593 $ 166,641 $ 84,548 $ 609,782 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash at March 30, 2024 and December 30, 2023 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. (in thousands) March 30, 2024 December 30, 2023 Cash and cash equivalents $ 562,153 $ 555,513 Restricted cash included in other long-term assets 1,567 1,610 Total cash, cash equivalents, and restricted cash $ 563,720 $ 557,123 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash at March 30, 2024 and December 30, 2023 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. (in thousands) March 30, 2024 December 30, 2023 Cash and cash equivalents $ 562,153 $ 555,513 Restricted cash included in other long-term assets 1,567 1,610 Total cash, cash equivalents, and restricted cash $ 563,720 $ 557,123 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Western Automation acquisition: (in thousands) Purchase Price Total purchase consideration: Cash, net of cash acquired $ 158,260 Allocation of consideration to assets acquired and liabilities assumed: Trade receivables 3,359 Inventories 3,678 Other current assets 718 Property, plant, and equipment 1,328 Intangible assets 68,000 Goodwill 93,937 Other long-term assets 573 Current liabilities (4,335) Other long-term liabilities (8,998) $ 158,260 |
Schedule of Business Acquisition, Pro Forma Information | The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Western Automation as though the acquisition had occurred as of January 2, 2022. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Western Automation acquisition occurred as of January 2, 2022, or of future consolidated operating results. For the Three Months Ended (in thousands, except per share amounts) April 1, 2023 Net sales $ 611,668 Income before income taxes 110,613 Net income 90,241 Net income per share — basic 3.64 Net income per share — diluted 3.60 |
Schedule of Business Acquisition, Pro Forma Information, Non-recurring Adjustments | Pro forma results presented above primarily reflect the following adjustments: For the Three Months Ended (in thousands) April 1, 2023 Amortization (a) $ (479) Transaction costs (b) 1,397 Income tax expense of above items (115) (a) The amortization adjustment for the three months ended April 1, 2023 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values. (b) The transaction cost adjustments reflect the reversal of certain legal and professional fees from the three months ended April 1, 2023, and recognition of those fees during the three months ended April 2, 2022. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventories at March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Raw materials $ 201,625 $ 201,984 Work in process 142,598 137,688 Finished goods 173,149 195,886 Inventory reserves (61,237) (60,951) Total $ 456,135 $ 474,607 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Net Property, Plant, and Equipment | The components of net property, plant, and equipment at March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Land and land improvements $ 18,529 $ 22,212 Building and building improvements 196,292 202,764 Machinery and equipment 862,653 859,060 Accumulated depreciation (598,039) (590,883) Total $ 479,435 $ 493,153 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill by segment for the three months ended March 30, 2024 are as follows: (in thousands) Electronics Transportation Industrial Total Net goodwill as of December 30, 2023 Gross goodwill as of December 30, 2023 $ 936,505 $ 237,115 $ 179,117 $ 1,352,737 Accumulated impairment losses as of December 30, 2023 — (34,004) (8,735) (42,739) Total 936,505 203,111 170,382 1,309,998 Changes during 2024: Foreign currency translation adjustments (13,103) (2,003) (155) (15,261) Net goodwill as of March 30, 2024 Gross goodwill as of March 30, 2024 923,402 234,620 178,761 1,336,783 Accumulated impairment losses as of March 30, 2024 — (33,512) $ (8,534) (42,046) Total $ 923,402 $ 201,108 $ 170,227 $ 1,294,737 |
Schedule of Finite-Lived Intangible Assets | The components of other intangible assets as of March 30, 2024 and December 30, 2023 are as follows: As of March 30, 2024 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 17,298 $ 2,864 $ 14,434 Patents, licenses, and software 271,905 167,403 104,502 Distribution network 41,917 41,917 — Customer relationships, trademarks, and tradenames 681,982 216,287 465,695 Total $ 1,013,102 $ 428,471 $ 584,631 December 30, 2023 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 17,621 $ 2,786 $ 14,835 Patents, licenses, and software 275,337 163,799 111,538 Distribution network 43,210 43,210 — Customer relationships, trademarks, and tradenames 689,244 209,481 479,763 Total $ 1,025,412 $ 419,276 $ 606,136 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated annual amortization expense related to intangible assets with definite lives as of March 30, 2024 is as follows: (in thousands) Amount Remainder of 2024 $ 47,167 2025 62,662 2026 51,823 2027 49,755 2028 49,135 2029 and thereafter 324,089 Total $ 584,631 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Components of Accrued Liabilities | The components of accrued liabilities as of March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Employee-related liabilities $ 56,285 $ 72,635 Current lease liability 11,531 12,110 Other non-income taxes 7,828 7,855 Other customer reserves 5,399 5,998 Professional services 5,229 5,282 Interest 3,191 6,387 Restructuring liability 2,081 2,141 Current benefit liability 1,482 1,482 Deferred revenue 1,400 2,198 Other 29,862 33,126 Total $ 124,288 $ 149,214 |
Restructuring, Impairment, an_2
Restructuring, Impairment, and Other Charges (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring, Impairment and Other Charges | The Company recorded restructuring, impairment, and other charges for the three months ended March 30, 2024 and April 1, 2023 as follows: Three Months Ended March 30, 2024 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 544 $ 1,190 $ 435 $ 2,169 Other restructuring charges 52 78 5 135 Total restructuring charges 596 1,268 440 2,304 Impairment — 933 — 933 Total $ 596 $ 2,201 $ 440 $ 3,237 Three Months Ended April 1, 2023 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 672 $ 582 $ 317 $ 1,571 Other restructuring charges 7 272 — 279 Total $ 679 $ 854 $ 317 $ 1,850 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The carrying amounts of debt at March 30, 2024 and December 30, 2023 are as follows: (in thousands) March 30, 2024 December 30, 2023 Revolving credit facility $ 100,000 $ 100,000 Term loan 286,875 288,750 Euro Senior Notes, Series B due 2028 102,458 105,246 U.S. Senior Notes, Series B due 2027 100,000 100,000 U.S. Senior Notes, Series A due 2025 50,000 50,000 U.S. Senior Notes, Series B due 2030 125,000 125,000 U.S. Senior Notes, due 2032 100,000 100,000 Other 5,857 6,709 Unamortized debt issuance costs (3,517) (3,770) Total debt 866,673 871,935 Less: Current maturities (65,824) (14,020) Total long-term debt $ 800,849 $ 857,915 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | As of March 30, 2024 and December 30, 2023, the fair values of the Company's derivative financial instrument and their classifications on the Condensed Consolidated Balance Sheets were as follows: (in thousands) Condensed Consolidated Balance Sheet Classification March 30, 2024 December 30, 2023 Derivatives designated as hedging instruments Interest rate swap agreement: Designated as cash flow hedge Prepaid expenses and other current assets $ 3,952 $ 3,712 Other long-term assets $ 4,434 $ 2,140 |
Schedule of Derivative Instruments Pre-tax Gains | The pre-tax gains recognized on derivative financial instruments in the Condensed Consolidated Statements of Net Income for the three months ended March 30, 2024 and April 1, 2023 were as follows: Three Months Ended (in thousands) Classification of Gain Recognized in the Condensed Consolidated Statements of Net Income March 30, 2024 April 1, 2023 Derivatives designated as cash flow hedges Interest rate swap agreement Interest expense $ (1,280) $ (975) Derivatives not designated as hedging instruments Foreign exchange forward contract Foreign exchange gain $ — $ (819) The pre-tax (gains) recognized on derivative financial instruments in the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 30, 2024 and April 1, 2023 was as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Derivatives designated as cash flow hedges Interest rate swap agreement $ (2,534) $ (5,366) |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following table presents assets measured at fair value by classification within the fair value hierarchy as of March 30, 2024: Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash equivalents $ 452,453 $ — $ — $ 452,453 Investments in equity securities 10,178 — — 10,178 Mutual funds 21,509 — — 21,509 Total $ 484,140 $ — $ — $ 484,140 The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 30, 2023: Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash equivalents $ 415,788 $ — $ — $ 415,788 Investments in equity securities 10,832 — — 10,832 Mutual funds 20,148 — — 20,148 Total $ 446,768 $ — $ — $ 446,768 |
Schedule of Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of March 30, 2024 and December 30, 2023 were as follows: March 30, 2024 December 30, 2023 (in thousands) Carrying Estimated Carrying Estimated Euro Senior Notes, Series B due 2028 $ 102,458 $ 93,470 $ 105,246 $ 96,532 USD Senior Notes, Series B due 2027 100,000 95,654 100,000 96,127 USD Senior Notes, Series A due 2025 50,000 49,203 50,000 49,070 USD Senior Notes, Series B due 2030 125,000 114,269 125,000 115,687 USD Senior Notes, due 2032 100,000 91,365 100,000 93,228 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost for the three months ended March 30, 2024 and April 1, 2023 were as follows: For the Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Components of net periodic benefit cost: Service cost $ 795 $ 692 Interest cost 995 937 Expected return on plan assets (518) (469) Amortization of prior service and net actuarial loss 46 11 Net periodic benefit cost $ 1,318 $ 1,171 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
Schedule of Components of Comprehensive Income (Loss) | Changes in other comprehensive income (loss) by component were as follows: (in thousands) Three Months Ended Three Months Ended Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Defined benefit pension plan and other adjustments $ 360 $ (16) $ 344 $ 24 $ (18) $ 6 Cash flow hedge 2,534 (608) 1,926 (3,313) 795 (2,518) Foreign currency translation adjustments (a) (33,170) 609 (32,561) 16,068 (273) 15,795 Total change in other comprehensive (loss) income $ (30,276) $ (15) $ (30,291) $ 12,779 $ 504 $ 13,283 (a) The tax shown above within the foreign currency translation adjustments is the U.S. tax associated with the foreign currency translation adjustments of earnings of non-U.S. subsidiaries which have been previously taxed in the U.S. and are not permanently reinvested. |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following tables set forth the changes i n accumulated other comprehensive loss by compon ent for the three months ended March 30, 2024 and April 1, 2023: (in thousands) Defined benefit pension plan and other adjustments Cash flow hedge Foreign currency Accumulated other Balance at December 30, 2023 $ (7,613) $ 4,448 $ (52,652) $ (55,817) Activity in the period 344 1,926 (32,561) (30,291) Balance at March 30, 2024 $ (7,269) $ 6,374 $ (85,213) $ (86,108) (in thousands) Defined benefit pension plan and other adjustments Cash flow hedge Foreign currency translation adjustment Accumulated other comprehensive loss Balance at December 31, 2022 $ (2,193) $ 6,596 $ (100,167) $ (95,764) Activity in the period 6 (2,518) 15,795 13,283 Balance at April 1, 2023 $ (2,187) $ 4,078 $ (84,372) $ (82,481) Amounts reclassified from accumulated other comprehensive loss to e arnings for the three months ended March 30, 2024 and April 1, 2023 were as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Pension and postemployment plans: Amortization of prior service and net actuarial loss (gain) $ 356 $ (11) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) March 30, 2024 April 1, 2023 Numerator: Net income as reported $ 48,452 $ 88,745 Denominator: Weighted average shares outstanding Basic 24,911 24,782 Effect of dilutive securities 213 280 Diluted 25,124 25,062 Earnings Per Share: Basic earnings per share $ 1.95 $ 3.58 Diluted earnings per share $ 1.93 $ 3.54 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information is summarized as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Net sales Electronics $ 291,105 $ 358,593 Transportation 170,367 166,641 Industrial 73,913 84,548 Total net sales $ 535,385 $ 609,782 Depreciation and amortization Electronics $ 19,841 $ 19,788 Transportation 8,631 11,291 Industrial 4,021 3,403 Total depreciation and amortization $ 32,493 $ 34,482 Operating income (loss) Electronics $ 37,803 $ 90,162 Transportation 16,206 8,532 Industrial 4,796 17,141 Other (a) (3,853) (5,194) Total operating income 54,952 110,641 Interest expense 9,611 9,646 Foreign exchange gain (5,042) (1,675) Other income, net (5,321) (6,233) Income before income taxes $ 55,704 $ 108,903 (a) Included in “Other” Operating income for the first quarter of 2024 was $2.3 million of restructuring charges primarily related to employee termination costs and a $0.9 million impairment charge related to certain machinery and equipment in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, during the first quarter of 2024, the Company recognized $0.9 million of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, partially offset by a gain of $0.3 million recorded for the sale of a building in the commercial vehicle business within the Transportation segment. Included in “Other” Operating income for the first quarter of 2023 was $3.3 million of legal and professional fees and other integration expenses related to completed acquisitions, and $1.9 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The Company’s net sales by country were as follows, classified according to the country where the customer is located: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Net sales United States $ 190,433 $ 212,195 China 115,169 133,467 Other countries (a) 229,783 264,120 Total net sales $ 535,385 $ 609,782 The Company’s long-lived assets represent Net property, plant, and equipment, and are classified according to the country where the asset is located were as follows: (in thousands) March 30, 2024 December 30, 2023 Long-lived assets United States $ 67,614 $ 73,126 China 135,255 139,736 Mexico 100,830 102,218 Germany 48,084 47,217 Philippines 71,327 73,217 Other countries 56,325 57,639 Total long-lived assets $ 479,435 $ 493,153 The Company’s additions to long-lived assets by country were as follows: Three Months Ended (in thousands) March 30, 2024 April 1, 2023 Additions to long-lived assets United States $ 4,806 $ 4,091 China 2,408 8,403 Mexico 2,330 3,744 Germany 3,230 1,234 Philippines 1,338 1,398 Other countries 2,212 2,593 Total additions to long-lived assets $ 16,324 $ 21,463 (a) Each country included in other countries is less than 10% of net sales. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Three Months Ended March 30, 2024 Three Months Ended April 1, 2023 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.5 $ — $ — $ 0.5 $ — $ — Purchase material/service from related party 1.2 0.2 2.1 1.0 0.1 2.7 March 30, 2024 December 30, 2023 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Accounts receivable balance $ 0.1 $ — $ — $ — $ — $ — Accounts payable balance $ 0.8 $ 0.1 $ 1.5 $ 0.5 $ — $ 1.0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Other Information - Narrative (Details) customer in Thousands, associate in Thousands | 3 Months Ended |
Mar. 30, 2024 country customer associate | |
Accounting Policies [Abstract] | |
Countries where product is used (country) | country | 20 |
Global associates (associate) | associate | 16 |
Number of customers (over) | customer | 100 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Other Information - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Disaggregation of Revenue | ||
Net sales | $ 535,385 | $ 609,782 |
Electronics Segment | ||
Disaggregation of Revenue | ||
Net sales | 291,105 | 358,593 |
Transportation Segment | ||
Disaggregation of Revenue | ||
Net sales | 170,367 | 166,641 |
Industrial Segment | ||
Disaggregation of Revenue | ||
Net sales | 73,913 | 84,548 |
Electronics – Semiconductor | ||
Disaggregation of Revenue | ||
Net sales | 157,871 | 209,995 |
Electronics – Semiconductor | Electronics Segment | ||
Disaggregation of Revenue | ||
Net sales | 157,871 | 209,995 |
Electronics – Semiconductor | Transportation Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Electronics – Semiconductor | Industrial Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Electronics – Passive Products and Sensors | ||
Disaggregation of Revenue | ||
Net sales | 133,234 | 148,598 |
Electronics – Passive Products and Sensors | Electronics Segment | ||
Disaggregation of Revenue | ||
Net sales | 133,234 | 148,598 |
Electronics – Passive Products and Sensors | Transportation Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Electronics – Passive Products and Sensors | Industrial Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Commercial Vehicle Products | ||
Disaggregation of Revenue | ||
Net sales | 79,514 | 84,146 |
Commercial Vehicle Products | Electronics Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Commercial Vehicle Products | Transportation Segment | ||
Disaggregation of Revenue | ||
Net sales | 79,514 | 84,146 |
Commercial Vehicle Products | Industrial Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Passenger Car Products | ||
Disaggregation of Revenue | ||
Net sales | 70,262 | 61,697 |
Passenger Car Products | Electronics Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Passenger Car Products | Transportation Segment | ||
Disaggregation of Revenue | ||
Net sales | 70,262 | 61,697 |
Passenger Car Products | Industrial Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Automotive Sensors | ||
Disaggregation of Revenue | ||
Net sales | 20,591 | 20,798 |
Automotive Sensors | Electronics Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Automotive Sensors | Transportation Segment | ||
Disaggregation of Revenue | ||
Net sales | 20,591 | 20,798 |
Automotive Sensors | Industrial Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Industrial Products | ||
Disaggregation of Revenue | ||
Net sales | 73,913 | 84,548 |
Industrial Products | Electronics Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Industrial Products | Transportation Segment | ||
Disaggregation of Revenue | ||
Net sales | 0 | 0 |
Industrial Products | Industrial Segment | ||
Disaggregation of Revenue | ||
Net sales | $ 73,913 | $ 84,548 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Other Information - Cash and cash equivalents (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 562,153 | $ 555,513 | $ 425,127 | |
Restricted cash included in other long-term assets | 1,567 | 1,610 | 1,586 | |
Total cash, cash equivalents, and restricted cash | $ 563,720 | $ 557,123 | $ 427,525 | $ 564,939 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | 30 Months Ended | ||||
Feb. 03, 2023 USD ($) | Mar. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 EUR (€) | Apr. 01, 2023 USD ($) | Dec. 31, 2025 EUR (€) | Dec. 31, 2025 EUR (€) | |
Business Acquisition | |||||||
Cash, net of cash acquired | $ 0 | $ 158,260 | |||||
Dortmund Fab | |||||||
Business Acquisition | |||||||
Cash | $ 40,500 | € 37.2 | |||||
Dortmund Fab | Forecast | |||||||
Business Acquisition | |||||||
Purchase price | € | € 93 | ||||||
Cash | € | € 56 | ||||||
Western Automation | |||||||
Business Acquisition | |||||||
Cash | $ 162,000 | ||||||
Annualized sales | 25,000 | ||||||
Cash, net of cash acquired | $ 158,260 | ||||||
Acquisition related costs | $ 1,400 |
Acquisitions - Preliminary Pric
Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 03, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Total purchase consideration: | ||||
Cash, net of cash acquired | $ 0 | $ 158,260 | ||
Allocation of consideration to assets acquired and liabilities assumed: | ||||
Goodwill | $ 1,294,737 | $ 1,309,998 | ||
Western Automation | ||||
Total purchase consideration: | ||||
Cash, net of cash acquired | $ 158,260 | |||
Allocation of consideration to assets acquired and liabilities assumed: | ||||
Trade receivables | 3,359 | |||
Inventories | 3,678 | |||
Other current assets | 718 | |||
Property, plant, and equipment | 1,328 | |||
Intangible assets | 68,000 | |||
Goodwill | 93,937 | |||
Other long-term assets | 573 | |||
Current liabilities | (4,335) | |||
Other long-term liabilities | (8,998) | |||
Assets acquired and liabilities assumed | $ 158,260 |
Acquisitions - Business Acquisi
Acquisitions - Business Acquisition Pro Forma Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) $ / shares | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Net sales | $ 611,668 |
Income before income taxes | 110,613 |
Net income | $ 90,241 |
Net income per share — basic (in dollars per share) | $ / shares | $ 3.64 |
Net income per share — diluted (in dollars per share) | $ / shares | $ 3.60 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information Adjustments (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | |
Net income | $ 90,241 |
Amortization | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | |
Net income | (479) |
Transaction costs | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | |
Net income | 1,397 |
Income tax expense of above items | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | |
Net income | $ (115) |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 201,625 | $ 201,984 |
Work in process | 142,598 | 137,688 |
Finished goods | 173,149 | 195,886 |
Inventory reserves | (61,237) | (60,951) |
Total | $ 456,135 | $ 474,607 |
Property, Plant, and Equipment-
Property, Plant, and Equipment- Components of Net Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Property, Plant and Equipment | ||
Accumulated depreciation | $ (598,039) | $ (590,883) |
Total | 479,435 | 493,153 |
Land and land improvements | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 18,529 | 22,212 |
Building and building improvements | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 196,292 | 202,764 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | $ 862,653 | $ 859,060 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 16,668 | $ 17,616 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Amounts for Goodwill and Changes in Carrying Value by Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Dec. 30, 2023 | |
Goodwill | ||
Gross goodwill | $ 1,336,783 | $ 1,352,737 |
Accumulated impairment losses | (42,046) | (42,739) |
Net goodwill | 1,294,737 | 1,309,998 |
Foreign currency translation adjustments | (15,261) | |
Electronics | ||
Goodwill | ||
Gross goodwill | 923,402 | 936,505 |
Accumulated impairment losses | 0 | 0 |
Net goodwill | 923,402 | 936,505 |
Foreign currency translation adjustments | (13,103) | |
Transportation | ||
Goodwill | ||
Gross goodwill | 234,620 | 237,115 |
Accumulated impairment losses | (33,512) | (34,004) |
Net goodwill | 201,108 | 203,111 |
Foreign currency translation adjustments | (2,003) | |
Industrial | ||
Goodwill | ||
Gross goodwill | 178,761 | 179,117 |
Accumulated impairment losses | (8,534) | (8,735) |
Net goodwill | 170,227 | $ 170,382 |
Foreign currency translation adjustments | $ (155) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Details of Other Intangible Assets and Related Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Finite-Lived Intangible Assets | ||
Gross Carrying Value | $ 1,013,102 | $ 1,025,412 |
Accumulated Amortization | 428,471 | 419,276 |
Net Book Value | 584,631 | 606,136 |
Land use rights | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 17,298 | 17,621 |
Accumulated Amortization | 2,864 | 2,786 |
Net Book Value | 14,434 | 14,835 |
Patents, licenses, and software | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 271,905 | 275,337 |
Accumulated Amortization | 167,403 | 163,799 |
Net Book Value | 104,502 | 111,538 |
Distribution network | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 41,917 | 43,210 |
Accumulated Amortization | 41,917 | 43,210 |
Net Book Value | 0 | 0 |
Customer relationships, trademarks, and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 681,982 | 689,244 |
Accumulated Amortization | 216,287 | 209,481 |
Net Book Value | $ 465,695 | $ 479,763 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangibles | $ 15,825 | $ 16,866 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets with Definite Lives (Details) $ in Thousands | Mar. 30, 2024 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
Remainder of 2024 | $ 47,167 |
2025 | 62,662 |
2026 | 51,823 |
2027 | 49,755 |
2028 | 49,135 |
2029 and thereafter | 324,089 |
Total | $ 584,631 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Payables and Accruals [Abstract] | ||
Employee-related liabilities | $ 56,285 | $ 72,635 |
Current lease liability | 11,531 | 12,110 |
Other non-income taxes | 7,828 | 7,855 |
Other customer reserves | 5,399 | 5,998 |
Professional services | 5,229 | 5,282 |
Interest | 3,191 | 6,387 |
Restructuring liability | 2,081 | 2,141 |
Current benefit liability | 1,482 | 1,482 |
Deferred revenue | 1,400 | 2,198 |
Other | 29,862 | 33,126 |
Total | $ 124,288 | $ 149,214 |
Restructuring, Impairment, an_3
Restructuring, Impairment, and Other Charges - Schedule of Restructuring, Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost and Reserve | ||
Total restructuring charges | $ 2,304 | $ 1,850 |
Impairment | 933 | 0 |
Total | 3,237 | |
Electronics | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 596 | 679 |
Impairment | 0 | |
Total | 596 | |
Transportation | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 1,268 | 854 |
Impairment | 933 | |
Total | 2,201 | |
Industrial | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 440 | 317 |
Impairment | 0 | |
Total | 440 | |
Employee Terminations | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 2,169 | 1,571 |
Employee Terminations | Electronics | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 544 | 672 |
Employee Terminations | Transportation | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 1,190 | 582 |
Employee Terminations | Industrial | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 435 | 317 |
Other Restructuring Charges | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 135 | 279 |
Other Restructuring Charges | Electronics | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 52 | 7 |
Other Restructuring Charges | Transportation | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | 78 | 272 |
Other Restructuring Charges | Industrial | ||
Restructuring Cost and Reserve | ||
Total restructuring charges | $ 5 | $ 0 |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Restructuring Cost and Reserve | |||
Restructuring charges | $ 2,304 | $ 1,850 | |
Impairment | 933 | 0 | |
Restructuring reserves | 2,100 | $ 2,100 | |
Transportation | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 1,268 | $ 854 | |
Impairment | $ 933 |
Debt - Carrying Amounts of Long
Debt - Carrying Amounts of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Jun. 30, 2022 |
Debt Instrument | |||
Unamortized debt issuance costs | $ (3,517) | $ (3,770) | |
Total debt | 866,673 | 871,935 | |
Less: Current maturities | (65,824) | (14,020) | |
Total long-term debt | 800,849 | 857,915 | |
Revolving credit facility | |||
Debt Instrument | |||
Long-term debt, gross | 100,000 | 100,000 | |
Term loan | |||
Debt Instrument | |||
Long-term debt, gross | 286,875 | 288,750 | $ 300,000 |
Senior Notes | Euro Senior Notes, Series B due 2028 | |||
Debt Instrument | |||
Long-term debt, gross | 102,458 | 105,246 | |
Senior Notes | U.S. Senior Notes, Series B due 2027 | |||
Debt Instrument | |||
Long-term debt, gross | 100,000 | 100,000 | |
Senior Notes | U.S. Senior Notes, Series A due 2025 | |||
Debt Instrument | |||
Long-term debt, gross | 50,000 | 50,000 | |
Senior Notes | U.S. Senior Notes, Series B due 2030 | |||
Debt Instrument | |||
Long-term debt, gross | 125,000 | 125,000 | |
Senior Notes | U.S. Senior Notes, due 2032 | |||
Debt Instrument | |||
Long-term debt, gross | 100,000 | 100,000 | |
Other | |||
Debt Instrument | |||
Long-term debt, gross | $ 5,857 | $ 6,709 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 21 Months Ended | 30 Months Ended | ||||||||||||
Jun. 30, 2022 USD ($) | Dec. 08, 2016 EUR (€) | Mar. 30, 2024 USD ($) | Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Jun. 30, 2024 USD ($) | Mar. 31, 2027 USD ($) | Dec. 30, 2023 USD ($) | Jul. 18, 2022 USD ($) | May 12, 2022 USD ($) | Jan. 16, 2018 USD ($) | Nov. 15, 2017 USD ($) series | Feb. 15, 2017 USD ($) | Dec. 08, 2016 USD ($) series | Dec. 08, 2016 EUR (€) series | |
Debt Instrument | |||||||||||||||
Repayments of term loan | $ 1,875,000 | $ 1,875,000 | |||||||||||||
Letter of credit outstanding (less than) | 200,000 | ||||||||||||||
Interest paid | $ 13,200,000 | $ 11,000,000 | |||||||||||||
Unhedged Portion | Credit Agreement | |||||||||||||||
Debt Instrument | |||||||||||||||
Effective interest rate (as a percent) | 6.68% | ||||||||||||||
Hedged Portion | Credit Agreement | |||||||||||||||
Debt Instrument | |||||||||||||||
Effective interest rate (as a percent) | 4.13% | ||||||||||||||
Interest rate swap agreement | Designated as cash flow hedge | Designated as Hedging Instrument | |||||||||||||||
Debt Instrument | |||||||||||||||
Notional amount of derivatives | $ 200,000,000 | ||||||||||||||
Term loan | |||||||||||||||
Debt Instrument | |||||||||||||||
Maximum borrowing capacity, credit facility | $ 300,000,000 | ||||||||||||||
Loan minimum increments | 25,000,000 | ||||||||||||||
Long-term debt, gross | $ 300,000,000 | $ 286,875,000 | $ 288,750,000 | ||||||||||||
Repayments of term loan | 1,900,000 | ||||||||||||||
Term loan | Forecast | |||||||||||||||
Debt Instrument | |||||||||||||||
Quarterly repayment of line of credit | $ 1,900,000 | $ 3,800,000 | |||||||||||||
Line of Credit | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term debt, gross | 100,000,000 | 100,000,000 | |||||||||||||
Remaining borrowing capacity | 599,800,000 | ||||||||||||||
Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||||||
Debt Instrument | |||||||||||||||
Basis spread on variable rate adjustment (as a percent) | 0.10% | ||||||||||||||
Line of Credit | Minimum | |||||||||||||||
Debt Instrument | |||||||||||||||
Commitment fee (as a percent) | 0.10% | ||||||||||||||
Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||||||
Debt Instrument | |||||||||||||||
Basis spread on variable rate (as a percent) | 1% | ||||||||||||||
Line of Credit | Minimum | Base Rate | |||||||||||||||
Debt Instrument | |||||||||||||||
Basis spread on variable rate (as a percent) | 0% | ||||||||||||||
Line of Credit | Maximum | |||||||||||||||
Debt Instrument | |||||||||||||||
Commitment fee (as a percent) | 0.175% | ||||||||||||||
Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||||||
Debt Instrument | |||||||||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||||||||
Line of Credit | Maximum | Base Rate | |||||||||||||||
Debt Instrument | |||||||||||||||
Basis spread on variable rate (as a percent) | 0.75% | ||||||||||||||
Senior Notes | Euro Senior Notes, Series A and B | |||||||||||||||
Debt Instrument | |||||||||||||||
Face amount of debt | € | € 212,000,000 | ||||||||||||||
Number of series | series | 2 | 2 | |||||||||||||
Senior Notes | Euro Senior Notes, Series A due 2023 | |||||||||||||||
Debt Instrument | |||||||||||||||
Face amount of debt | € | € 117,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 1.14% | 1.14% | |||||||||||||
Repayments of debt | € | € 117,000,000 | ||||||||||||||
Senior Notes | Euro Senior Notes, Series B due 2028 | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term debt, gross | 102,458,000 | 105,246,000 | |||||||||||||
Face amount of debt | € | € 95,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 1.83% | 1.83% | |||||||||||||
Senior Notes | U.S. Senior Notes, Series A and B | |||||||||||||||
Debt Instrument | |||||||||||||||
Face amount of debt | $ 125,000,000 | ||||||||||||||
Number of series | series | 2 | 2 | |||||||||||||
Senior Notes | U.S. Senior Notes, Series A | |||||||||||||||
Debt Instrument | |||||||||||||||
Face amount of debt | $ 25,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 3.03% | ||||||||||||||
Repayments of debt | $ 25,000,000 | ||||||||||||||
Senior Notes | U.S. Senior Notes, Series B | |||||||||||||||
Debt Instrument | |||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 3.74% | ||||||||||||||
Senior Notes | US Senior Notes A and B Due 2025 and 2030 | |||||||||||||||
Debt Instrument | |||||||||||||||
Face amount of debt | $ 175,000,000 | ||||||||||||||
Number of series | series | 2 | ||||||||||||||
Senior Notes | U.S. Senior Notes, Series A due 2025 | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term debt, gross | 50,000,000 | 50,000,000 | |||||||||||||
Face amount of debt | $ 50,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 3.48% | ||||||||||||||
Senior Notes | U.S. Senior Notes, Series B due 2030 | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term debt, gross | $ 125,000,000 | $ 125,000,000 | |||||||||||||
Face amount of debt | $ 125,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 3.78% | ||||||||||||||
Senior Notes | U.S Senior Notes, due 2032 | |||||||||||||||
Debt Instrument | |||||||||||||||
Face amount of debt | $ 100,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 4.33% |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Narrative (Details) € in Millions, $ in Millions | Mar. 30, 2024 USD ($) | Jul. 14, 2022 USD ($) | Jul. 14, 2022 EUR (€) | May 12, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Pre-tax gain from AOCI expected to be recognized in next twelve months | $ 4.2 | |||
Interest rate swap agreement | Designated as cash flow hedge | Designated as Hedging Instrument | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Notional amount of derivatives | $ 200 | |||
Foreign Exchange Forward Contract | Designated as cash flow hedge | Not Designated as Hedging Instrument | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Notional amount of derivatives | $ 6.3 | € 117 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Fair Values of Derivatives and Classifications on the Condensed Consolidated Balance Sheets (Details) - Interest rate swap agreement - Designated as cash flow hedge - Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | $ 3,952 | $ 3,712 |
Other long-term assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | $ 4,434 | $ 2,140 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Fair Values of Derivatives and Classifications on Statement of Operation and Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Interest rate swap agreement | Designated as cash flow hedge | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification and tax | $ (2,534) | $ (5,366) |
Interest rate swap agreement | Designated as cash flow hedge | Designated as Hedging Instrument | Interest expense | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Pre-tax gain (loss) on derivatives | (1,280) | (975) |
Foreign exchange forward contract | Not Designated as Hedging Instrument | Foreign exchange gain | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Pre-tax gain (loss) on derivatives | $ 0 | $ (819) |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 452,453 | $ 415,788 |
Investments in equity securities | 10,178 | 10,832 |
Mutual funds | 21,509 | 20,148 |
Total | 484,140 | 446,768 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 452,453 | 415,788 |
Investments in equity securities | 10,178 | 10,832 |
Mutual funds | 21,509 | 20,148 |
Total | 484,140 | 446,768 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Investments in equity securities | 0 | 0 |
Mutual funds | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Investments in equity securities | 0 | 0 |
Mutual funds | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Senior Notes (Details) - Senior Notes - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Euro Senior Notes, Series B due 2028 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | $ 102,458 | $ 105,246 |
Euro Senior Notes, Series B due 2028 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 93,470 | 96,532 |
U.S. Senior Notes, Series B due 2027 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 100,000 | 100,000 |
U.S. Senior Notes, Series B due 2027 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 95,654 | 96,127 |
U.S. Senior Notes, Series A due 2025 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 50,000 | 50,000 |
U.S. Senior Notes, Series A due 2025 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 49,203 | 49,070 |
U.S. Senior Notes, Series B due 2030 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 125,000 | 125,000 |
U.S. Senior Notes, Series B due 2030 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 114,269 | 115,687 |
U.S. Senior Notes, due 2032 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 100,000 | 100,000 |
U.S. Senior Notes, due 2032 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | $ 91,365 | $ 93,228 |
Benefit Plans - Benefit Plan Ex
Benefit Plans - Benefit Plan Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 795 | $ 692 |
Interest cost | 995 | 937 |
Expected return on plan assets | (518) | (469) |
Amortization of prior service and net actuarial loss | 46 | 11 |
Net periodic benefit cost | $ 1,318 | $ 1,171 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Defined Benefit Plan Disclosure | ||
Contributions expected | $ 2,200 | |
Expected direct payments | 2,100 | |
Defined benefit plan expense | 1,318 | $ 1,171 |
Foreign Plan | ||
Defined Benefit Plan Disclosure | ||
Defined benefit plan expense | 700 | 400 |
Other comprehensive (loss) income as component of net period benefit cost, before tax | $ 300 | $ 0 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Other Comprehensive Income (Loss) | ||
Pre-tax | $ (30,276) | $ 12,779 |
Tax | (15) | 504 |
Total change in other comprehensive (loss) income | (30,291) | 13,283 |
Defined benefit pension plan and other adjustments | ||
Other Comprehensive Income (Loss) | ||
Pre-tax | 360 | 24 |
Tax | (16) | (18) |
Total change in other comprehensive (loss) income | 344 | 6 |
Cash flow hedge | ||
Other Comprehensive Income (Loss) | ||
Pre-tax | 2,534 | (3,313) |
Tax | (608) | 795 |
Total change in other comprehensive (loss) income | 1,926 | (2,518) |
Foreign currency translation adjustment | ||
Other Comprehensive Income (Loss) | ||
Pre-tax | (33,170) | 16,068 |
Tax | 609 | (273) |
Total change in other comprehensive (loss) income | $ (32,561) | $ 15,795 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at the beginning | $ 2,480,481 | $ 2,211,378 |
Activity in the period | (30,291) | 13,283 |
Balance at the end | 2,471,293 | 2,307,476 |
Accumulated other comprehensive loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at the beginning | (55,817) | (95,764) |
Activity in the period | (30,291) | 13,283 |
Balance at the end | (86,108) | (82,481) |
Defined benefit pension plan and other adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at the beginning | (7,613) | (2,193) |
Activity in the period | 344 | 6 |
Balance at the end | (7,269) | (2,187) |
Cash flow hedge | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at the beginning | 4,448 | 6,596 |
Activity in the period | 1,926 | (2,518) |
Balance at the end | 6,374 | 4,078 |
Foreign currency translation adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Balance at the beginning | (52,652) | (100,167) |
Activity in the period | (32,561) | 15,795 |
Balance at the end | $ (85,213) | $ (84,372) |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service and net actuarial loss (gain) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Amortization of prior service and net actuarial loss (gain) | $ 356 | $ (11) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 13% | 18.50% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Numerator: | ||
Net income as reported | $ 48,452 | $ 88,745 |
Weighted average shares outstanding | ||
Basic (in shares) | 24,911 | 24,782 |
Effect of dilutive securities (in shares) | 213 | 280 |
Diluted (in shares) | 25,124 | 25,062 |
Earnings Per Share: | ||
Basic earnings per share (in dollars per share) | $ 1.95 | $ 3.58 |
Diluted earnings per share (in dollars per share) | $ 1.93 | $ 3.54 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) | 3 Months Ended | |||
Apr. 25, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | Apr. 28, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded (in shares) | 175,411 | 90,297 | ||
Shares repurchased (in shares) | 70,280 | |||
Repurchases of common stock | $ 16,131,000 | $ 0 | ||
2021 Share Repurchase Program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Repurchase authorized | $ 300,000,000 | |||
2021 Share Repurchase Program | Subsequent Event | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Repurchase authorized | $ 300,000,000 | |||
Stock repurchase expiration date | Apr. 30, 2027 |
Segment Information - Narrative
Segment Information - Narratives (Details) | 3 Months Ended |
Mar. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 3 |
Segment Information- Segment Re
Segment Information- Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Segment Reporting Information | |||
Net sales | $ 535,385 | $ 609,782 | |
Depreciation and amortization | 32,493 | 34,482 | |
Operating income (loss) | 54,952 | 110,641 | |
Interest expense | 9,611 | 9,646 | |
Foreign exchange gain | (5,042) | (1,675) | |
Other income, net | (5,321) | (6,233) | |
Income before income taxes | 55,704 | 108,903 | |
Restructuring charges | 2,304 | 1,850 | |
Carling Technologies, Inc. | |||
Segment Reporting Information | |||
Restructuring charges | 2,300 | ||
Carling Technologies, Inc. | Operating Income (Loss) | |||
Segment Reporting Information | |||
Acquisition related costs | 900 | ||
Hartland Controls | |||
Segment Reporting Information | |||
Restructuring charges | 1,900 | ||
Hartland Controls | Operating Income (Loss) | |||
Segment Reporting Information | |||
Acquisition related costs | 3,300 | ||
Other | |||
Segment Reporting Information | |||
Operating income (loss) | (3,853) | (5,194) | |
Electronics | |||
Segment Reporting Information | |||
Net sales | 291,105 | 358,593 | |
Depreciation and amortization | 19,841 | 19,788 | |
Restructuring charges | 596 | 679 | |
Electronics | Operating Segments | |||
Segment Reporting Information | |||
Operating income (loss) | 37,803 | 90,162 | |
Transportation | |||
Segment Reporting Information | |||
Net sales | 170,367 | 166,641 | |
Depreciation and amortization | 8,631 | 11,291 | |
Restructuring charges | 1,268 | 854 | |
Transportation | Carling Technologies, Inc. | |||
Segment Reporting Information | |||
Impairment | 900 | ||
Gain (loss) on sale of properties | $ (300) | ||
Transportation | Operating Segments | |||
Segment Reporting Information | |||
Operating income (loss) | 16,206 | 8,532 | |
Industrial | |||
Segment Reporting Information | |||
Net sales | 73,913 | 84,548 | |
Depreciation and amortization | 4,021 | 3,403 | |
Restructuring charges | 440 | 317 | |
Industrial | Operating Segments | |||
Segment Reporting Information | |||
Operating income (loss) | $ 4,796 | $ 17,141 |
Segment Information - Revenues
Segment Information - Revenues and Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Segment Reporting Information | |||
Net sales | $ 535,385 | $ 609,782 | |
Long-lived assets | 479,435 | $ 493,153 | |
Additions to long-lived assets | 16,324 | 21,463 | |
United States | |||
Segment Reporting Information | |||
Net sales | 190,433 | 212,195 | |
Long-lived assets | 67,614 | 73,126 | |
Additions to long-lived assets | 4,806 | 4,091 | |
China | |||
Segment Reporting Information | |||
Net sales | 115,169 | 133,467 | |
Long-lived assets | 135,255 | 139,736 | |
Additions to long-lived assets | 2,408 | 8,403 | |
Mexico | |||
Segment Reporting Information | |||
Long-lived assets | 100,830 | 102,218 | |
Additions to long-lived assets | 2,330 | 3,744 | |
Germany | |||
Segment Reporting Information | |||
Long-lived assets | 48,084 | 47,217 | |
Additions to long-lived assets | 3,230 | 1,234 | |
Philippines | |||
Segment Reporting Information | |||
Long-lived assets | 71,327 | 73,217 | |
Additions to long-lived assets | 1,338 | 1,398 | |
Other countries | |||
Segment Reporting Information | |||
Net sales | 229,783 | 264,120 | |
Long-lived assets | 56,325 | $ 57,639 | |
Additions to long-lived assets | $ 2,212 | $ 2,593 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Related Party Transaction | |||
Sales to related party | $ 535,385 | $ 609,782 | |
Accounts receivable balance | 295,876 | $ 287,018 | |
Accounts payable balance | 172,809 | 173,535 | |
Related Party | Powersem | |||
Related Party Transaction | |||
Sales to related party | 500 | 500 | |
Purchase material/service from related party | 1,200 | 1,000 | |
Accounts receivable balance | 100 | 0 | |
Accounts payable balance | 800 | 500 | |
Related Party | EB Tech | |||
Related Party Transaction | |||
Sales to related party | 0 | 0 | |
Purchase material/service from related party | 200 | 100 | |
Accounts receivable balance | 0 | 0 | |
Accounts payable balance | 100 | 0 | |
Related Party | ATEC | |||
Related Party Transaction | |||
Sales to related party | 0 | 0 | |
Purchase material/service from related party | 2,100 | $ 2,700 | |
Accounts receivable balance | 0 | 0 | |
Accounts payable balance | $ 1,500 | $ 1,000 | |
Powersem | Related Party | |||
Related Party Transaction | |||
Ownership percentage (as a percent) | 45% | ||
EB Tech | Related Party | |||
Related Party Transaction | |||
Ownership percentage (as a percent) | 19% | ||
ATEC | Related Party | |||
Related Party Transaction | |||
Ownership percentage (as a percent) | 24% |