Littelfuse (LFUS) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 27, 2015	Jul. 24, 2015
Entity Registrant Name	LITTELFUSE INC /DE
Entity Central Index Key	889,331
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		22,647,323
Document Type	10-Q
Document Period End Date	Jun. 27, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (current period unaudited) - USD ($) $ in Thousands	Jun. 27, 2015	Dec. 27, 2014
Current assets:
Cash and cash equivalents	$ 311,915	$ 297,571
Short-term investments	3,954	4,302
Accounts receivable, less allowances	151,283	135,356
Inventories	97,735	97,391
Deferred income taxes	17,378	17,481
Prepaid expenses and other current assets	15,357	13,904
Assets held for sale	5,500	5,500
Total current assets	603,122	571,505
Property, plant and equipment:
Land	5,542	5,697
Buildings	63,546	64,609
Equipment	389,026	370,179
	458,114	440,485
Accumulated depreciation	(291,735)	(281,845)
Net property, plant and equipment	166,379	158,640
Intangible assets, net of amortization:
Patents, licenses and software	21,449	23,640
Distribution network	17,813	19,428
Customer lists, trademarks and tradenames	58,018	60,605
Goodwill	192,947	196,256
Other investments	14,503	12,056
Deferred income taxes	5,604	5,393
Other assets	19,456	23,303
Total assets	1,099,291	1,070,826
Liabilities and Equity
Accounts payable	53,919	50,793
Accrued payroll	25,501	30,511
Accrued expenses	19,668	13,059
Accrued severance	2,033	790
Accrued income taxes	8,547	9,045
Current portion of accrued post-retirement benefits	11,768	11,768
Current portion of long-term debt	82,250	88,500
Total current liabilities	203,686	204,466
Long-term debt, less current portion	96,993	106,658
Deferred income taxes	11,173	11,076
Accrued post-retirement benefits	5,247	5,147
Other long-term liabilities	14,900	15,814
Total equity	767,292	727,665
Total liabilities and equity	$ 1,099,291	$ 1,070,826

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (current period unaudited) (Parentheticals) - shares	Jun. 27, 2015	Dec. 27, 2014
Common shares issued (in shares)	22,725,882	22,585,529
Common shares oustanding (in shares)	22,725,882	22,585,529

Consolidated Statements of Net

Consolidated Statements of Net Income (unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Net Sales	[1]	$ 222,021	$ 220,908	$ 432,334	$ 427,767
Cost of sales		136,740	137,913	270,723	266,278
Gross profit		85,281	82,995	161,611	161,489
Selling, general and administrative expenses		38,772	38,328	75,117	72,499
Research and development expenses		7,361	7,810	14,745	15,384
Amortization of intangibles		2,977	3,138	6,030	6,297
		49,110	49,276	95,892	94,180
Operating income		36,171	33,719	65,719	67,309
Interest expense		948	1,228	2,099	2,444
Foreign exchange (gain) loss		(1,292)	2,375	1,825	2,123
Other (income) expense, net		(1,202)	(1,446)	(2,328)	(2,632)
Income before income taxes		37,717	31,562	64,123	65,374
Income taxes		9,033	6,984	15,444	15,407
Net income		$ 28,684	$ 24,578	$ 48,679	$ 49,967
Net income per share (see Note 7):
Basic (in dollars per share)		$ 1.26	$ 1.09	$ 2.15	$ 2.22
Diluted (in dollars per share)		$ 1.26	$ 1.08	$ 2.13	$ 2.20
Weighted average shares and equivalent shares outstanding:
Basic (in shares)		22,691	22,579	22,645	22,536
Diluted (in shares)		22,835	22,750	22,810	22,738
Cash dividends paid per common share (in dollars per share)		$ 0.25	$ 0.22	$ 0.50	$ 0.44
[1]	Sales by country represent sales to customer or distributor locations.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015		Jun. 28, 2014
Net income	$ 28,684	$ 24,578	$ 48,679		$ 49,967
Other comprehensive income (loss):
Pension liability adjustments (net of tax of $385 and $67, for the three months ended 2015 and 2014, and $416 and $160 for the six months ended 2015 and 2014, respectively)	(198)	$ 39	(124)	[1]	$ (5)
Reclassification adjustments to expense, (net of tax of ($249) and $0, for the three months ended 2015 and 2014, and ($498) and $0 for the six months ended 2015 and 2014, respectively)	985		1,971	[1]
Unrealized gain on investments	1,380	$ 2,276	3,336		$ 3,584
Foreign currency translation adjustments	3,821	6,850	(10,153)		(311)
Comprehensive income	$ 34,672	$ 33,743	$ 43,709		$ 53,235
[1]	Balances are net of tax of $12,055 and $12,857 for 2015 and 2014, respectively.

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (unaudited) (Parentheticals) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Pension liability adjustments, tax	$ 385,000	$ 67,000	$ 416,000	$ 160,000
Reclassification adjustments, tax	$ (249,000)	$ 0	$ (498,000)	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014
Operating activities:
Net income	$ 48,679	$ 49,967
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	14,761	14,459
Amortization of intangibles	6,030	6,297
Stock-based compensation	$ 5,764	5,229
Non-cash inventory charge		2,769
Excess tax benefit on share-based compensation	$ (1,470)	(2,230)
Loss on sale of assets	329	141
Changes in operating assets and liabilities:
Accounts receivable	(21,266)	(17,871)
Inventories	(1,199)	410
Accounts payable	3,440	2,533
Accrued expenses (including post-retirement)	11,129	(7,578)
Accrued payroll and severance	(3,652)	(7,323)
Accrued taxes	(3,003)	(2,101)
Prepaid expenses and other	2,422	(2,189)
Net cash provided by operating activities	$ 61,964	42,513
Investing activities:
Acquisition of business, net of cash acquired		(52,768)
Purchases of property, plant, and equipment	$ (26,388)	$ (13,132)
Decrease in entrusted loan receivable	3,519
Proceeds from sale of assets	48	$ 37
Net cash used in investing activities	(22,821)	(65,863)
Financing activities:
Proceeds from revolving credit facility	11,000	97,500
Payments of revolving credit facility	(21,000)	(19,500)
Payments of term loan	(2,500)	$ (2,500)
Payments of entrusted loan	(3,519)
Debt issuance costs	(42)	$ (108)
Cash dividends paid	$ (11,296)	(9,921)
Purchases of common stock		(14,283)
Proceeds from exercise of stock options	$ 6,278	11,101
Excess tax benefit on share-based compensation	1,470	2,230
Net cash (used in) provided by financing activities	(19,609)	64,519
Effect of exchange rate changes on cash and cash equivalents	(5,190)	45
Increase in cash and cash equivalents	14,344	41,214
Cash and cash equivalents at beginning of period	297,571	305,192
Cash and cash equivalents at end of period	$ 311,915	$ 346,406

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Basis of Accounting [Text Block]	1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Littelfuse, Inc. and its subsidiaries (the “company”) have been prepared in accordance with U.S. Generally Accepted Accounting Principles

Note 2 - Acquisition of Busines

Note 2 - Acquisition of Business	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	2 . Acquisition of Business SymCom, Inc. On January 3, 2014, the company acquired 100% of SymCom, Inc. (“SymCom”) for $52.8 million net of cash acquired. Located in Rapid City, South Dakota, SymCom provides overload relays and pump controllers primarily to the industrial market. The acquisition allows the company to strengthen its position in the relay products market by adding new products and new customers within its Electrical business unit segment. The company funded the acquisition with available cash and proceeds from credit facilities . The following table sets forth the final purchase price allocation for SymCom acquisition-date net assets, in accordance with the purchase method of accounting with adjustments to record the acquired net assets at their estimated fair values. SymCom final purchase price allocation (in thousands): Cash $ 325 Current assets, net 9,154 Property, plant and equipment 11,193 Goodwill 15,018 Trademarks 17,020 Patents 1,500 Other non-current assets 20 Current liabilities (1,137 ) $ 53,093 All SymCom goodwill and other assets and liabilities were recorded in the Electrical business unit segment and reflected in the Americas geographical area. The trademarks are being amortized over 15 to 20 years. The patents are being amortized over 16 to 17 years. The goodwill resulting from this acquisition consists largely of the company’s expected future product sales and synergies from combining SymCom’s products with the company’s existing electrical product offerings. Goodwill for the above acquisition is expected to be deductible for tax purposes. As required by purchase accounting rules, the company initially recorded a $2.6 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. During the first quarter of 2014, as a portion of this inventory was sold, cost of goods sold included a $1.4 million non-cash charge for this step-up. Pro forma financial information is not presented for the SymCom acquisition due to amounts not being materially different than actual results.

Note 3 - Inventories

Note 3 - Inventories	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. Inventories The components of inventories at June 27, 2015 and December 27, 2014 are as follows (in thousands): June 27, 2015 December 27, 2014 Raw material $ 33,193 $ 29,756 Work in process 16,404 15,164 Finished goods 48,138 52,471 Total inventories $ 97,735 $ 97,391

Note 4 - Other Investments

Note 4 - Other Investments	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Cost and Equity Method Investments Disclosure [Text Block]	4 . Other Investments The company’s other investments represent shares of Polytronics Technology Corporation Ltd. (“Polytronics”), a Taiwanese company. The Polytronics investment was acquired as part of the Heinrich Companies acquisition in 2004. The fair value of the Polytronics investment was €12.9million (approximately $14.5 million) at June 27, 2015 and €9.9 million (approximately $12.1 million) at December 27, 2014. Included in 2015 other comprehensive income is an unrealized gain of $3.4 million, due to the increase in fair market value of the Polytronics investment. The remaining movement was due to the impact of changes in exchange rates.

Note 5 - Debt

Note 5 - Debt	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	5. Debt The carrying amounts of debt at June 27, 2015 and December 27, 2014 are as follows (in thousands): June 27, 2015 December 27, 2014 Term loan $ 91,250 $ 93,750 Revolving credit facility 73,500 83,500 Entrusted loan 14,493 17,908 Total debt 179,243 195,158 Less: Current maturities 82,250 88,500 Total long-term debt $ 96,993 $ 106,658 The company currently has a credit agreement with J.P Morgan Securities LLC for up to $375.0 million which consists of an unsecured revolving credit facility of $275.0 million and an unsecured term loan of $100.0 million. The credit agreement, effective May 31, 2013, is for a five year period. The company incurred debt issuance costs of $0.1 million which will be amortized over the life of the existing credit agreement. As of June 27, 2015, the company had available $200.9 million of borrowing capacity under the revolving credit agreement at an interest rate of LIBOR plus 1.0% (1.19% as of June 27, 2015). At June 27, 2015, the company was in compliance with all covenants under the revolving credit facility. Entrusted Loan During the fourth quarter of 2014, the company entered into an entrusted loan arrangement (“Entrusted Loan”) of RMB 110.0 million (approximately $17.9 million) between two of its China legal entities, Littelfuse Semiconductor (Wuxi) Company (the “ Lender Borrower

Note 6 - Fair Value of Assets a

Note 6 - Fair Value of Assets and Liabilities	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	6 . Fair Value of Assets and Liabilities In determining fair value, the company uses various valuation approaches within the fair value measurement framework. Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. Applicable accounting literature establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Applicable accounting literature defines levels within the hierarchy based on the reliability of inputs as follows: Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets; Level 2—Valuations based on quoted prices for similar assets or liabilities or identical assets or liabilities in less active markets, such as dealer or broker markets; and Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not based on market, exchange, dealer or broker-traded transactions. Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy. Investment in Polytronics The company holds an investment in the equity securities of Polytronics as described in Note 4. Equity securities listed on a national market or exchange are valued at the last sales price. Such securities are classified within Level 1 of the valuation hierarchy. There were no changes during the six months ended June 27, 2015 to the company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of June 27, 2015 and December 27, 2014 the company held no 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 June 27, 2015 (in thousands): Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant (Level 2) Significant (Level 3) Total Investment in Polytronics $ 14,503 $ — $ — $ 14,503 Total $ 14,503 $ — $ — $ 14,503 The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 27, 2014 (in thousands): Fair Value Measurements Using Quoted Prices in (Level 1) Significant (Level 2) Significant (Level 3) Total Investment in Polytronics $ 12,056 $ — $ — $ 12,056 Total $ 12,056 $ — $ — $ 12,056 The company’s other financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable and debt. The carrying amounts of cash and cash equivalents , short-term investments, accounts receivable, accounts payable and debt approximate their fair values. The company’s debt fair value approximates book value at June 27, 2015 and December 27, 2014, respectively, as the variable interest rates fluctuate along with market interest rates.

Note 7 - Earnings Per Share

Note 7 - Earnings Per Share	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	7 . Earnings per Share The following table sets forth the computation of basic and diluted earnings per share for the periods ended June 27, 2015 and June 28, 2014 (in thousands except per share amounts). For the Three Months Ended For the Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Net income $ 28.684 $ 24,578 $ 48,679 $ 49,967 Average shares outstanding - Basic 22,691 22,579 22,645 22,536 Net effect of dilutive stock options and restricted share units 144 171 165 202 Average shares - Diluted 22,835 22,750 22,810 22,738 Net income per share: Basic $ 1.26 $ 1.09 $ 2.15 $ 2.22 Diluted $ 1.26 $ 1.08 $ 2.13 $ 2.20 Potential shares of common stock relating to stock options excluded from the earnings per share calculation because their effect would be anti-dilutive were113,878 and 46,190 for the three months ended June 27, 2015 and June 28, 2014 and 90,875 and 22,708 for the six months ended June 27 , 2015 and June 28 , 2014 , respectively.

Note 8 - Income Taxes

Note 8 - Income Taxes	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	8 . Income Taxes The effective tax rate for the second quarter of 2015 was 23.9% compared to an effective tax rate of 22.1% in the second quarter of 2014 . The effective tax rate for the six months ended June 27, 2015 was 24.1% as compared to an effective tax rate of 23.6% for the six months ended June 28, 2014. The effective tax rates for both the second quarter and six month periods of 2015 and 2014 are lower than the U.S. statutory tax rate primarily due to the result of more income earned in low tax jurisdictions. The company has restructured the legal ownership of its Mexican manufacturing operations as of June 28, 2015. Although the transaction was completed in the third quarter, the company considered the impact on the effective tax rate for the second quarter and determined such impact was not material.

Note 9 - Pensions

Note 9 - Pensions	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	9. Pensions The components of net periodic benefit cost for the three and six months ended June 27, 2015, compared with the three and six months ended June 28, 2014, were (in thousands): U.S. Pension Benefits Foreign Plans Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Service cost $ 250 $ 150 $ 500 $ 300 $ 315 $ 311 $ 630 $ 622 Interest cost 1,031 971 2,062 1,942 513 592 1,026 1,183 Expected return on plan assets (916 ) (1,411 ) (1,832 ) (2,822 ) (601 ) (573 ) (1,201 ) (1,146 ) Amortization of net loss 290 137 580 274 62 47 123 95 Total cost (credit) of the plan 655 (153 ) 1,310 (306 ) 289 377 578 754 Expected plan participants’ contribution - - - - - - - - Net periodic benefit cost (credit) $ 655 $ (153 ) $ 1,310 $ (306 ) $ 289 $ 377 $ 578 $ 754 The expected rate of return assumption on domestic pension assets is 3.90% and 6.75% in 2015 and 2014, respectively. The expected return on foreign pension assets is 5.39% and 5.14% in 2015 and 2014, respectively. Plan Termination The company received approval from the IRS on April 14, 2015 on its Application for Determination for Terminating Plan to terminate the U.S. defined benefit pension plan, the Littelfuse Inc. Retirement Plan, effective July 30, 2014. The current liability balance of $11.8 million at June 27, 2015, represents the projected cost to settle the plan’s liability in conjunction with the upcoming plan termination. Settlement is expected to occur during the third quarter of 2015.

Note 10 - Business Unit Segment

Note 10 - Business Unit Segment Information	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	10 . Business Unit Segment Information The company and its subsidiaries design, manufacture and sell circuit protection devices throughout the world. The company reports its operations by the following business unit segments: Electronics, Automotive, and Electrical. Each operating segment is directly responsible for sales, marketing and research and development. Manufacturing, purchasing, logistics, customer service, finance, information technology and human resources are shared functions that are allocated back to the three operating segments. The CEO 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. All other functions are shared by the operating segments and expenses for these shared functions are allocated to the operating segments and included in the operating results reported below. The company does not report inter-segment revenue because the operating segments do not record it. The company does not allocate interest and other income, interest expense, or taxes to operating segments. Although the CEO 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. 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”) Business unit segment information for the three and six months ended June 27, 2015 and June 28, 2014 are summarized as follows (in thousands): For the Three Months Ended For the Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Net sales Electronics $ 105,553 $ 109,947 $ 204,933 $ 205,972 Automotive 85,918 82,042 169,989 164,444 Electrical 30,550 28,919 57,412 57,351 Total net sales $ 222,021 $ 220,908 $ 432,334 $ 427,767 Depreciation and amortization Electronics $ 5,775 $ 5,530 $ 11,573 $ 10,900 Automotive 3,303 3,646 6,639 7,174 Electrical 1,295 1,414 2,579 2,682 Total depreciation and amortization $ 10,373 $ 10,590 $ 20,791 $ 20,756 Operating income (loss) Electronics $ 22,167 $ 25,634 $ 40,832 $ 45,005 Automotive 12,699 11,049 23,870 22,931 Electrical 4,709 571 7,439 4,317 Other (1) (3,404 ) (3,535 ) (6,422 ) (4,944 ) Total operating income 36,171 33,719 65,719 67,309 Interest expense 948 1,228 2,099 2,444 Foreign exchange (gain) loss (1,292 ) 2,375 1,825 2,123 Other (income) expense, net (1,202 ) (1,446 ) (2,328 ) (2,632 ) Income before income taxes $ 37,717 $ 31,562 $ 64,123 $ 65,374 (1) For the three months ended June 27, 2015, “Other” consists of restructuring costs ($2.5 million), acquisition expenses ($0.2 million) and pension wind-up costs ($0.7 million). For the six months ended June 27, 2015, “Other” consist of restructuring costs ($4.8 million), acquisition expenses ($0.3 million) and pension wind-up costs ($1.3 million). The company’s significant net sales by country for the three and six months ended June 27, 2015 and June 28, 2014 are summarized as follows (in thousands): For the Three Months Ended (a) For the Six Months Ended (a) June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 United States $ 89,608 $ 80,492 $ 172,981 $ 152,366 China 49,920 39,987 94,349 77,200 Other countries 82,493 100,429 165,004 198,201 Total $ 222,021 $ 220,908 $ 432,334 $ 427,767 (a) Sales by country represent sales to customer or distributor locations. The company’s significant long-lived assets and additions to long-lived assets by country as of June 27, 2015 and December 27, 2014 are summarized as follows (in thousands): Long-lived assets (b) June 27, 2015 December 27, 2014 United States $ 34,129 $ 34,179 Mexico 46,052 47,936 China 40,416 40,981 Other countries 45,782 35,544 Total $ 166,379 $ 158,640 (b) Long-lived assets consists of net property, plant and equipment . The company’s additions to long-lived assets for the six months ended June 27, 2015 and June 28, 2014 are summarized as follows (in thousands): Additions to long-lived assets June 27, 2015 June 28, 2014 United States $ 6,615 $ 3,309 Mexico 4,190 4,694 China 4,080 2,506 Other countries 11,503 2,623 Total $ 26,388 $ 13,132

Note 11 - Accumulated Other Com

Note 11 - Accumulated Other Comprehensive Income (Loss) (AOCI)	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	11. Accumulated Other Comprehensive Income (Loss) (AOCI) The following table sets forth the changes in the components of AOCI by component (in thousands): AOCI component Balance at December 27, 2014 Other comprehensive income (loss) activity Reclassification adjustment for expense included in net income Balance at June 27, 2015 Pension liability adjustment (a) $ (29,615 ) $ (124 ) $ 1,971 $ (27,768 ) Unrealized gain on investments (b) 10,791 3,336 — 14,127 Foreign currency translation adjustment (2,302 ) (10,153 ) — (12,455 ) AOCI (loss) income $ (21,126 ) $ (6,941 ) $ 1,971 $ (26,096 ) (a) Balances are net of tax of $12,055 and $12,857 for 2015 and 2014, respectively. (b) Balances are net of tax of $0 and $0 for 2015 and 2014, respectively.

Note 2 - Acquisition of Busin19

Note 2 - Acquisition of Business (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	SymCom final purchase price allocation (in thousands): Cash $ 325 Current assets, net 9,154 Property, plant and equipment 11,193 Goodwill 15,018 Trademarks 17,020 Patents 1,500 Other non-current assets 20 Current liabilities (1,137 ) $ 53,093

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	June 27, 2015 December 27, 2014 Raw material $ 33,193 $ 29,756 Work in process 16,404 15,164 Finished goods 48,138 52,471 Total inventories $ 97,735 $ 97,391

Note 5 - Debt (Tables)

Note 5 - Debt (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	June 27, 2015 December 27, 2014 Term loan $ 91,250 $ 93,750 Revolving credit facility 73,500 83,500 Entrusted loan 14,493 17,908 Total debt 179,243 195,158 Less: Current maturities 82,250 88,500 Total long-term debt $ 96,993 $ 106,658

Note 6 - Fair Value of Assets22

Note 6 - Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	Fair Value Measurements Using Quoted Prices in (Level 1) Significant (Level 2) Significant (Level 3) Total Investment in Polytronics $ 12,056 $ — $ — $ 12,056 Total $ 12,056 $ — $ — $ 12,056 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant (Level 2) Significant (Level 3) Total Investment in Polytronics $ 14,503 $ — $ — $ 14,503 Total $ 14,503 $ — $ — $ 14,503

Note 7 - Earnings Per Share (Ta

Note 7 - Earnings Per Share (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	For the Three Months Ended For the Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Net income $ 28.684 $ 24,578 $ 48,679 $ 49,967 Average shares outstanding - Basic 22,691 22,579 22,645 22,536 Net effect of dilutive stock options and restricted share units 144 171 165 202 Average shares - Diluted 22,835 22,750 22,810 22,738 Net income per share: Basic $ 1.26 $ 1.09 $ 2.15 $ 2.22 Diluted $ 1.26 $ 1.08 $ 2.13 $ 2.20

Note 9 - Pensions (Tables)

Note 9 - Pensions (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	U.S. Pension Benefits Foreign Plans Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Service cost $ 250 $ 150 $ 500 $ 300 $ 315 $ 311 $ 630 $ 622 Interest cost 1,031 971 2,062 1,942 513 592 1,026 1,183 Expected return on plan assets (916 ) (1,411 ) (1,832 ) (2,822 ) (601 ) (573 ) (1,201 ) (1,146 ) Amortization of net loss 290 137 580 274 62 47 123 95 Total cost (credit) of the plan 655 (153 ) 1,310 (306 ) 289 377 578 754 Expected plan participants’ contribution - - - - - - - - Net periodic benefit cost (credit) $ 655 $ (153 ) $ 1,310 $ (306 ) $ 289 $ 377 $ 578 $ 754

Note 10 - Business Unit Segme25

Note 10 - Business Unit Segment Information (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	For the Three Months Ended For the Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Net sales Electronics $ 105,553 $ 109,947 $ 204,933 $ 205,972 Automotive 85,918 82,042 169,989 164,444 Electrical 30,550 28,919 57,412 57,351 Total net sales $ 222,021 $ 220,908 $ 432,334 $ 427,767 Depreciation and amortization Electronics $ 5,775 $ 5,530 $ 11,573 $ 10,900 Automotive 3,303 3,646 6,639 7,174 Electrical 1,295 1,414 2,579 2,682 Total depreciation and amortization $ 10,373 $ 10,590 $ 20,791 $ 20,756 Operating income (loss) Electronics $ 22,167 $ 25,634 $ 40,832 $ 45,005 Automotive 12,699 11,049 23,870 22,931 Electrical 4,709 571 7,439 4,317 Other (1) (3,404 ) (3,535 ) (6,422 ) (4,944 ) Total operating income 36,171 33,719 65,719 67,309 Interest expense 948 1,228 2,099 2,444 Foreign exchange (gain) loss (1,292 ) 2,375 1,825 2,123 Other (income) expense, net (1,202 ) (1,446 ) (2,328 ) (2,632 ) Income before income taxes $ 37,717 $ 31,562 $ 64,123 $ 65,374
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Long-lived assets (b) June 27, 2015 December 27, 2014 United States $ 34,129 $ 34,179 Mexico 46,052 47,936 China 40,416 40,981 Other countries 45,782 35,544 Total $ 166,379 $ 158,640
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]	Additions to long-lived assets June 27, 2015 June 28, 2014 United States $ 6,615 $ 3,309 Mexico 4,190 4,694 China 4,080 2,506 Other countries 11,503 2,623 Total $ 26,388 $ 13,132 For the Three Months Ended (a) For the Six Months Ended (a) June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 United States $ 89,608 $ 80,492 $ 172,981 $ 152,366 China 49,920 39,987 94,349 77,200 Other countries 82,493 100,429 165,004 198,201 Total $ 222,021 $ 220,908 $ 432,334 $ 427,767

Note 11 - Accumulated Other C26

Note 11 - Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	AOCI component Balance at December 27, 2014 Other comprehensive income (loss) activity Reclassification adjustment for expense included in net income Balance at June 27, 2015 Pension liability adjustment (a) $ (29,615 ) $ (124 ) $ 1,971 $ (27,768 ) Unrealized gain on investments (b) 10,791 3,336 — 14,127 Foreign currency translation adjustment (2,302 ) (10,153 ) — (12,455 ) AOCI (loss) income $ (21,126 ) $ (6,941 ) $ 1,971 $ (26,096 )

Note 2 - Acquisition of Busin27

Note 2 - Acquisition of Business (Details Textual) - USD ($) $ in Thousands	Jan. 03, 2014	Mar. 29, 2014	Jun. 27, 2015	Jun. 28, 2014
Sym Com Inc [Member] | Trademarks [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	15 years
Sym Com Inc [Member] | Trademarks [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	20 years
Sym Com Inc [Member] | Patents [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	16 years
Sym Com Inc [Member] | Patents [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	17 years
Sym Com Inc [Member]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Payments to Acquire Businesses, Net of Cash Acquired	$ 52,800
Business Acquisition Inventory Stepup	$ 2,600
Noncash Charges Related To Inventory Stepup		$ 1,400
Payments to Acquire Businesses, Net of Cash Acquired				$ 52,768

Note 2 - Acquisition of Busin28

Note 2 - Acquisition of Business - Final Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jan. 03, 2014
Sym Com Inc [Member] | Trademarks [Member]
Intangible assets other than goodwill	$ 17,020
Sym Com Inc [Member] | Patents [Member]
Intangible assets other than goodwill	1,500
Sym Com Inc [Member]
Cash	325
Current assets, net	9,154
Property, plant and equipment	11,193
Goodwill	15,018
Other non-current assets	20
Current liabilities	(1,137)
	$ 53,093

Note 3 - Inventories - Componen

Note 3 - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Jun. 27, 2015	Dec. 27, 2014
Raw material	$ 33,193	$ 29,756
Work in process	16,404	15,164
Finished goods	48,138	52,471
Total inventories	$ 97,735	$ 97,391

Note 4 - Other Investments (Det

Note 4 - Other Investments (Details Textual) € in Millions, $ in Millions	6 Months Ended
	Jun. 27, 2015USD ($)	Jun. 27, 2015EUR (€)	Jun. 27, 2015USD ($)	Dec. 27, 2014EUR (€)	Dec. 27, 2014USD ($)
Marketable Securities, Equity Securities		€ 12.9	$ 14.5	€ 9.9	$ 12.1
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax	$ 3.4

Note 5 - Debt (Details Textual)

Note 5 - Debt (Details Textual) $ in Thousands, ¥ in Millions	6 Months Ended
	Jun. 27, 2015USD ($)	Dec. 27, 2014USD ($)	Dec. 27, 2014CNY (¥)
JP Morgan Securities LLC [Member] | Unsecured Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
JP Morgan Securities LLC [Member] | Unsecured Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 275,000
Line of Credit Facility, Remaining Borrowing Capacity	$ 200,900
Line of Credit Facility, Interest Rate at Period End	1.19%
JP Morgan Securities LLC [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 375,000
Loans Payable to Bank	$ 100,000
Line of Credit Facility, Expiration Period	5 years
Debt Issuance Cost	$ 100
Entrustment Loan Member
Debt Instrument, Interest Rate, Stated Percentage		5.25%	5.25%
Loans Payable to Bank	91,250	$ 93,750
Entrusted Loan	$ 14,493	$ 17,908	¥ 110

Note 5 - Debt - Carrying Amount

Note 5 - Debt - Carrying Amounts of Long-term Debt (Details) $ in Thousands, ¥ in Millions	Jun. 27, 2015USD ($)	Dec. 27, 2014USD ($)
Term loan	$ 91,250	$ 93,750
Revolving credit facility	73,500	83,500
Entrusted loan	14,493	17,908
Total debt	179,243	195,158
Less: Current maturities	82,250	88,500
Total long-term debt	$ 96,993	$ 106,658

Note 6 - Fair Value of Assets33

Note 6 - Fair Value of Assets and Liabilities - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 27, 2015	Dec. 27, 2014
Fair Value, Inputs, Level 1 [Member]
Investment in Polytronics	$ 14,503	$ 12,056
Total	14,503	12,056
Investment in Polytronics	14,503	12,056
Total	$ 14,503	$ 12,056

Note 7 - Earnings Per Share (De

Note 7 - Earnings Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	113,878	46,190	90,875	22,708

Note 7 - Earnings Per Share - C

Note 7 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Net income	$ 28,684	$ 24,578	$ 48,679	$ 49,967
Basic (in shares)	22,691	22,579	22,645	22,536
Net effect of dilutive stock options and restricted share units (in shares)	144	171	165	202
Average shares - Diluted (in shares)	22,835	22,750	22,810	22,738
Net income per share (see Note 7):
Basic (in dollars per share)	$ 1.26	$ 1.09	$ 2.15	$ 2.22
Diluted (in dollars per share)	$ 1.26	$ 1.08	$ 2.13	$ 2.20

Note 8 - Income Taxes (Details

Note 8 - Income Taxes (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Effective Income Tax Rate Reconciliation, Percent	23.90%	22.10%	24.10%	23.60%

Note 9 - Pensions (Details Text

Note 9 - Pensions (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Dec. 27, 2014
United States Pension Plan of US Entity [Member]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	3.90%	6.75%
Foreign Pension Plan [Member]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	5.39%	5.14%
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities	$ 11,768		$ 11,768

Note 9 - Pensions - Components

Note 9 - Pensions - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
United States Pension Plan of US Entity [Member]
Service cost	$ 250	$ 150	$ 500	$ 300
Interest cost	1,031	971	2,062	1,942
Expected return on plan assets	(916)	(1,411)	(1,832)	(2,822)
Amortization of net loss	290	137	580	274
Total cost (credit) of the plan	655	(153)	1,310	(306)
Net periodic benefit cost (credit)	655	(153)	1,310	(306)
Foreign Pension Plan [Member]
Service cost	315	311	630	622
Interest cost	513	592	1,026	1,183
Expected return on plan assets	(601)	(573)	(1,201)	(1,146)
Amortization of net loss	62	47	123	95
Total cost (credit) of the plan	289	377	578	754
Net periodic benefit cost (credit)	$ 289	$ 377	$ 578	$ 754

Note 10 - Business Unit Segme39

Note 10 - Business Unit Segment Information (Details Textual) - Jun. 27, 2015 $ in Millions	USD ($)	USD ($)
Number of Operating Segments	3
Severance Costs	$ 2.5	$ 4.8
Business Combination, Acquisition Related Costs	0.2	0.3
Pension Expense	$ 0.7	$ 1.3

Note 10 - Business Unit Segme40

Note 10 - Business Unit Segment Information - Net Sales by Geographic Area (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
UNITED STATES
Net Sales	[1]	$ 89,608	$ 80,492	$ 172,981	$ 152,366
CHINA
Net Sales	[1]	49,920	39,987	94,349	77,200
Other Countries [Member]
Net Sales	[1]	82,493	100,429	165,004	198,201
Net Sales	[1]	$ 222,021	$ 220,908	$ 432,334	$ 427,767
[1]	Sales by country represent sales to customer or distributor locations.

Note 10 - Business Unit Segme41

Note 10 - Business Unit Segment Information - Business Unit Segment Information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Electronics [Member]
Net sales
Net Sales		$ 105,553	$ 109,947	$ 204,933	$ 205,972
Depreciation and amortization
Depreciation and amortization		5,775	5,530	11,573	10,900
Operating income (loss)
Operating income		22,167	25,634	40,832	45,005
Automotive [Member]
Net sales
Net Sales		85,918	82,042	169,989	164,444
Depreciation and amortization
Depreciation and amortization		3,303	3,646	6,639	7,174
Operating income (loss)
Operating income		12,699	11,049	23,870	22,931
Electrical [Member]
Net sales
Net Sales		30,550	28,919	57,412	57,351
Depreciation and amortization
Depreciation and amortization		1,295	1,414	2,579	2,682
Operating income (loss)
Operating income		4,709	571	7,439	4,317
Other Segments [Member]
Operating income (loss)
Operating income	[1]	(3,404)	(3,535)	(6,422)	(4,944)
Net Sales	[2]	222,021	220,908	432,334	427,767
Depreciation and amortization		10,373	10,590	20,791	20,756
Operating income		36,171	33,719	65,719	67,309
Interest expense		948	1,228	2,099	2,444
Foreign exchange (gain) loss		(1,292)	2,375	1,825	2,123
Other (income) expense, net		(1,202)	(1,446)	(2,328)	(2,632)
Income before income taxes		$ 37,717	$ 31,562	$ 64,123	$ 65,374
[1]	For the three months ended June 27, 2015, “Other” consists of restructuring costs ($2.5 million), acquisition expenses ($0.2 million) and pension wind-up costs ($0.7 million). For the six months ended June 27, 2015, “Other” consist of restructuring costs ($4.8 million), acquisition expenses ($0.3 million) and pension wind-up costs ($1.3 million).
[2]	Sales by country represent sales to customer or distributor locations.

Note 10 - Business Unit Segme42

Note 10 - Business Unit Segment Information - Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 27, 2015	Jun. 28, 2014	Dec. 27, 2014
UNITED STATES
Long-lived assets	[1]	$ 34,129		$ 34,179
Additions to long-lived assets		6,615	$ 3,309
MEXICO
Long-lived assets	[1]	46,052		47,936
Additions to long-lived assets		4,190	4,694
CHINA
Long-lived assets	[1]	40,416		40,981
Additions to long-lived assets		4,080	2,506
Other Countries [Member]
Long-lived assets	[1]	45,782		35,544
Additions to long-lived assets		11,503	2,623
Long-lived assets	[1]	166,379		$ 158,640
Additions to long-lived assets		$ 26,388	$ 13,132
[1]	Long-lived assets consists of net property, plant and equipment.

Note 11 - Accumulated Other C43

Note 11 - Accumulated Other Comprehensive Income (Loss) (AOCI) (Details Textual) - USD ($)	Jun. 27, 2015	Dec. 27, 2014
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax	$ 12,055	$ 12,857
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Tax	$ 0	$ 0

Note 11 - Accumulated Other C44

Note 11 - Accumulated Other Comprehensive Income (Loss) (AOCI) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
		Jun. 27, 2015	Jun. 27, 2015		Dec. 27, 2014
Pension liability adjustment(a)	[1]	$ (27,768)	$ (27,768)		$ (29,615)
Pension liability adjustment(a)		(198)	(124)	[1]
Pension liability adjustment(a)		985	1,971	[1]
Unrealized gain on investments(b)	[2]	14,127	14,127		10,791
Unrealized gain on investments(b)	[2]		3,336
Foreign currency translation adjustment		(12,455)	(12,455)		(2,302)
Foreign currency translation adjustment			(10,153)
AOCI (loss) income		$ (26,096)	(26,096)		$ (21,126)
AOCI (loss) income			(6,941)
AOCI (loss) income			$ 1,971
[1]	Balances are net of tax of $12,055 and $12,857 for 2015 and 2014, respectively.
[2]	Balances are net of tax of $0 and $0 for 2015 and 2014, respectively.