world.

Another strategic area of focus in the Electronics Segment is the Company’s continued investment in silicon carbide, a promising semiconductor material that enables more efficient power conversion than traditional silicon-based devices. The Company increased its investment in Monolith during 2017 and introduced its first silicon carbide products to the market.

As

commercial vehicles.

Over the past several years, the Company has expanded the Automotive segment into the

Power fuses are used to protect circuits in various types of industrial equipment and in industrial and commercial buildings. Protection relayssafety, power conversion. These products are used to protect personnel and equipment in harsh environments such as mining, oil and gas, and industrial environments from excessive currents, over voltages, and electrical shock hazards called ground faults. Major applications for protection relays include protection of motor, transformer, and power-line distribution circuits. Ground-fault relays are used to protect personnel and equipment in wet environments such as underground mining or water treatment applications where there is a greater risk for electricity to come in contact with water and create a shock hazard.

geographies it serves, growing its sales through electronics distribution channel partnerships, and expanding its product portfolio through organic and inorganic investments.

Additionally, the Company utilizes external wafer foundries and subcontracted test and assembly facilities for a portion of its semiconductor business.

MARKETING

The Company’s sales

Electronics Segment

The majority of customers including those partnered with electronic manufacturing services ("EMS"). The Company has sales offices and direct sales channels in a number of countries around the world.

Automotive Segment

The Company maintainsprimarily uses a direct sales force to service all of the major automotive and commercial vehicle OEMs, system suppliers, and Tier One suppliers inautomotive and aftermarket customers globally. In selected areas, the U.S. Company also uses distributors to service smaller customers and to provide supply chain fulfillment for certain customers.

In Europe, the Company uses both a direct sales force and manufacturers’ representatives to service its OEMs, major system suppliers and aftermarket distribution customers. In the Asia-Pacific region, the Company uses both a direct sales force and distributors to supply to major OEM system suppliers and Tier One suppliers.

automotive customers. These revenues are reported in the Electronics segment.

CUSTOMERS

The Company directly sells to over 6,7006,000 customers and distributors worldwide. Sales to Arrow Electronics, Inc., which were reported in our Electronics, Automotive and Industrial segments, were 10.6%10.4%, 10.7% and 10.7% of consolidated net sales in 2017 but less than 10% in 20162020, 2019, and 2015.2018, respectively. No other single customer accounted for more than 10% of net sales during any of the last three years. During fiscal 2017, 2016,2020, 2019, and 2015,2018, net sales to customers outside the U.S. accounted for approximately 69%73%, 66%71%, and 60%70%, respectively, of the Company’s total net sales.

COMPETITION

service.

EMPLOYEES

2021.

The Companymay be unable to manufacture and deliver products in a manner that is responsive to itscustomers’ needs.

The end markets for the Company’s products are characterized by technological change, frequent new product introductions and enhancements, changes in customer requirements and emerging industry standards. The introduction of products embodying new technologies and the emergence of new industry standards could render its existing products obsolete and unmarketable before it can recover any or all of its research, development, and commercialization expenses on capital investments. Furthermore, the life cycles of its products may change and are difficult to estimate.

cash flows.

The Company is exposed to political, economic,operations, financial position and other risks that arise from operating a multinational business.

The Company has significant operating activities in numerous countries around the globe that contribute significantly to its revenues and earnings. Serving a global customer base and remaining competitive in the global marketplace requires the Company to place its production in countries outside the U.S., including emerging markets, to capitalize on market opportunities and maintain a cost-efficient structure. In addition, the Company sources a significant amount of raw materials and other components from third-party suppliers in low-cost countries. The Company’s operating activities are subject to a number of risks generally associated with multi-national operations, including risks relating to the following:

operations, financial position and cash flows.

consolidated results of operations, financial position and cash flows.

The Company’sbusiness may be interrupted by labor disputes or other interruptions of supplies.

A work stoppage could occur at certain of the Company’s facilities, most likely as a result of disputes under collective bargaining agreements or in connection with negotiations of new collective bargaining agreements. In addition, the Company may experience a shortage of supplies for various reasons, such as financial distress, work stoppages, natural disasters or production difficulties that may affect one of its suppliers. A significant work stoppage, or an interruption or shortage of supplies for any reason, if protracted, could substantially adversely affect the Company’s business, financial condition, and results of operations. The transfer of the Company’s manufacturing operations and changes in its distribution model could disrupt operations for a limited time.

Failure to attract and retain qualified personnel could affect the Company’sbusiness results.

The Company’s success, both generally and in connection with mergers and acquisitions, depends on the Company’s ability to attract, retain, and motivate a highly-skilled and diverse management team and workforce. Failure to ensure that the Company has the depth and breadth of personnel with the necessary skill set and experience could impede its ability to deliver growth objectives and execute the Company’s strategy. Competition for qualified employees among companies that rely heavily upon engineering and technology is at times intense, and the loss of qualified employees could hinder the Company’s ability to conduct research activities successfully and develop marketable products.

Environmental liabilities could adversely impact the Company’sfinancial position.

Foreign, federal, state and local laws and regulations impose various restrictions and controls on the discharge of materials, chemicals and gases used in the Company’s manufacturing processes or in its finished goods. These environmental regulations have required the Company to expend a portion of its resources and capital on relevant compliance programs. Under these laws and regulations, the Company could be held financially responsible for remedial measures if its current or former properties are contaminated or if it sends waste to a landfill or recycling facility that becomes contaminated, even if the Company did not cause the contamination. The Company may be subject to additional common law claims if it releases substances that damage or harm third parties. In addition, future changes in environmental laws or regulations may require additional investments in capital equipment or the implementation of additional compliance programs. Any failure to comply with new or existing environmental laws or regulations could subject the Company to significant liabilities and could have a material adverse effect on its business, financial condition or results of operations.

In the conduct of manufacturing operations, the Company has handled and does handle materials that are considered hazardous, toxic or volatile under federal, state, and local laws. The risk of accidental release of such materials cannot be completely eliminated. In addition, the Company operates or owns facilities located on or near real property that was formerly owned and operated by others. Certain of these properties were used in ways that involved hazardous materials. Contaminants may migrate from, within or through these properties. These releases or migrations may give rise to claims. Where third parties are responsible for contamination, the third parties may not have funds, or not make funds available when needed, to pay remediation costs imposed upon the Company under environmental laws and regulations.

The Company is responsible for the maintenance of discontinued coal mining operations in Germany. The risk of environmental remediation exists and the Company is in the process of remediating the mines considered to be the most at risk.

The Companymay not be successful protecting its patents and trademarks.

The Company considers its intellectual property, including patents, trade names, and trademarks, to be of significant value to its business as a whole. The Company’s products are manufactured, marketed, and sold under a portfolio of patents, trademarks, licenses, and other forms of intellectual property, some of which expire or are allowed to lapse at various dates in the future. The Company develops and acquires new intellectual property on an ongoing basis and consider all of its intellectual property to be valuable. The Company's policy is to file applications and obtain patents for the great majority of its novel and innovative new products including product modifications and improvements. Based on the broad scope of its product lines, the Company believes that the loss or expiration of any single intellectual property right would not have a material adverse effect upon its business, financial condition or results of operations; however, multiple losses or expirations could have a material adverse effect upon the Company’s business, financial condition or results of operations.

The Company’s primary European manufacturing facilities include Kaunas, Lithuania, and Legnago and Ozegna, Italy, all of which manufacture products for the Automotive segment.

The Company’s primary Asia-Pacific manufacturing facilities include: (i) Lipa City, Philippines, (ii) Inashiki, Japan, and (iii) Suzhou, Wuxi, Kunshan, Dongguan, and Shanghai, China, which manufacture products for the Electronics segment as well as the Automotive segment.

The Company also has engineering and research and development, sales, and distribution centers located in Asia, North America, and Europe.

The Company believes its facilities are adequate to meet its requirements for the foreseeable future.

The table below presents shares of the Company’s common stock which were acquired by the Company during the three months ended December 30, 2017:

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Table of ContentsDecember 26, 2020.

Stock Performance Graph

The following stock performance graph and related information shall not be deemed “soliciting material” or “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filings under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that theCompanyspecifically incorporates it by reference into such filing.

The following stock performance graph compares the five-year cumulative total return on Littelfuse common stock to the five-year cumulative total returns on the Russell 20001000 Index and the Dow Jones Electrical Components and Equipment Industry Group Index. The Company believes that the Russell 20001000 Index and the Dow Jones Electrical Components and Equipment Industry Group Index represent a broad market index and peer industry group for total return performance comparison. The stock performance shown on the graph below represents historical stock performance and is not necessarily indicative of future stock price performance.

		12/12				12/13				12/14				12/15				12/16				12/17
Littelfuse, Inc.		$	100			$	152			$	160			$	179			$	257			$	337
Russell 2000			100				139				146				139				169				194
Dow Jones US Electrical Components & Equipment			100				138				149				141				171				217

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			12/2015						12/2016						12/2017						12/2018						12/2019						12/2020
Littelfuse, Inc.			$	100					$	143					$	188					$	164					$	185					$	249
Russell 1000			100						112						136						130						171						206
Dow Jones US Electrical Components & Equipment			100						121						154						135						167						202

The Dow Jones Electrical Components and Equipment Industry Group Index includes the common stock of A. O. Smith Corp.; AAON, Inc.; American Superconductor Corp.; AMETEK, Inc.; Amphenol Corp.; Arrow Electronics, Inc.; Avnet, Inc.; AVX Corp.; Capstone Turbine Corp.; CTS Corp.; General Cable Corp.; Hubbell Inc. Class B; Jabil Circuit, Inc.; KEMET Corp.; Littelfuse, Inc.; Methode Electronics, Inc.; Plexus Corp.; Powerwave Technologies, Inc.; Regal-Beloit Corp.; Vicor Corp.; and Vishay Intertechnology, Inc.

In the case of the Russell 2000 Index

For Littelfuse, Inc. and the Dow Jones Electrical Components and Equipment Industry Group Index,all indexes noted above, a $100 investment made on December 29, 2012January 2, 2016 and reinvestment of all dividends is assumed. In the case of the Company, a $100 investment made on December 29, 2012 is assumed. Returns for the Company’s fiscal years presented above are as of the last day of the respective fiscal year which was December 28, 2013, December 27, 2014, January 2,31, 2016, December 31, 2016,30, 2017, December 29, 2018, December 28, 2019, and December 30, 201726, 2020 for the fiscal years 2013, 2014, 2015, 2016, 2017, 2018, 2019, and 2017,2020, respectively.

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ITEM 6. SELECTED FINANCIAL DATA.

The information presented below provides selected financial data of the Company during the past five fiscal years and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Item 8, Financial Statements and Supplementary Data, for the respective years presented:

(in thousands, except per share data)		2017				2016				2015				2014				2013
Net sales		$	1,221,534			$	1,056,159			$	867,864			$	851,995			$	757,853
Gross profit			506,533				413,117				330,499				324,428				296,232
Operating income			218,511				130,644				104,157				133,830				129,881
Net income			119,519				104,488				80,866				98,100				87,814
Per share of common stock:
Income from continuing operations
- Basic			5.27				4.63				3.58				4.35				3.94
- Diluted			5.21				4.60				3.56				4.32				3.90
Cash dividends paid			1.40				1.24				1.08				0.94				0.84
Cash and cash equivalents			429,676				275,124				328,786				297,571				305,192
Total assets			1,740,102				1,491,194				1,065,475				1,069,859				1,024,373
Short-term debt			6,250				6,250				87,000				88,500				126,000
Long-term debt, less current portion			489,361				447,892				83,753				105,691				93,750

(in thousands, except per share data)						2020						2019						2018						2017						2016
Net sales						$	1,445,695					$	1,503,873					$	1,718,468					$	1,221,534					$	1,056,159
Gross profit (1)						501,172						546,295						653,415						506,533						415,835
Operating income						162,372						192,791						225,049						218,511						130,644
Net income						129,986						139,082						164,565						119,519						104,488
Per share of common stock:
Income from continuing operations
- Basic						5.33						5.66						6.62						5.27						4.63
- Diluted						5.29						5.60						6.52						5.21						4.60
Cash dividends paid						1.92						1.82						1.60						1.40						1.24
Cash and cash equivalents						687,525						531,139						489,733						429,676						275,124
Total assets						2,747,593						2,559,898						2,614,306						1,740,102						1,491,194
Short-term debt						—						10,000						10,000						6,250						6,250
Long-term debt, less current portion						687,034						669,158						684,730						489,361						447,892

(1) The prior year gross profit amounts have been reclassified to reflect a change in classification of certain costs presented on the Company’s Consolidated Statements of Income. See Note 1, Summary of Significant Accounting Policies and Other Information for further information. This reclassification change had no impact on previously reported operating income and net income amounts.

ITEM 7. MANAGEMENT’SMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion of Littelfuse’sthe Company's financial condition and results of operations should be read together with the Consolidated Financial Statements and notes to those statements included in Item 8 of Part II of this Annual Report on Form 10-K.

Business

BUSINESS

For a description of the Company’sCompany’s business, segments and product offerings, see Item 1, Business.

2017Business.

2020 EXECUTIVE OVERVIEW

Net sales increaseddecreased by $165.4$58.2 million, or 15.7%3.9%, in 20172020 compared to 2016.2019. The increase in net salesdecrease was primarily driven by production disruptions during the acquisitionsfirst half of ON Portfolio, PolySwitch, and U.S. Sensor, higher volume and growth across each2020 due to temporary closures of several of the Electronics segment reporting unitscompany’s manufacturing facilities and reduced demand due to customer shutdowns, resulting from government directives due to the impact of COVID-19. This was partially offset by volume growthincreases across all of the company’s businesses in the Automotive segment drivensecond half of 2020, led by increaseshigher production levels, increased demand from work-from-home and stay-at-home trends, and higher demand in a number of other end markets that the Company sells into, such as passenger carvehicles, and commercial vehicle businesses.

For the year ended December 30, 2017, the$7.7 million or 0.5% of favorable changes in foreign exchange rates. The Company recognized net income of $119.5$130.0 million, or $5.21$5.29 per diluted share, in 2020 compared to net income of $104.5$139.1 million, or $4.60$5.60 per diluted share for the year ended December 31, 2016. Netin 2019. The decrease in net income increasedis primarily due to the impactssecond quarter goodwill impairment charge of $33.8 million, lower sales in the acquisitions and volume increases, higher gross profit largelyfirst half of 2020 driven by a favorable mix within the Electronics segment, a $14.8 million impairment to goodwill and other intangible assets impairment charge recorded in the Custom Products reporting unit in 2016COVID-19 production disruptions partially offset by higher income taxa net increase in foreign exchange gains of $20.1 million and operating expense primarily driven bycost reductions.

The Company continues to take actions to improve its cost structure. The Company expects to realize cost savings from the enactmentrestructuring activities taken during 2019 and 2020, including the reorganization of certain research and development, selling and administrative functions across all segments. The Company is also in process of several restructuring activities across its manufacturing and supply chain footprint, including the Tax Cuts and Jobs Actconsolidation of a manufacturing facility within the Industrial Segment, which is expected to be completed in December 2017.

the first half of 2021.

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Net cash provided by operating activities was $269.2$258.0 million for the year ended December 30, 201726, 2020 as compared to $180.1$245.3 million for the year ended December 31, 2016.28, 2019. The increase in net cash provided by operating activities reflected higherwas primarily due to lower annual incentive payments and reductions in net working capital partially offset by lower earnings lower cash taxes, lower acquisition-related and integration payments andlargely due to the impact of working capital changes largely driven by collections efficiency and lower vendor prepayments.

COVID-19.   

On January 17, 2018, the Company acquired IXYS Corporation “IXYS”, a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power control semiconductors across the industrial, communications, consumer and medical markets. IXYS has a broad customer base, serving more than 3,500 customers through its direct sales force and global distribution partners. The purchase price for IXYS was approximately $856.5 million, which included consideration of cash, Littelfuse common stock, and the value of converted or cash settled IXYS equity awards. For the twelve months ended December 30, 2017, IXYS generated net sales of approximately $340 million. IXYS’ operations will be included in the Electronics segment.

On July 7, 2017, the Company acquired the assets of U.S. Sensor for $24.3 million. The acquired business, which is included in the Electronics segment expands the Company’s existing sensor portfolio in several key electronics and industrial end markets. U.S. Sensor manufactures a variety of high quality negative temperature coefficient thermistors as well as thermistor probes and assemblies. Product lines also include thin film platinum resistance temperature detectors (“RTDs”) and RTD assemblies. 

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On February 28, 2017, pursuant to a Securities Purchase Agreement between the Company and the stockholders of Monolith, a U.S. start-up Company developing silicon carbide technology, and conditioned on Monolith achieving a product development milestone and other provisions, the Company acquired approximately 62% of the outstanding common stock of Monolith for $15 million. This was in addition to the Company’s initial investment of $3.5 million in the preferred stock of Monolith Semiconductor in December 2015. Monolith operations are included in the Electronics segment.

On October 13, 2017,April 3, 2020, the Company amended its existing credit agreementthe Credit Agreement to increaseeffect certain changes, including, among others: (i) eliminating the unsecured revolving credit facility from $575.0$200.0 million to $700.0 million, increase the unsecured term loan credit facility, from $125.0 millionthe remaining outstanding balance ($140.0 million) of which was repaid in full on April 3, 2020 through the revolving credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company; (iii) modifying performance-based interest rate margins and undrawn fees; and (iv) extending the maturity date to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022.April 3, 2025. The credit agreementamended Credit Agreement also includes the option forallows the Company to increase the size of the revolving credit facility or enter into one or more tranches of term loans if there is no event of default and the term loanCompany is in compliance with certain financial covenants. The Company made payments of $110.0 million on the amended revolving credit facility by up to an additional $300.0during the fiscal year ended December 26, 2020. The balance under the facility was $130.0 million in the aggregate, subject to the satisfactionas of certain conditions set forth in the credit agreement. Additionally, on November 15, 2017,December 26, 2020.

On April 7, 2020, the Company entered into a notedefinitive agreement to purchase agreement pursuanta group annuity contract, under which an insurance company will be required to whichdirectly pay and administer pension payments to certain of the Company’s UK pension plan participants, or their designated beneficiaries. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $55 million, representing approximately 37% of the total obligations of the Company’s qualified pension plans, and will be funded with pension plan assets and additional cash on hand. In connection with this transaction, the Company issuedwill record a one-time non-cash settlement charge in the second half of 2021 currently estimated between $18 million and sold $175$22 million, reflecting the accelerated recognition of a portion of unamortized actuarial losses in aggregate principal amount of senior notes. the plan. The actual settlement charge could differ from this estimate due to final data and plan wind-up expenses.

On January 16, 2018, $5028, 2021, the Company acquired Hartland Controls, a manufacturer and leading supplier of electrical components used primarily in heating, ventilation, air conditioning (HVAC) and other industrial and control systems applications with annualized sales of approximately $70 million. The cash purchase price for Hartland Controls was approximately $113 million and the operations of Hartland Controls will be included in aggregate principal amountthe Industrial segment.

Impact of 3.48% Senior Notes, Series A, due February 15, 2025 and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 were funded.

OUTLOOK

Vision and Strategy

COVID-19 on Business

The Company workscontinued to manage through the COVID-19 impacts throughout the year, with significant improvement to its financial results in the second half of 2020 compared to the first half of 2020. Our manufacturing facilities generally operated at normal capacity levels during the second half of the year as production disruptions were minimal. The effects from COVID-19 are continuing to drive increased costs, from spending on personal protective equipment ("PPE"), additional personnel and employee transportation costs, and manufacturing inefficiencies, as well as an increase in freight costs for our products due to the transportation capacity constraints across the world. This was partially offset during 2020 by the receipt of cash subsidies from international government COVID-19 relief programs.

The Company’s priorities continue to be first, on our associates, their families and the communities in which we operate; second, our customers; and third, long-term financial health of the company. In an effort to protect the health and safety of our employees, the Company enacted numerous proactive, aggressive actions at its facilities globally in the first quarter of 2020, and implemented a number of safety procedures including hygiene and disinfection protocols, social distancing and wearing PPE. The Company expects these actions will continue for the foreseeable future.

During 2020, governments around the world enacted various measures in an effort to contain COVID-19 and slow its spread. These measures included orders to close all businesses not deemed “essential”, isolate residents to their homes or places of residence, and practice social distancing when engaging in essential activities, which disrupted certain of our operating locations in around the world in the first half of 2020. During the second half of 2020, all of our manufacturing facilities were operational and were generally running at normal capacity levels.

The Company continues to work with customers to meet production requirements for their products, many of which are considered essential, including healthcare and medical devices, transportation, communication and energy infrastructure.

The Company anticipates that the global health crisis caused by COVID-19 may continue to negatively impact its business activity for the foreseeable future. It is currently difficult to estimate the magnitude of the COVID-19 disruption, if future disruptions will occur due to a resurgence in COVID-19 cases and its impact on our employees, customers, suppliers and

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vendors. The Company will continue to actively monitor the situation and may take further actions altering our business operations that we determine are in the best interests of our employees, customers, partners, suppliers, and other stakeholders, or as required by federal, state, or local authorities. It is not clear what the potential effects any such alterations or modifications may have on our business and operations, including the effects on our customers, employees, and prospects, or on our financial results for the fiscal year 2021.

OUTLOOK

Vision andStrategy

The Company closely collaborates with its customers to design and develop technologies that help them buildmanufacture innovative and reliable solutions for a safer, more reliableconnected, and more efficient products for the connectedsustainable world in virtually every market that uses electrical energy; for example, transportation applications like passenger and commercial vehicles, including eMobility, industrial applications like renewables and energy ranging acrossstorage, HVAC and industrial automation and safety, motor drives and power conversion, and electronics applications like data centers and telecommunications, medical devices, home and building automation, appliances, and mobile and consumer electronics, IT and telecommunication applications, industrial electronics, automobiles and other transportation, and heavy industrial applications.electronics. Built upon that framework, the Company’s strategy is centered on growing its core circuit protection business, accelerating itssecular growth in power control,themes of a safer, connected, and doubling its sensor platform.

more sustainable world, drive increased product content opportunities.

The Company’sCompany’s strategic plan is focused on maximizingincreasing shareholder value by driving profitable sales growth, earnings per share growth, strong cash flow generation, and maintaining a balanced approachdeploying capital to capital allocation.drive value creation. The Company pursues the following major strategic initiatives, which are summarized below, along with more specific areas of focus.

Strategic Objective		2018 and Future Priorities
DoubleStrategic Objectives						Priorities
Double digit sales growth						●			Grow through increased product content with existing customers and increased market share
						●			Expand portfolio into new and underpenetrated geographies and end markets
						●			Increase innovation capabilities and investments
						●			Expand presence in products and applications that are converging across business segments
						●			Targeted mergers and acquisitions
EPS growth						●			Focus on higher profitability growth opportunities
						●			GrowImprove operating margins through operational excellence
						●			Disciplined approach to managingbalancing costs with long-term strategic investments
Cash flow and liquidity						●			Disciplined management of working capital
						●			Prudent deploymentDeployment of capital consistent with capital allocation priorities
						●			Disciplined approach to mergersMergers and acquisitions that align with strategy and financial metrics
						●			Grow dividend in line with earnings
						●			PeriodicOpportunistic share repurchases

The Company’sCompany’s strategy is to generate profitable sales growth. In order to accomplish this, Thethe Company is focusing on accelerating organic growth by increasing its content and share gains, enhancing technology efforts to drive innovation, capitalizing on cross segment opportunities, and gaining traction in underpenetrated geographies and markets. The Company will continue to make targeted strategic acquisitions that align to its strategy and financial targetsmetrics to support new business, products, markets, and technologies while leveraging existing customers and targeting new customers.

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Management believes that sustaining profitabilityprofitable growth through a combination of profitable organic growth and strategic acquisitions is critical to the Company’sCompany’s competitiveness, while enhancing value the Company delivers to all of its customers.stakeholders. In addition, the Company continues to implement initiatives across all platforms to enhance productivity while managing its cost structure to align with business conditions, including integration of operations and streamlining administrative and support activities to drive improved operating margins.

Net Sales

Returns As the Company’s standard payment terms are less than one year, the Company has 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 Credits: handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue.