Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 14, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-50307 | ||
Entity Registrant Name | FormFactor, Inc. | ||
Entity Central Index Key | 0001039399 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3711155 | ||
Entity Address, Address Line One | 7005 Southfront Road | ||
Entity Address, City or Town | Livermore | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94551 | ||
City Area Code | 925 | ||
Local Phone Number | 290-4000 | ||
Title of 12(b) Security | Common stock, $0.001 par value | ||
Trading Symbol | FORM | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 546,284,970 | ||
Entity Common Stock, Shares Outstanding (in shares) | 76,148,088 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders, which will be filed within 120 days of the end of the registrant's fiscal year ended December 28, 2019, are incorporated by reference in Part III hereof. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement is not deemed to be filed as a part of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 144,545 | $ 98,472 |
Marketable securities | 76,327 | 50,531 |
Accounts receivable, net | 97,868 | 95,333 |
Inventories, net | 83,258 | 77,706 |
Restricted cash | 1,981 | 849 |
Prepaid expenses and other current assets | 15,064 | 14,929 |
Total current assets | 419,043 | 337,820 |
Restricted cash | 1,411 | 1,225 |
Property, plant and equipment, net | 58,747 | 54,054 |
Goodwill | 199,196 | 189,214 |
Intangibles, net | 57,610 | 67,640 |
Deferred tax assets | 71,252 | 77,301 |
Other assets | 1,203 | 968 |
Total assets | 839,882 | 728,222 |
Current liabilities: | ||
Accounts payable | 40,914 | 40,006 |
Accrued liabilities | 36,439 | 27,731 |
Current portion of term loans, net of unamortized issuance cost of $29 and $160 | 42,846 | 29,840 |
Deferred revenue | 9,810 | 4,941 |
Total current liabilities | 136,560 | 102,518 |
Term loan, less current portion, net of unamortized issuance cost of $0 and $29 | 15,639 | 34,971 |
Deferred tax liabilities | 6,986 | 2,355 |
Other liabilities | 10,612 | 8,214 |
Total liabilities | 198,885 | 148,058 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
250,000,000 shares authorized; 75,764,990 and 74,139,712 shares issued and outstanding | 76 | 74 |
Additional paid-in capital | 885,821 | 862,897 |
Accumulated other comprehensive income (loss) | (659) | 780 |
Accumulated deficit | (244,241) | (283,587) |
Total stockholders' equity | 640,997 | 580,164 |
Total liabilities and stockholders' equity | 839,882 | 728,222 |
Right-of-use assets | 31,420 | 0 |
Operating Lease, Liability, Current | 6,551 | 0 |
Operating Lease, Liability, Noncurrent | $ 29,088 | $ 0 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Current unamortized debt issuance costs | $ 29 | $ 160 |
Noncurrent unamortized debt issuance costs | $ 0 | $ 29 |
Preferred stock par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock outstanding (in shares) | 75,764,990 | 74,139,712 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||||||||||
Revenues | $ 178,629 | $ 140,604 | $ 138,018 | $ 132,213 | $ 140,887 | $ 134,989 | $ 135,509 | $ 118,290 | $ 589,464 | $ 529,675 | $ 548,441 |
Cost of revenues | 104,324 | 85,286 | 82,666 | 79,692 | 84,865 | 82,019 | 79,291 | 73,161 | 351,968 | 319,336 | 332,844 |
Gross profit | 74,305 | 55,318 | 55,352 | 52,521 | 56,022 | 52,970 | 56,218 | 45,129 | 237,496 | 210,339 | 215,597 |
Operating expenses: | |||||||||||
Research and development | 21,606 | 20,096 | 20,074 | 19,723 | 18,398 | 18,857 | 19,675 | 18,046 | 81,499 | 74,976 | 73,807 |
Selling, general and administrative | 28,981 | 25,887 | 26,283 | 25,184 | 25,828 | 24,745 | 25,232 | 23,449 | 106,335 | 99,254 | 95,489 |
Total operating expenses | 50,587 | 45,983 | 46,357 | 44,907 | 44,226 | 43,602 | 44,907 | 41,495 | 187,834 | 174,230 | 169,296 |
Operating income | 23,718 | 9,335 | 8,995 | 7,614 | 11,796 | 9,368 | 11,311 | 3,634 | 49,662 | 36,109 | 46,301 |
Interest income | 726 | 724 | 684 | 580 | 404 | 369 | 326 | 257 | 2,714 | 1,356 | 548 |
Interest expense | (376) | (422) | (522) | (595) | (660) | (777) | (910) | (967) | (1,915) | (3,314) | (4,491) |
Other income (expense), net | 379 | 226 | 81 | (84) | 117 | 121 | 50 | (512) | 602 | (224) | (152) |
Income before income taxes | 24,447 | 9,863 | 9,238 | 7,515 | 11,657 | 9,081 | 10,777 | 2,412 | 51,063 | 33,927 | 42,206 |
Provision (benefit) for income taxes | 5,811 | 1,584 | 2,290 | 2,032 | (73,443) | 1,393 | 1,654 | 287 | 11,717 | (70,109) | 1,293 |
Net income | $ 18,636 | $ 8,279 | $ 6,948 | $ 5,483 | $ 85,100 | $ 7,688 | $ 9,123 | $ 2,125 | $ 39,346 | $ 104,036 | $ 40,913 |
Net income per share: | |||||||||||
Basic (in USD per share) | $ 0.25 | $ 0.11 | $ 0.09 | $ 0.07 | $ 1.15 | $ 0.10 | $ 0.12 | $ 0.03 | $ 0.52 | $ 1.42 | $ 0.57 |
Diluted (in USD per share) | $ 0.24 | $ 0.11 | $ 0.09 | $ 0.07 | $ 1.13 | $ 0.10 | $ 0.12 | $ 0.03 | $ 0.51 | $ 1.38 | $ 0.55 |
Weighted-average number of shares used in per share calculations: | |||||||||||
Basic (in shares) | 75,731 | 75,280 | 74,478 | 74,362 | 74,108 | 73,837 | 73,157 | 72,826 | 74,994 | 73,482 | 72,292 |
Diluted (in shares) | 78,055 | 77,291 | 76,189 | 76,009 | 75,416 | 74,962 | 74,533 | 74,342 | 77,286 | 75,182 | 74,239 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 39,346 | $ 104,036 | $ 40,913 |
Other comprehensive income (loss), net of tax: | |||
Translation adjustments and other | (1,028) | (1,902) | 6,764 |
Unrealized gains (losses) on available-for-sale marketable securities | 316 | (8) | (206) |
Unrealized gains (losses) on derivative instruments | (727) | (331) | 203 |
Other comprehensive income (loss), net of tax | (1,439) | (2,241) | 6,761 |
Comprehensive income | $ 37,907 | $ 101,795 | $ 47,674 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balances (in shares) at Dec. 31, 2016 | 70,907,847 | ||||
Balances at Dec. 31, 2016 | $ 401,056 | $ 71 | $ 833,341 | $ (3,740) | $ (428,616) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to exercise of options for cash (in shares) | 1,473,389 | ||||
Issuance of common stock pursuant to exercise of options for cash | 13,837 | $ 1 | 13,836 | ||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 862,596 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (6,885) | $ 1 | (6,886) | ||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 655,961 | ||||
Issuance of common stock pursuant to exercise of options for cash | 5,695 | $ 1 | 5,694 | ||
Issuance of common stock under the Employee Stock Purchase Plan | 0 | ||||
Purchase and retirement of common stock (in shares) | (1,367,617) | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (18,970) | $ (1) | (18,969) | ||
Purchase and retirement of common stock | 16,230 | 16,230 | |||
Stock-based compensation | 0 | (130) | 130 | ||
Stock-based compensation | 6,761 | 6,761 | |||
Net income | $ 40,913 | 40,913 | |||
Balances (in shares) at Dec. 30, 2017 | 72,532,176 | ||||
Balances at Dec. 30, 2017 | $ 458,637 | $ 73 | 843,116 | 3,021 | (387,573) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to exercise of options for cash (in shares) | 134,609 | ||||
Issuance of common stock pursuant to exercise of options for cash | 1,158 | 1,158 | |||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 862,630 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (5,791) | $ 0 | (5,791) | ||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 610,297 | ||||
Issuance of common stock pursuant to exercise of options for cash | 6,662 | $ 1 | 6,661 | ||
Issuance of common stock under the Employee Stock Purchase Plan | 0 | ||||
Purchase and retirement of common stock | 17,753 | 17,753 | |||
Stock-based compensation | (50) | (50) | |||
Stock-based compensation | (2,241) | (2,241) | |||
Net income | $ 104,036 | 104,036 | |||
Balances (in shares) at Dec. 29, 2018 | 74,139,712 | 74,139,712 | |||
Balances at Dec. 29, 2018 | $ 580,164 | $ 74 | 862,897 | 780 | (283,587) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to exercise of options for cash (in shares) | 162,956 | ||||
Issuance of common stock pursuant to exercise of options for cash | 1,176 | 1,176 | |||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 918,051 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | (8,025) | $ 1 | (8,026) | ||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 544,271 | ||||
Issuance of common stock pursuant to exercise of options for cash | 6,807 | $ 1 | 6,806 | ||
Issuance of common stock under the Employee Stock Purchase Plan | 36,709 | ||||
Purchase and retirement of common stock | 22,968 | 22,968 | |||
Stock-based compensation | (1,439) | (1,439) | |||
Net income | $ 39,346 | 39,346 | |||
Balances (in shares) at Dec. 28, 2019 | 75,764,990 | ||||
Balances at Dec. 28, 2019 | $ 640,997 | $ 76 | $ 885,821 | $ (659) | $ (244,241) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 39,346 | $ 104,036 | $ 40,913 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 17,185 | 14,314 | 13,626 |
Amortization | 27,672 | 29,373 | 30,940 |
Amortization (accretion) of discount on investments | (365) | (10) | 38 |
Reduction in the carrying amount of right-of-use assets | 5,269 | 0 | 0 |
Stock-based compensation expense | 23,176 | 17,827 | 16,339 |
Amortization of debt issuance costs | 160 | 390 | 619 |
Deferred income tax provision (benefit) | 4,954 | (74,908) | (590) |
Benefit for doubtful accounts receivable | 0 | 0 | (99) |
Provision for excess and obsolete inventories | 10,421 | 10,479 | 9,259 |
Acquired inventory step-up amortization | 465 | 0 | 569 |
Loss on disposal of long-lived assets | 486 | 325 | 510 |
Foreign currency transaction losses (gains) | 408 | 125 | (1,717) |
Loss (gain) on derivative instruments | 110 | 0 | (10) |
Changes in assets and liabilities: | |||
Accounts receivable | 481 | (13,830) | (10,651) |
Inventories | (14,295) | (21,298) | (15,635) |
Prepaid expenses and other current assets | 230 | 1,204 | 457 |
Other assets | (441) | 707 | 61 |
Accounts payable | (27) | 3,050 | 741 |
Accrued liabilities | 7,517 | (6,219) | 872 |
Other liabilities | 166 | 3,109 | 111 |
Deferred revenues | 3,130 | 26 | (30) |
Operating lease liabilities | (5,000) | 0 | 0 |
Net cash provided by operating activities | 121,048 | 68,700 | 86,323 |
Cash flows from investing activities: | |||
Acquisition of property, plant and equipment | (20,847) | (19,869) | (17,756) |
Acquisition of FRT GmbH, net of cash acquired | (20,524) | 0 | 0 |
Proceeds from sale of subsidiary | 132 | 94 | 68 |
Proceeds from sale of property and property, plant and equipment | 0 | 23 | 0 |
Purchases of marketable securities | (76,327) | (30,566) | (50,733) |
Proceeds from maturities of marketable securities | 51,214 | 29,023 | 8,996 |
Net cash used in investing activities | (66,352) | (21,295) | (59,425) |
Cash flows from financing activities: | |||
Proceeds from issuances of common stock | 8,093 | 7,712 | 19,510 |
Purchase and retirement of common stock | 0 | 0 | (18,970) |
Tax withholdings related to net share settlements of equity awards | (8,025) | (5,791) | (6,885) |
Proceeds from term loan | 23,354 | 0 | 0 |
Payments on term loan | (30,000) | (41,250) | (33,125) |
Net cash used in financing activities | (6,578) | (39,329) | (39,470) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (727) | (256) | 2,702 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 47,391 | 7,820 | (9,870) |
Cash, cash equivalents and restricted cash, beginning of year | 100,546 | 92,726 | 102,596 |
Cash, cash equivalents and restricted cash, end of year | 147,937 | 100,546 | 92,726 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Operating lease, right-of-use assets obtained in exchange for lease obligations | 36,709 | 0 | 0 |
Contingent consideration payable related to FRT acquisition | 5,364 | 0 | 0 |
Change in accounts payable and accrued liabilities related to property, plant and equipment purchases | 866 | 2,290 | (33) |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net | 4,324 | 4,576 | 3,172 |
Cash paid for interest | $ 1,405 | $ 3,113 | $ 3,836 |
Formation and Business of the C
Formation and Business of the Company | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Business of the Company | Formation and Nature of Business FormFactor, Inc. was incorporated in Delaware on April 15, 1993 and is headquartered in Livermore, California. We are a leading provider of electrical test and measurement technologies. We provide a broad range of high-performance probe cards, analytical probes, probe stations, metrology systems, and thermal sub-systems to both semiconductor companies and scientific institutions. Our products provide electrical and optical metrology information from a variety of semiconductor and electro-optical devices and integrated circuits from research, to development through production. Customers use our products and services to lower production costs, improve yields, and enable development of complex next generation products. We believe our technology leadership enables critical roadmap advances for our customers. We also design, develop, manufacture and market advanced wafer probing and thermal solutions for the electrical and optical measurement and testing of high performance semiconductor devices. Design, development and manufacturing operations are located in Beaverton, Oregon, United States and Bergisch Gladbach, Munich and Thiendorf, Germany, and sales, service and support operations are located in the United States, Germany, France, South Korea, Japan, Taiwan, China and Singapore. Fiscal Year Our fiscal year ends on the last Saturday in December. The fiscal years ended on December 28, 2019, December 29, 2018 and December 30, 2017 each consisted of 52 weeks, respectively. Reclassifications Certain immaterial reclassifications were made to the prior year financial statements to conform to the current year presentation. |
Derivative Financial Instrument
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Forward Contracts Outstanding | The following table provides information about our foreign currency forward contracts outstanding as of December 28, 2019 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Buy (3,367) $ (3,932) Japanese Yen Sell 2,553,864 23,343 Korean Won Buy (2,669,885) (2,304) Total USD notional amount of outstanding foreign exchange contracts $ 17,107 The location and amount of gains (losses) related to derivative instruments designated as cash flow hedges on our Consolidated Statements of Income was as follows (in thousands): Amount of Loss Recognized in Accumulated OCI on Derivative Location of Loss Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income Fiscal 2019 $ 93 Cost of revenues $ 526 Research and development 75 Selling, general and administrative 172 $ 773 Fiscal 2018 $ — $ — |
Schedule of Non-designated Derivative Gains (Losses) | The location and amount of gains (losses) related to non-designated derivative instruments in the Consolidated Statements of Income were as follows (in thousands): Location of Gain (Loss) Recognized Fiscal Year Ended Derivatives Not Designated as Hedging Instruments December 28, 2019 December 29, 2018 December 30, 2017 Foreign exchange forward contracts Other income (expense), net $ 248 $ 906 $ (2,505) |
Schedule of the Impact of Cash Flow Hedges on Consolidated Financial Statements | The impact of the interest rate swaps on the Consolidated Statements of Income was as follows (in thousands): Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion ) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion ) Fiscal 2019 $ (86) Other income (expense), net $ 548 Other income (expense), net $ — Fiscal 2018 $ 340 Other income (expense), net $ 721 Other income (expense), net $ — Fiscal 2017 $ 287 Other income (expense), net $ 84 Other income (expense), net $ 29 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values Measured on Recurring Basis | December 28, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 17,056 $ — $ — $ 17,056 Marketable securities: U.S. Treasuries 10,468 — — 10,468 Certificates of deposit — 3,590 — 3,590 Agency securities — 24,430 — 24,430 Corporate bonds — 33,928 — 33,928 Commercial paper — 3,911 — 3,911 10,468 65,859 — 76,327 Foreign exchange derivative contracts — 41 — 41 Interest rate swap derivative contracts — 26 — 26 Total assets $ 27,524 $ 65,926 $ — $ 93,450 Liabilities: Foreign exchange derivative contracts $ — $ (240) $ — $ (240) Contingent consideration — — (5,364) (5,364) Total liabilities $ — $ (240) $ (5,364) $ (5,604) December 29, 2018 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 1,184 $ — $ 1,184 Marketable securities: U.S. Treasuries 7,997 — 7,997 Certificates of deposit — 957 957 Agency securities — 8,608 8,608 Corporate bonds — 30,674 30,674 Commercial paper — 2,295 2,295 7,997 42,534 50,531 Interest rate swap derivative contracts — 871 871 Total assets $ 9,181 $ 43,405 $ 52,586 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | Stock option activity was as follows: Outstanding Options Number of Weighted Weighted Aggregate Outstanding at December 29, 2018 524,725 $ 8.00 Options exercised (162,956) 7.21 Outstanding at December 28, 2019 361,769 $ 8.35 2.16 $ 6,400,367 Vested and expected to vest at December 28, 2019 361,769 $ 8.35 2.16 $ 6,400,367 Exercisable at December 28, 2019 361,769 $ 8.35 2.16 $ 6,400,367 |
Schedule of Restricted Stock Unit Activity | RSU activity was as follows: Number of Weighted Restricted stock units at December 29, 2018 3,102,226 $ 12.79 Granted 1,510,211 15.12 Vested (1,391,373) 11.91 Canceled (152,064) 13.47 Restricted stock units at December 28, 2019 3,069,000 14.30 |
Schedule of Performance Restricted Stock Unit Activity | PRSU grant activity was as follows: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Grant Date June 4, 2019 August 16, 2018 July 20, 2017 Performance period July 1, 2019 - June 30, 2022 July 1, 2018 - June 30, 2021 July 1, 2017 - June 30, 2020 Number of shares 273,000 318,100 333,333 TSR as-of date June 4, 2019 August 16, 2018 July 1, 2017 Stock-based compensation $4.4 million $4.7 million $4.1 million |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period. Fiscal Quarters Ended Dec. 28, Sep. 28, June 29, 2019 March 30, 2019 Dec. 29, 2018 (1) Sep. 29, June 30, 2018 March 31, 2018 (in thousands, except per share data) Revenues $ 178,629 $ 140,604 $ 138,018 $ 132,213 $ 140,887 $ 134,989 $ 135,509 $ 118,290 Cost of revenues 104,324 85,286 82,666 79,692 84,865 82,019 79,291 73,161 Gross profit 74,305 55,318 55,352 52,521 56,022 52,970 56,218 45,129 Operating Expenses: Research and development 21,606 20,096 20,074 19,723 18,398 18,857 19,675 18,046 Selling, general and administrative 28,981 25,887 26,283 25,184 25,828 24,745 25,232 23,449 Total operating expenses 50,587 45,983 46,357 44,907 44,226 43,602 44,907 41,495 Operating income 23,718 9,335 8,995 7,614 11,796 9,368 11,311 3,634 Interest income 726 724 684 580 404 369 326 257 Interest expense (376) (422) (522) (595) (660) (777) (910) (967) Other income (expense), net 379 226 81 (84) 117 121 50 (512) Income before income taxes 24,447 9,863 9,238 7,515 11,657 9,081 10,777 2,412 Provision (benefit) for income taxes 5,811 1,584 2,290 2,032 (73,443) 1,393 1,654 287 Net income $ 18,636 $ 8,279 $ 6,948 $ 5,483 $ 85,100 $ 7,688 $ 9,123 $ 2,125 Net income per share: (2) Basic $ 0.25 $ 0.11 $ 0.09 $ 0.07 $ 1.15 $ 0.10 $ 0.12 $ 0.03 Diluted $ 0.24 $ 0.11 $ 0.09 $ 0.07 $ 1.13 $ 0.10 $ 0.12 $ 0.03 Weighted average number of shares used in per share calculations: Basic 75,731 75,280 74,478 74,362 74,108 73,837 73,157 72,826 Diluted 78,055 77,291 76,189 76,009 75,416 74,962 74,533 74,342 (1) In the fourth quarter of fiscal 2018, the tax benefit included a $75.8 million benefit from a valuation allowance release against certain U.S. deferred tax assets. (2) Quarterly net income per share amounts may not add to the yearly totals due to rounding. |
Derivative Financial Instrume_2
Derivative Financial Instruments - Foreign Currency Derivatives (Details) € in Thousands, ₩ in Thousands, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 28, 2019KRW (₩) | Dec. 28, 2019USD ($) | Dec. 28, 2019JPY (¥) | Dec. 28, 2019EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||||
Cash flow hedge amount to be reclassified within twelve months | $ 100 | ||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Total USD notional amount of outstanding foreign exchange contracts | $ 17,107 | ||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | Other income (expense), net | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Foreign exchange forward contracts | $ 248 | $ 906 | $ (2,505) | ||||
Short [Member] | Not Designated as Hedging Instrument | Foreign Exchange Forward | Euro | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Liability, Notional Amount | 3,932 | € 3,367 | |||||
Short [Member] | Not Designated as Hedging Instrument | Foreign Exchange Forward | Japanese Yen | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset contract amount | 23,343 | ¥ 2,553,864 | |||||
Short [Member] | Not Designated as Hedging Instrument | Foreign Exchange Forward | Korean Won | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Liability, Notional Amount | ₩ 2,669,885 | $ 2,304 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | $ 76,327,000 | $ 50,531,000 | |
Total assets | 93,450,000 | 52,586,000 | |
Liabilities measured at fair value | 5,604,000 | 0 | |
Contingent consideration | (5,364,000) | ||
Foreign exchange derivative contract | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative contracts | 41,000 | ||
Derivative Liability | 240,000 | ||
Interest rate swap derivative contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative contracts | 26,000 | 871,000 | |
Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 17,056,000 | 1,184,000 | |
U.S. Treasuries | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 10,468,000 | 7,997,000 | |
Certificates of deposit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 3,590,000 | 957,000 | |
Agency securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 24,430,000 | 8,608,000 | |
Corporate bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 33,928,000 | 30,674,000 | |
Commercial paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 3,911,000 | 2,295,000 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 10,468,000 | 7,997,000 | |
Total assets | 27,524,000 | 9,181,000 | |
Liabilities measured at fair value | 0 | ||
Contingent consideration | 0 | ||
Level 1 | Foreign exchange derivative contract | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative contracts | 0 | ||
Derivative Liability | 0 | ||
Level 1 | Interest rate swap derivative contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative contracts | 0 | 0 | |
Level 1 | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 17,056,000 | 1,184,000 | |
Level 1 | U.S. Treasuries | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 10,468,000 | 7,997,000 | |
Level 1 | Certificates of deposit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 0 | 0 | |
Level 1 | Agency securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 0 | 0 | |
Level 1 | Corporate bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 0 | 0 | |
Level 1 | Commercial paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 0 | 0 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 65,859,000 | 42,534,000 | |
Total assets | 65,926,000 | 43,405,000 | |
Liabilities measured at fair value | 240,000 | ||
Contingent consideration | 0 | ||
Level 2 | Foreign exchange derivative contract | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative contracts | 41,000 | ||
Derivative Liability | 240,000 | ||
Level 2 | Interest rate swap derivative contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative contracts | 26,000 | 871,000 | |
Level 2 | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 0 | 0 | |
Level 2 | U.S. Treasuries | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 0 | 0 | |
Level 2 | Certificates of deposit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 3,590,000 | 957,000 | |
Level 2 | Agency securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 24,430,000 | 8,608,000 | |
Level 2 | Corporate bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 33,928,000 | 30,674,000 | |
Level 2 | Commercial paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 3,911,000 | 2,295,000 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities measured at fair value | (5,364,000) | ||
Contingent consideration | (5,364,000) | ||
Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets (liabilities), net | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans (Details) - Equity Incentive Plan | 12 Months Ended |
Dec. 28, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance (in shares) | 15,000,000 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant (in shares) | 4,600,000 |
Stock option vesting period | 3 years |
Term of options granted | 7 years |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option vesting period | 3 years |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Granted (in USD per share) | $ 15.12 | $ 13.79 | $ 13.20 |
Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Stock options granted (in shares) | 273,000,000,000 | 318,100 | 333,333 |
Stock-based compensation expense | $ 4.4 | $ 4.7 | $ 4.1 |
Equity Incentive Plan | Restricted Stock Units | |||
Number of Shares | |||
Number of Shares, Restricted stock units, beginning balance (in shares) | 3,102,226 | ||
Number of Shares, Granted (in shares) | 1,510,211 | ||
Number of Shares, Vested (in shares) | (1,391,373) | ||
Number of Shares, Canceled (in shares) | (152,064) | ||
Number of Shares, Restricted stock units, ending balance (in shares) | 3,069,000 | 3,102,226 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Restricted stock units, beginning balance (in USD per share) | $ 12.79 | ||
Weighted Average Grant Date Fair Value, Granted (in USD per share) | 15.12 | ||
Weighted Average Grant Date Fair Value, Vested (in USD per share) | 11.91 | ||
Weighted Average Grant Date Fair Value, Canceled (in USD per share) | 13.47 | ||
Weighted Average Grant Date Fair Value, Restricted stock units, ending balance(in USD per share) | $ 14.30 | $ 12.79 | |
Minimum | Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Performance period | 2 years | ||
Maximum | Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Performance period | 3 years |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plan (Details) | 12 Months Ended |
Dec. 28, 2019purchase_period$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from market price, offering date | 85.00% |
Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance (in shares) | 7,000,000 |
Number of purchase periods, 12 months offering period | purchase_period | 2 |
Number of purchase periods, 6 months offering period | purchase_period | 1 |
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 544,271 |
Weighted average exercise price, exercisable (in USD per share) | $ / shares | $ 12.51 |
Weighted average discount (in USD per share) | $ / shares | $ 3.40 |
Shares available for grant (in shares) | 2,657,222 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 178,629 | $ 140,604 | $ 138,018 | $ 132,213 | $ 140,887 | $ 134,989 | $ 135,509 | $ 118,290 | $ 589,464 | $ 529,675 | $ 548,441 |
Cost of revenues | 104,324 | 85,286 | 82,666 | 79,692 | 84,865 | 82,019 | 79,291 | 73,161 | 351,968 | 319,336 | 332,844 |
Gross profit | 74,305 | 55,318 | 55,352 | 52,521 | 56,022 | 52,970 | 56,218 | 45,129 | 237,496 | 210,339 | 215,597 |
Operating expenses: | |||||||||||
Research and development | 21,606 | 20,096 | 20,074 | 19,723 | 18,398 | 18,857 | 19,675 | 18,046 | 81,499 | 74,976 | 73,807 |
Selling, general and administrative | 28,981 | 25,887 | 26,283 | 25,184 | 25,828 | 24,745 | 25,232 | 23,449 | 106,335 | 99,254 | 95,489 |
Total operating expenses | 50,587 | 45,983 | 46,357 | 44,907 | 44,226 | 43,602 | 44,907 | 41,495 | 187,834 | 174,230 | 169,296 |
Operating income | 23,718 | 9,335 | 8,995 | 7,614 | 11,796 | 9,368 | 11,311 | 3,634 | 49,662 | 36,109 | 46,301 |
Interest income | 726 | 724 | 684 | 580 | 404 | 369 | 326 | 257 | 2,714 | 1,356 | 548 |
Interest expense | (376) | (422) | (522) | (595) | (660) | (777) | (910) | (967) | (1,915) | (3,314) | (4,491) |
Other income (expense), net | 379 | 226 | 81 | (84) | 117 | 121 | 50 | (512) | 602 | (224) | (152) |
Income before income taxes | 24,447 | 9,863 | 9,238 | 7,515 | 11,657 | 9,081 | 10,777 | 2,412 | 51,063 | 33,927 | 42,206 |
Provision (benefit) for income taxes | 5,811 | 1,584 | 2,290 | 2,032 | (73,443) | 1,393 | 1,654 | 287 | 11,717 | (70,109) | 1,293 |
Net income | $ 18,636 | $ 8,279 | $ 6,948 | $ 5,483 | $ 85,100 | $ 7,688 | $ 9,123 | $ 2,125 | $ 39,346 | $ 104,036 | $ 40,913 |
Net income per share: | |||||||||||
Basic (in USD per share) | $ 0.25 | $ 0.11 | $ 0.09 | $ 0.07 | $ 1.15 | $ 0.10 | $ 0.12 | $ 0.03 | $ 0.52 | $ 1.42 | $ 0.57 |
Diluted (in USD per share) | $ 0.24 | $ 0.11 | $ 0.09 | $ 0.07 | $ 1.13 | $ 0.10 | $ 0.12 | $ 0.03 | $ 0.51 | $ 1.38 | $ 0.55 |
Weighted-average number of shares used in per share calculations: | |||||||||||
Basic (in shares) | 75,731 | 75,280 | 74,478 | 74,362 | 74,108 | 73,837 | 73,157 | 72,826 | 74,994 | 73,482 | 72,292 |
Diluted (in shares) | 78,055 | 77,291 | 76,189 | 76,009 | 75,416 | 74,962 | 74,533 | 74,342 | 77,286 | 75,182 | 74,239 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Decrease in valuation allowance | $ (75,800) | $ 75,800 | |||||||||
Benefit for income taxes | $ (5,811) | $ (1,584) | $ (2,290) | $ (2,032) | $ 73,443 | $ (1,393) | $ (1,654) | $ (287) | $ (11,717) | $ 70,109 | $ (1,293) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. On October 9, 2019, we completed the acquisition of FRT GmbH and, accordingly, our Consolidated Statements of Income include the results of operations of FRT GmbH since that date. See Note 4. The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity on our Consolidated Balance Sheets under Accumulated other comprehensive income (loss). Certain other of our foreign subsidiaries use the U.S. Dollar as their functional currency. Accordingly, monetary assets and liabilities in non-functional currencies of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Consolidated Statements of Income as a component of Other income (expense), net as incurred. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates may change as new information is obtained. We believe that the estimates, assumptions and judgments involved in revenue recognition, fair value of marketable securities, fair value of derivative financial instruments used to hedge both foreign currency and interest rate exposures, allowance for doubtful accounts, reserves for product warranty, valuation of obsolete and slow moving inventory, assets acquired and liabilities assumed in business combinations, legal contingencies, valuation of goodwill, the assessment of recoverability of long-lived assets, valuation and recognition of stock-based compensation, provision for income taxes and valuation of deferred tax assets have the greatest potential impact on our consolidated financial statements. Actual results could differ from those estimates. Business Acquisitions Our consolidated financial statements include the operations of acquired businesses after the completion of their respective acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill. Cash and Cash Equivalents and Marketable Securities Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We classify our marketable securities as available-for-sale and, accordingly, report them at fair value with the related unrealized gains and losses included in Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. Any unrealized losses which are considered to be other-than-temporary are recorded in Other income (expense), net, in the Consolidated Statements of Income. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in Other income (expense), net, in the Consolidated Statements of Income. All of our available-for-sale investments are subject to a periodic impairment review. We record a charge to earnings when a decline in fair value is significantly below cost basis and judged to be other-than-temporary, or have other indicators of impairments. If the fair value of an available-for-sale investment is less than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances where (1) we intend to sell the instrument; (2) it is more likely than not that we will be required to sell the instrument before recovery of its amortized cost basis; or (3) a credit loss exists where we do not expect to recover the entire amortized cost basis of the instrument. If we intend to sell, or it is more likely than not that we will be required to sell, the available-for-sale investment before recovery of its amortized cost basis, we recognize an other-than-temporary impairment charge equal to the difference between the investment's amortized cost basis and its fair value. We did not record any other-than-temporary impairments during fiscal 2019, 2018 or 2017. Foreign Exchange Management We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures and certain operational costs denominated in local currency impacting our statement of income. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. We do not use derivative financial instruments for trading or speculative purposes. Accounts Receivable and Allowance for Doubtful Accounts The majority of our accounts receivable are derived from sales to large multinational semiconductor manufacturers throughout the world, are recorded at their invoiced amount and do not bear interest. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense. Activity related to our allowance for doubtful accounts receivable was as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Balance at beginning of year $ 185 $ 200 $ 299 Charges (reversals) to costs and expenses 37 (15) (99) Balance at end of year $ 222 $ 185 $ 200 Inventories We state our inventories at the lower of cost (principally standard cost which approximates actual cost on a first in, first out basis) or net realizable value. We continually assess the value of our inventory and will periodically write down its value for estimated excess inventory and product obsolescence based upon an analysis of existing inventory quantities compared to estimated future consumption. Future consumption is estimated based upon assumptions about how past consumption, recent purchases, backlog and other factors indicate future consumption. On a quarterly basis, we review existing inventory quantities in comparison to our past consumption, recent purchases, backlog and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we record an adjustment to the cost basis of inventory when evidence exists that the net realizable value of inventory is lower than its cost, which occurs when we have excess and/or obsolete inventory. Once the value is adjusted, the original cost of our inventory, less the related inventory write-down, represents the new cost basis. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of Cost of revenues in the Consolidated Statements of Income. We design, manufacture and sell a custom product into a market that has been subject to cyclicality and significant demand fluctuations. Many of our products are complex, custom to a specific chip design and have to be delivered on short lead-times. Probe cards are manufactured in low volumes, but, for certain materials, the purchases are often subject to minimum order quantities in excess of the actual underlying probe card demand. It is not uncommon for us to acquire production materials and commence production activities based on estimated production yields and forecasted demand prior to, or in excess of, actual demand for our probe cards. These factors result in normal recurring inventory valuation charges to Cost of revenues. Inventory write downs totaled $10.4 million, $10.5 million and $9.3 million for fiscal 2019, 2018 and 2017, respectively. Restricted Cash Restricted cash is comprised primarily of funds held by our foreign subsidiaries for employee obligations, office leases, customer deposits, and temporary customs import permits. Property, Plant, and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line method. Machinery and equipment, computer equipment and software, and furniture and fixtures are depreciated over 1 to 5 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss is reflected in Operating income in our Consolidated Statements of Income. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, rather assessed, at least annually, for impairment at a reporting unit level. Impairment of goodwill exists when the carrying amount of a reporting unit exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If we determine, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required. We perform our annual goodwill impairment test in the fourth quarter of each year by assessing qualitative factors, including, but not limited to an assessment of our market capitalization, which was significantly higher than our book value. Based on these tests, we determined that the quantitative impairment test was not required and no impairment charges were recorded in fiscal 2019, 2018 or 2017. The evaluation of goodwill for impairment requires the exercise of judgment. In the event of future changes in business conditions, we will be required to reassess and update our forecasts and estimates used in future impairment analysis. If the results of these analysis are lower than current estimates, a material impairment charge may result at that time. See Note 9 for additional information. Intangible Assets Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods of 1 to 10 years, which reflect the pattern in which economic benefits of the assets are expected to be realized. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. See Note 9 for additional information. Impairment of Long-Lived Assets We test long-lived assets or asset groups, such as property, plant and equipment and intangible assets, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. Recoverability is assessed based on the carrying amounts of the asset or asset group and the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. Our cash equivalents and marketable securities are held in safekeeping by large, credit worthy financial institutions. We invest our excess cash primarily in U.S. banks, government and agency bonds, money market funds and corporate obligations. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these banks may exceed the amounts of insurance provided on such deposits. To date, we have not experienced any losses on our deposits of cash and cash equivalents. We market and sell our products to a relatively narrow base of customers and generally do not require collateral. The following customers represented 10% or more of our revenues: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Intel Corporation 25.3 % 19.0 % 25.9 % Samsung Electronics., LTD. 11.5 % * * * Less than 10% of revenues. At December 28, 2019, three customers accounted for 25.7%, 15.1% and 11.5% of gross accounts receivable, respectively. At December 29, 2018, two customers accounted for 27.8% and 13.0% of gross accounts receivable, respectively. No other customers accounted for 10% or more of gross accounts receivable for these fiscal period ends. We operate in the competitive semiconductor industry, including the Dynamic Random Access Memory, or DRAM, Flash memory, and Foundry & Logic and probe stations markets, which have been characterized by price erosion, rapid technological change, short product life cycles and heightened foreign and domestic competition. Significant technological changes in the industry could adversely affect our operating results. We are exposed to non-performance risk by counterparties on our derivative instruments used in hedging activities. We seek to minimize risk by diversifying our hedging program across multiple financial institutions. These counterparties are large international financial institutions, and, to date, no such counterparty has failed to meet its financial obligations to us. Certain components for our products that meet our requirements are available only from a limited number of suppliers. The rapid rate of technological change and the necessity of developing and manufacturing products with short life cycles may intensify our reliance on such suppliers. The inability to obtain components as required, or to develop alternative sources, if and as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on our business, financial condition, results of operations or cash flows. Revenue Recognition Revenue is recognized upon transferring control of products and services, and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. An arrangement may include some or all of the following products and services: probe cards, systems, accessories, installation services, service contracts and extended warranty contracts. We sell our products and services direct to customers and to partners in two distribution channels: global direct sales force and through a combination of manufacturers’ representatives and distributors. We adopted Accounting Standards Codification ("ASC") Topic No. 606 effective on December 31, 2017, the first day of fiscal year 2018, using the modified retrospective method. We applied ASC 606 to all contracts not completed as of the date of adoption in order to determine any adjustment to the opening balance of accumulated deficit as of December 31, 2017. We did not restate any prior financial statements presented. No adjustment was recorded to accumulated deficit as of the adoption date and reported revenue would not have been different under legacy GAAP. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined and accounted for as one unit of account. Generally, the performance obligations in a contract are considered distinct within the context of the contract and are accounted for as separate units of account. Our products may be customized to our customers’ specifications, however, control of our product is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for overtime recognition is not met. In limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive. Installation services are routinely provided to customers purchasing our systems. Installation services are a distinct performance obligation apart from the systems and recognized in the period they are performed. Service contracts, which include repair and maintenance service contracts, and extended warranty contracts are also distinct performance obligations and recognized over the contractual service period, which ranges from one three A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We generally do not grant return privileges, except for defective products during the warranty period. Sales incentives and other programs that we may make available to these customers are considered to be a form of variable consideration, which is estimated in determining the contract’s transaction price to be allocated to the performance obligations. We have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component as our standard payment terms are less than one year. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on observable prices, which are the prices at which we separately sell these products. For items which do not have observable prices, we use our best estimate of the stand-alone selling prices. Transaction price allocated to the remaining performance obligations: On December 28, 2019, we had $4.1 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. We expect to recognize approximately 75.1% of our remaining performance obligations as revenue in fiscal 2020, approximately 15.0% in fiscal 2021, and approximately 9.9% in fiscal 2022 and thereafter. The foregoing excludes the value of remaining performance obligations that have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Contract balances: The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. A contract asset is recorded when we have performed under the contract but our right to consideration is conditional on something other than the passage of time. Contract assets as of December 28, 2019 and December 29, 2018 were $0.9 million and $0.3 million, respectively, and are reported on the Consolidated Balance Sheets as a component of Prepaid expenses and other current assets. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities totaled $10.8 million and $5.7 million at December 28, 2019 and December 29, 2018, respectively. During fiscal 2019, we recognized $4.2 million of revenue that was included in contract liabilities as of December 29, 2018. Costs to obtain a contract: We generally expense sales commissions when incurred as a component of Selling, general and administrative expense as the amortization period is typically less than one year. Revenue by Category: Refer to Note 15 for further details. Warranty Obligations We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized. Warranty costs are reflected in the Consolidated Statement of Income as a Cost of revenues. A reconciliation of the changes in our warranty liability is as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Balance at beginning of year $ 2,102 $ 3,662 $ 2,972 Accruals 3,881 3,181 8,115 Settlements (4,041) (4,741) (7,425) Balance at end of year $ 1,942 $ 2,102 $ 3,662 Research and Development Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred. Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative income, our historical ability to utilize net operating losses in recent years and our forecast of future taxable income, including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. We recognize interest and penalties related to unrecognized tax benefits within the income tax provision. Accrued interest and penalties are included within the related tax liability in the Consolidated Balance Sheets. We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our related liability reflects the most likely outcome. We adjust the liability, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. See Note 13 for additional information, including the Tax Cuts and Jobs Act enacted in December 2017. Stock-Based Compensation We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Income. The fair value of stock options is measured using the Black-Scholes option pricing model, while the fair value for restricted stock units ("RSUs") is measured based on the closing market price of our common stock on the date of grant. The fair value of Performance RSUs ("PRSU") is based on certain market performance criteria is measured using the Monte Carlo simulation pricing model. See Notes 11 and 12 for additional information. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all potentially dilutive common stock and common stock equivalents, including stock options, RSUs and common stock subject to repurchase. The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Weighted-average shares used in computing basic net income per share 74,994 73,482 72,292 Add potentially dilutive securities 2,292 1,700 1,947 Weighted-average shares used in computing basic and diluted net income per share 77,286 75,182 74,239 Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) ("OCI") includes the following items, the impact of which has been excluded from earnings and reflected as components of stockholders' equity as shown below (in thousands): December 28, 2019 December 29, 2018 Unrealized losses on available-for-sale marketable securities $ (352) $ (668) Translation adjustments and other 53 1,081 Unrealized gains (losses) on derivative instruments (360) 367 Accumulated other comprehensive income (loss) $ (659) $ 780 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 28, 2019 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Marketable Securities Marketable securities consisted of the following (in thousands): December 28, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 10,458 $ 11 $ — $ 10,469 Commercial paper 3,914 1 (4) 3,911 Corporate bond 33,867 68 (7) 33,928 Certificate of deposit 3,584 5 — 3,589 Agency securities 24,408 38 (16) 24,430 $ 76,231 $ 123 $ (27) $ 76,327 December 29, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 7,997 $ 1 $ (1) $ 7,997 Commercial paper 2,296 — (1) 2,295 Corporate bond 30,833 1 (160) 30,674 Certificate of deposit 960 — (3) 957 Agency securities 8,667 — (59) 8,608 $ 50,753 $ 2 $ (224) $ 50,531 We classify our marketable securities as available-for-sale. All marketable securities represent the investment of funds available for current operations, notwithstanding their contractual maturities. Such marketable securities are recorded at fair value and unrealized gains and losses are recorded in Accumulated other comprehensive income (loss) until realized. We typically invest in highly-rated securities with low probabilities of default. Our investment policy requires investments to be rated single A or better, limits the types of acceptable investments, concentration as to security holder and duration of the investment. The gross unrealized gains and losses in fiscal 2019 and 2018 were caused primarily by changes in interest rates. The longer the duration of marketable securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. We anticipate recovering the full cost of the securities either as market conditions improve, or as the securities mature. Accordingly, we believe that the unrealized losses are not other-than-temporary. When evaluating the investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below the amortized cost basis, current market liquidity, interest rate risk, the financial condition of the issuer, and credit rating downgrades. As of December 28, 2019 and December 29, 2018, gross unrealized losses related to our marketable securities portfolio were not material. The contractual maturities of marketable securities were as follows (in thousands): December 28, 2019 December 29, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 38,899 $ 38,944 $ 35,269 $ 35,172 Due after one year to five years 37,332 37,383 15,484 15,359 $ 76,231 $ 76,327 $ 50,753 $ 50,531 See also Note 8. Inventories, net Inventories consisted of the following (in thousands): December 28, 2019 December 29, 2018 Raw materials $ 38,528 $ 43,380 Work-in-progress 29,720 20,431 Finished goods 15,010 13,895 $ 83,258 $ 77,706 Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following (in thousands): December 28, 2019 December 29, 2018 Machinery and equipment $ 201,861 $ 192,108 Computer equipment and software 35,192 32,906 Furniture and fixtures 6,756 6,478 Leasehold improvements 76,081 75,285 Sub-total 319,890 306,777 Less: Accumulated depreciation and amortization (273,001) (263,102) Net property, plant and equipment 46,889 43,675 Construction-in-progress 11,858 10,379 Total $ 58,747 $ 54,054 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 28, 2019 December 29, 2018 Accrued compensation and benefits $ 21,329 $ 15,600 Accrued employee stock purchase plan contributions withheld 3,331 3,174 Accrued warranty 1,942 2,102 Accrued income and other taxes 6,846 4,222 Other accrued expenses 2,991 2,633 $ 36,439 $ 27,731 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisition | AcquisitionOn October 9, 2019, we acquired 100% of the shares of FRT GmbH ("FRT"), a German-based company, for total consideration of $25.9 million, net of cash acquired of $1.7 million. The fair value of the purchase consideration was comprised of a $22.2 million cash payment and $5.4 million of contingent consideration. The contingent consideration is a cash amount equal to 1.5x Earnings Before Interest and Tax ("EBIT") as defined in the purchase agreement, from a minimum of zero up to a maximum of €10.3 million, payable subject to the performance of the acquired business in calendar 2020. We estimated the fair value of contingent consideration using a probability weighted approach. Key assumptions in determining the fair value of contingent consideration include estimating the probability of achieving certain EBIT levels and discounting at an appropriate discount rate. This acquisition strengthens our leadership in test and measurement by expanding our addressable market into 3D hybrid surface metrology and extending the optical applications scope of our existing Systems segment. The acquisition was accounted for using the acquisition method of accounting, with FormFactor treated as the acquirer. The acquired assets and liabilities of FRT were recorded at their respective fair values including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets. During fiscal 2019, we incurred approximately $0.5 million in transaction costs related to the acquisition, which primarily consisted of legal, accounting and valuation-related expenses. These expenses were recorded in Selling, general and administrative expense in the accompanying Consolidated Statements of Income. Our Consolidated Statements of Income include the financial results of FRT subsequent to the acquisition date of October 9, 2019. Revenue related to FRT since the acquisition date that was included in our Consolidated Statements of Income for fiscal 2019 was approximately $3.9 million. Separate from the purchase agreement, we entered into a term loan agreement with a lender for an aggregate amount of $23.4 million to finance the acquisition. See Note 5 for additional information. The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the closing date of the acquisition based upon their respective fair values. The fair values assigned to assets acquired and liabilities assumed were based on management’s assumptions as of the reporting date. We have not yet finalized the purchase accounting as certain amounts are preliminary, specifically related to the valuation of intangible assets, and due to ongoing validation of acquired tangible assets and liabilities. The amounts reported below and in the Consolidated Statements of Income and Consolidated Balance Sheets represent our best estimate of the fair value based on information available to us at this time. The table below summarizes the estimated fair value of assets acquired and liabilities assumed following the adjustments mentioned above (in thousands) as of the acquisition date: Amount Cash and cash equivalents $ 1,683 Accounts receivable 3,057 Inventory 2,643 Property, plant and equipment 696 Operating lease, right-of-use-assets 335 Prepaid expenses and other current assets 838 Tangible assets acquired 9,252 Customer deposits (2,013) Accounts payable and accrued liabilities (1,235) Operating lease liabilities (335) Deferred tax liabilities (5,796) Total tangible assets acquired and liabilities assumed (127) Intangible assets 17,550 Goodwill 10,148 Net assets acquired $ 27,571 The intangible assets as of the closing date of the acquisition included (in thousands): Amount Weighted Average Useful Life (in years) Developed technologies $ 12,626 8.0 Customer relationships 3,071 6.0 Order backlog 1,645 0.5 Trade names 208 2.0 Total intangible assets $ 17,550 7.0 Indications of fair value of the intangible assets acquired in connection with the acquisition were determined using either the income, market or replacement cost methodologies. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized. Identifiable Intangible Assets Valuation of intangible assets involves multiple assumptions. The key assumptions are described below. Developed technology acquired primarily consists of existing technology related to hybrid 3D surface metrology measurement equipment. We valued the developed technology using the multi-period excess earnings method under the income approach. Using this approach, the estimated fair values were calculated using expected future cash flows from specific products discounted to their net present values at an appropriate risk-adjusted rate of return. Customer relationships represent the fair value of future projected revenues that will be derived from the sale of products to FRT's existing customers. We valued customer relationships using the incremental cash flow method. This method estimates value based on the incremental cash flow afforded by having the customers relationships in place on the acquisition date versus having no relationships in place and needing to replicate or replace those relationships. The incremental cash flows are then discounted to a present value to arrive at an estimate of fair value for this asset class. Order backlog represents business under existing contractual obligations. Expected cash flow from order backlog was valued on a direct cash flow basis. The identified trade names intangibles relate to the estimated fair value of future cash flows related to the FRT brand. We valued trade names by applying the relief-from-royalty method under the income approach. This method is based on the application of a royalty rate to forecasted revenue under the trade name. Goodwill The excess of purchase price over the fair value assigned to the assets acquired and liabilities assumed represents the amount of goodwill resulting from the acquisition. We believe the factors that contributed to goodwill include synergies that are specific to our consolidated business, such as cost savings and operational efficiencies, and the acquisition of a talented workforce that expands our expertise in business development and commercializing semiconductor test products, none of which qualify for recognition as a separate intangible asset. We do not expect any portion of this goodwill to be deductible for tax purposes. The goodwill attributable to the acquisition was recorded as a non-current asset and is not amortized, but is subject to an annual review for impairment. The goodwill arising from the acquisition was allocated to the FRT reporting unit within the Systems reportable segment. We have not presented unaudited combined pro forma financial information as the FRT acquisition was not significant to our consolidated results of operations and financial position. |
Debt
Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our debt consisted of the following (in thousands): December 28, 2019 December 29, 2018 Term loans $ 58,514 $ 65,000 Less unamortized issuance costs (29) (189) Term loans less issuance costs $ 58,485 $ 64,811 CMI Term Loan On June 24, 2016, we entered into a Credit Agreement (the “Credit Agreement”) with HSBC Bank USA, National Association ("HSBC"), as administrative agent, co-lead arranger, sole bookrunner and syndication agent, other lenders that may from time-to-time be a party to the Credit Agreement, and certain guarantors. Pursuant to the Credit Agreement, the lenders have provided us with a senior secured term loan facility of $150 million (the “CMI Term Loan”). The proceeds of the CMI Term Loan were used to finance a portion of the purchase price paid in connection with the Cascade Microtech acquisition in fiscal 2016 and to pay related bank fees and expenses. The CMI Term Loan bears interest at a rate equal to, at our option, (i) the applicable London Interbank Offered Rate ("LIBOR") rate plus 2.00% per annum or (ii) Base Rate (as defined in the Credit Agreement) plus 1.00% per annum. We have initially elected to pay interest at 2.00% over the one-month LIBOR rate. Interest payments are payable in quarterly installments over a five The principal payments on the CMI Term Loan are paid in equal quarterly installments that began June 30, 2016, in an annual amount equal to 5% for year one, 10% for year two, 20% for year three, 30% for year four and 35% for year five. In addition to quarterly installments, we made prepayments totaling $15.0 million in fiscal 2018 and $20.0 million in fiscal 2017. We did not make any prepayments in fiscal 2019. The planned final payment on the CMI Term Loan is scheduled for the third quarter of fiscal 2020. On July 25, 2016, we entered into an interest-rate swap agreement with HSBC and other lenders to hedge the interest payments on the CMI Term Loan. See Note 7 for additional information. The obligations under the CMI Term Loan are fully and unconditionally guaranteed by certain of our existing and subsequently acquired or organized direct and indirect domestic subsidiaries and are secured by a perfected first priority security interest in substantially all of our assets and the assets of those guarantors, subject to certain customary exceptions. The CMI Term Loan contains negative covenants customary for financing of this type, including covenants that place limitations on the incurrence of additional indebtedness, the creation of liens, the payment of dividends; dispositions; fundamental changes, including mergers and acquisitions; loans and investments; sale leasebacks; negative pledges; transactions with affiliates; changes in fiscal year; sanctions and anti-bribery laws and regulations, and modifications to charter documents in a manner materially adverse to the Lenders. The CMI Term Loan also contains affirmative covenants and representations and warranties customary for financing of this type. In addition, the CMI Term Loan contains financial maintenance covenants requiring: • a ratio of total debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") not in excess of 2.50 to 1.00; and • a fixed charge coverage ratio of not less than 1.50 to 1.00, stepping down to 1.30 to 1.00 at the end of the fiscal quarter ended June 30, 2018 and to 1.20 to 1.00 at the end of the fiscal quarter ending June 30, 2019. As of December 28, 2019, we were in compliance with all of the financial covenants. The CMI Term Loan contains customary events of default, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, certain material Employee Retirement Security Act ("ERISA") events and cross event of default and cross-acceleration in respect of other material debt. |
Leases
Leases | 12 Months Ended |
Dec. 29, 2018 | |
Leases [Abstract] | |
Leases | Leases Adoption of New Accounting Standards ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2019-01 In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," which requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. ASU 2016-02 was amended in July 2018 by both ASU 2018-10, "Codification Improvements to Topic 842, Leases," and ASU 2018-11, "Leases (Topic 842): Targeted Improvements" and in March 2019 by ASU 2019-01, "Leases (Topic 842): Codification Improvements." ASU 2016-02, provides additional guidance on the measurement of the right-of-use assets and lease liabilities and requires enhanced disclosures about our leasing arrangements. Topic 842 replaced the prior existing lease accounting rules under Accounting Standards Codification 840, "Leases (Topic 840)." We adopted Topic 842 and all related amendments on December 30, 2018, the first day of fiscal 2019, using the modified transition approach. The modified transition approach permits a company to use its effective date as the date of initial application to apply the standard to its leases, and, therefore, not restate comparative prior period financial information. Consequently, prior period financial information is not updated, and the disclosures required under the new standard will not be provided for dates and periods before December 30, 2018. The standard provides several optional practical expedients in transition. We elected the "package of practical expedients," which permits us to not reassess, under the new standard, our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption. This means, for those leases that qualify, we will not recognize a right-of-use asset or lease liability, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all our leases. The adoption of the lease standard did not have any effect on our previously reported Consolidated Statements of Income and did not result in a cumulative catch-up adjustment to opening equity. Upon adoption, we recognized operating lease liabilities of approximately $40.0 million based on the present value of the remaining minimum rental payments. We also recognized corresponding operating lease, right-of-use-assets of approximately $35.7 million, net of deferred rent, which is classified separately in our Consolidated Balance Sheets. These operating lease, right-of-use assets relate to real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for our corporate headquarters located in Livermore, California. Our leases have remaining terms of 1 to 15 years, and some leases include options to extend up to 20 years. We also have operating leases for automobiles with remaining lease terms of 1 to 4 years. We did not include any of our renewal options in our lease terms for calculating our lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options at this time. The weighted-average remaining lease term for our operating leases was 7 years at December 28, 2019 and the weighted-average discount rate was 4.70% based on our incremental borrowing rate as of the adoption date of Topic 842. The components of lease expense for the year ended December 28, 2019 upon the adoption of ASC 842 were as follows (in thousands): Lease Expense Operating lease expense $ 6,985 Short-term lease expense 142 Variable lease expense 1,286 $ 8,413 Rent expense under prior lease accounting rules (Topic 840) for fiscal 2018 and 2017 was $8.4 million and $7.9 million, respectively. Future minimum payments under our non-cancelable operating leases under the new lease accounting rules (Topic 842) were as follows as of December 28, 2019 (in thousands): Fiscal Year Amount 2020 $ 7,387 2021 6,647 2022 5,477 2023 4,937 2024 4,770 Thereafter 22,165 Total minimum lease payments 51,383 Less: interest (15,744) Present value of net minimum lease payments 35,639 Less: current portion (6,551) Total long-term operating lease liabilities $ 29,088 Future minimum payments under our non-cancelable operating leases under prior lease accounting rules (Topic 840) were as follows as of December 29, 2018 (in thousands): Fiscal Year Amount 2019 $ 6,256 2020 6,522 2021 5,742 2022 4,786 2023 4,355 Thereafter 20,382 $ 48,043 |
Derivative Financial Instrume_3
Derivative Financial Instruments | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Foreign Exchange Derivative Contracts We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities and forecasted foreign currency revenue and expense transactions. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses. We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. At December 28, 2019, we expect to reclassify $0.1 million of the amount accumulated in other comprehensive income (loss) to earnings during the next 12 months, due to the recognition in earnings of the hedged forecasted transactions. The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All of our foreign exchange derivative contracts outstanding at December 28, 2019 will mature by the third quarter of fiscal 2020. The following table provides information about our foreign currency forward contracts outstanding as of December 28, 2019 (in thousands): Currency Contract Position Contract Amount (Local Currency) Contract Amount (U.S. Dollars) Euro Buy (3,367) $ (3,932) Japanese Yen Sell 2,553,864 23,343 Korean Won Buy (2,669,885) (2,304) Total USD notional amount of outstanding foreign exchange contracts $ 17,107 Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. The location and amount of gains (losses) related to non-designated derivative instruments in the Consolidated Statements of Income were as follows (in thousands): Location of Gain (Loss) Recognized Fiscal Year Ended Derivatives Not Designated as Hedging Instruments December 28, 2019 December 29, 2018 December 30, 2017 Foreign exchange forward contracts Other income (expense), net $ 248 $ 906 $ (2,505) The location and amount of gains (losses) related to derivative instruments designated as cash flow hedges on our Consolidated Statements of Income was as follows (in thousands): Amount of Loss Recognized in Accumulated OCI on Derivative Location of Loss Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income Fiscal 2019 $ 93 Cost of revenues $ 526 Research and development 75 Selling, general and administrative 172 $ 773 Fiscal 2018 $ — $ — Interest Rate Swaps Pursuant to our interest rate and risk management strategy, during fiscal 2016 we entered into an interest rate swap agreement with HSBC and other lenders to hedge the interest payments on the Term Loan for the notional amount of $95.6 million. As future levels of LIBOR over the life of the loan are uncertain, we entered into these interest-rate swap agreements to hedge the exposure in interest rate risks associated with the movement in LIBOR rates. By entering into the agreements, we convert a floating rate interest at one-month LIBOR plus 2.00% into a fixed rate interest at 2.94%. As of December 28, 2019, the notional amount of the loan that is subject to this interest rate swap was $22.5 million. See Note 5 for additional information. For accounting purposes, the interest-rate swap contracts qualify for and are designated as cash flow hedges. All hedging relationships are formally documented, and the hedges are designed to offset changes to future cash flows on hedged transactions. We evaluate hedge effectiveness at hedge inception and on an ongoing basis. Amounts expected to be reclassified from Other comprehensive income (loss) into earnings in the next twelve months were insignificant at December 28, 2019. The fair value of our interest rate swap contracts is determined at the end of each reporting period based on valuation models that use interest rate yield curves as inputs. For accounting purposes, our interest rate swap contracts qualify for, and are designated as, cash flow hedges. The cash flows associated with the interest rate swaps are reported in Net cash provided by operating activities in our Consolidated Statements of Cash Flows. The estimated fair value of the interest rate swaps as of December 28, 2019 and December 29, 2018 was reported as a derivative asset of approximately $0.1 million and $0.9 million, respectively, within Prepaid expenses and other current assets and Other assets in our Consolidated Balance Sheets. The impact of the interest rate swaps on the Consolidated Statements of Income was as follows (in thousands): Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion ) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion ) Fiscal 2019 $ (86) Other income (expense), net $ 548 Other income (expense), net $ — Fiscal 2018 $ 340 Other income (expense), net $ 721 Other income (expense), net $ — Fiscal 2017 $ 287 Other income (expense), net $ 84 Other income (expense), net $ 29 See also Note 8. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, gross, as of December 31, 2016 $ 172,482 $ 15,528 $ 188,010 Foreign currency translation — 1,910 1,910 Goodwill, gross, as of December 30, 2017 172,482 17,438 189,920 Foreign currency translation — (706) (706) Goodwill, gross, as of December 29, 2018 172,482 16,732 189,214 Additions - FRT GmbH acquisition — 10,148 10,148 Foreign currency translation — (166) (166) Goodwill, gross, as of December 28, 2019 $ 172,482 $ 26,714 $ 199,196 We have not recorded any goodwill impairments as of December 28, 2019. Intangible Assets Intangible assets were as follows (in thousands): December 28, 2019 December 29, 2018 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 154,951 $ 116,138 $ 38,813 $ 143,408 $ 97,111 $ 46,297 Trade name 7,816 6,976 840 12,023 9,173 2,850 Customer relationships 44,229 27,057 17,172 40,146 21,653 18,493 Backlog 1,676 891 785 — — — $ 208,672 $ 151,062 $ 57,610 $ 195,577 $ 127,937 $ 67,640 During fiscal 2019, we disposed of certain fully amortized trade names. Amortization expense was included in our Consolidated Statements of Income as follows (in thousands): Fiscal Year Ended December 28, December 29, December 30, Cost of revenues $ 20,036 $ 20,530 $ 22,800 Selling, general and administrative 7,636 8,843 8,140 $ 27,672 $ 29,373 $ 30,940 The estimated future amortization of intangible assets is as follows (in thousands): Fiscal Year Amount 2020 $ 26,270 2021 14,739 2022 5,553 2023 3,813 2024 2,073 Thereafter 5,162 Total $ 57,610 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; • Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during fiscal 2019, 2018 or 2017. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and short-term Term loan approximate fair value due to their short maturities. No changes were made to our valuation techniques during fiscal 2019. Cash Equivalents The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all of our investments have a sufficient level of trading volume to demonstrate that the fair value is appropriate. Contingent Consideration Contingent consideration, arising from the acquisition of FRT (see Note 4), is a cash amount equal to 1.5x EBIT as defined in the purchase agreement, up to a maximum of €10.3 million, payable subject to the performance of the acquired business in calendar 2020. We estimated the fair value of contingent consideration using a probability weighted approach. Key assumptions in determining the fair value of contingent consideration include estimating the probability of achieving certain EBIT levels and discounting at an appropriate discount rate. There was no change in the value of contingent consideration since the acquisition of FRT and as of December 28, 2019. Assets and liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): December 28, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 17,056 $ — $ — $ 17,056 Marketable securities: U.S. Treasuries 10,468 — — 10,468 Certificates of deposit — 3,590 — 3,590 Agency securities — 24,430 — 24,430 Corporate bonds — 33,928 — 33,928 Commercial paper — 3,911 — 3,911 10,468 65,859 — 76,327 Foreign exchange derivative contracts — 41 — 41 Interest rate swap derivative contracts — 26 — 26 Total assets $ 27,524 $ 65,926 $ — $ 93,450 Liabilities: Foreign exchange derivative contracts $ — $ (240) $ — $ (240) Contingent consideration — — (5,364) (5,364) Total liabilities $ — $ (240) $ (5,364) $ (5,604) December 29, 2018 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 1,184 $ — $ 1,184 Marketable securities: U.S. Treasuries 7,997 — 7,997 Certificates of deposit — 957 957 Agency securities — 8,608 8,608 Corporate bonds — 30,674 30,674 Commercial paper — 2,295 2,295 7,997 42,534 50,531 Interest rate swap derivative contracts — 871 871 Total assets $ 9,181 $ 43,405 $ 52,586 We did not have any liabilities measured at fair value on a recurring basis at December 29, 2018. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 6. Environmental Matters We are subject to U.S. federal, state, local, and foreign governmental laws and regulations relating to the protection of the environment, including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the clean-up of contaminated sites and the maintenance of a safe workplace. We believe that we comply in all material respects with the environmental laws and regulations that apply to us. We did not receive any notices of violations of environmental laws and regulations in fiscal 2019, 2018 or 2017. In the future, we may receive notices of violations of environmental regulations, or otherwise learn of such violations. Environmental contamination or violations may negatively impact our business. Indemnification Arrangements We have entered, and may from time to time in the ordinary course of our business enter, into contractual arrangements with third parties that include indemnification obligations. Under these contractual arrangements, we have agreed to defend, indemnify and/or hold the third party harmless from and against certain liabilities. These arrangements include indemnities in favor of customers in the event that our products or services infringe a third party's intellectual property or cause property or other indemnities in favor of our lessors in connection with facility leasehold liabilities that we may cause. In addition, we have entered into indemnification agreements with our directors and certain of our officers, and our bylaws contain indemnification obligations in favor of our directors, officers and agents. These indemnity arrangements may limit the type of the claim, the total amount that we can be required to pay in connection with the indemnification obligation and the time within which an indemnification claim can be made. The duration of the indemnification obligation may vary, and for most arrangements, survives the agreement term and is indefinite. We believe that substantially all of our indemnity arrangements provide either for limitations on the maximum potential future payments we could be obligated to make, or for limitations on the types of claims and damages we could be obligated to indemnify, or both. However, it is not possible to determine or reasonably estimate the maximum potential amount of future payments under these indemnification obligations due to the varying terms of such obligations, a lack of history of prior indemnification claims, the unique facts and circumstances involved in each particular contractual arrangement and in each potential future claim for indemnification, and the contingency of any potential liabilities upon the occurrence of events that are not reasonably determinable. We have not had any material requests for indemnification under these arrangements. We have not recorded any liabilities for these indemnification arrangements on our Consolidated Balance Sheets as of December 28, 2019 or December 29, 2018. Legal Matters From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. As of December 28, 2019, and as of the filing of these financial statements, we were not involved in any material legal proceedings. In the future, we may become a party to additional legal proceedings that may require us to spend significant resources. Litigation can be expensive and disruptive to normal business operations. The results of legal proceedings are difficult to predict, and the costs incurred in litigation can be substantial, regardless of outcome. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock We have authorized 10,000,000 shares of undesignated preferred stock, $0.001 par value, none of which is issued and outstanding. Our Board of Directors shall determine the rights, preferences, privileges and restrictions of the preferred stock, including dividends rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of any series. Common Stock Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders, if any, of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of December 28, 2019. Common Stock Repurchase Program In February 2017, our Board of Directors authorized a program to repurchase up to $25 million of outstanding common stock to offset potential dilution from issuances of common stock under our stock-based incentive plans. The share repurchase program expired on February 1, 2020. During fiscal 2019 and 2018, we did not repurchase any shares. During fiscal 2017, we repurchased 1,367,617 shares of common stock for $19.0 million. Equity Incentive Plan We currently grant equity-based awards under our Equity Incentive Plan, as amended (the "2012 Plan") which was approved by our stockholders. As amended, the 2012 Plan has authorized for issuance a total of 15.0 million shares, 4.6 million of which were available for grant as of December 28, 2019. RSUs granted under the 2012 Plan generally vest over three The 2012 Plan provides that incentive stock options may be granted to our employees and nonqualified stock options, and all awards other than incentive stock options, may be granted to employees, directors and consultants. The exercise price of incentive stock options must be at least equal to the fair market value of our common stock on the date of grant. All restricted stock units and options granted under the 2012 Plan generally vest over three seven Stock Options Stock option activity was as follows: Outstanding Options Number of Weighted Weighted Aggregate Outstanding at December 29, 2018 524,725 $ 8.00 Options exercised (162,956) 7.21 Outstanding at December 28, 2019 361,769 $ 8.35 2.16 $ 6,400,367 Vested and expected to vest at December 28, 2019 361,769 $ 8.35 2.16 $ 6,400,367 Exercisable at December 28, 2019 361,769 $ 8.35 2.16 $ 6,400,367 Restricted Stock Units RSUs, including Performance Restricted Stock Units ("PRSUs") are converted into shares of our common stock upon vesting on a one-for-one basis. The vesting of RSUs is subject to the employee's continuing service. RSU activity was as follows: Number of Weighted Restricted stock units at December 29, 2018 3,102,226 $ 12.79 Granted 1,510,211 15.12 Vested (1,391,373) 11.91 Canceled (152,064) 13.47 Restricted stock units at December 28, 2019 3,069,000 14.30 The PRSUs granted in fiscal 2019, 2018 and 2017 listed below vest based on us achieving certain market performance criteria. The performance criteria are based on a metric called Total Shareholder Return ("TSR") for the performance period of two three Of the 195,000 PRSUs granted in fiscal 2016, 60,000 shares were forfeited. Therefore, 135,000 shares vested in fiscal 2019. These shares achieved 119.7% TSR performance, which resulted in 161,595 shares released in 2019. PRSU grant activity was as follows: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Grant Date June 4, 2019 August 16, 2018 July 20, 2017 Performance period July 1, 2019 - June 30, 2022 July 1, 2018 - June 30, 2021 July 1, 2017 - June 30, 2020 Number of shares 273,000 318,100 333,333 TSR as-of date June 4, 2019 August 16, 2018 July 1, 2017 Stock-based compensation $4.4 million $4.7 million $4.1 million Employee Stock Purchase Plan Our 2012 Employee Stock Purchase Plan (the "ESPP"), as amended, allows for the issuance of a total of 7,000,000 shares. The offering periods under the ESPP are 12 months commencing on February 1 of each calendar year and ending on January 31 of the subsequent calendar year, and a six-month fixed offering period commencing on August 1 of each calendar year and ending on January 31 of the subsequent calendar year. The 12-month offering period consists of two six-month purchase periods and the six-month offering period consists of one six-month purchase period. The price of the common stock purchased is 85% of the lesser of the fair market value of the common stock on the first day of the applicable offering period or the last day of each purchase period. During fiscal 2019, employees purchased 544,271 shares under this program at a weighted average exercise price of $12.51 per share, which represented a weighted average discount of $3.40 per share from the fair value of the stock purchased. As of December 28, 2019, 2,657,222 shares remained available for issuance. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Expense Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Weighted average grant date per share fair value of RSUs granted $ 15.12 $ 13.79 $ 13.20 Total intrinsic value of stock options exercised 1,814 631 5,946 Fair value of RSUs vested $ 23,450 $ 17,541 $ 18,339 Stock-based compensation expense was included in the Consolidated Statements of Income as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Stock-based compensation expense included in: Cost of revenues $ 4,055 $ 3,525 $ 3,539 Research and development 6,367 5,398 5,341 Selling, general and administrative 12,754 8,904 7,459 Total stock-based compensation $ 23,176 $ 17,827 $ 16,339 Unrecognized Stock-Based Compensation Expense Unrecognized stock-based compensation expense at December 28, 2019 consisted of the following (in thousands): Unrecognized Expense Weighted Average Recognition Period (Years) Restricted stock units $ 24,038 1.9 Performance restricted stock units 6,570 2.0 Employee stock purchase plan 287 0.1 Total unrecognized stock-based compensation expense $ 30,895 1.9 Valuation Assumptions The following assumptions were used in estimating the fair value of PRSUs: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 PRSUs: Dividend yield — % — % — % Expected volatility 47.34% 45.61% 45.99% Risk-free interest rate 1.83% 2.67% 1.50% Expected life (in years) 3.07 2.87 2.95 The following assumptions were used in estimating the fair value of shares under the Employee Stock Purchase Plan: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Employee Stock Purchase Plan: Dividend yield — % — % — % Expected volatility 36.60% - 59.51% 44.85% - 48.94% 46.20% - 46.33% Risk-free interest rate 2.04% - 2.46% 0.83% - 2.22% 0.65% - 1.15% Expected life (in years) 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of Income Before Income Taxes The components of income before income taxes were as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 United States $ 41,115 $ 20,877 $ 31,492 Foreign 9,948 13,050 10,714 $ 51,063 $ 33,927 $ 42,206 Provision for Income Taxes The components of the provision (benefit) for income taxes are as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Current provision (benefit): Federal $ 179 $ 79 $ (2,130) State 2,302 388 17 Foreign 4,202 4,687 4,069 6,683 5,154 1,956 Deferred provision (benefit): Federal 8,128 (72,295) 66 State (1,898) (2,056) — Foreign (1,196) (912) (729) 5,034 (75,263) (663) Total provision (benefit) for income taxes $ 11,717 $ (70,109) $ 1,293 Tax Rate Reconciliation The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 21% and the provision (benefit) from income taxes for fiscal 2019 and 2018 and applying the federal statutory rate of 35% and the provision for income taxes for 2017 (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 U.S. statutory federal tax rate $ 10,723 $ 7,125 $ 14,772 State taxes, net of federal benefit 441 778 951 Stock-based compensation (911) (453) (1,428) Research and development credits (6,436) (3,213) (1,979) Foreign taxes at rates different than the U.S. 1,454 1,287 (271) Other permanent differences (148) 152 160 Global intangible low-taxed income 1,369 1,828 — Mandatory deemed repatriation — — 1,655 Change in valuation allowance 2,567 (75,803) (12,207) Other 2,658 (1,810) (360) Total $ 11,717 $ (70,109) $ 1,293 Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed. Significant deferred tax assets and liabilities consisted of the following (in thousands): As of December 28, 2019 December 29, 2018 Tax credits $ 44,696 $ 39,586 Inventory reserve 12,350 10,850 Other reserves and accruals 5,852 5,398 Non-statutory stock options 2,982 2,722 Depreciation and amortization 27,758 1,979 Net operating loss carryforwards 21,410 61,275 Gross deferred tax assets 115,048 121,810 Valuation allowance (36,604) (34,037) Total deferred tax assets 78,444 87,773 Acquired intangibles and fixed assets (13,997) (12,667) Unrealized investment gains (106) (107) Tax on undistributed earnings (75) (53) Total deferred tax liabilities (14,178) (12,827) Net deferred tax assets $ 64,266 $ 74,946 We are required to evaluate the realizability of our deferred tax assets in both our U.S. and non-U.S. jurisdictions on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. From the fourth quarter of fiscal 2009 to the third quarter of fiscal 2018, we maintained a 100% valuation allowance against most of our U.S. deferred tax assets because there was insufficient positive evidence to overcome the existing negative evidence such that it was not more likely than not that the U.S. deferred tax assets were realizable. While we reported U.S. pre-tax income in fiscal 2015 and fiscal 2017, because we reported U.S. pre-tax losses during the previous seven fiscal years, we continued to maintain the 100% valuation allowance through the third quarter of fiscal 2018. As of December 29, 2018, we had reported positive operating performance in the U.S. for two consecutive fiscal years and had also reported a cumulative three-year U.S. pre-tax profit. In addition, during the fourth quarter of fiscal 2018, we completed our financial plan for fiscal 2019 and expected continued positive operating performance in the U.S. We also considered forecasts of future taxable income and evaluated the utilization of net operating losses and tax credit carryforwards prior to their expiration. After considering these factors, we determined that the positive evidence overcame any negative evidence and concluded that it was more likely than not that the U.S. deferred tax assets were realizable. As a result, we released the valuation allowance against a significant portion of the U.S. federal deferred tax assets and a portion of the U.S. state deferred tax assets during the fourth quarter of fiscal 2018. The valuation allowance decreased by $75.8 million in fiscal 2018, primarily due to the release of the valuation allowance on U.S. deferred tax assets. As of December 28, 2019, we maintained a valuation allowance of $36.6 million, primarily related to California deferred tax assets and foreign tax credit carryovers, due to uncertainty about the future realization of these assets. Tax Credits and Carryforwards Tax credits and carryforwards available to us at December 28, 2019 consisted of the following (in thousands): Amount Latest Expiration Date Federal research and development tax credit $ 37,494 2021-2039 Federal net operating loss carryforwards 14,589 2031-2035 Foreign tax credit carryforwards 1,134 2020-2027 Alternative minimum tax credits 195 Indefinite California research credits 39,228 Indefinite State net operating loss carryforwards 243,934 2024-2036 Singapore net operating loss carryforwards $ 8,340 Indefinite Undistributed Earnings As of December 28, 2019, unremitted earnings of foreign subsidiaries was estimated at $26.1 million. We intend to permanently invest $12.0 million of undistributed earnings indefinitely outside of the U.S. To the extent we repatriate the remaining $14.1 million of undistributed foreign earnings to the U.S., we established a deferred tax liability of $0.1 million for foreign withholding taxes. Unrecognized Tax Benefits We recognize the benefits of tax return positions if we determine that the positions are “more-likely-than-not” to be sustained by the taxing authority. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense in the period incurred. The following table reflects changes in the unrecognized tax benefits (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Unrecognized tax benefit, beginning balance $ 25,224 $ 18,296 $ 17,978 Additions based on tax positions related to the current year 3,679 1,677 694 Additions based on tax positions from prior years — 5,332 — Reductions for tax positions of prior years (5) (7) — Reductions due to lapse of the applicable statute of limitations (98) (74) (376) Unrecognized tax benefit, ending balance $ 28,800 $ 25,224 $ 18,296 Interest and penalties recognized as a component of Provision (benefit) for income taxes $ 59 $ 71 $ 67 Interest and penalties accrued at period end 212 230 218 Of the unrecognized tax benefits at December 28, 2019, $13.4 million would impact the effective tax rate if recognized. The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities which might result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is judgmental in nature. However, we believe we have adequately provided for any reasonably foreseeable outcome related to those matters. Our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. As of December 28, 2019, changes to our uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a significant impact on our financial position or results of operations. At December 28, 2019, our tax years 2016 through 2019, 2015 through 2019 and 2014 through 2019, remain open for examination in the federal, state and foreign jurisdictions, respectively. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and credits were generated and carried forward, and make adjustments up to the net operating loss and credit carryforward amounts. Tax Cuts and Jobs Act of 2017 The Tax Act was enacted in December 2017. The Tax Act significantly changes U.S. tax law effective January 1, 2018 by, among other things, lowering U.S. corporate income tax rates from 35% to 21%, repealing corporate alternative minimum tax, implementing a territorial tax system and imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Act provided for the repeal of corporate alternative minimum tax and made AMT tax credits fully refundable in future years. As a result, we reassessed the realizability of our deferred tax assets and released the valuation allowance against $0.8 million of AMT tax credits at December 30, 2017. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate, we revalued our ending U.S. deferred tax assets at December 30, 2017, offset by a corresponding change in the U.S. valuation allowance with no material impact to the fiscal 2017 tax provision. The Tax Act provided for a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”). The estimated tax effects of the provisional income inclusion of $15.7 million for the deemed repatriation transition tax was fully offset by the benefit of current and carryforward foreign tax credits previously subjected to a full valuation allowance. We paid no U.S. federal cash taxes on the deemed repatriation. The deemed repatriation of undistributed foreign earnings also resulted in a reassessment of the permanent reinvestment of undistributed foreign earnings and profits and we established a deferred tax liability of $66 thousand for withholding taxes associated with those earnings which were not permanently reinvested as of December 30, 2017. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act and allows the registrant to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. We recognized the provisional impacts related to the one-time transition tax, the revaluation of deferred tax balances and reassessment of the realizability of deferred tax assets and included these estimates in our consolidated financial statements for the year ended December 30, 2017. We completed our analysis within the measurement period in accordance with SAB 118 and did not have a material impact to our consolidated financial statements. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit PlansWe have an employee savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. The plan is designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. The total charge to net Income under the 401(k) plan for fiscal 2019, 2018 and 2017 aggregated $2.1 million, $2.0 million and $1.9 million, respectively. |
Segments and Geographic Informa
Segments and Geographic Information | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | Segments and Geographic Information We operate in two reportable segments consisting of the Probe Cards Segment and the Systems Segment. Our chief operating decision maker ("CODM") is our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. The following table summarizes the operating results by reportable segment (dollars in thousands): Fiscal 2019 Probe Cards Systems Corporate and Other Total Revenues $ 491,363 $ 98,101 $ — $ 589,464 Gross profit $ 211,382 $ 50,927 $ (24,813) $ 237,496 Gross margin 43.0 % 51.9 % — % 40.3 % Fiscal 2018 Probe Cards Systems Corporate and Other Total Revenues $ 434,269 $ 95,406 $ — $ 529,675 Gross profit $ 187,320 $ 47,074 $ (24,055) $ 210,339 Gross margin 43.1 % 49.3 % — % 39.7 % Fiscal 2017 Probe Cards Systems Corporate and Other Total Revenues $ 454,794 $ 93,647 $ — $ 548,441 Gross profit $ 195,903 $ 46,647 $ (26,953) $ 215,597 Gross margin 43.1 % 49.8% — % 39.3 % Operating results provide useful information to our management for assessment of our performance and results of operations. Certain components of our operating results are utilized to determine executive compensation along with other measures. Corporate and Other includes unallocated expenses relating to amortization of intangible assets, share-based compensation expense, acquisition-related costs, including charges related to inventory stepped up to fair value, and other costs, which are not used in evaluating the results of, or in allocating resources to, our reportable segments. Acquisition-related costs include transaction costs and any costs directly related to the acquisition and integration of acquired businesses. The following table summarizes revenue, by geographic region, as a percentage of total revenues based upon ship-to location: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 United States 26.3 % 25.2 % 34.0 % South Korea 19.8 17.2 14.9 China 18.0 14.7 11.1 Taiwan 14.7 20.3 17.7 Japan 8.9 9.4 8.1 Europe 7.0 7.5 8.2 Asia-Pacific (1) 3.7 4.9 5.5 Rest of the world 1.6 0.8 0.5 Total Revenues 100.0 % 100.0 % 100.0 % (1) Asia-Pacific includes all countries in the region except Taiwan, South Korea, China, and Japan, which are disclosed separately. The following table summarizes revenue by market (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Foundry & Logic $ 318,552 $ 258,459 $ 313,714 DRAM 147,257 135,333 124,685 Flash 25,554 40,477 16,395 Systems 98,101 95,406 93,647 Total revenues $ 589,464 $ 529,675 $ 548,441 The following table summarizes revenue by timing of revenue recognition (in thousands): Fiscal Year Ended December 28, December 29, December 30, Probe Cards Systems Total Probe Cards Systems Total Probe Cards Systems Total Products transferred at a point in time $ 488,925 $ 93,837 $ 582,762 $ 432,033 $ 91,514 $ 523,547 $ 452,946 $ 90,107 $ 543,053 Services transferred over time 2,438 4,264 6,702 2,236 3,892 6,128 1,848 3,540 5,388 Total $ 491,363 $ 98,101 $ 589,464 $ 434,269 $ 95,406 $ 529,675 $ 454,794 $ 93,647 $ 548,441 Long-lived assets, comprised of Operating lease, right-of-use-assets, Property, plant and equipment, net, Goodwill and Intangibles, net, reported based on the location of the asset was as follows (in thousands): December 28, 2019 December 29, 2018 December 30, 2017 United States $ 287,600 $ 280,405 $ 299,574 Europe 52,309 26,118 30,922 Asia-Pacific 7,064 4,385 3,662 Total $ 346,973 $ 310,908 $ 334,158 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following selected quarterly financial data should be read in conjunction with our consolidated financial statements and the related notes and Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations. This information has been derived from our unaudited consolidated financial statements that, in our opinion, reflect all recurring adjustments necessary to fairly present this information when read in conjunction with our consolidated financial statements and the related notes. The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period. Fiscal Quarters Ended Dec. 28, Sep. 28, June 29, 2019 March 30, 2019 Dec. 29, 2018 (1) Sep. 29, June 30, 2018 March 31, 2018 (in thousands, except per share data) Revenues $ 178,629 $ 140,604 $ 138,018 $ 132,213 $ 140,887 $ 134,989 $ 135,509 $ 118,290 Cost of revenues 104,324 85,286 82,666 79,692 84,865 82,019 79,291 73,161 Gross profit 74,305 55,318 55,352 52,521 56,022 52,970 56,218 45,129 Operating Expenses: Research and development 21,606 20,096 20,074 19,723 18,398 18,857 19,675 18,046 Selling, general and administrative 28,981 25,887 26,283 25,184 25,828 24,745 25,232 23,449 Total operating expenses 50,587 45,983 46,357 44,907 44,226 43,602 44,907 41,495 Operating income 23,718 9,335 8,995 7,614 11,796 9,368 11,311 3,634 Interest income 726 724 684 580 404 369 326 257 Interest expense (376) (422) (522) (595) (660) (777) (910) (967) Other income (expense), net 379 226 81 (84) 117 121 50 (512) Income before income taxes 24,447 9,863 9,238 7,515 11,657 9,081 10,777 2,412 Provision (benefit) for income taxes 5,811 1,584 2,290 2,032 (73,443) 1,393 1,654 287 Net income $ 18,636 $ 8,279 $ 6,948 $ 5,483 $ 85,100 $ 7,688 $ 9,123 $ 2,125 Net income per share: (2) Basic $ 0.25 $ 0.11 $ 0.09 $ 0.07 $ 1.15 $ 0.10 $ 0.12 $ 0.03 Diluted $ 0.24 $ 0.11 $ 0.09 $ 0.07 $ 1.13 $ 0.10 $ 0.12 $ 0.03 Weighted average number of shares used in per share calculations: Basic 75,731 75,280 74,478 74,362 74,108 73,837 73,157 72,826 Diluted 78,055 77,291 76,189 76,009 75,416 74,962 74,533 74,342 (1) In the fourth quarter of fiscal 2018, the tax benefit included a $75.8 million benefit from a valuation allowance release against certain U.S. deferred tax assets. (2) Quarterly net income per share amounts may not add to the yearly totals due to rounding. |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal YearOur fiscal year ends on the last Saturday in December. |
Basis of Consolidation | Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. On October 9, 2019, we completed the acquisition of FRT GmbH and, accordingly, our Consolidated Statements of Income include the results of operations of FRT GmbH since that date. See Note 4. |
Foreign Currency Translation | The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity on our Consolidated Balance Sheets under Accumulated other comprehensive income (loss). Certain other of our foreign subsidiaries use the U.S. Dollar as their functional currency. Accordingly, monetary assets and liabilities in non-functional currencies of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Consolidated Statements of Income as a component of Other income (expense), net as incurred. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates may change as new information is obtained. We believe that the estimates, assumptions and judgments involved in revenue recognition, fair value of marketable securities, fair value of derivative financial instruments used to hedge both foreign currency and interest rate exposures, allowance for doubtful accounts, reserves for product warranty, valuation of obsolete and slow moving inventory, assets acquired and liabilities assumed in business combinations, legal contingencies, valuation of goodwill, the assessment of recoverability of long-lived assets, valuation and recognition of stock-based compensation, provision for income taxes and valuation of deferred tax assets have the greatest potential impact on our consolidated financial statements. Actual results could differ from those estimates. |
Business Aquisitions | Business Acquisitions Our consolidated financial statements include the operations of acquired businesses after the completion of their respective acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill. |
Cash and Cash Equivalents | Cash and Cash Equivalents and Marketable SecuritiesCash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. |
Marketable Securities | Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We classify our marketable securities as available-for-sale and, accordingly, report them at fair value with the related unrealized gains and losses included in Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. Any unrealized losses which are considered to be other-than-temporary are recorded in Other income (expense), net, in the Consolidated Statements of Income. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in Other income (expense), net, in the Consolidated Statements of Income. All of our available-for-sale investments are subject to a periodic impairment review. We record a charge to earnings when a decline in fair value is significantly below cost basis and judged to be other-than-temporary, or have other indicators of impairments. If the fair value of an available-for-sale investment is less than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances where (1) we intend to sell the instrument; (2) it is more likely than not that we will be required to sell the instrument before recovery of its amortized cost basis; or (3) a credit loss exists where we do not expect to recover the entire amortized cost basis of the instrument. If we intend to sell, or it is more likely than not that we will be required to sell, the available-for-sale investment before recovery of its amortized cost basis, we recognize an other-than-temporary impairment charge equal to the difference between the investment's amortized cost basis and its fair value. |
Foreign Exchange Management | Foreign Exchange Management We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures and certain operational costs denominated in local currency impacting our statement of income. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded within Other income (expense), net in our Consolidated Statements of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Consolidated Balance Sheets with changes in fair value recorded as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Consolidated Statements of Income as the impact of the hedge transaction. We do not use derivative financial instruments for trading or speculative purposes. |
Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The majority of our accounts receivable are derived from sales to large multinational semiconductor manufacturers throughout the world, are recorded at their invoiced amount and do not bear interest. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense. |
Inventories | Inventories We state our inventories at the lower of cost (principally standard cost which approximates actual cost on a first in, first out basis) or net realizable value. We continually assess the value of our inventory and will periodically write down its value for estimated excess inventory and product obsolescence based upon an analysis of existing inventory quantities compared to estimated future consumption. Future consumption is estimated based upon assumptions about how past consumption, recent purchases, backlog and other factors indicate future consumption. On a quarterly basis, we review existing inventory quantities in comparison to our past consumption, recent purchases, backlog and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we record an adjustment to the cost basis of inventory when evidence exists that the net realizable value of inventory is lower than its cost, which occurs when we have excess and/or obsolete inventory. Once the value is adjusted, the original cost of our inventory, less the related inventory write-down, represents the new cost basis. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of Cost of revenues in the Consolidated Statements of Income. |
Restricted Cash | Restricted CashRestricted cash is comprised primarily of funds held by our foreign subsidiaries for employee obligations, office leases, customer deposits, and temporary customs import permits. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line method. Machinery and equipment, computer equipment and software, and furniture and fixtures are depreciated over 1 to 5 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss is reflected in Operating income in our Consolidated Statements of Income. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, rather assessed, at least annually, for impairment at a reporting unit level. Impairment of goodwill exists when the carrying amount of a reporting unit exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If we determine, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required. |
Intangible Assets | Intangible Assets Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods of 1 to 10 years, which reflect the pattern in which economic benefits of the assets are expected to be realized. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We test long-lived assets or asset groups, such as property, plant and equipment and intangible assets, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. |
Concentration of Credit Risk and Other Risk and Uncertainties | Concentration of Credit Risk and Other Risks and UncertaintiesFinancial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. Our cash equivalents and marketable securities are held in safekeeping by large, credit worthy financial institutions. We invest our excess cash primarily in U.S. banks, government and agency bonds, money market funds and corporate obligations. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these banks may exceed the amounts of insurance provided on such deposits. To date, we have not experienced any losses on our deposits of cash and cash equivalents. We market and sell our products to a relatively narrow base of customers and generally do not require collateral. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon transferring control of products and services, and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. An arrangement may include some or all of the following products and services: probe cards, systems, accessories, installation services, service contracts and extended warranty contracts. We sell our products and services direct to customers and to partners in two distribution channels: global direct sales force and through a combination of manufacturers’ representatives and distributors. We adopted Accounting Standards Codification ("ASC") Topic No. 606 effective on December 31, 2017, the first day of fiscal year 2018, using the modified retrospective method. We applied ASC 606 to all contracts not completed as of the date of adoption in order to determine any adjustment to the opening balance of accumulated deficit as of December 31, 2017. We did not restate any prior financial statements presented. No adjustment was recorded to accumulated deficit as of the adoption date and reported revenue would not have been different under legacy GAAP. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligation is distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined and accounted for as one unit of account. Generally, the performance obligations in a contract are considered distinct within the context of the contract and are accounted for as separate units of account. Our products may be customized to our customers’ specifications, however, control of our product is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for overtime recognition is not met. In limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive. Installation services are routinely provided to customers purchasing our systems. Installation services are a distinct performance obligation apart from the systems and recognized in the period they are performed. Service contracts, which include repair and maintenance service contracts, and extended warranty contracts are also distinct performance obligations and recognized over the contractual service period, which ranges from one three A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We generally do not grant return privileges, except for defective products during the warranty period. Sales incentives and other programs that we may make available to these customers are considered to be a form of variable consideration, which is estimated in determining the contract’s transaction price to be allocated to the performance obligations. We have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component as our standard payment terms are less than one year. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on observable prices, which are the prices at which we separately sell these products. For items which do not have observable prices, we use our best estimate of the stand-alone selling prices. Transaction price allocated to the remaining performance obligations: On December 28, 2019, we had $4.1 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. We expect to recognize approximately 75.1% of our remaining performance obligations as revenue in fiscal 2020, approximately 15.0% in fiscal 2021, and approximately 9.9% in fiscal 2022 and thereafter. The foregoing excludes the value of remaining performance obligations that have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Contract balances: The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. A contract asset is recorded when we have performed under the contract but our right to consideration is conditional on something other than the passage of time. Contract assets as of December 28, 2019 and December 29, 2018 were $0.9 million and $0.3 million, respectively, and are reported on the Consolidated Balance Sheets as a component of Prepaid expenses and other current assets. Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities totaled $10.8 million and $5.7 million at December 28, 2019 and December 29, 2018, respectively. During fiscal 2019, we recognized $4.2 million of revenue that was included in contract liabilities as of December 29, 2018. Costs to obtain a contract: We generally expense sales commissions when incurred as a component of Selling, general and administrative expense as the amortization period is typically less than one year. |
Warranty Obligations | Warranty Obligations We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized. Warranty costs are reflected in the Consolidated Statement of Income as a Cost of revenues. |
Research and Development | Research and Development Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred. |
Income Taxes | Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative income, our historical ability to utilize net operating losses in recent years and our forecast of future taxable income, including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. We recognize interest and penalties related to unrecognized tax benefits within the income tax provision. Accrued interest and penalties are included within the related tax liability in the Consolidated Balance Sheets. We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our related liability reflects the most likely outcome. We adjust the liability, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. See Note 13 for additional information, including the Tax Cuts and Jobs Act enacted in December 2017. |
Stock-based Compensation | Stock-Based Compensation We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Income. The fair value of stock options is measured using the Black-Scholes option pricing model, while the fair value for restricted stock units ("RSUs") is measured based on the closing market price of our common stock on the date of grant. The fair value of Performance RSUs ("PRSU") is based on certain market performance criteria is measured using the Monte Carlo simulation pricing model. See Notes 11 and 12 for additional information. |
Net Loss Per Share | Net Income Per ShareBasic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all potentially dilutive common stock and common stock equivalents, including stock options, RSUs and common stock subject to repurchase. |
Fair Value Measurement | Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; • Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during fiscal 2019, 2018 or 2017. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and short-term Term loan approximate fair value due to their short maturities. No changes were made to our valuation techniques during fiscal 2019. Cash Equivalents The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all of our investments have a sufficient level of trading volume to demonstrate that the fair value is appropriate. Contingent Consideration Contingent consideration, arising from the acquisition of FRT (see Note 4), is a cash amount equal to 1.5x EBIT as defined in the purchase agreement, up to a maximum of €10.3 million, payable subject to the performance of the acquired business in calendar 2020. We estimated the fair value of contingent consideration using a probability weighted approach. Key assumptions in determining the fair value of contingent consideration include estimating the probability of achieving certain EBIT levels and discounting at an appropriate discount rate. There was no change in the value of contingent consideration since the acquisition of FRT and as of December 28, 2019. |
New Accounting Pronouncements | New Accounting Pronouncements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Customer | The following customers represented 10% or more of our revenues: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Intel Corporation 25.3 % 19.0 % 25.9 % Samsung Electronics., LTD. 11.5 % * * |
Schedule of Product Warranty Liability Reconciliation | A reconciliation of the changes in our warranty liability is as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Balance at beginning of year $ 2,102 $ 3,662 $ 2,972 Accruals 3,881 3,181 8,115 Settlements (4,041) (4,741) (7,425) Balance at end of year $ 1,942 $ 2,102 $ 3,662 |
Schedule of Allowance for Doubtful Accounts | Activity related to our allowance for doubtful accounts receivable was as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Balance at beginning of year $ 185 $ 200 $ 299 Charges (reversals) to costs and expenses 37 (15) (99) Balance at end of year $ 222 $ 185 $ 200 |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Weighted-average shares used in computing basic net income per share 74,994 73,482 72,292 Add potentially dilutive securities 2,292 1,700 1,947 Weighted-average shares used in computing basic and diluted net income per share 77,286 75,182 74,239 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive income (loss) ("OCI") includes the following items, the impact of which has been excluded from earnings and reflected as components of stockholders' equity as shown below (in thousands): December 28, 2019 December 29, 2018 Unrealized losses on available-for-sale marketable securities $ (352) $ (668) Translation adjustments and other 53 1,081 Unrealized gains (losses) on derivative instruments (360) 367 Accumulated other comprehensive income (loss) $ (659) $ 780 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Balance Sheet Components [Abstract] | |
Schedule of Marketable Securities | Marketable securities consisted of the following (in thousands): December 28, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 10,458 $ 11 $ — $ 10,469 Commercial paper 3,914 1 (4) 3,911 Corporate bond 33,867 68 (7) 33,928 Certificate of deposit 3,584 5 — 3,589 Agency securities 24,408 38 (16) 24,430 $ 76,231 $ 123 $ (27) $ 76,327 December 29, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 7,997 $ 1 $ (1) $ 7,997 Commercial paper 2,296 — (1) 2,295 Corporate bond 30,833 1 (160) 30,674 Certificate of deposit 960 — (3) 957 Agency securities 8,667 — (59) 8,608 $ 50,753 $ 2 $ (224) $ 50,531 |
Contractual Maturity of Marketable Securities | The contractual maturities of marketable securities were as follows (in thousands): December 28, 2019 December 29, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 38,899 $ 38,944 $ 35,269 $ 35,172 Due after one year to five years 37,332 37,383 15,484 15,359 $ 76,231 $ 76,327 $ 50,753 $ 50,531 |
Schedule of Net Inventory | Inventories consisted of the following (in thousands): December 28, 2019 December 29, 2018 Raw materials $ 38,528 $ 43,380 Work-in-progress 29,720 20,431 Finished goods 15,010 13,895 $ 83,258 $ 77,706 |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following (in thousands): December 28, 2019 December 29, 2018 Machinery and equipment $ 201,861 $ 192,108 Computer equipment and software 35,192 32,906 Furniture and fixtures 6,756 6,478 Leasehold improvements 76,081 75,285 Sub-total 319,890 306,777 Less: Accumulated depreciation and amortization (273,001) (263,102) Net property, plant and equipment 46,889 43,675 Construction-in-progress 11,858 10,379 Total $ 58,747 $ 54,054 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 28, 2019 December 29, 2018 Accrued compensation and benefits $ 21,329 $ 15,600 Accrued employee stock purchase plan contributions withheld 3,331 3,174 Accrued warranty 1,942 2,102 Accrued income and other taxes 6,846 4,222 Other accrued expenses 2,991 2,633 $ 36,439 $ 27,731 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The table below summarizes the estimated fair value of assets acquired and liabilities assumed following the adjustments mentioned above (in thousands) as of the acquisition date: Amount Cash and cash equivalents $ 1,683 Accounts receivable 3,057 Inventory 2,643 Property, plant and equipment 696 Operating lease, right-of-use-assets 335 Prepaid expenses and other current assets 838 Tangible assets acquired 9,252 Customer deposits (2,013) Accounts payable and accrued liabilities (1,235) Operating lease liabilities (335) Deferred tax liabilities (5,796) Total tangible assets acquired and liabilities assumed (127) Intangible assets 17,550 Goodwill 10,148 Net assets acquired $ 27,571 |
Summary of Finite-Lived Intangible Assets Acquired | The intangible assets as of the closing date of the acquisition included (in thousands): Amount Weighted Average Useful Life (in years) Developed technologies $ 12,626 8.0 Customer relationships 3,071 6.0 Order backlog 1,645 0.5 Trade names 208 2.0 Total intangible assets $ 17,550 7.0 |
Summary of Indefinite-Lived Intangible Assets Acquired | The intangible assets as of the closing date of the acquisition included (in thousands): Amount Weighted Average Useful Life (in years) Developed technologies $ 12,626 8.0 Customer relationships 3,071 6.0 Order backlog 1,645 0.5 Trade names 208 2.0 Total intangible assets $ 17,550 7.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt consisted of the following (in thousands): December 28, 2019 December 29, 2018 Term loans $ 58,514 $ 65,000 Less unamortized issuance costs (29) (189) Term loans less issuance costs $ 58,485 $ 64,811 |
Schedule of Maturities of Long-term Debt | Future principal and interest payments on our term loans as of December 28, 2019, based on the interest rate in effect at that date were as follows (in thousands): Payments Due In Fiscal Year 2020 2021 2022 Total Term loans - principal payments $ 42,838 $ 7,838 $ 7,838 $ 58,514 Term loans - interest payments (1) 777 155 47 979 Total $ 43,615 $ 7,993 $ 7,885 $ 59,493 (1) Represents our minimum interest payment commitments at 1.35% per annum for the FRT Term Loan and 3.71% per annum for the CMI Term Loan. |
Leases (Tables)
Leases (Tables) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Leases [Abstract] | ||
Components of Lease Expense | The components of lease expense for the year ended December 28, 2019 upon the adoption of ASC 842 were as follows (in thousands): Lease Expense Operating lease expense $ 6,985 Short-term lease expense 142 Variable lease expense 1,286 $ 8,413 | |
Schedule of Future Minimum Payments Under Leases - Topic 842 | Future minimum payments under our non-cancelable operating leases under the new lease accounting rules (Topic 842) were as follows as of December 28, 2019 (in thousands): Fiscal Year Amount 2020 $ 7,387 2021 6,647 2022 5,477 2023 4,937 2024 4,770 Thereafter 22,165 Total minimum lease payments 51,383 Less: interest (15,744) Present value of net minimum lease payments 35,639 Less: current portion (6,551) Total long-term operating lease liabilities $ 29,088 | |
Schedule of Future Minimum Payments Under Leases - Topic 840 | Future minimum payments under our non-cancelable operating leases under prior lease accounting rules (Topic 840) were as follows as of December 29, 2018 (in thousands): Fiscal Year Amount 2019 $ 6,256 2020 6,522 2021 5,742 2022 4,786 2023 4,355 Thereafter 20,382 $ 48,043 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill by reportable segment was as follows (in thousands): Probe Cards Systems Total Goodwill, gross, as of December 31, 2016 $ 172,482 $ 15,528 $ 188,010 Foreign currency translation — 1,910 1,910 Goodwill, gross, as of December 30, 2017 172,482 17,438 189,920 Foreign currency translation — (706) (706) Goodwill, gross, as of December 29, 2018 172,482 16,732 189,214 Additions - FRT GmbH acquisition — 10,148 10,148 Foreign currency translation — (166) (166) Goodwill, gross, as of December 28, 2019 $ 172,482 $ 26,714 $ 199,196 |
Schedule of Finite-lived Intangible Assets | Intangible assets were as follows (in thousands): December 28, 2019 December 29, 2018 Other Intangible Assets Gross Accumulated Amortization Net Gross Accumulated Amortization Net Existing developed technologies $ 154,951 $ 116,138 $ 38,813 $ 143,408 $ 97,111 $ 46,297 Trade name 7,816 6,976 840 12,023 9,173 2,850 Customer relationships 44,229 27,057 17,172 40,146 21,653 18,493 Backlog 1,676 891 785 — — — $ 208,672 $ 151,062 $ 57,610 $ 195,577 $ 127,937 $ 67,640 |
Schedule of Amortization Expense | Amortization expense was included in our Consolidated Statements of Income as follows (in thousands): Fiscal Year Ended December 28, December 29, December 30, Cost of revenues $ 20,036 $ 20,530 $ 22,800 Selling, general and administrative 7,636 8,843 8,140 $ 27,672 $ 29,373 $ 30,940 |
Schedule of Remaining Estimated Amortization Expense | The estimated future amortization of intangible assets is as follows (in thousands): Fiscal Year Amount 2020 $ 26,270 2021 14,739 2022 5,553 2023 3,813 2024 2,073 Thereafter 5,162 Total $ 57,610 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Leases - Topic 840 | Future minimum payments under our non-cancelable operating leases under prior lease accounting rules (Topic 840) were as follows as of December 29, 2018 (in thousands): Fiscal Year Amount 2019 $ 6,256 2020 6,522 2021 5,742 2022 4,786 2023 4,355 Thereafter 20,382 $ 48,043 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Additional Information Regarding Stock Based Compensation | Certain information regarding our stock-based compensation was as follows (in thousands, except per share amounts): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Weighted average grant date per share fair value of RSUs granted $ 15.12 $ 13.79 $ 13.20 Total intrinsic value of stock options exercised 1,814 631 5,946 Fair value of RSUs vested $ 23,450 $ 17,541 $ 18,339 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was included in the Consolidated Statements of Income as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Stock-based compensation expense included in: Cost of revenues $ 4,055 $ 3,525 $ 3,539 Research and development 6,367 5,398 5,341 Selling, general and administrative 12,754 8,904 7,459 Total stock-based compensation $ 23,176 $ 17,827 $ 16,339 |
Schedule of Unrecognized Compensation Expense | Unrecognized stock-based compensation expense at December 28, 2019 consisted of the following (in thousands): Unrecognized Expense Weighted Average Recognition Period (Years) Restricted stock units $ 24,038 1.9 Performance restricted stock units 6,570 2.0 Employee stock purchase plan 287 0.1 Total unrecognized stock-based compensation expense $ 30,895 1.9 |
Schedule of Assumptions, Fair Value of Employee Purchase Rights | The following assumptions were used in estimating the fair value of shares under the Employee Stock Purchase Plan: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Employee Stock Purchase Plan: Dividend yield — % — % — % Expected volatility 36.60% - 59.51% 44.85% - 48.94% 46.20% - 46.33% Risk-free interest rate 2.04% - 2.46% 0.83% - 2.22% 0.65% - 1.15% Expected life (in years) 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss Before Income Taxes | The components of income before income taxes were as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 United States $ 41,115 $ 20,877 $ 31,492 Foreign 9,948 13,050 10,714 $ 51,063 $ 33,927 $ 42,206 |
Schedule of Components of Provision for Income Taxes | The components of the provision (benefit) for income taxes are as follows (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Current provision (benefit): Federal $ 179 $ 79 $ (2,130) State 2,302 388 17 Foreign 4,202 4,687 4,069 6,683 5,154 1,956 Deferred provision (benefit): Federal 8,128 (72,295) 66 State (1,898) (2,056) — Foreign (1,196) (912) (729) 5,034 (75,263) (663) Total provision (benefit) for income taxes $ 11,717 $ (70,109) $ 1,293 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 21% and the provision (benefit) from income taxes for fiscal 2019 and 2018 and applying the federal statutory rate of 35% and the provision for income taxes for 2017 (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 U.S. statutory federal tax rate $ 10,723 $ 7,125 $ 14,772 State taxes, net of federal benefit 441 778 951 Stock-based compensation (911) (453) (1,428) Research and development credits (6,436) (3,213) (1,979) Foreign taxes at rates different than the U.S. 1,454 1,287 (271) Other permanent differences (148) 152 160 Global intangible low-taxed income 1,369 1,828 — Mandatory deemed repatriation — — 1,655 Change in valuation allowance 2,567 (75,803) (12,207) Other 2,658 (1,810) (360) Total $ 11,717 $ (70,109) $ 1,293 |
Schedule of Deferred Tax Assets and Liabilities | Significant deferred tax assets and liabilities consisted of the following (in thousands): As of December 28, 2019 December 29, 2018 Tax credits $ 44,696 $ 39,586 Inventory reserve 12,350 10,850 Other reserves and accruals 5,852 5,398 Non-statutory stock options 2,982 2,722 Depreciation and amortization 27,758 1,979 Net operating loss carryforwards 21,410 61,275 Gross deferred tax assets 115,048 121,810 Valuation allowance (36,604) (34,037) Total deferred tax assets 78,444 87,773 Acquired intangibles and fixed assets (13,997) (12,667) Unrealized investment gains (106) (107) Tax on undistributed earnings (75) (53) Total deferred tax liabilities (14,178) (12,827) Net deferred tax assets $ 64,266 $ 74,946 |
Summary of Tax Credit Carryforwards | Tax credits and carryforwards available to us at December 28, 2019 consisted of the following (in thousands): Amount Latest Expiration Date Federal research and development tax credit $ 37,494 2021-2039 Federal net operating loss carryforwards 14,589 2031-2035 Foreign tax credit carryforwards 1,134 2020-2027 Alternative minimum tax credits 195 Indefinite California research credits 39,228 Indefinite State net operating loss carryforwards 243,934 2024-2036 Singapore net operating loss carryforwards $ 8,340 Indefinite |
Schedule of Unrecognized Tax Benefits | The following table reflects changes in the unrecognized tax benefits (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Unrecognized tax benefit, beginning balance $ 25,224 $ 18,296 $ 17,978 Additions based on tax positions related to the current year 3,679 1,677 694 Additions based on tax positions from prior years — 5,332 — Reductions for tax positions of prior years (5) (7) — Reductions due to lapse of the applicable statute of limitations (98) (74) (376) Unrecognized tax benefit, ending balance $ 28,800 $ 25,224 $ 18,296 Interest and penalties recognized as a component of Provision (benefit) for income taxes $ 59 $ 71 $ 67 Interest and penalties accrued at period end 212 230 218 |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Operating Results by Reportable Segments | The following table summarizes the operating results by reportable segment (dollars in thousands): Fiscal 2019 Probe Cards Systems Corporate and Other Total Revenues $ 491,363 $ 98,101 $ — $ 589,464 Gross profit $ 211,382 $ 50,927 $ (24,813) $ 237,496 Gross margin 43.0 % 51.9 % — % 40.3 % Fiscal 2018 Probe Cards Systems Corporate and Other Total Revenues $ 434,269 $ 95,406 $ — $ 529,675 Gross profit $ 187,320 $ 47,074 $ (24,055) $ 210,339 Gross margin 43.1 % 49.3 % — % 39.7 % Fiscal 2017 Probe Cards Systems Corporate and Other Total Revenues $ 454,794 $ 93,647 $ — $ 548,441 Gross profit $ 195,903 $ 46,647 $ (26,953) $ 215,597 Gross margin 43.1 % 49.8% — % 39.3 % |
Summary of Revenue by Geographic Region | The following table summarizes revenue, by geographic region, as a percentage of total revenues based upon ship-to location: Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 United States 26.3 % 25.2 % 34.0 % South Korea 19.8 17.2 14.9 China 18.0 14.7 11.1 Taiwan 14.7 20.3 17.7 Japan 8.9 9.4 8.1 Europe 7.0 7.5 8.2 Asia-Pacific (1) 3.7 4.9 5.5 Rest of the world 1.6 0.8 0.5 Total Revenues 100.0 % 100.0 % 100.0 % (1) Asia-Pacific includes all countries in the region except Taiwan, South Korea, China, and Japan, which are disclosed separately. |
Summary of Revenue by Market | The following table summarizes revenue by market (in thousands): Fiscal Year Ended December 28, 2019 December 29, 2018 December 30, 2017 Foundry & Logic $ 318,552 $ 258,459 $ 313,714 DRAM 147,257 135,333 124,685 Flash 25,554 40,477 16,395 Systems 98,101 95,406 93,647 Total revenues $ 589,464 $ 529,675 $ 548,441 |
Summary of Revenue by Timing of Recognition | The following table summarizes revenue by timing of revenue recognition (in thousands): Fiscal Year Ended December 28, December 29, December 30, Probe Cards Systems Total Probe Cards Systems Total Probe Cards Systems Total Products transferred at a point in time $ 488,925 $ 93,837 $ 582,762 $ 432,033 $ 91,514 $ 523,547 $ 452,946 $ 90,107 $ 543,053 Services transferred over time 2,438 4,264 6,702 2,236 3,892 6,128 1,848 3,540 5,388 Total $ 491,363 $ 98,101 $ 589,464 $ 434,269 $ 95,406 $ 529,675 $ 454,794 $ 93,647 $ 548,441 |
Long-lived Assets by Location | Long-lived assets, comprised of Operating lease, right-of-use-assets, Property, plant and equipment, net, Goodwill and Intangibles, net, reported based on the location of the asset was as follows (in thousands): December 28, 2019 December 29, 2018 December 30, 2017 United States $ 287,600 $ 280,405 $ 299,574 Europe 52,309 26,118 30,922 Asia-Pacific 7,064 4,385 3,662 Total $ 346,973 $ 310,908 $ 334,158 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $ 185 | $ 200 | $ 299 |
Charges (reversals) to costs and expenses | 37 | (15) | (99) |
Balance at end of year | $ 222 | $ 185 | $ 200 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accounting Policies [Abstract] | |||
Aggregate inventory write downs | $ 10,421 | $ 10,479 | $ 9,259 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 1 year |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 5 years |
Computer Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 1 year |
Computer Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 5 years |
Furniture and Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 1 year |
Furniture and Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment useful lives | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Intangibles (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Minimum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible asset weighted average useful life | 1 year |
Maximum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible asset weighted average useful life | 10 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Concentration of Credit Risk and Other Risks and Uncertainties (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Intel Corporation | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total revenues attributable to customers greater than 10% | 25.30% | 19.00% | 25.90% |
Major Customer 1 | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Total revenues attributable to customers greater than 10% | 25.70% | 27.80% | |
Major Customer 2 | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Total revenues attributable to customers greater than 10% | 15.10% | 13.00% | |
samsung electronics (member) | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total revenues attributable to customers greater than 10% | 11.50% | ||
Major Customer 3 [Member] | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Total revenues attributable to customers greater than 10% | 11.50% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Remaining performance obligations | $ 4.1 | ||||
Contract assets | 0.9 | $ 0.3 | |||
Contract liabilities | 10.8 | 5.7 | |||
Revenue recognized on contract liabilities | $ 4.2 | $ 4.8 | |||
Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue recognition period | 1 year | ||||
Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue recognition period | 3 years | ||||
Scenario, Forecast | |||||
Disaggregation of Revenue [Line Items] | |||||
Remaining performance obligations expected to be recognized | 9.90% | 15.00% | 75.10% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty Accrual beginning balance | $ 2,102 | $ 3,662 | $ 2,972 |
Accruals | 3,881 | 3,181 | 8,115 |
Settlements | (4,041) | (4,741) | (7,425) |
Warranty Accrual ending balance | $ 1,942 | $ 2,102 | $ 3,662 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Weighted-average shares used in computing basic net loss per share (in shares) | 75,731 | 75,280 | 74,478 | 74,362 | 74,108 | 73,837 | 73,157 | 72,826 | 74,994 | 73,482 | 72,292 |
Add potentially dilutive securities (in shares) | 2,292 | 1,700 | 1,947 | ||||||||
Weighted-average shares used in computing basic and diluted net loss per share (in shares) | 78,055 | 77,291 | 76,189 | 76,009 | 75,416 | 74,962 | 74,533 | 74,342 | 77,286 | 75,182 | 74,239 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accounting Policies [Abstract] | ||
Unrealized losses on available-for-sale marketable securities | $ (352) | $ (668) |
Translation adjustments and other | 53 | 1,081 |
Unrealized gains (losses) on derivative instruments | (360) | 367 |
Accumulated other comprehensive income (loss) | $ (659) | $ 780 |
Balance Sheet Components - Mark
Balance Sheet Components - Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | $ 76,231 | $ 50,753 |
Gross Unrealized Gains | 123 | 2 |
Gross Unrealized Losses | (27) | (224) |
Fair Value | 76,327 | 50,531 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Due in one year or less - Amortized Cost | 38,899 | 35,269 |
Due in one year to five years - Amortized Cost | 37,332 | 15,484 |
Amortized Cost | 76,231 | 50,753 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less - Fair Value | 38,944 | 35,172 |
Due in one year to five years - Fair Value | 37,383 | 15,359 |
Fair Value | 76,327 | 50,531 |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 10,458 | 7,997 |
Gross Unrealized Gains | 11 | 1 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 10,469 | 7,997 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | 10,458 | 7,997 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | 10,469 | 7,997 |
Commercial paper | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 3,914 | 2,296 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (4) | (1) |
Fair Value | 3,911 | 2,295 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | 3,914 | 2,296 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | 3,911 | 2,295 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 33,867 | 30,833 |
Gross Unrealized Gains | 68 | 1 |
Gross Unrealized Losses | (7) | (160) |
Fair Value | 33,928 | 30,674 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | 33,867 | 30,833 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | 33,928 | 30,674 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 3,584 | 960 |
Gross Unrealized Gains | 5 | 0 |
Gross Unrealized Losses | 0 | (3) |
Fair Value | 3,589 | 957 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | 3,584 | 960 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | 3,589 | 957 |
Agency securities (Federal) | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 24,408 | 8,667 |
Gross Unrealized Gains | 38 | 0 |
Gross Unrealized Losses | (16) | (59) |
Fair Value | 24,430 | 8,608 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | 24,408 | 8,667 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | $ 24,430 | $ 8,608 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Balance Sheet Components [Abstract] | ||
Raw materials | $ 38,528 | $ 43,380 |
Work-in-progress | 29,720 | 20,431 |
Finished goods | 15,010 | 13,895 |
Inventory, Net | $ 83,258 | $ 77,706 |
Balance Sheet Components - Prop
Balance Sheet Components - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 319,890 | $ 306,777 |
Less: Accumulated depreciation and amortization | (273,001) | (263,102) |
Property Plant And Equipment Net, Excludes Construction in Progress | 46,889 | 43,675 |
Construction-in-progress | 11,858 | 10,379 |
Property, plant and equipment, net | 58,747 | 54,054 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 201,861 | 192,108 |
Computer Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 35,192 | 32,906 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,756 | 6,478 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 76,081 | $ 75,285 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 21,329 | $ 15,600 |
Accrued employee stock purchase plan contributions withheld | 3,331 | 3,174 |
Accrued warranty | 1,942 | 2,102 |
Accrued income and other taxes | 6,846 | 4,222 |
Other accrued expenses | 2,991 | 2,633 |
Total | $ 36,439 | $ 27,731 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) € in Millions | Oct. 09, 2019USD ($) | Dec. 28, 2019USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Oct. 09, 2019EUR (€) | Jun. 24, 2016USD ($) |
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 22,200,000 | $ 20,524,000 | $ 0 | $ 0 | |||
Total acquisition consideration | 25,900,000 | ||||||
Operating lease, right-of-use assets obtained in exchange for lease obligations | 36,709,000 | $ 0 | $ 0 | ||||
Contingent consideration | 5,400,000 | $ (5,364,000) | (5,364,000) | ||||
Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | € | € 10.3 | ||||||
FRT | |||||||
Business Acquisition [Line Items] | |||||||
Revenues | $ 3,900,000 | ||||||
Cascade Microtech | Senior Secured Term Loan | |||||||
Business Acquisition [Line Items] | |||||||
Senior secured loan to finance merger | $ 150,000,000 | ||||||
FRT | |||||||
Business Acquisition [Line Items] | |||||||
Cash acquired in combination | 1,683,000 | ||||||
Transaction costs related to acquisition | $ 500,000 | ||||||
Finite-lived intangible assets acquired | 10,148,000 | ||||||
FRT | Developed technologies | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | 12,626,000 | ||||||
FRT | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | 3,071,000 | ||||||
FRT | Trade name | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 208,000 |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Oct. 09, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ (10,148) | ||||
Goodwill | $ 199,196 | $ 189,214 | 189,920 | $ 188,010 | |
Cascade Microtech | |||||
Business Acquisition [Line Items] | |||||
Accounts payable and accrued liabilities | (1,235) | ||||
Intangible assets | 17,550 | ||||
Goodwill | 10,148 | ||||
Total acquisition price | $ 27,571 | ||||
FRT | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 1,683 | ||||
Accounts receivable | 3,057 | ||||
Inventory | 2,643 | ||||
Prepaid expenses and other current assets | 838 | ||||
Property, plant and equipment | 696 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 9,252 | ||||
Accounts payable and accrued liabilities | (1,235) | ||||
Deferred tax liabilities | (5,796) | ||||
Total tangible assets acquired and liabilities assumed | (127) | ||||
Intangible assets | 17,550 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 2,013 | ||||
Finite-lived intangible assets acquired | $ 10,148 |
Acquisition - Intangible Assets
Acquisition - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Oct. 09, 2019 | Dec. 30, 2017 |
Cascade Microtech | ||
Business Acquisition [Line Items] | ||
Total intangible assets | $ 17,550 | |
FRT | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 10,148 | |
Total intangible assets | $ 17,550 | |
Intangible asset weighted average useful life | 7 years | |
Developed technologies | FRT | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 12,626 | |
Intangible asset weighted average useful life | 8 years | |
Customer relationships | FRT | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 3,071 | |
Intangible asset weighted average useful life | 6 years | |
Backlog | FRT | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 1,645 | |
Intangible asset weighted average useful life | 6 months | |
Trade name | FRT | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 208 | |
Intangible asset weighted average useful life | 2 years |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
Long-term Debt, Gross | $ 58,514 | $ 65,000 |
Debt Issuance Costs, Net | (29) | (189) |
Total | $ 58,485 | $ 64,811 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Oct. 25, 2019 | Jun. 24, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 |
Debt Instrument [Line Items] | |||||
Debt to earnings ratio, in year two | 2.50 | ||||
Minimum fixed charge coverage ratio in years one and two | 1.50 | ||||
Minimum fixed charge coverage ratio in year three | 1.30 | ||||
Minimum fixed charge coverage ratio, in year four and thereafter | 1.20 | ||||
FRT Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured loan to finance merger | $ 23,400,000 | ||||
Stated rate | 1.35% | ||||
Long-term line of credit, quarterly repayment amount | $ 1,900,000 | ||||
Euro Interbank Offered Rate (EURIBOR) | FRT Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 175.00% | ||||
Senior Secured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest payment term | 5 years | ||||
Debt principal payable in current year, percentage | 5.00% | ||||
Debt principal payable in year two, percentage | 10.00% | ||||
Debt principal payable in year three, percentage | 20.00% | ||||
Debt principal payable in year four, percentage | 30.00% | ||||
Debt principal payable in year five, percentage | 35.00% | ||||
Senior Secured Term Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Senior Secured Term Loan | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Senior Secured Term Loan | Cascade Microtech | |||||
Debt Instrument [Line Items] | |||||
Senior secured loan to finance merger | $ 150,000,000 | ||||
Repayments of debt | $ 15,000,000 | $ 20,000,000 | |||
Senior Secured Term Loan | Cascade Microtech | FRT Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured loan to finance merger | $ 23,400,000 |
Debt - Future Principle and Int
Debt - Future Principle and Interest Payments (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Principal, 2020 | $ 42,838 | |
Principal, 2021 | 7,838 | |
Principal, 2022 | 7,838 | |
Principal, total | 58,514 | $ 65,000 |
Interest, 2020 | 777 | |
Interest, 2021 | 155 | |
Interest, 2022 | 47 | |
Interest, total | 979 | |
Total payments, 2020 | 43,615 | |
Total payments, 2021 | 7,993 | |
Total payments, 2022 | 7,885 | |
Long-Term Debt, Maturities, Total Payments Due | $ 59,493 | |
FRT Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 1.35% | |
CMI Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 3.71% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | Dec. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Lease liabilities | $ 40,000 | |||
Right-of-use assets | $ 0 | $ 31,420 | $ 35,700 | |
Operating lease, renewal term | 20 years | |||
Operating lease, weighted average remaining lease term | 7 years | |||
Operating lease, weighted average discount rate | 4.70% | |||
Rent expense | $ 8,400 | $ 7,900 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, term of contract | 1 year | |||
Automobiles | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, term of contract | 1 year | |||
Automobiles | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, term of contract | 4 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 6,985 |
Short-term lease expense | 142 |
Variable lease expense | 1,286 |
Lease, Cost | $ 8,413 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Leases (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 7,387 |
2021 | 6,647 |
2022 | 5,477 |
2023 | 4,937 |
2024 | 4,770 |
Thereafter | 22,165 |
Lessee, Operating Lease, Liability, Payments, Due | $ 51,383 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Payments Due Under Prior Lease Guidance (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 6,256 |
2020 | 6,522 |
2021 | 5,742 |
2022 | 4,786 |
2023 | 4,355 |
Thereafter | 20,382 |
Operating Leases, Future Minimum Payments Due | $ 48,043 |
Impairment of Long-lived Assets
Impairment of Long-lived Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Long Lived Assets Held-for-sale [Line Items] | ||
Impairment of intangible assets | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gains (Losses) Of Cash Flow Hedges (Details) - Foreign Exchange Forward - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 93 | $ 0 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 773 | $ 0 |
Cost of Sales | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 526 | |
Research and development | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 75 | |
Selling, general and administrative | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 172 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jul. 25, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | $ 95,600 | ||||
Interest Rate Swap | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative asset | $ 26 | $ 871 | |||
Interest Rate Swap | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative asset | 100 | 900 | |||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | (86) | 340 | $ 287 | ||
Interest Rate Swap | Other income (expense), net | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 548 | 721 | 84 | ||
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion ) | 0 | $ 0 | $ 29 | ||
Senior Secured Term Loan | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Fixed interest rate, derivative | 2.94% | ||||
Derivative, Notional Amount | $ 22,500 | ||||
LIBOR | Senior Secured Term Loan | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative variable rate basis spread | 2.00% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 189,214,000 | $ 189,920,000 | $ 188,010,000 |
Foreign currency translation | 10,148,000 | ||
Goodwill, gross, as of December 30, 2017 | (166,000) | (706,000) | 1,910,000 |
Goodwill, ending balance | 199,196,000 | 189,214,000 | 189,920,000 |
Goodwill impairments | 0 | ||
Probe Cards | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 172,482,000 | 172,482,000 | 172,482,000 |
Foreign currency translation | 0 | ||
Goodwill, gross, as of December 30, 2017 | 0 | 0 | 0 |
Goodwill, ending balance | 172,482,000 | 172,482,000 | 172,482,000 |
Systems | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 16,732,000 | 17,438,000 | 15,528,000 |
Foreign currency translation | 10,148,000 | ||
Goodwill, gross, as of December 30, 2017 | (166,000) | (706,000) | 1,910,000 |
Goodwill, ending balance | $ 26,714,000 | $ 16,732,000 | $ 17,438,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 208,672 | $ 195,577 |
Accumulated Amortization | 151,062 | 127,937 |
Net | 57,610 | 67,640 |
Existing developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 154,951 | 143,408 |
Accumulated Amortization | 116,138 | 97,111 |
Net | 38,813 | 46,297 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 7,816 | 12,023 |
Accumulated Amortization | 6,976 | 9,173 |
Net | 840 | 2,850 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 44,229 | 40,146 |
Accumulated Amortization | 27,057 | 21,653 |
Net | 17,172 | 18,493 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,676 | 0 |
Accumulated Amortization | 891 | 0 |
Net | $ 785 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | $ 27,672 | $ 29,373 | $ 30,940 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |||
2019 | 26,270 | ||
2020 | 14,739 | ||
2021 | 5,553 | ||
2022 | 3,813 | ||
2023 | 2,073 | ||
Total | 57,610 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 5,162 | ||
Cost of Sales | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | 20,036 | 20,530 | 22,800 |
Selling, General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | $ 7,636 | $ 8,843 | $ 8,140 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment of intangible assets | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 6,256 |
2020 | 6,522 |
2021 | 5,742 |
2022 | 4,786 |
2023 | 4,355 |
Thereafter | 20,382 |
Operating Leases, Future Minimum Payments Due, Total | $ 48,043 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred stock authorized (in shares) | 10,000,000 | |
Preferred stock par value (in USD per share) | $ 0.001 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - USD ($) | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Feb. 28, 2017 | |
Class of Stock [Line Items] | ||||
Dividends declared and paid | $ 0 | |||
Stock repurchased during the period, amount | $ 18,970,000 | |||
Purchase and retirement of common stock | $ 0 | $ 0 | $ (18,970,000) | |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program authorized amount | $ 25,000,000 | |||
Stock repurchased during the period (in shares) | 1,367,617 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) | 12 Months Ended |
Dec. 28, 2019USD ($)$ / sharesshares | |
Additional Disclosures | |
Weighted Average Remaining Contractual Life, Outstanding | 2 years 1 month 28 days |
Weighted Average Remaining Contractual Life, Exercisable | 2 years 1 month 28 days |
Equity Incentive Plan | |
Number of Shares | |
Number of Shares, Outstanding (in shares) | shares | 524,725 |
Number of Shares, Options exercised (in shares) | shares | (162,956) |
Number of Shares, Outstanding (in shares) | shares | 361,769 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Outstanding (in USD per share) | $ / shares | $ 8 |
Weighted Average Exercise Price, Options exercised (in USD per share) | $ / shares | 7.21 |
Weighted Average Exercise Price, Outstanding (in USD per share) | $ / shares | $ 8.35 |
Vested and Expected to Vest | |
Number of Shares, Vested and expected to vest (in shares) | shares | 361,769 |
Weighted Average Exercise Price, Vested and expected to vest (in USD per share) | $ / shares | $ 8.35 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 6,400,367 |
Additional Disclosures | |
Number of Shares, Exercisable (in shares) | shares | 361,769 |
Weighted Average Exercise Price, Exercisable (in USD per share) | $ / shares | $ 8.35 |
Aggregate Intrinsic Value, Outstanding | $ | $ 6,400,367 |
Aggregate Intrinsic Value, Exercisable | $ | $ 6,400,367 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation details (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date per share fair value of RSUs granted | $ 15.12 | $ 13.79 | $ 13.20 |
Total intrinsic value of stock options exercised | $ 1,814 | $ 631 | $ 5,946 |
Fair value of RSUs vested | $ 23,450 | $ 17,541 | $ 18,339 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-based Compensation Expense (Details) - Employee Stock - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation, net of tax | $ 23,176 | $ 17,827 | $ 16,339 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restructuring and impairment charges, net | 4,055 | 3,525 | 3,539 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restructuring and impairment charges, net | 6,367 | 5,398 | 5,341 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restructuring and impairment charges, net | $ 12,754 | $ 8,904 | $ 7,459 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Stock-Based Compensation (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation - non-options | $ 30,895 |
Weighted Average Recognition Period (Years) | 1 year 10 months 24 days |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation - non-options | $ 24,038 |
Weighted Average Recognition Period (Years) | 1 year 10 months 24 days |
Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation - non-options | $ 287 |
Weighted Average Recognition Period (Years) | 1 month 6 days |
Performance Restricted Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation - non-options | $ 6,570 |
Weighted Average Recognition Period (Years) | 2 years |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - Employee Stock | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 36.60% | 44.85% | 46.20% |
Risk-free interest rate | 2.04% | 0.83% | 0.65% |
Expected term (in years) | 6 months | 6 months | 6 months |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 59.51% | 48.94% | 46.33% |
Risk-free interest rate | 2.46% | 2.22% | 1.15% |
Expected term (in years) | 1 year | 1 year | 1 year |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||||||||||
United States | $ 41,115 | $ 20,877 | $ 31,492 | ||||||||
Foreign | 9,948 | 13,050 | 10,714 | ||||||||
Income before income taxes | $ 24,447 | $ 9,863 | $ 9,238 | $ 7,515 | $ 11,657 | $ 9,081 | $ 10,777 | $ 2,412 | $ 51,063 | $ 33,927 | $ 42,206 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current provision (benefit): | |||||||||||
Federal | $ 179 | $ 79 | $ (2,130) | ||||||||
State | 2,302 | 388 | 17 | ||||||||
Foreign | 4,202 | 4,687 | 4,069 | ||||||||
Total current provision (benefit) | 6,683 | 5,154 | 1,956 | ||||||||
Deferred provision (benefit): | |||||||||||
Federal | 8,128 | (72,295) | 66 | ||||||||
State | (1,898) | (2,056) | 0 | ||||||||
Foreign | (1,196) | (912) | (729) | ||||||||
Total deferred provision (benefit) | 5,034 | (75,263) | (663) | ||||||||
Income Tax Expense (Benefit), Total | $ 5,811 | $ 1,584 | $ 2,290 | $ 2,032 | $ (73,443) | $ 1,393 | $ 1,654 | $ 287 | $ 11,717 | $ (70,109) | $ 1,293 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal statutory rate | 21.00% | ||||||||||
Income Tax Reconciliation | |||||||||||
U.S. statutory federal tax rate | $ 10,723 | $ 7,125 | $ 14,772 | ||||||||
State taxes, net of federal benefit | 441 | 778 | 951 | ||||||||
Stock-based compensation | (911) | (453) | (1,428) | ||||||||
Research and development credits | (6,436) | (3,213) | (1,979) | ||||||||
Foreign taxes at rates different than the U.S. | 1,454 | 1,287 | (271) | ||||||||
Other permanent differences | (148) | 152 | 160 | ||||||||
Global intangible low-taxed income | 1,369 | 1,828 | 0 | ||||||||
Mandatory deemed repatriation | 0 | 0 | 1,655 | ||||||||
Change in valuation allowance | 2,567 | (75,803) | (12,207) | ||||||||
Other | 2,658 | (1,810) | (360) | ||||||||
Income Tax Expense (Benefit), Total | $ 5,811 | $ 1,584 | $ 2,290 | $ 2,032 | $ (73,443) | $ 1,393 | $ 1,654 | $ 287 | $ 11,717 | $ (70,109) | $ 1,293 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Tax credits | $ 39,586 | $ 44,696 | $ 39,586 | |
Inventory reserve | 10,850 | 12,350 | 10,850 | |
Other reserves and accruals | 5,398 | 5,852 | 5,398 | |
Non-statutory stock options | 2,722 | 2,982 | 2,722 | |
Depreciation and amortization | 1,979 | 27,758 | 1,979 | |
Net operating loss carryforwards | 61,275 | 21,410 | 61,275 | |
Gross deferred tax assets | 121,810 | 115,048 | 121,810 | |
Valuation allowance | (34,037) | (36,604) | (34,037) | |
Total deferred tax assets | 87,773 | 78,444 | 87,773 | |
Acquired intangibles and fixed assets | (12,667) | (13,997) | (12,667) | |
Unrealized investment gains | (107) | (106) | (107) | |
Tax on undistributed earnings | (53) | (75) | (53) | $ (66) |
Total deferred tax liabilities | (12,827) | (14,178) | (12,827) | |
Net deferred tax assets | $ 64,266 | |||
Net deferred tax liabilities | (74,946) | (74,946) | ||
Decrease in valuation allowance | $ (75,800) | $ 75,800 | ||
Federal statutory rate | 21.00% |
Income Taxes - Tax Credits and
Income Taxes - Tax Credits and Carryforwards (Details) $ in Thousands | Dec. 28, 2019USD ($) |
California | |
Operating Loss Carryforwards [Line Items] | |
Research credits | $ 39,228 |
Singapore | |
Operating Loss Carryforwards [Line Items] | |
Singapore net operating loss carryforwards | 8,340 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Federal research and development tax credit | 37,494 |
Net operating loss carryforwards | 14,589 |
Foreign tax credit carryforwards | 1,134 |
Alternative minimum tax credits | 195 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 243,934 |
Income Taxes - Undistributed Ea
Income Taxes - Undistributed Earnings (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Income Tax Contingency [Line Items] | |||
Repatriation of earnings of foreign subsidiaries | $ 26,100 | ||
Deferred tax liabilities on undistributed earnings | 75 | $ 53 | $ 66 |
Non-US | |||
Income Tax Contingency [Line Items] | |||
Repatriation of earnings of foreign subsidiaries | 12,000 | ||
United States | |||
Income Tax Contingency [Line Items] | |||
Repatriation of earnings of foreign subsidiaries | $ 14,100 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning balance | $ 25,224 | $ 18,296 | $ 17,978 |
Additions based on tax positions related to the current year | 3,679 | 1,677 | 694 |
Additions based on tax positions from prior years | 0 | 5,332 | 0 |
Reductions for tax positions of prior years | (5) | (7) | 0 |
Reductions due to lapse of the applicable statute of limitations | (98) | (74) | (376) |
Unrecognized tax benefit, ending balance | 28,800 | 25,224 | 18,296 |
Interest and penalties recognized as a component of Provision (benefit) for income taxes | 59 | 71 | 67 |
Interest and penalties accrued at period end | 212 | $ 230 | $ 218 |
Tax-effected unrecognized tax benefits | $ 13,400 |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act of 2017 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | ||
Release of valuation allowance | $ 800 | ||
Provisional income inclusion for deemed repatriation | 15,700 | ||
Deferred tax liabilities on undistributed earnings | $ 75 | $ 53 | $ 66 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019USD ($)plan | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Retirement Benefits [Abstract] | |||
Number of benefit plans | plan | 1,000 | ||
Cost recognized under defined contribution plans | $ | $ 2.1 | $ 2 | $ 1.9 |
Segments and Geographic Infor_3
Segments and Geographic Information - Operating Results By Segment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 178,629 | $ 140,604 | $ 138,018 | $ 132,213 | $ 140,887 | $ 134,989 | $ 135,509 | $ 118,290 | $ 589,464 | $ 529,675 | $ 548,441 |
Gross profit | $ 74,305 | $ 55,318 | $ 55,352 | $ 52,521 | $ 56,022 | $ 52,970 | $ 56,218 | $ 45,129 | $ 237,496 | $ 210,339 | $ 215,597 |
Gross margin | 40.30% | 39.70% | 39.30% | ||||||||
Probe Cards | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 491,363 | $ 434,269 | $ 454,794 | ||||||||
Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 98,101 | 95,406 | 93,647 | ||||||||
Operating Segments | Probe Cards | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 491,363 | 434,269 | 454,794 | ||||||||
Gross profit | $ 211,382 | $ 187,320 | $ 195,903 | ||||||||
Gross margin | 43.00% | 43.10% | 43.10% | ||||||||
Operating Segments | Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 98,101 | $ 95,406 | $ 93,647 | ||||||||
Gross profit | $ 50,927 | $ 47,074 | 46,647 | ||||||||
Gross margin | 51.90% | 49.30% | |||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 0 | $ 0 | 0 | ||||||||
Gross profit | $ (24,813) | $ (24,055) | $ (26,953) | ||||||||
Gross margin | 0.00% | 0.00% | 0.00% |
Segments and Geographic Infor_4
Segments and Geographic Information - Revenue by Country (Details) - Geographic Concentration Risk - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Product Information [Line Items] | |||
Total Revenues | 100.00% | 100.00% | 100.00% |
United States | |||
Product Information [Line Items] | |||
Total Revenues | 26.30% | 25.20% | 34.00% |
China | |||
Product Information [Line Items] | |||
Total Revenues | 14.70% | 20.30% | 17.70% |
South Korea | |||
Product Information [Line Items] | |||
Total Revenues | 19.80% | 17.20% | 14.90% |
Taiwan | |||
Product Information [Line Items] | |||
Total Revenues | 18.00% | 14.70% | 11.10% |
Japan | |||
Product Information [Line Items] | |||
Total Revenues | 8.90% | 9.40% | 8.10% |
Japan | |||
Product Information [Line Items] | |||
Total Revenues | 7.00% | 7.50% | 8.20% |
Asia-Pacific | |||
Product Information [Line Items] | |||
Total Revenues | 3.70% | 4.90% | 5.50% |
Rest of the world | |||
Product Information [Line Items] | |||
Total Revenues | 1.60% | 0.80% | 0.50% |
Segments and Geographic Infor_5
Segments and Geographic Information - Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue from External Customers [Line Items] | |||||||||||
Revenues | $ 178,629 | $ 140,604 | $ 138,018 | $ 132,213 | $ 140,887 | $ 134,989 | $ 135,509 | $ 118,290 | $ 589,464 | $ 529,675 | $ 548,441 |
Foundry & Logic | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
Revenues | 318,552 | 258,459 | 313,714 | ||||||||
DRAM | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
Revenues | 147,257 | 135,333 | 124,685 | ||||||||
Flash | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
Revenues | 25,554 | 40,477 | 16,395 | ||||||||
Systems | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
Revenues | $ 98,101 | $ 95,406 | $ 93,647 |
Segments and Geographic Infor_6
Segments and Geographic Information - Revenue by Timing of Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | $ 178,629 | $ 140,604 | $ 138,018 | $ 132,213 | $ 140,887 | $ 134,989 | $ 135,509 | $ 118,290 | $ 589,464 | $ 529,675 | $ 548,441 |
Products transferred at a point in time | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | 582,762 | 523,547 | 543,053 | ||||||||
Services transferred over time | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | 6,702 | 6,128 | 5,388 | ||||||||
Probe Cards | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | 491,363 | 434,269 | 454,794 | ||||||||
Probe Cards | Products transferred at a point in time | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | 488,925 | 432,033 | 452,946 | ||||||||
Probe Cards | Services transferred over time | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | 2,438 | 2,236 | 1,848 | ||||||||
Systems | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | 98,101 | 95,406 | 93,647 | ||||||||
Systems | Products transferred at a point in time | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | 93,837 | 91,514 | 90,107 | ||||||||
Systems | Services transferred over time | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||||||
Revenues | $ 4,264 | $ 3,892 | $ 3,540 |
Segments and Geographic Infor_7
Segments and Geographic Information - Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 346,973 | $ 310,908 | $ 334,158 |
United States | |||
Long-Lived Assets [Line Items] | |||
Long-lived assets | 287,600 | 280,405 | 299,574 |
Japan | |||
Long-Lived Assets [Line Items] | |||
Long-lived assets | 52,309 | 26,118 | 30,922 |
Asia-Pacific | |||
Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 7,064 | $ 4,385 | $ 3,662 |
New Accounting Pronouncements_2
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | |||||
Cash and Cash Equivalents, at Carrying Value | $ 144,545 | $ 98,472 | |||
Restricted Cash and Cash Equivalents, Current | 1,981 | 849 | |||
Restricted Cash and Cash Equivalents, Noncurrent | 1,411 | 1,225 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 147,937 | 100,546 | $ 92,726 | $ 102,596 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets | $ 31,420 | $ 35,700 | $ 0 | ||
Lease liabilities | $ 40,000 |