Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2019 | Feb. 19, 2020 | Jul. 01, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TTMI | ||
Entity Registrant Name | TTM TECHNOLOGIES, INC. | ||
Entity Central Index Key | 0001116942 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 0-31285 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 91-1033443 | ||
Entity Address, Address Line One | 200 East Sandpointe | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Santa Ana | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92707 | ||
City Area Code | 714 | ||
Local Phone Number | 327-3000 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 105,511,095 | ||
Entity Public Float | $ 996,685,492 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 400,154 | $ 256,360 |
Accounts receivable, net | 503,664 | 523,165 |
Contract assets | 288,235 | 287,741 |
Inventories | 122,019 | 109,377 |
Prepaid expenses and other current assets | 28,612 | 30,271 |
Total current assets | 1,342,684 | 1,206,914 |
Property, plant and equipment, net | 1,022,929 | 1,052,024 |
Operating lease right-of-use assets | 24,156 | |
Goodwill | 774,791 | 767,045 |
Definite-lived intangibles, net | 332,008 | 375,923 |
Deposits and other non-current assets | 64,365 | 55,597 |
Assets, Total | 3,560,933 | 3,457,503 |
Current liabilities: | ||
Short-term debt, including current portion of long-term debt | 249,975 | 30,000 |
Accounts payable | 483,566 | 431,288 |
Contract liabilities | 3,838 | 3,220 |
Accrued salaries, wages and benefits | 98,720 | 94,950 |
Other | 110,567 | 113,756 |
Total current liabilities | 946,666 | 673,214 |
Long-term debt, net of discount and issuance costs | 1,225,962 | 1,462,425 |
Operating lease liabilities | 16,517 | |
Other long-term liabilities | 92,751 | 94,777 |
Total long-term liabilities | 1,335,230 | 1,557,202 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Common stock, $0.001 par value; 300,000 shares authorized, 105,510 and 103,687 shares issued and outstanding as of December 30, 2019 and December 31, 2018, respectively | 106 | 104 |
Additional paid-in capital | 814,708 | 797,895 |
Retained earnings | 474,309 | 433,008 |
Accumulated other comprehensive loss | (10,086) | (3,920) |
Total stockholders’ equity | 1,279,037 | 1,227,087 |
Liabilities and Equity, Total | $ 3,560,933 | $ 3,457,503 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 105,510,000 | 103,687,000 |
Common stock, shares outstanding | 105,510,000 | 103,687,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 2,689,308 | $ 2,847,261 | $ 2,658,592 |
Cost of goods sold | 2,287,625 | 2,390,227 | 2,229,011 |
Gross profit | 401,683 | 457,034 | 429,581 |
Operating expenses: | |||
Selling and marketing | 74,011 | 73,313 | 65,856 |
General and administrative | 152,096 | 159,437 | 126,141 |
Amortization of definite-lived intangibles | 48,474 | 59,681 | 23,634 |
Restructuring charges | 6,981 | 5,518 | 1,190 |
Total operating expenses | 281,562 | 297,949 | 216,821 |
Operating income | 120,121 | 159,085 | 212,760 |
Other income (expense): | |||
Interest expense | (83,234) | (78,958) | (53,898) |
Loss on extinguishment of debt | (768) | ||
Other, net | 9,297 | 9,641 | (18,136) |
Total other expense, net | (73,937) | (69,317) | (72,802) |
Income before income taxes | 46,184 | 89,768 | 139,958 |
Income tax (provision) benefit | (4,883) | 83,816 | (15,231) |
Net income | 41,301 | 173,584 | 124,727 |
Less: Net income attributable to the non-controlling interest | (513) | ||
Net income attributable to TTM Technologies, Inc. stockholders | $ 41,301 | $ 173,584 | $ 124,214 |
Earnings per share attributable to TTM Technologies, Inc. stockholders: | |||
Basic earnings per share | $ 0.39 | $ 1.68 | $ 1.22 |
Diluted earnings per share | $ 0.39 | $ 1.38 | $ 1.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 41,301 | $ 173,584 | $ 124,727 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments, net | (463) | (2,567) | 47,294 |
Pension obligation adjustments, net | (300) | (1,284) | |
Net unrealized (losses) gains on cash flow hedges: | |||
Unrealized (loss) gain on effective cash flow hedges during the year, net | (7,296) | (4,846) | 276 |
Loss realized in the statement of operations | 1,893 | 1,374 | 162 |
Net | (5,403) | (3,472) | 438 |
Other comprehensive (loss) income, net of tax | (6,166) | (7,323) | 47,732 |
Comprehensive income, net of tax | 35,135 | 166,261 | 172,459 |
Less: Comprehensive income attributable to the non-controlling interest | (513) | ||
Comprehensive income attributable to TTM Technologies, Inc. stockholders | $ 35,135 | $ 166,261 | $ 171,946 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total TTM Technologies, Inc Stockholders' Equity | Non-controlling Interest |
Beginning balance at Jan. 02, 2017 | $ 829,125 | $ 100 | $ 758,440 | $ 106,636 | $ (44,329) | $ 820,847 | $ 8,278 |
Beginning balance (in shares) at Jan. 02, 2017 | 100,396 | ||||||
Net income | 124,727 | 124,214 | 124,214 | 513 | |||
Other comprehensive income (loss) | 47,732 | 47,732 | 47,732 | ||||
Purchase of non-controlling equity interest | (8,568) | 223 | 223 | $ (8,791) | |||
Exercise of stock options | 74 | 74 | 74 | ||||
Exercise of stock options (in shares) | 7 | ||||||
Issuance of common stock for performance-based restricted stock units | $ 1 | (1) | |||||
Issuance of common stock for performance-based restricted stock units (in shares) | 291 | ||||||
Issuance of common stock for restricted stock units | $ 1 | (1) | |||||
Issuance of common stock for restricted stock units (in shares) | 1,126 | ||||||
Stock-based compensation | 18,290 | 18,290 | 18,290 | ||||
Ending balance at Jan. 01, 2018 | 1,011,380 | $ 102 | 777,025 | 230,850 | 3,403 | 1,011,380 | |
Ending balance (in shares) at Jan. 01, 2018 | 101,820 | ||||||
New revenue standard adjustment | 28,574 | 28,574 | 28,574 | ||||
Net income | 173,584 | 173,584 | 173,584 | ||||
Other comprehensive income (loss) | (7,323) | (7,323) | (7,323) | ||||
Exercise of stock options | 191 | 191 | 191 | ||||
Exercise of stock options (in shares) | 20 | ||||||
Issuance of common stock for performance-based restricted stock units | $ 1 | (1) | |||||
Issuance of common stock for performance-based restricted stock units (in shares) | 521 | ||||||
Issuance of common stock for restricted stock units | $ 1 | (1) | |||||
Issuance of common stock for restricted stock units (in shares) | 1,326 | ||||||
Stock-based compensation | 20,681 | 20,681 | 20,681 | ||||
Ending balance at Dec. 31, 2018 | 1,227,087 | $ 104 | 797,895 | 433,008 | (3,920) | 1,227,087 | |
Ending balance (in shares) at Dec. 31, 2018 | 103,687 | ||||||
Net income | 41,301 | 41,301 | 41,301 | ||||
Other comprehensive income (loss) | (6,166) | (6,166) | (6,166) | ||||
Redemption of convertible notes, net | (1) | (1) | (1) | ||||
Issuance of common stock for performance-based restricted stock units | $ 1 | (1) | |||||
Issuance of common stock for performance-based restricted stock units (in shares) | 693 | ||||||
Issuance of common stock for restricted stock units | $ 1 | (1) | |||||
Issuance of common stock for restricted stock units (in shares) | 1,130 | ||||||
Stock-based compensation | 16,816 | 16,816 | 16,816 | ||||
Ending balance at Dec. 30, 2019 | $ 1,279,037 | $ 106 | $ 814,708 | $ 474,309 | $ (10,086) | $ 1,279,037 | |
Ending balance (in shares) at Dec. 30, 2019 | 105,510 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 41,301 | $ 173,584 | $ 124,727 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 166,574 | 162,708 | 150,809 |
Amortization of definite-lived intangible assets | 53,296 | 63,026 | 23,634 |
Amortization of debt discount and issuance costs | 14,265 | 14,687 | 10,970 |
Deferred income taxes | (12,454) | (98,291) | (9,190) |
Stock-based compensation | 16,816 | 20,681 | 18,290 |
Loss on extinguishment of debt | 768 | ||
Other | (2,142) | (3,789) | 9,982 |
Changes in operating assets and liabilities, net of acquisition: | |||
Accounts receivable, net | 19,501 | 1,366 | (51,115) |
Contract assets | (494) | (3,502) | |
Inventories | (12,642) | 18,254 | (25,376) |
Prepaid expenses and other current assets | 1,802 | 5,199 | (2,005) |
Accounts payable | 42,045 | (45,739) | 54,602 |
Contract liabilities | 618 | (4,558) | |
Accrued salaries, wages and benefits and other current liabilities | (16,549) | (30,488) | 26,659 |
Net cash provided by operating activities | 311,937 | 273,138 | 332,755 |
Cash flows from investing activities: | |||
Acquisition of Anaren, net of cash acquired | (596,396) | ||
Purchase of property, plant and equipment and other assets | (142,576) | (150,127) | (151,345) |
Proceeds from sale of property, plant and equipment and assets held for sale | 6,604 | 331 | 27,255 |
Net cash used in investing activities | (135,972) | (746,192) | (124,090) |
Cash flows from financing activities: | |||
Proceeds from long-term debt borrowings | 600,000 | 725,000 | |
Repayment of long-term debt borrowing | (30,000) | (114,378) | (700,875) |
Repayment of assumed long-term debt in acquisition | (178,604) | ||
Proceeds (repayment) from borrowings of revolving loan | 23,000 | (63,000) | |
Payment of debt issuance costs | (1,803) | (7,653) | (9,842) |
Payment of original issue discount | (1,500) | (1,750) | |
Proceeds from exercise of stock options | 191 | 74 | |
Payment for purchase of non-controlling interest | (8,568) | ||
Redemption of convertible notes | (10) | (15) | |
Net cash (used in) provided by financing activities | (31,813) | 321,056 | (58,976) |
Effect of foreign currency exchange rates on cash and cash equivalents | (358) | (968) | 3,360 |
Net increase (decrease) in cash and cash equivalents | 143,794 | (152,966) | 153,049 |
Cash and cash equivalents at beginning of year | 256,360 | 409,326 | 256,277 |
Cash and cash equivalents at end of year | 400,154 | 256,360 | 409,326 |
Supplemental cash flow information: | |||
Cash paid, net for interest | 71,267 | 62,967 | 39,062 |
Cash paid, net for income taxes | 20,120 | 27,574 | 20,075 |
Supplemental disclosure of noncash investing activities: | |||
Property, plant and equipment recorded in accounts payable | $ 58,606 | $ 49,169 | $ 84,805 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | (1) Nature of Operations TTM Technologies, Inc. (the Company or TTM) is a leading global printed circuit board (PCB) manufacturer, focusing on quick-turn and volume production of technologically complex PCBs, backplane assemblies and electro-mechanical solutions (E-M Solutions) as well as a global designer and manufacturer of radio-frequency (RF) and microwave components and assemblies. The Company provides time-to-market and volume production of advanced technology products and offers a one-stop design, engineering and manufacturing solution to customers. This one-stop design and manufacturing solution enables the Company to align technology developments with the diverse needs of the Company’s customers and to enable them to reduce the time required to develop new products and bring them to market. The Company serves a diversified customer base in various markets throughout the world, including aerospace and defense, automotive components, smartphones and other mobile devices, high-end computing, medical, industrial and instrumentation related products, as well as networking/communications infrastructure products. The Company’s customers include both original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) providers. The Company operates on a 52 or 53 week year ending on the Monday nearest December 31. Fiscal 2019, 2018, and 2017 were 52 weeks ended on December 30, 2019, December 31, 2018 and January 1, 2018, respectively. All references to years relate to fiscal years unless otherwise noted. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net income. An adjustment has been made to combine the statutory surplus reserve with retained earnings on the consolidated statements of stockholders’ equity. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Such estimates include the sales return reserve; accounts receivable; inventories; goodwill; intangible assets and other long-lived assets; product warranty liabilities; legal contingencies; income taxes; pension obligations; and fair values of financial instruments. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. The actual results we experienced may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and actual results, our future result of operations will be affected. Principles of Consolidation The consolidated financial statements include the accounts of TTM and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Foreign Currency Translation and Transactions The functional currency of certain of the Company’s subsidiaries is the Chinese Renminbi (RMB). Accordingly, assets and liabilities are translated into U.S. dollars using period-end exchange rates. Sales and expenses are translated at the average exchange rates in effect during the period. The resulting translation gains or losses are recorded as a component of accumulated other comprehensive (loss) income in the consolidated statement of stockholders’ equity and the consolidated statement of comprehensive income. Net gains and losses resulting from foreign currency remeasurements and transactions are included in income as a component of other, net in the consolidated statements of operations and totaled $1,430 loss, $3,529 gain and $22,802 loss for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. Cash Equivalents The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts. The Company considers highly liquid investments with an effective maturity to the Company of more than three months and less than one year to be short-term investments. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are reflected at estimated net realizable value, do not bear interest and do not generally require collateral. The Company performs credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current creditworthiness. The Company maintains an allowance for doubtful accounts based upon a variety of factors. The Company reviews all open accounts and provides specific reserves for customer collection issues when it believes the loss is probable, considering such factors as the length of time receivables are past due, the financial condition of the customer, and historical experience. The Company also records a reserve for all customers, excluding those that have been specifically reserved for, based upon evaluation of historical losses. The Company’s allowance for doubtful accounts was $1,929, $2,750, and $2,468 as of December 30, 2019, December 31, 2018 and January 1, 2018, respectively. Inventories Inventories are stated at the lower of cost (determined on a first-in, first-out and weighted average basis) or net realizable value. Assessments to value the inventory at the lower of the actual cost to purchase and / or manufacture the inventory, or net realizable value of the inventory, are based upon assumptions about future demand and market conditions. As a result of the Company’s assessments, when the net realizable value of inventory is less than the carrying value, the inventory cost is written down to the net realizable value and the write down is recorded as a charge to cost of goods sold. Property, Plant and Equipment, Net Property, plant and equipment are recorded at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Assets recorded under leasehold improvements are amortized using the straight-line method over the lesser of their useful lives or the related lease term. The Company uses the following estimated useful lives: Land use rights 50-99 years Buildings and improvements 7-50 years Machinery and equipment 3-12 years Furniture and fixtures 3-7 years Upon retirement or other disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts. The resulting gain or loss is included in the determination of operating income in the period incurred. Depreciation and amortization expense on property, plant and equipment was $166,574, $162,708, and $150,809 for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is amortized over the average useful lives of such assets, which primarily consist of buildings and machinery and equipment. The Company capitalized interest costs of $1,810, $1,438 and $1,494 during the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively, in connection with various capital projects. Major renewals and betterments are capitalized and depreciated over their estimated useful lives while minor expenditures for maintenance and repairs are included in operating income as incurred. Goodwill Goodwill represents the excess of purchase price of an acquisition over the fair value of net assets acquired. Goodwill is not amortized but instead is assessed for impairment, at a reporting unit level, annually and when events and circumstances warrant an evaluation. In making this assessment, management relies on a number of factors, including expected future operating results, business plans, economic projections, anticipated future cash flows, business trends and declines in the Company’s market capitalization. The Company has two reportable segments consisting of PCB and E-M Solutions. Goodwill is only attributable to the Company’s PCB reportable segment. Goodwill is allocated to reporting units, which are operating segments or one level below the Company’s operating segments (the component level). Reporting units are determined by the discrete financial information available for the component and whether it is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. The Company’s PCB reportable segment is made up of two operating segments that consist of five reporting units. The Company evaluates its goodwill on an annual basis in the fourth quarter or more frequently if it believes indicators of impairment exist. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount or performs its annual impairment test. When tested quantitatively, the Company compares the fair value of the applicable reporting unit with its carrying value. The Company estimates the fair values of its reporting units using a combination of the income and market approaches. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount by which the carrying value exceeds the fair value is recognized as an impairment loss. In the fourth quarter of 201 9 , the Company performed its annual impairment test qualitatively and concluded that goodwill was not impaired. See Note 5 for further details. Intangible Assets Intangible assets include customer relationships and technology, which are being amortized over their estimated useful lives on a straight-line basis. The estimated useful lives of such intangibles range from 5 years to 13 years. Impairment of Long-lived Assets Long-lived tangible assets, including property, plant and equipment, assets held for sale, and definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset or asset groups may not be recoverable. The Company regularly evaluates whether events or circumstances have occurred that indicate possible impairment and relies on a number of factors, including expected future operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. Fair value is determined through various valuation techniques, including cost-based, market and income approaches as considered necessary. The Company classifies assets to be sold as assets held for sale when (i) Company management has approved and commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition and is ready for sale; (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated; (iv) the sale of the asset is probable; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets classified as held for sale are recorded at the lower of the carrying amount or fair value less the cost to sell and are included as a component of prepaid expenses and other current assets in the consolidated balance sheets. The Company classifies assets held for use when a decision to dispose of an asset or a business is made and the held for sale criteria are not met. Assets of the business are evaluated for recoverability in the following order: (i) assets other than goodwill, property and intangibles; (ii) property and intangibles subject to amortization; and (iii) goodwill. In evaluating the recoverability of property and intangible assets subject to amortization, in a held for use business, the carrying value is first compared to the sum of the undiscounted cash flows expected to result from the use and eventual disposition. If the carrying value exceeds the undiscounted expected cash flows, then a fair value analysis is performed. An impairment charge is recognized if the carrying value exceeds the fair value. Leases The Company adopted the new lease standard as of January 1, 2019 under the retrospective cumulative effect adjustment transition method. Therefore, the consolidated financial statements for the years ended December 31, 2018 and January 1, 2018 have not been adjusted and continued to be reported under previous U.S. GAAP guidance. As a result, beginning in the first quarter of 2019, the Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, and lease liabilities are included in other current liabilities and operating lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components and accounts for the lease and non-lease components as a single lease component. Revenue Recognition The Company adopted the new revenue standard on January 2, 2018, using the cumulative effect transition method with adjustment to the opening balance of retained earnings at January 2, 2018 for all open contracts as of January 1, 2018. Therefore, comparative information has not been adjusted and continues to be reported under previous U.S. GAAP guidance for the consolidated statement of operations for the year ended January 1, 2018. The impact of the adoption of the new revenue standard on the Company’s statement of operations for the years ended December 30, 2019 and December 31, 2018 were an additional revenue of $5,058 and $3,507, respectively and additional cost of goods sold of $4,231 and $2,422, respectively. The Company derives revenues primarily from the sale of PCBs, custom electronic assemblies using customer-supplied engineering and design plans as well as the design and manufacture of RF and microwave components and assemblies. In the absence of a sales agreement, the Company’s standard terms and conditions apply. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in the new standard in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Revenue Streams For PCBs and custom electronic assemblies, including pursuant to the Company’s long-term contracts related to the manufacture of components, assemblies and subsystems, orders for products generally correspond to the production schedules of the Company’s customers and are supported with firm purchase orders. The Company’s customers have continuous control of the work in progress and finished goods throughout the PCB and custom electronic assemblies manufacturing process, as these are built to customer specifications with no alternative use, and there is an enforceable right to payment for work performed to date. As a result, beginning in the first quarter of 2018, the Company began recognizing revenue over time based on the extent of progress towards completion of the performance obligation. Revenue recognized is based on the cost-to-cost method as it best depicts the transfer of control to the customer which takes place as we incur costs. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. In addition, the Company manufactures components, assemblies, and subsystems which service its wireless communications customers. The Company recognizes revenue at a point in time upon transfer of control of the products to the customer. Point in time recognition was determined as the customer does not simultaneously receive or consume the benefits provided by the Company’s performance and the asset being manufactured has alternative uses to the Company. Performance Obligations Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized upon transfer of control of the products to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company's contracts have a single performance obligation as the promise to transfer the individual good or service is not separately identifiable from other promises in the contract and is, therefore, not distinct. As of December 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations for the Company’s long-term contracts was $9,314. The Company expects to recognize revenue on approximately 100% of the remaining performance obligations for the Company’s long-term contracts over the next twelve months. The remaining performance obligations for the Company’s short-term contracts are expected to be recognized within one year or less. Transaction Price The Company provides customers a limited right of return for defective PCBs including components, subsystems and assemblies. Estimates of returns are treated as variable consideration for purposes of determining the transaction price. The Company accrues an estimate for sales returns and allowances progressively over time based on the extent of progress towards completion of the performance obligation using the Company’s judgment based on historical results and anticipated returns. To the extent actual experience varies from its historical experience, revisions to the sales returns and allowances accrual may be required. Sales returns and allowances are recorded as a reduction of revenue and included as a component of accrued expenses on the consolidated balance sheets. Shipping and handling fees and related freight costs and supplies associated with shipping products to customers are included as a component of cost of goods sold. Warranty-related services are not considered a separate performance obligation. Incremental warranty costs that are not related to sales returns are recorded in accrued expenses on the consolidated balance sheets and cost of goods sold on the consolidated statements of operations. The following summarizes the activity in the Company’s sales returns and allowances for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Balance at beginning of year $ 16,071 $ 8,171 $ 8,119 Addition charged as a reduction of sales (1) 15,632 23,525 14,574 Deductions (18,176 ) (15,602 ) (14,524 ) Effect of foreign currency exchange rates 17 (23 ) 2 Balance at end of year $ 13,544 $ 16,071 $ 8,171 (1) On the date of adopting the new revenue standard, the Company recorded an estimated sales returns and allowance in the amount of $5,213 as of January 2, 2018 Contract Balances Accounts receivable represents the Company’s unconditional right to receive consideration from its customer. Payments are generally due within 90 days or less of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. A contract asset is recognized when the Company has recognized revenue, but not issued an invoice for payment. Contract assets are classified as current assets and are transferred to receivables when the entitlement to payment becomes unconditional. The Company’s contract assets are generally converted to trade account receivables within 90 days, at which time the Company is entitled to payment of the fixed price upon delivery of the finished product subject to customer payment terms. Contract assets were $288,235 In 2019, there were no material impairment losses on contract assets. A contract liability is recognized when the Company has received payment in advance for the future transfer of goods or services. The Company’s contract liabilities are generally converted to revenue within 90 days. Contract liabilities were $3,838 and The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard. All incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. Disaggregated Revenue Revenue from products and services transferred to customers over time and at a point in time accounted for 98% and 2%, respectively, of the Company’s revenue in 2019 and 2018. In 2017, all revenue from products and services transferred to customers was recognized at a point in time. The following tables represent a disaggregation of revenue by principal end markets with the reportable segments: For the Year Ended December 30, 2019 PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 698,742 $ 543 $ 699,285 Automotive 322,382 102,004 424,386 Cellular Phone 336,725 — 336,725 Computing/Storage/Peripherals 360,262 288 360,550 Medical/Industrial/Instrumentation 355,072 29,682 384,754 Networking/Communications 321,952 94,435 416,387 Other 67,840 (619 ) 67,221 Total $ 2,462,975 $ 226,333 $ 2,689,308 For the Year Ended December 31, 2018 (1) PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 607,862 $ 858 $ 608,720 Automotive 415,772 86,828 502,600 Cellular Phone 385,757 — 385,757 Computing/Storage/Peripherals 399,692 1,694 401,386 Medical/Industrial/Instrumentation 370,171 39,852 410,023 Networking/Communications 381,038 96,894 477,932 Other 61,022 (179 ) 60,843 Total $ 2,621,314 $ 225,947 $ 2,847,261 For the Year Ended January 1, 2018 (2) PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 418,238 $ 1,544 $ 419,782 Automotive 434,775 76,401 511,176 Cellular Phone 483,805 — 483,805 Computing/Storage/Peripherals 352,862 4,247 357,109 Medical/Industrial/Instrumentation 330,093 38,257 368,350 Networking/Communications 390,335 88,506 478,841 Other 38,398 1,131 39,529 Total $ 2,448,506 $ 210,086 $ 2,658,592 (1) Amended for Anaren integration. (2) The Company adopted ASC Topic 606, Revenue from Contracts with Customers, Stock-Based Compensation The Company recognizes stock-based compensation expense in its consolidated financial statements for its incentive compensation plan awards. The incentive compensation plan awards include performance-based restricted stock units, restricted stock units, and stock options. The associated compensation expense for all awards is based on the grant date fair value of the awards. For performance-based restricted stock units, compensation expense also includes management’s periodic assessment of annual financial performance goals to be achieved. Compensation expense for the incentive compensation plan awards is recognized on a straight line basis over the vesting period of the awards. The fair value of performance-based restricted stock units is estimated on the grant date using a Monte Carlo simulation model based on the underlying common stock closing price as of the date of grant, the expected term, stock price volatility, and risk-free interest rates. The fair value of restricted stock units is measured on the grant date based on the quoted closing market price of the Company’s common stock. The fair value of the stock options is estimated on the grant date using the Black-Scholes option pricing model based on the underlying common stock closing price as of the date of grant, the expected term, stock price volatility, and risk-free interest rates. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets or liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income 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 be settled or realized. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax assets are reviewed for recoverability, and the Company records a valuation allowance to reduce its deferred income tax assets when it is more likely than not that all or some portion of the deferred income tax assets will not be realized. The Company has various foreign subsidiaries formed or acquired to conduct or support its business outside the United States. The Company expects its earnings attributable to foreign subsidiaries will be indefinitely reinvested except for our material Chinese and Canadian plants and the respective holding companies where a deferred tax liability has been recorded for foreign withholding and estimated federal/state tax impact. For those other companies with earnings currently being reinvested outside of the U.S., no deferred tax liabilities on undistributed earnings are recorded. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Estimated interest and penalties related to underpayment of income taxes are recorded as a component of income tax provision in the consolidated statements of operations. Convertible Debt The accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion require the debt and equity components to be separately accounted for in a manner that reflects the Company’s nonconvertible borrowing rate when interest expense is recognized in subsequent periods. The amount recorded as debt is based on the fair value of the debt component as a standalone instrument, determined using an average interest rate for similar nonconvertible debt issued by entities with credit ratings comparable to the Company’s at the time of issuance. The difference between the debt recorded at inception and its principal amount is accreted to principal through interest expense during the estimated life of the note. Value Added and Sales Tax Collected from Customers As a part of the Company’s normal course of business, value added and sales taxes are collected from customers. Such taxes collected are remitted, in a timely manner, to the appropriate governmental tax authority on behalf of the customer. Value added and sales taxes are excluded from reported revenues and costs of goods sold presented in the consolidated statements of operations and comprehensive income. Fair Value Measures The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1 — Quoted market prices in active markets for identical assets or liabilities; Level 2 — Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs); and Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions. Earnings Per Share Basic earnings per common share excludes dilution and is computed by dividing net income attributable to TTM Technologies, Inc. stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflect the potential dilution that could occur if stock options, Convertible Senior Notes or other common stock equivalents were exercised or converted into common stock. The dilutive effect of stock options or other common stock equivalents is calculated using the treasury stock method, while the dilutive effect of Convertible Senior Notes is calculated using the if-converted method. Comprehensive Income Comprehensive income includes changes to equity accounts that were not the result of transactions with stockholders. Comprehensive income is comprised of net income, changes in the cumulative foreign currency translation adjustments, pension obligation adjustments, and realized and unrealized gains or losses on hedged derivative instruments. Non-controlling Interest Holdings Non-controlling interest consisted of a 5% equity interest in a manufacturing facility in Huiyang, China which was acquired along with other assets and liabilities of Viasystems Group Inc. (Viasystems). In 2017, the Company purchased the 5% equity interest from the non-controlling interest holder. See Note 20. Loss Contingencies The Company establishes an accrual for an estimated loss contingency when it is both probable that an asset has been impaired or that a liability has been incurred and the amount of the loss can be reasonably estimated. Any legal fees expected to be incurred in connection with a contingency are expensed as incurred. Accounting for Retirement Benefit Plans The Company accounts for its retirement benefit plans and postretirement and postemployment benefit obligations in accordance with ASC Topic 715, Compensation—Retirement Benefits Recently Adopted and Issued Accounting Standards Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements The Company adopted the new lease standard as of January 1, 2019 and utilized the retrospective |
Leases
Leases | 12 Months Ended |
Dec. 30, 2019 | |
Leases [Abstract] | |
Leases | (2) Leases The Company leases some of its manufacturing and assembly plants, sales offices and equipment under non-cancellable operating leases that expire at various dates through 2049. The majority of the Company’s lease arrangements are comprised of fixed payments and certain leases consist of variable payments based on equipment usage. These variable payments are not included in the measurement of the ROU asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Certain leases contain renewal provisions at the Company’s option. Most of the leases require the Company to pay for certain other costs such as property taxes and maintenance. Certain leases also contain rent escalation clauses (step rents) that require additional rental amounts in the later years of the term. Rent expense for leases with step rents is recognized on a straight-line basis over the minimum lease term. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows: For the Year Ended December 30, 2019 (In thousands) Operating lease cost $ 9,262 Variable lease cost 11,283 Short-term lease cost 1,273 Supplemental cash flow information related to leases was as follows: For the Year Ended December 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,658 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 15,697 Supplemental balance sheet information related to leases was as follows: As of December 30, 2019 (In thousands) Operating lease right-of-use assets $ 24,156 Other current liabilities 8,178 Operating lease liabilities 16,517 Total operating lease liabilities $ 24,695 Weighted average remaining lease term 4.2 years Weighted average discount rate 3.81 % Maturities of operating lease liabilities were as follows (1) (In thousands) Less than one year $ 8,795 1 - 2 years 7,504 2 - 3 years 3,497 3 - 4 years 2,219 4 - 5 years 1,865 Thereafter 2,951 Total lease payments 26,831 Less imputed interest (2,136 ) Total $ 24,695 (1) Excludes $1,169 of legally binding minimum lease payments for leases signed but not yet commenced. Operating Leases Pre-Topic 842 Adoption The following is a schedule of future minimum lease payments as of December 31, 2018: Operating Leases (In thousands) 2019 $ 7,282 2020 4,701 2021 3,406 2022 2,408 2023 2,172 Thereafter 4,172 Total minimum lease payments $ 24,141 Total rent expense for the years ended December 31, 2018 and January 1, 2018 was approximately $20,345 and $16,665, respectively. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | ( 3 ) The Company periodically incurs restructuring charges as part of the integration process of recent acquisitions and to realign its operations with anticipated market demand. Following the acquisition of Anaren on April 18, 2018 and following the acquisition of Viasystems on May 31, 2015, the Company incurred employee separation costs and contract termination and other costs related to the integration and other efficiency and cost saving measures. Contract termination and other costs primarily represented plant closure costs as well as costs related to building operating leases. Following the acquisition of Viasystems on May 31, 2015, the Company closed certain facilities which resulted in the layoff of related employees at these facilities. The actions taken were part of the Company’s integration strategy to improve total plant utilization, operational performance and customer focus. The below table summarizes such restructuring costs by reportable segment for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 Employee Separation/ Severance Contract Termination and Other Costs Total Employee Separation/ Severance Contract Termination and Other Costs Total Employee Separation/ Severance Contract Termination and Other Costs Total (In thousands) Reportable Segment: PCB $ 6,856 $ 15 $ 6,871 $ 2,008 $ — $ 2,008 $ 178 $ 99 $ 277 E-M Solutions — — — — — — — 520 520 Corporate 80 30 110 3,389 121 3,510 33 360 393 $ 6,936 $ 45 $ 6,981 $ 5,397 $ 121 $ 5,518 $ 211 $ 979 $ 1,190 Accrued restructuring costs are included as a component of other current liabilities in the consolidated balance sheets. The below table shows the utilization of the accrued restructuring costs during the years ended December 30, 2019 and December 31, 2018: Employee Separation/ Severance Contract Termination and Other Costs Total (In thousands) Accrued as of January 1, 2018 $ — $ 499 $ 499 Charged to expense 5,397 121 5,518 Amount paid (2,239 ) (227 ) (2,466 ) Accrued as of December 31, 2018 $ 3,158 $ 393 $ 3,551 Charged to expense 6,936 45 6,981 Amount paid (9,834 ) (196 ) (10,030 ) Accrued as of December 30, 2019 $ 260 $ 242 $ 502 |
Composition of Certain Consolid
Composition of Certain Consolidated Financial Statement Captions | 12 Months Ended |
Dec. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Composition of Certain Consolidated Financial Statement Captions | (4 ) As of December 30, 2019 December 31, 2018 (In thousands) Inventories: Raw materials $ 108,236 $ 97,600 Work-in-process 8,588 10,299 Finished goods 5,195 1,478 $ 122,019 $ 109,377 Property, plant and equipment, net: Land and land use rights $ 74,850 $ 75,431 Buildings and improvements 543,546 534,122 Machinery and equipment 1,436,795 1,357,035 Construction-in-progress, furniture and fixtures and other 71,416 42,713 2,126,607 2,009,301 Less: Accumulated depreciation (1,103,678 ) (957,277 ) $ 1,022,929 $ 1,052,024 Other current liabilities: Sales returns and allowances $ 13,544 $ 16,071 Income taxes payable 12,899 11,345 Interest 8,893 9,260 Restructuring 502 3,551 Other 74,729 73,529 $ 110,567 $ 113,756 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | ( 5 ) As of December 30, 2019 and December 31, 2018, goodwill was as follows: Total (In thousands) Balance as of January 1, 2018 Goodwill 543,971 Accumulated impairment losses (171,400 ) 372,571 Goodwill recognized during the year 394,474 Balance as of December 31, 2018 Goodwill 938,445 Accumulated impairment losses (171,400 ) 767,045 Goodwill recognized during the year 7,746 Balance as of December 30, 2019 Goodwill 946,191 Accumulated impairment losses (171,400 ) $ 774,791 Goodwill balances include foreign currency translation adjustments related to foreign subsidiaries with functional currencies other than the U.S. Dollar. All of the Company’s goodwill is included as a component of the PCB reportable segment. On November 14, 2019, the Company acquired substantially all the assets of i3 Electronics, Inc. in order to strengthen its advanced technology PCB capabilities and IP portfolio for emerging applications in the aerospace and defense end market and for high end commercial customers. The net assets acquired consists of property, plant, and equipment, customer relationships, and technology. Goodwill is primarily attributable to the benefits the Company expects to derive from enhancing the Company’s capabilities and credentials as a global technology leader for PCB product solutions and RF components as well as the acquired workforce. Goodwill is expected to be deductible for tax purposes because the acquisition was legally structured as an asset acquisition but accounted for as business combinations under FASB ASC Topic 805, Business Combinations The Company evaluates its goodwill on an annual basis during its fourth fiscal quarter and at other times when events or changes in circumstances — such as significant adverse changes in the business climate or operating results or changes in management strategy, coupled with a decline in the market price of its stock and market capitalization — indicate that there may be a potential impairment. During the third fiscal quarter, the Company’s Communications and Computing and Automotive and Medical/Industrial/Instrumentation reporting units had lower than anticipated results and continued declines in sales. The Company considered these factors to be indicators of potential impairment requiring the Company to test the related goodwill of $39,300 for the Communications and Computing reporting unit and $185,500 for the Automotive and Medical/Industrial/Instrumentation reporting unit for impairment as of September 30, 2019. The Company completed a quantitative goodwill impairment analysis related to its Communications and Computing and Automotive and Medical/Industrial/Instrumentation reporting units by comparing the fair value of the reporting unit with its carrying amount. The Company determined the fair value of the reporting units by using discounted cash flow (DCF) and market analyses. Under the market approach, the Company used revenue and earnings multiples based on comparable industry multiples to estimate the fair value of the reporting units. Fair value is typically estimated using a DCF analysis which requires the Company to estimate the future cash flows as well as to select a risk-adjusted discount rate to measure the present value of the anticipated cash flows. When determining future cash flow estimates, the Company considers historical results adjusted to reflect current and anticipated future operating conditions. The Company estimates cash flows for a reporting unit over a discrete period and a terminal period (considering expected long-term growth rates and trends). Based on its analysis, the Company estimates that the fair value of the Communications and Computing and Automotive and Medical/Industrial/Instrumentation reporting units exceeded its respective carrying value by 19% and 8%, respectively. If the Company’s future cash flow projections and other fair value assumptions for its reporting unit change, the Company may be subject to potential impairment in subsequent quarters. Estimating the fair value of the reporting unit requires the Company to make assumptions and estimates in such areas as future economic conditions, industry-specific conditions, product pricing, and necessary capital expenditures. The Company used risk adjusted discount rates between 14% and 17% to discount the expected future cash flows. The use of different assumptions or estimates for future cash flows, discount rates, or terminal growth rates could produce substantially different estimates of the fair value of the reporting unit. In the fourth quarter of 2019, the Company performed its annual goodwill impairment test qualitatively and concluded that it was more likely than not that there was no impairment to goodwill. |
Definite-lived Intangibles
Definite-lived Intangibles | 12 Months Ended |
Dec. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Definite-lived Intangibles | ( 6 ) As of December 30, 2019 and December 31, 2018, the components of definite-lived intangibles were as follows: Gross Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period (In thousands) (In years) December 30, 2019 Customer relationships $ 415,000 $ (123,674 ) $ 291,326 10.8 Technology 39,500 (8,064 ) 31,436 9.4 Acquired intangibles from current year acquisition Customer relationships 1,230 (31 ) 1,199 5.0 Technology 8,150 (103 ) 8,047 10.0 $ 463,880 $ (131,872 ) $ 332,008 December 31, 2018 Customer relationships $ 203,634 $ (123,522 ) $ 80,112 8.1 Technology 3,000 (3,000 ) — 3.0 Acquired intangibles from current year acquisition Customer relationships 267,500 (15,561 ) 251,939 12.2 Developed technology 39,500 (3,345 ) 36,155 9.4 Backlog 29,000 (21,283 ) 7,717 0.9 $ 542,634 $ (166,711 ) $ 375,923 Definite-lived intangibles are amortized using the straight-line method of amortization over the useful life. Amortization expense was $53,296, $63,026, and $23,634 for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. For the years ended December 30, 2019 and December 31, 2018, $4,822 and $3,345, respectively, of amortization expense is included in cost of goods sold. Estimated aggregate amortization for definite-lived intangible assets for the next five years and thereafter is as follows: (In thousands) 2020 $ 46,480 2021 43,190 2022 40,063 2023 37,351 2024 29,812 Thereafter 135,112 $ 332,008 |
Long-term Debt and Letters of C
Long-term Debt and Letters of Credit | 12 Months Ended |
Dec. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Letters of Credit | ( 7 ) The following table summarizes the long-term debt of the Company as of December 30, 2019 and December 31, 2018: Interest Rate as of December 30, 2019 Principal Outstanding as of December 30, 2019 Interest Rate as of December 31, 2018 Principal Outstanding as of December 31, 2018 (In thousands) Term Loan due September 2024 4.28 % $ 805,879 5.00 % $ 835,879 Senior Notes due October 2025 5.63 375,000 5.63 375,000 Convertible Senior Notes due December 2020 1.75 249,975 1.75 249,985 U.S. ABL Revolving Loan due June 2024 3.03 40,000 4.00 40,000 Asia ABL Revolving Loan due June 2024 3.18 30,000 3.90 30,000 1,500,854 1,530,864 Less: Long-term debt unamortized discount (11,943 ) (22,167 ) Long-term debt unamortized debt issuance costs (12,974 ) (16,272 ) 1,475,937 1,492,425 Less: current maturities (249,975 ) (30,000 ) Long-term debt, less current maturities $ 1,225,962 $ 1,462,425 The fiscal calendar maturities of long-term debt through 2024 and thereafter are as follows: (In thousands) 2020 $ 249,975 2021 — 2022 — 2023 — 2024 875,879 Thereafter 375,000 $ 1,500,854 Term Loan Facility On April 18, 2018, the Company closed its $600,000 commitment of incremental loans concurrent with the completion of its acquisition of Anaren. At issuance, these incremental loans increased the Company’s existing balance of its Term Loan Facility due 2024 from $348,250 to $948,250. The Term Loan Facility had an outstanding balance of $805,879 as of December 30, 2019 and is included in long-term debt. The Term Loan Facility was issued at a weighted average discount of 99.7% and bears interest, at the Company’s option, at a floating rate of LIBOR plus an applicable interest margin of 2.5%, or an alternate base rate (as defined in the Term Loan Credit Agreement) plus an applicable margin of 1.5%. As of December 30 , 2019, the Based on certain parameters defined in the Term Loan Facility, including a First Lien Leverage Ratio, the Company may be required to make an additional principal payment on an annual basis beginning after fiscal year 2018, if the Company’s First Lien Leverage Ratio is greater than 2.0. Any remaining outstanding balance under the Term Loan Facility is due at the maturity date of September 28, 2024. Borrowings under the Term Loan Facility are subject to certain affirmative and negative covenants, including limitations on indebtedness, corporate transactions, investments and dispositions, and share payments. Senior Notes The $375,000 of Senior Notes issued, which is included in long-term debt, bear interest at a rate of 5.63% per annum. Interest is payable semiannually in arrears on April 1 and October 1 of each year beginning April 1, 2018. The Senior Notes will mature on October 1, 2025. Borrowings under the Senior Notes are subject to certain affirmative and negative covenants, including limitations on indebtedness, corporate transactions, investments and dispositions, and share payments. Convertible Senior Notes due 2020 The Company maintains 1.75% Convertible Senior Notes in the amount of $249,975 due December 15, 2020. The Convertible Senior Notes bear interest at a rate of 1.75% per annum. Interest is payable semiannually in arrears on June 15 and December 15 of each year. The Convertible Senior Notes are unsecured obligations and would rank equally to the Company’s future unsecured senior indebtedness and are senior in right of payment to any of the Company’s future subordinated indebtedness. Offering expenses are being amortized to interest expense over the term of the Convertible Senior Notes. Conversion: At any time prior to March 15, 2020, holders may convert their Convertible Senior Notes into cash and, if applicable, into shares of the Company’s common stock based on a conversion rate of 103.7613 shares of the Company’s common stock per $1 principal amount of Convertible Senior Notes, subject to adjustment, under the following circumstances: (1) during any calendar quarter beginning after March 31, 2015 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days during the 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day of such preceding calendar quarter; (2) during the five business day period after any 10 consecutive trading day period in which the trading price per note for each day of that 10 consecutive trading day period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on such day; or (3) upon the occurrence of specified corporate transactions described in the indenture governing the notes. In 2019, the conversion criteria had been met during certain periods allowing holders to give notice of conversion during the year. On or after March 15, 2020 until the close of business on the third scheduled trading day preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, for each $1 principal amount of notes, the Company will pay shares of its common stock, cash or a combination of cash and shares of its common stock at its election, if applicable, based on a daily conversion value calculated on a proportionate basis for each day of the 80 trading day observation period. All conversions occurring on the same date or on or after March 15, 2020 shall be settled using the same settlement method. Additionally, in the event of a fundamental change as defined in the indenture governing the notes, or other conversion rate adjustments such as share splits or combinations, other distributions of shares, cash or other assets to stockholders, including self-tender transactions (Other Conversion Rate Adjustments), the conversion rate may be modified to adjust the number of shares per $1 principal amount of the notes. As of December 30, 2019, none of the criteria for a fundamental change or a conversion rate adjustment had been met. The maximum number of shares issuable upon conversion, including the effect of a fundamental change and subject to Other Conversion Rate Adjustments, would be 32,422. Note Repurchase: The Company is not permitted to redeem the Convertible Senior Notes at any time prior to maturity. In the event of a fundamental change or certain default events, as defined in the indenture governing the notes, holders may require the Company to repurchase for cash all or a portion of their Convertible Senior Notes at a price equal to 100% of the principal amount, plus any accrued and unpaid interest. Convertible Note Hedge and Warrant Transaction: In connection with the issuance of the Convertible Senior Notes due 2020, the Company entered into a convertible note hedge and warrant transaction (Call Spread Transaction), with respect to the Company’s common stock. The convertible note hedge consists of the Company’s option to purchase up to 25,939 common stock shares at a price of $9.64 per share. The hedge expires on December 15, 2020 and can only be executed upon the conversion of the above mentioned Convertible Senior Notes due 2020. Additionally, the Company sold warrants to purchase 25,940 shares of its common stock at a price of $14.26 per share. The warrants expire ratably from March 2021 through January 2022. The Call Spread Transaction has no effect on the terms of the Convertible Senior Notes due 2020 and reduces potential dilution by effectively increasing the conversion price of the Convertible Senior Notes due 2020 to $14.26 per share of the Company’s common stock. As of December 30, 2019 and December 31, 2018, the following summarizes the equity components of the Convertible Senior Notes included in additional paid-in capital: As of December 30, 2019 As of December 31, 2018 Embedded conversion option — Convertible Senior Notes Embedded conversion option — Convertible Senior Notes Issuance Costs Total Embedded conversion option — Convertible Senior Notes Embedded conversion option — Convertible Senior Notes Issuance Costs Total (In thousands) Convertible Senior Notes due 2020 $ 60,213 $ (1,916 ) $ 58,297 $ 60,216 $ (1,916 ) $ 58,300 The components of interest expense resulting from the Convertible Senior Notes for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 were as follows: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Contractual coupon interest $ 4,374 $ 4,375 $ 4,375 Amortization of debt discount $ 9,751 $ 9,142 $ 8,570 Amortization of debt issuance costs $ 977 $ 916 $ 858 Asset-Based Lending Agreements During June 2019, the Company amended its U.S. Asset-Based Lending Credit Agreement (U.S. ABL) and its Asia Asset-Based Lending Credit Agreement (Asia ABL) (collectively the ABL Revolving Loans). The U.S. ABL credit facility was amended to extend its maturity to June 2024, decrease the size of the facility to The U.S. ABL consists of two tranches comprised of a revolving credit facility for up to $150,000 and a letter of credit facility for up to $50,000, provided that at no time may amounts outstanding under the tranches exceed in aggregate $150,000 or the applicable borrowing base, which is a percentage of the principal amount of Eligible Accounts, as defined in the U.S. ABL agreement. Borrowings under the U.S. ABL bear interest at either a floating rate of LIBOR plus a margin of 125 basis points or an alternate base rate (defined as the greater of the prime rate, the New York Fed bank rate plus 0.5% or LIBOR plus 1.0%) subject to a 1.0% floor, plus an applicable margin of 25 basis points, at the Company’s option. As of December 30, 2019, the interest rate on the outstanding borrowings under the U.S. ABL was 3.03%. The applicable margin can vary based on the remaining availability of the facility, from 125 to 150 basis points for LIBOR-based loans and from 25 to 50 basis points for JP Morgan Chase Bank’s prime rate-based loans. Other than availability and an event of default, there are no other provisions for the interest margin to increase. The U.S. ABL will mature on June 3, 2024. Loans made under the U.S. ABL are secured first by all of the Company’s domestic cash, receivables and certain inventories as well as by a second position against a significant amount of the domestic assets of the Company and a pledge of 65% of the voting stock of the Company’s first tier foreign subsidiaries and are structurally senior to the Company’s Senior Notes and Convertible Senior Notes. See Senior Notes and Convertible Senior Notes above. As of December 30, 2019, $40,000 under the U.S. ABL was outstanding and classified as long-term debt, which is consistent with its maturity date. The Asia ABL consists of two tranches comprised of a revolving credit facility for up to $150,000 and a letter of credit facility for up to $100,000, provided that at no time may amounts outstanding under both tranches exceed in aggregate $150,000 or the applicable borrowing base, which is a percentage of the principal amount of Eligible Accounts, as defined in the Asia ABL agreement. Borrowings under the Asia ABL bear interest at a floating rate of LIBOR plus 140 basis points. As of December 30, 2019, the interest rate on the outstanding borrowings under the Asia ABL was 3.18%. There is no provision, other than an event of default, for the interest margin to increase. The Asia ABL will mature on June 4, 2024. Loans made under the Asia ABL are secured by a portion of the Company’s Asia Pacific cash and receivables and are structurally senior to the Company’s domestic obligations, including the Senior Notes and Convertible Senior Notes. See Senior Notes and Convertible Senior Notes above. As of December 30, 2019, $30,000 under the Asia ABL was outstanding and classified as long-term debt, which is consistent with its maturity date. The Company has up to $50,000 and $100,000 Letters of Credit Facilities under the U.S. ABL and the Asia ABL, respectively. As of December 30, 2019, letters of credit in the amount of $14,488 were outstanding under the U.S. ABL and $21,709 were outstanding under the Asia ABL with various expiration dates through March 2020. Available borrowing capacity under the U.S. ABL and the Asia ABL was $95,512 and $98,291, respectively, which considers letters of credit outstanding as of December 30, 2019. The Company is required to pay a commitment fee of 0.25% per annum on any unused portion of the U.S. ABL and 0.28% per annum on any unused portion of the Asia ABL. The Company incurred total commitment fees related to unused borrowing availability of $703, $992 and $783 for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. Under the occurrence of certain events, the ABL Revolving Loans are subject to various financial and operational covenants, including maintaining minimum fixed charge coverage ratios. Other Credit Facility Additionally, the Company is party to a revolving loan credit facility (Chinese Revolver) with a lender in China. Under this arrangement, the lender has made available to the Company approximately $28,588 in unsecured borrowing with all terms of the borrowing to be negotiated at the time the Chinese Revolver is drawn upon. There are no commitment fees on the unused portion of the Chinese Revolver. Debt Issuance and Debt Discount As of December 30, 2019 and December 31, 2018, remaining unamortized debt discount and debt issuance costs for the Term Loan Facility, Senior Notes, and Convertible Senior Notes are as follows: As of December 30, 2019 As of December 31, 2018 Debt Issuance Costs Debt Discount Effective Interest Rate Debt Issuance Costs Debt Discount Effective Interest Rate (In thousands, except interest rates) Term Loan due September 2024 $ 6,663 $ 2,016 4.66 % $ 8,229 $ 2,489 4.66 % Senior Notes due October 2025 5,316 — 5.92 6,071 — 5.92 Convertible Senior Notes 995 9,927 6.48 1,972 19,678 6.48 $ 12,974 $ 11,943 $ 16,272 $ 22,167 The above debt discount and debt issuance costs are recorded as a reduction of the debt and are amortized into interest expense using an effective interest rate over the duration of the debt. Remaining unamortized debt issuance costs for the ABL Revolving Loans of $2,511 and $1,420 as of December 30, 2019 and December 31, 2018, respectively, are included in other non-current assets and are amortized to interest expense over the duration of the ABL Revolving Loans using the straight line method of amortization. As of December 30, 2019, the remaining weighted average amortization period for all unamortized debt discount and debt issuance costs was 3.4 years. Loss on Extinguishment of Debt During the year ended January 1, 2018, the Company recognized loss on extinguishment of debt of $768, primarily associated with the write off of the remaining unamortized debt issuance and debt discount for the 2016 Term Loan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 8 ) The components of income (loss) before income taxes for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 are: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) United States $ 16,066 $ 18,991 $ (4,178 ) Foreign 30,118 70,777 144,136 Income before income taxes $ 46,184 $ 89,768 $ 139,958 The Company expects its earnings attributable to foreign subsidiaries will be indefinitely reinvested, except for its material Chinese and Canadian plants and the respective holding companies where a deferred tax liability of approximately $10,243 and $905 has been recorded for the foreign and U.S. federal/state impact, respectively. For those other companies with earnings currently being reinvested outside of the U.S., the undistributed earnings amounted to approximately $60,769 as of December 30, 2019. The determination of the unrecognized deferred tax liability related to these undistributed earnings is approximately $3,589. The components of income tax benefit (provision) for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 are: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Current benefit (provision): Federal $ 294 $ 381 $ 82 State (2,922 ) (1,294 ) (462 ) Foreign (13,042 ) (12,045 ) (24,006 ) Total current (15,670 ) (12,958 ) (24,386 ) Deferred benefit (provision): Federal 1,004 97,723 11 State (1,076 ) 14,351 (31 ) Foreign 10,859 (15,300 ) 9,175 Total deferred 10,787 96,774 9,155 Total (provision) benefit $ (4,883 ) $ 83,816 $ (15,231 ) The following is a reconciliation of the provision for income taxes at the statutory federal income tax rate compared to the Company’s provision for income taxes for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Statutory federal income tax $ (9,699 ) $ (18,851 ) $ (48,985 ) State income taxes, net of federal benefit and state tax credits (3,163 ) (1,953 ) (462 ) Foreign deemed dividends — — (457 ) Transfer pricing — 1,483 — Acquisition related expenses — (1,737 ) — IRC Section 162(m) limitation (868 ) (3,702 ) — Stock options (252 ) 1,072 — Global Intangible Low-Taxed Income (457 ) — — Intercompany profit in inventory elimination — — (743 ) Permanently reinvested earnings assertion (2,903 ) (15,492 ) — Tax Act deferred tax revaluation — — (59,228 ) Foreign tax differential on foreign earnings & other permanent items 2,294 2,045 30,412 Change in valuation allowance 2,127 118,451 66,716 Uncertain tax positions 999 (954 ) (3,992 ) Federal research and development credits 4,582 2,996 1,270 Other 2,457 458 238 Total (provision) benefit for income taxes $ (4,883 ) $ 83,816 $ (15,231 ) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the net deferred income tax assets (liabilities) as of December 30, 2019 and December 3 1, 2018 are as follows: As of December 30, 2019 December 31, 2018 (In thousands) Deferred income tax assets: Net operating loss carryforwards $ 88,798 $ 104,801 Reserves and accruals 28,240 29,358 Interest expense limitation 13,102 1,276 Unrealized loss on cash flow hedge 2,960 1,128 Tax credit carryforwards 37,889 30,962 Stock-based compensation 4,440 4,528 Original issue discount on Convertible Senior Notes 870 5,130 Property, plant and equipment 13,722 24,826 Other deferred income tax assets 756 228 190,777 202,237 Less: valuation allowance (25,874 ) (27,426 ) 164,903 174,811 Deferred income tax liabilities: Discount on Convertible Senior Notes — (4,683 ) Repatriation of foreign earnings (11,148 ) (20,282 ) Property, plant and equipment basis differences (54,310 ) (50,622 ) Goodwill and intangible amortization (73,219 ) (85,300 ) Other deferred income tax liabilities (100 ) (252 ) Net deferred income tax assets $ 26,126 $ 13,672 Deferred income tax assets, net: Non-current deferred income taxes 26,126 13,672 As of December 30, 2019, the Company had the following net operating loss (NOL) carryforwards: $360,640 in the U.S. for federal, $48,025 in various U.S. states, $64,676 in China, and $60,087 in Hong Kong. The U.S. federal NOLs expire in 2023 through 2036, the various U.S. states’ NOLs expire in 2020 through 2036, the China NOLs expire in 2020 through 2029, and the Hong Kong NOLs carryforward indefinitely. Further, the Company’s tax credits were approximately $46,393, of which $6,693 carryforward indefinitely. In connection with the Company’s acquisition of Viasystems, there was more than a 50% change in ownership under Section 382 of the Internal Revenue Code of 1986, as amended, and regulations issued there under. As a consequence, the utilization of the acquired Viasystems U.S. NOLs is limited to approximately $9,826 per year. In addition, the Company recognized certain gains built in at the time of the ownership change, which increase the limitation by approximately $47,463 for each of the first 5 years after the acquisition. Any unused limitation in a year can be carried over to succeeding years. A valuation allowance is provided when it is more likely than not that all or some portion of the deferred income tax assets will not be realized. During the year ended December 31, 2018, the Company released a majority of its valuation allowance recorded on its U.S. net deferred tax assets due to a combination of the Company’s expectations for future U.S. taxable income improvement and to offset the net deferred tax liability acquired as a result of the Anaren acquisition. It continues to maintain a valuation allowance on certain of its U.S. net deferred tax assets represented by income tax attributes carried forward that are expected to expire unused. Certain subsidiaries within China continue to have NOL carryforwards in various tax jurisdictions that the Company has determined are not more likely than not to be utilized. As a result, a full valuation allowance has been recorded for these subsidiaries as of December 30, 2019. For the remaining net deferred income tax asset, management has determined that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax asset. The following summarizes the activity in the Company’s valuation allowance for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Balance at beginning of year $ 27,426 $ 167,238 $ 221,951 Reduction related to acquisition — (76,040 ) — Additions charged to expense 6,483 — 4,515 Reduction charged to expense — Tax Act — — (59,228 ) Other reduction charged to expense (8,035 ) (63,772 ) — Balance at end of year $ 25,874 $ 27,426 $ 167,238 Certain entities within China qualified for the high and new technology enterprise (HNTE) status enabling those entities to enjoy certain benefits, which were effective for the years ended December 30, 2019, December 31, 2018 and January 1, 2018. The HNTE status as well as enhanced research and development (R&D) deductions decreased Chinese taxes. HNTE and R&D benefit and effect on earnings per share are as follows: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands, except per share data) HNTE and R&D benefits $ 10,060 $ 11,970 $ 11,935 Basic shares 105,195 103,355 101,580 Diluted shares 106,332 134,036 132,476 Increases earnings per share: Basic $ 0.10 $ 0.12 $ 0.12 Diluted $ 0.09 $ 0.09 $ 0.09 HNTE status expires at various dates in 2019 through 2020, but the Company expects to continue to file for renewal of such HNTE status for the foreseeable future. A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of accrued interest and penalties, is as follows: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Balance at beginning of year $ 37,849 $ 38,841 $ 39,727 Additions related to acquisition — 903 — Additions based on tax positions related to the current year 3,553 856 1,965 Additions for tax positions of prior years 4,952 117 1,661 Reductions for tax positions of prior years (103 ) (2,140 ) (3,846 ) Lapse of statute of limitations (1,221 ) (728 ) (666 ) Balance at end of year $ 45,030 $ 37,849 $ 38,841 As of December 30, 2019 and December 31, 2018, the Company recorded unrecognized tax benefits of $25,805 and $26,274, respectively, as well as interest and penalties of $13,531 and $13,280, respectively, to current and long-term liabilities. The Company has also recorded unrecognized tax benefits of $19,225 and $11,576 against certain deferred tax assets as of December 30, 2019 and December 31, 2018, respectively. The amount of unrecognized tax benefits that would, if recognized, reduce the Company’s effective income tax rate in any future periods is $39,336 including interest and penalties. The Company expects its unrecognized tax benefits to decrease by $3,864 along with related interest of $6,555 over the next twelve months due to expiring statutes. As of December 30, 2019, the Company is subject to (i) U.S. federal income tax examination and / or NOL adjustment for tax years from 2000 to 2019, (ii) state and local income tax examination for tax years 2000 to 2019, and (iii) foreign income tax examinations generally for tax years from 2009 to 2019. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments | ( 9 ) Financial Instruments Derivatives Interest Rate Swaps The Company’s business is exposed to interest rate risk resulting from fluctuations in interest rates on certain LIBOR-based variable rate debt. Increases in interest rates would increase interest expenses relating to the outstanding variable rate borrowings and increase the cost of debt. Fluctuations in interest rates can also lead to significant fluctuations in the fair value of the debt obligations. On May 15, 2018, the Company entered into a four-year At inception, the Company designated the interest rate swap as a cash flow hedge and the fair value of the interest rate swap was zero. As of December 30, 2019, the fair value of the interest rate swap was recorded as a liability in the amount of $12,067 and included as a component of other long-term liabilities. The change in the fair value of the interest rate swap is recorded as a component of accumulated other comprehensive (loss) income, net of tax, in the Company’s consolidated balance sheets. No ineffectiveness was recognized for the years ended December 30, 2019 and December 31, 2018. During the year ended December 30, 2019, the interest rate swap increased interest expense by $2,315. Foreign Exchange Contracts The Company enters into foreign currency forward contracts to mitigate the impact of changes in foreign currency exchange rates and to reduce the volatility of purchases and other obligations generated in currencies other than its functional currencies. The Company’s foreign subsidiaries may at times purchase forward exchange contracts to manage their foreign currency risks in relation to certain purchases of machinery denominated in foreign currencies other than the Company’s functional currencies. The notional amount of the foreign exchange contracts as of December 30, 2019 and December 31, 2018 was approximately $3,304 and $4,313, respectively. The Company has designated certain of these foreign exchange contracts as cash flow hedges. The fair values of derivative instruments in the consolidated balance sheets are as follows: Asset/(Liability) Fair Value Balance Sheet Location December 30, 2019 December 31, 2018 (In thousands) Cash flow derivative instruments designated as hedges: Interest rate swap Other long-term liabilities $ (12,067 ) $ (4,735 ) Cash flow derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets 1 — Foreign exchange contracts Other current liabilities (29 ) (139 ) The following table provides information about the amounts recorded in accumulated other comprehensive loss related to derivatives designated as cash flow hedges, as well as the amounts recorded in each caption in the consolidated statements of operations when derivative amounts are reclassified out of accumulated other comprehensive loss for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 Financial Statement Caption Loss Recognized in Other Comprehensive Loss Loss Reclassified into Income Loss Recognized in Other Comprehensive Loss Loss Reclassified into Income Gain Recognized in Other Comprehensive Loss Loss Reclassified into Income (In thousands) Cash flow hedge: Interest rate swap Interest expense $ (9,647 ) $ (2,315 ) $ (6,333 ) $ (1,598 ) $ — $ — Foreign currency forward Depreciation expense (4 ) (155 ) (21 ) (157 ) 276 (162 ) The following table provides a summary of the activity associated with the designated cash flow hedges reflected in accumulated other comprehensive loss for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Beginning balance, net of tax $ (4,214 ) $ (742 ) $ (1,180 ) Changes in fair value (loss) gain, net of tax (7,296 ) (4,846 ) 276 Reclassification to earnings 1,893 1,374 162 Ending balance, net of tax $ (9,617 ) $ (4,214 ) $ (742 ) Based on the current yield curve, the Company expects that losses of approximately $3,561 of accumulated other comprehensive loss will be reclassified into the statement of operations, net of tax, in the next twelve months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | (1 0 ) The following provides a summary of the components of accumulated other comprehensive income (loss), net of tax as of December 30, 2019, December 31, 2018 and January 1, 2018: Foreign Currency Translation Pension Obligation Gains (Losses) on Cash Flow Hedges Total (In thousands) Ending balance as of January 1, 2018 $ 4,145 $ — $ (742 ) $ 3,403 Other comprehensive loss before reclassifications (2,567 ) (1,284 ) (4,846 ) (8,697 ) Amounts reclassified from accumulated other comprehensive income — — 1,374 1,374 Net year to date other comprehensive loss (2,567 ) (1,284 ) (3,472 ) (7,323 ) Ending balance as of December 31, 2018 1,578 (1,284 ) (4,214 ) (3,920 ) Other comprehensive loss before reclassifications (463 ) (300 ) (7,296 ) (8,059 ) Amounts reclassified from accumulated other comprehensive income — — 1,893 1,893 Net year to date other comprehensive loss (463 ) (300 ) (5,403 ) (6,166 ) Ending balance as of December 30, 2019 $ 1,115 $ (1,584 ) $ (9,617 ) $ (10,086 ) |
Significant Customers and Conce
Significant Customers and Concentration of Credit Risk | 12 Months Ended |
Dec. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Significant Customers and Concentration of Credit Risk | (1 1 ) Significant Customers and Concentration of Credit Risk In the normal course of business, the Company extends credit to its customers. Most customers to which the Company extends credit are located outside the United States. The Company performs ongoing credit evaluations of customers, does not require collateral, and considers the credit risk profile of the entity from which the receivable is due in further evaluating collection risk. The Company’s customers include both OEMs and EMS companies. The Company’s OEM customers often direct a significant portion of their purchases through EMS companies. While the Company’s customers include both OEM and EMS providers, the Company measures customer concentration based on OEM companies, as they are the ultimate end customers. For the years ended December 30, 2019 and December 31, 2018, one customer accounted for approximately 15% |
Fair Value Measures
Fair Value Measures | 12 Months Ended |
Dec. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | (1 2 ) Fair Value Measures The Company measures at fair value its financial and non-financial assets by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The carrying amount and estimated fair value of the Company’s financial instruments as of December 30, 2019 and December 31, 2018 were as follows: As of As of December 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Derivative assets, current $ 1 $ 1 $ — $ — Derivative liabilities, current 29 29 139 139 Derivative liabilities, non-current 12,067 12,067 4,735 4,735 Term Loan due September 2024 797,200 808,901 825,161 782,592 Senior Notes due October 2025 369,684 390,143 368,929 350,880 Convertible Senior Notes due December 2020 239,053 391,686 228,335 290,858 ABL Revolving Loans 70,000 70,000 70,000 70,000 The fair value of the derivative instruments was determined using pricing models developed based on the LIBOR swap rate, foreign currency exchange rates, and other observable market data, including quoted market prices, as appropriate using Level 2 inputs. The values were adjusted to reflect non-performance risk of both the counterparty and the Company, as necessary. The fair value of the long-term debt was estimated based on quoted market prices or discounting the debt over its life using current market rates for similar debt as of December 30, 2019 and December 31, 2018, which are considered Level 2 inputs. The fair value of the Convertible Senior Notes was estimated based on quoted market prices of the securities on an active exchange, which are considered Level 2 inputs. The fair value of plan assets in the defined benefit plan of $21,287 and $18,251 as of December 30, 2019 and December 31, 2018, respectively, were not included in the table above and was estimated based on quoted market prices of the securities that are actively traded and price quotes that are readily available, which are considered Level 1 inputs. See Note 15 for further details of the plan assets measured at fair value in the defined benefit plan. As of December 30, 2019 and December 31, 2018, the Company’s other financial instruments also included cash and cash equivalents, accounts receivable, and accounts payable. Due to short-term maturities, the carrying amount of these instruments approximates fair value. The Company’s cash and cash equivalents as of December 30, 2019 consisted of $51,165 held in the U.S., with the remaining $348,989 held by foreign subsidiaries. The majority of the Company’s non-financial assets and liabilities, which include goodwill, intangible assets, inventories, and property, plant and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or are tested at least annually in the case of goodwill) such that a non-financial instrument is required to be evaluated for impairment, based upon a comparison of the non-financial instrument’s fair value to its carrying value, an impairment is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. There was no impairment of long-lived assets recognized for the years ended December 30, 2019, December 31, 2018, or January 1, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (1 3 ) Legal Matters The Company is subject to various legal matters, which it considers normal for its business activities. While the Company currently believes that the amount of any reasonably possible loss for known matters would not be material to the Company’s financial condition, the outcome of these actions is inherently difficult to predict. In the event of an adverse outcome, the ultimate potential loss could have a material adverse effect on the Company’s financial condition or results of operations in a particular period. The Company has accrued amounts for its loss contingencies which are probable and estimable as of December 30, 2019 and December 31, 2018. However, these amounts are not material to the consolidated financial statements of the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (1 4 ) Stock-Based Compensation Incentive Compensation Plan The Company maintains a 2014 Incentive Compensation Plan (the Plan), which allowed for the issuance of up to 5,288 shares. In May 2016, the Plan was amended to increase the amount allowed for issuance by 5,000 shares, revising the maximum allowed for issuance to 10,288 through its expiration date of February 2024. The Plan provides for the grant of incentive stock options and nonqualified stock options to the Company’s key employees, non-employee directors and consultants. Other types of awards such as performance-based restricted stock units (PRUs), restricted stock units (RSUs), and stock appreciation rights are also permitted. The exercise price for options and awards is determined by the compensation committee of the board of directors and, for options intended to qualify as incentive stock options, may not be less than the fair market value as determined by the closing stock price at the date of the grant. Each option and award shall vest and expire as determined by the compensation committee of the board of directors, with options, PRUs and RSUs generally vesting over three years for employees and one year for non-employee directors. Options, PRUs and RSUs do not have voting rights. Options expire no later than ten years from the grant date. All grants provide for accelerated vesting if there is a change in control, as defined in the Plan. Upon the exercise of outstanding stock options or vesting of RSUs and PRUs, the Company’s practice is to issue new registered shares that are reserved for issuance under the Plan. As of December 30, 2019, 400 PRUs, 2,997 RSUs and 100 stock options were outstanding under the Plan. Included in the 2,997 RSUs outstanding as of December 30, 2019 are 470 vested but not yet released RSUs associated with non-employee directors. These RSUs vest over one year with release of the underlying shares of common stock deferred until retirement from the board of directors, (or until one year after retirement in the case of certain prior grants). Performance-based Restricted Stock Units The Company maintains a long-term incentive program for executives that provides for the issuance of PRUs, representing hypothetical shares of the Company’s common stock that may be issued. Under the PRU program, a target number of PRUs is awarded at the beginning of each three-year Under the PRU program, financial goals are set at the beginning of each fiscal year and performance is reviewed at the end of that year. The percentage to be applied to each participant’s target award ranges from zero to 160% based upon the extent to which the annual financial performance goals are achieved. If specific performance threshold levels for the annual financial goals are met, the amount earned for that element will be applied to one-third of the participants’ PRU award to determine the number of units earned. At the end of the three-year performance period, the total units earned, if any, are adjusted by applying a modifier, ranging from zero to 150% based on the Company’s TSR based on stock price changes relative to a group of peer companies selected by the Company’s compensation committee for the same three-year period. The TSR modifier is intended to ensure that there are limited or no payouts under the PRU program if the Company’s stock performance is significantly below the median TSR of a group of peer companies selected by the Company’s compensation committee over the three-year performance period. Where the annual financial goals have been met and where there has been strong relative TSR performance over the three-year performance period, the PRU program may provide substantial rewards to participants with a maximum payout of 2.4 times the initial PRU award. However, even if all of the annual financial metric goals are achieved in each of the three years, there will be no payouts if the Company’s stock performance is below that of the 10th percentile for PRUs granted in 2019, 2018 and 2017 of the group of peer companies selected by the Company’s compensation committee, as appropriate. Recipients of PRU awards generally must remain employed by the Company on a continuous basis through the end of the three-year performance period in order to receive any amount of the PRUs covered by that award. In events such as death, disability or retirement, the recipient may be entitled to pro-rata amounts of PRUs as defined in the Plan. Target shares subject to PRU awards do not have voting rights of common stock until earned and issued following the end of the three-year performance period. The Company records stock-based compensation expense for PRU awards granted based on management’s periodic assessment of the annual financial performance goals to be achieved. As of December 3 0, 2019 , management determined that vesting of the PRU awards was probable. PRU activity for the year ended December 3 0 , 201 9 was as follows: Shares Weighted Average Fair Value (In thousands) Outstanding shares as of December 31, 2018 255 $ 18.75 Granted 293 10.17 Vested (186 ) 16.98 Forfeited / cancelled (7 ) 15.18 Change in units due to annual performance achievement (141 ) 13.47 Outstanding shares as of December 30, 2019 214 $ 12.16 The fair value of PRUs granted is calculated using a Monte Carlo simulation model, as the TSR modifier contains a market condition. For the years ended December 30, 2019, December 31, 2018 and January 1, 2018, the following assumptions were used in determining the fair value: For the Year Ended December 30, 2019 (1) December 31, 2018 (2) January 1, 2018 (3) Weighted-average fair value $ 10.17 $ 19.59 $ 22.90 Risk-free interest rate 2.18 % 2.14 % 1.20 % Dividend yield — — — Expected volatility 38 % 40 % 43 % Expected term in years 1.8 1.5 1.8 (1) Reflects the weighted-averages for the third year of the three-year performance period applicable to PRUs granted in 2017, the second year of the three-year performance period applicable to PRUs granted in 2018 and the first year of the three-year performance period applicable to PRUs granted in 2019. (2) Reflects the weighted-averages for the third year of the three-year performance period applicable to PRUs granted in 2016, the second year of the three-year performance period applicable to PRUs granted in 2017 and the first year of the three-year performance period applicable to PRUs granted in 2018. (3) Reflects the weighted-averages for the third year of the three-year performance period applicable to PRUs granted in 2015, the second year of the three-year performance period applicable to PRUs granted in 2016 and the first year of the three-year performance period applicable to PRUs granted in 2017. The risk-free interest rate for the expected term of PRUs is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is calculated using the Company’s historical stock price. The expected term of the PRUs reflects the performance period for the PRUs granted. Restricted Stock Units RSU activity for the year ended December 30, 2019 was as follows: Shares Weighted Average Grant-Date Fair Value (In thousands) Non-vested RSUs outstanding as of December 31, 2018 2,125 $ 13.47 Granted 1,708 10.09 Vested (1,179 ) 11.84 Forfeited (127 ) 12.38 Non-vested RSUs outstanding as of December 30, 2019 2,527 $ 11.91 Vested and expected to vest as of December 30, 2019 2,997 $ 11.75 The fair value of the Company’s RSUs is determined based upon the closing common stock price on the grant date. The weighted average fair value per unit of RSUs granted was $10.09, $15.35 and $15.85 for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. The total fair value of RSUs vested for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 was $13,954, $12,599 and $9,446, respectively. Stock Options The Company did not grant stock option awards during the years ended December 30, 2019 and January 1, 2018. During the year ended December 31, 2018, the Company granted 40 stock options to newly appointed members of the board which were estimated to have a weighted fair value per share of $8.37. The fair value calculation is based on stock options granted during the period using the Black-Scholes option-pricing model on the date of grant. For the year ended December 31, 2018, the weighted fair value was determined using 3.1% as the risk-free interest rate, 43% as the expected volatility, 8.5 years as the expected term and no dividend yield. The Company determines the expected term of its stock option awards by periodic review of its historical stock option exercise experience. This calculation uses assumed future exercise patterns to account for option holders’ expected exercise and post-vesting termination behavior for outstanding stock options over their remaining contractual terms. Expected volatility is calculated by weighting the Company’s historical stock price to calculate expected volatility over the expected term of each grant. The risk-free interest rate for the expected term of each option granted is based on the U.S. Treasury yield curve in effect at the time of grant with a period that approximates the expected term of the options. Option activity under the Plan for the year ended December 30, 2019 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Outstanding as of December 31, 2018 100 $ 13.10 6.1 $ 4 Outstanding as of December 30, 2019 100 $ 13.10 5.1 $ 212 Vested and expected to vest as of December 30, 2019 100 $ 13.10 5.1 $ 212 Exercisable as of December 30, 2019 65 $ 12.06 3.3 $ 212 The aggregate intrinsic values in the table above represent the total pretax intrinsic value (the difference between Company’s closing stock price on the last trading day of the 2019 fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 30, 2019. This amount changes based on the fair market value of the Company’s stock. There were no options exercised or vested for the year ended December 30, 2019. The total intrinsic value of options exercised for the years ended December 31, 2018 and January 1, 2018 was $128 and $27, respectively. The total fair value of the options vested for both years ended December 31, 2018 and January 1, 2018 was $34. Stock-based Compensation Expense and Unrecognized Compensation Costs For the years ended December 30, 2019, December 31, 2018 and January 1, 2018, the amounts recognized in the consolidated statements of operations with respect to the stock-based compensation plan are as follows: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Cost of goods sold $ 3,158 $ 2,898 $ 2,252 Selling and marketing 1,973 1,964 1,458 General and administrative 11,685 15,819 14,580 Stock-based compensation expense recognized $ 16,816 $ 20,681 $ 18,290 The following is a summary of total unrecognized compensation costs as of December 30, 2019: Unrecognized Stock-Based Compensation Cost Remaining Weighted Average Recognition Period (In thousands) (In years) RSU awards $ 19,452 1.5 PRU awards 1,352 1.4 Stock options 242 1.7 $ 21,046 |
Employee Benefit Plans, Deferre
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan | 12 Months Ended |
Dec. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan | (1 5 ) As of December 30, 2019, the Company has several defined contribution plans. In North America, the Company has savings plans (the Savings Plans) in which eligible full-time employees can participate and contribute a percentage of compensation subject to the maximum allowed by the tax agencies. The Savings Plans provides for a partial match by the Company. In China, the Company contributes to either separate trust-administered funds or various government-sponsored pension plans on a mandatory basis. For all defined contribution plans, the Company has no further payment obligation once the required contributions have been made. The Company recorded contributions to defined contribution plans of $54,395, $58,445 and $42,461 during the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. The Company also maintains a deferred compensation plan (the Compensation Plan). The Compensation Plan is an unfunded, nonqualified deferred compensation plan and is limited to selected employees, including the Company’s named executive officers and directors. The Compensation Plan allows participants to defer up to 100% of their annual bonus and between 5% and 100% of their annual director fees. Amounts deferred under the Compensation Plan will be credited to accounts maintained by the Company for each participant and will be credited or debited with the participant’s proportionate share of any gains or losses attributable to the performance of investment options selected by the participant. During the years ended December 30, 2019 and December 31, 2018, and following the acquisition of Anaren on April 18, 2018, the Company has a noncontributory defined benefit pension plan covering eligible employees. Effective August 15, 2000, the plan was closed for new participants. Benefits under this plan generally are based on the employee’s years of service and compensation. Effective December 31, 2019, the plan is frozen as to further participation and to further benefit accruals. As of December 30, 2019 and December 31, 2018, the funded status of the accumulated benefit obligation was 70%. The Company expects to fund a minimum required contribution of approximately $838 during fiscal year 2020. The following tables set forth the changes in benefit obligation and the plan assets in the defined benefit plan described above for the years ended December 30, 2019 and December 31, 2018: For the Year Ended Change in Benefit Obligations December 30, 2019 December 31, 2018 (In thousands) Benefit obligation at beginning of year $ (27,661 ) $ (27,525 ) Service cost (397 ) (292 ) Interest cost (1,109 ) (758 ) Amendments/curtailments/special termination 1,636 — Actuarial (loss) gain (4,174 ) 264 Benefits paid 1,105 650 Benefit obligation at end of year $ (30,600 ) $ (27,661 ) Accumulated benefit obligation at end of year $ 30,600 $ 26,191 For the Year Ended Change in in Plan Assets December 30, 2019 December 31, 2018 (In thousands) Fair value of plan assets at beginning of year $ 18,251 $ 19,643 Actual return on plan assets 3,346 (1,021 ) Employer contributions 795 280 Benefits paid (1,105 ) (651 ) Fair value of plan assets at end of year $ 21,287 $ 18,251 Unfunded status $ (9,313 ) $ (9,410 ) Net amount recognized $ (9,313 ) $ (9,410 ) Amounts before income tax effect recognized in the consolidated balance sheets consists of the following: As of As of December 30, 2019 December 31, 2018 (In thousands) Other long-term liabilities $ (9,313 ) $ (9,410 ) Net amount recognized $ (9,313 ) $ (9,410 ) Amounts before income tax effect included in accumulated other comprehensive loss as of December 30, 2019 and December 30, 2019 December 31, 2018 (In thousands) Net actuarial loss $ (2,097 ) $ (1,677 ) Accumulated other comprehensive loss $ (2,097 ) $ (1,677 ) During 2020, no accumulated other comprehensive loss is expected to be recognized as a component of net periodic benefit cost. The components included in the net periodic benefit cost and the increase in minimum liability included in other comprehensive loss for the years ended December 30, 2019 and December 31, 2018 are as follows: December 30, 2019 December 31, 2018 (In thousands) Service cost $ 397 $ 292 Interest cost 1,109 758 Expected return on plan assets (1,228 ) (920 ) Net periodic benefit cost $ 278 $ 130 The weighted-average assumptions used to determine benefit obligations for this plan as of December 30, 2019 and December 30, 2019 December 31, 2018 Discount rate 3.02 % 4.09 % Rate of compensation increase 3.20 3.20 Expected return on plan assets 6.00 6.75 The Company determines the discount rate assumption based on the internal rate of return for a portfolio of high quality bonds, with a minimum rating of Moody's AA Corporate and with maturities that are consistent with the projected future cash flow obligations. The weighted-average assumptions used to determine net periodic benefit cost for the year ended December 30, 2019 and December 31, 2018 are as follows: For the Year Ended December 30, 2019 December 31, 2018 Discount rate 4.09 % 3.96 % Rate of compensation increase 3.20 3.20 Expected return on plan assets 6.75 6.75 The Company determines the expected long-term rate of return on plan assets based upon recommendations from its pension plan's investment advisors and using an allocation approach that considers diversification and rebalancing for a portfolio of assets invested over a long-term time horizon. The approach relies on the historical returns of the plan's portfolio and relationships between equities and fixed income investments, consistent with the widely accepted capital market principle that a diversified portfolio with a larger allocation to equity investments can generate a greater return over the long run. Additionally, the Company monitors the mix of investments in its portfolio to ensure alignment with its expected long-term pension obligations. The Company reviews the expected long-term rate of return annually and revises it as appropriate. Investments shall be made pursuant to the following objectives: 1) preserve the purchasing power of the plan’s assets adjusted for inflation; 2) provide long term growth; 3) avoid significant volatility. Asset allocation shall be determined based on a long-term target allocation having 29% of assets invested in large-cap stocks, 11% in mid-cap stocks, 11% in small-cap stocks, 11% in international stocks, 34% in the broad bond market, and 3% in the real estate market, with little or none invested in cash. Both the investment allocation and the plan performance are reviewed periodically. The target allocation for 2020 and the plan asset allocation at the end of 2019 and 2018, in percentages, by asset category are as follows: Target Allocation 2020 December 30, 2019 December 31, 2018 Equity securities (1) 66 % 66 % 61 % Debt securities (2) 31 31 38 Cash and cash equivalents (3) 3 3 1 Total 100 % 100 % 100 % The following table summarizes plan assets measured at fair value as of December 30, 2019 and December 31, 2018: As of December 30, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Equity securities (1) $ 14,131 $ 14,131 $ — $ — Debt securities (2) 6,488 6,488 — — Cash and cash equivalents (3) 668 668 — — Total $ 21,287 $ 21,287 $ — $ — As of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Equity securities (1) $ 11,184 $ 11,184 $ — $ — Debt securities (2) 6,929 6,929 — — Cash and cash equivalents (3) 138 138 — — Total $ 18,251 $ 18,251 $ — $ — (1) Equity securities include U.S. and foreign exchange traded common and preferred stocks and mutual funds. Common and preferred shares issued by U.S. and non-U.S. corporations are traded actively on exchanges and price quotes for these shares are readily available. Holdings of corporate stock are categorized as Level 1 investments. (2) Debt securities include the debt of the U.S. Treasury and U.S. and foreign corporate issuers. U.S. Treasury notes and bonds are actively traded and price quotes for these securities are readily available. Holdings of U.S. Treasury notes and bonds are categorized as Level 1 investments. (3) Cash and cash equivalents include short-term U.S. government investment notes, short-term money market mutual funds, accrued income and cash held on account. Cash held on account and short- term U.S. government investment notes (including accrued income thereon) for which there is an active market and daily pricing for the security are categorized as Level 1 investments. The Company seeks to maximize medium to long-term returns of the overall pension plan assets with reasonable levels of investment risk. One element of controlling the overall investment risk is through diversification of asset allocation, among domestic and international equity and debt instruments. The plan's equity investments include foreign and domestic exchange traded equities across a range of industries and countries, but primarily in the domestic markets. The plan's debt securities are primarily invested in government and corporate issuers primarily in the domestic market. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (In thousands) 2020 $ 1,185 2021 1,251 2022 1,309 2023 1,408 2024 1,506 Years 2025 through 2029 8,344 |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 30, 2019 | |
Equity [Abstract] | |
Preferred Stock | (1 6 ) The board of directors has the authority, without action by stockholders, to designate and issue preferred stock in one or more series. The board of directors may also designate the rights, preferences and privileges of each series of preferred stock, any or all of which may be superior to the rights of the common stock. As of December 30, 2019, no shares of preferred stock were outstanding. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | (1 7 ) The reportable segments shown below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker to assess performance and to allocate resources. The Company has two reportable segments: PCB and E-M Solutions. The PCB reportable segment is comprised of multiple operating segments and consists of sixteen domestic PCB, RF sub-system, and RF component fabrication plants, including two facilities that provide follow-on value-added services; nine PCB fabrication and RF component plants in China; and one in Canada. The E-M Solutions reportable segment consists of three custom electronic assembly plants in China. Factors considered to determine whether operating segments can be aggregated into reportable segments included similarity regarding economic characteristics, products, production processes, type or classes of customers, distribution methods, and regulatory environments. The Company, including the chief operating decision maker, evaluates segment performance based on reportable segment income, which is operating income before amortization of intangibles. Interest expense and interest income are not presented by segment since they are not included in the measure of segment profitability reviewed by the chief operating decision maker. All inter-segment transactions have been eliminated. For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Net Sales: PCB (1) $ 2,462,975 $ 2,621,314 $ 2,448,506 E-M Solutions 226,333 225,947 210,086 Total net sales $ 2,689,308 $ 2,847,261 $ 2,658,592 Operating Segment Income: PCB (1) $ 276,208 $ 329,668 $ 322,486 E-M Solutions 7,119 8,105 6,716 Corporate (109,910 ) (115,662 ) (92,808 ) Total operating segment income 173,417 222,111 236,394 Amortization of definite-lived intangibles (2) (53,296 ) (63,026 ) (23,634 ) Total operating income 120,121 159,085 212,760 Total other expense (73,937 ) (69,317 ) (72,802 ) Income before income taxes $ 46,184 $ 89,768 $ 139,958 For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Depreciation Expense: PCB (1) $ 155,163 $ 153,637 $ 144,256 E-M Solutions 3,476 2,850 2,471 Corporate 7,935 6,221 4,082 Total depreciation expense $ 166,574 $ 162,708 $ 150,809 Capital Expenditures: PCB (1) $ 130,799 $ 103,318 $ 161,152 E-M Solutions 2,302 3,918 5,438 Corporate 8,437 7,758 44,001 Total capital expenditures $ 141,538 $ 114,994 $ 210,591 As of December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Segment Assets: PCB (1) $ 2,126,765 $ 2,039,088 $ 1,991,049 E-M Solutions 156,580 146,693 143,344 Corporate 1,277,588 1,271,722 647,489 Total assets $ 3,560,933 $ 3,457,503 $ 2,781,882 (1) Figures for the year ended January 1, 2018 do not include Anaren, as the acquisition occurred on April 18, 2018. (2) Amortization of definite-lived intangibles relates to the PCB reportable segment. For the years ended December 30, 2019 and December 31, 2018, $4,822 and $3,345, respectively, of amortization expense is included in cost of goods sold. The Corporate category includes operating expenses that are not included in the segment operating performance measures. Corporate consists primarily of corporate governance functions such as finance, accounting, information technology, facilities and human resources personnel, as well as global sales and marketing personnel and acquisition and integration costs associated with the acquisitions. Bank fees and legal, accounting, and other professional service costs associated with acquisitions of $6,902, $13,279 and $2,266 for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively, are included in Corporate. The Company markets and sells its products in approximately 60 countries. Other than in the United States and China, the Company does not conduct business in any country in which its net sales in that country exceed 10% of the Company’s total net sales. Net sales and long-lived assets are as follows: 2019 2018 2017 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets (In thousands) United States $ 1,394,464 $ 1,348,741 $ 1,260,739 $ 1,315,174 $ 850,511 $ 642,256 China 551,861 754,514 548,853 851,789 957,296 866,126 Other 742,983 26,473 1,037,669 28,029 850,785 23,984 Total $ 2,689,308 $ 2,129,728 $ 2,847,261 $ 2,194,992 $ 2,658,592 $ 1,532,366 Net sales are attributed to countries by country invoiced. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | ( 1 8 ) The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands, except per share amounts) Basic earnings: Basic earnings $ 41,301 $ 173,584 $ 124,214 Diluted earnings: Net income attributable to TTM Technologies, Inc. stockholders $ 41,301 $ 173,584 $ 124,214 Interest expense from Convertible Senior Notes, net of tax 11,090 11,906 13,803 Diluted earnings $ 52,391 $ 185,490 $ 138,017 Basic weighted average shares 105,195 103,355 101,580 Dilutive effect of performance-based restricted stock units, restricted stock units and stock options 1,137 1,677 2,157 Dilutive effect of outstanding warrants — 3,065 2,799 Dilutive effect of assumed conversion of Convertible Senior Notes outstanding — 25,939 25,940 Diluted shares 106,332 134,036 132,476 Earnings per share attributable to TTM Technologies, Inc. stockholders: Basic $ 0.39 $ 1.68 $ 1.22 Diluted $ 0.39 $ 1.38 $ 1.04 For the years ended December 30, 2019, December 31, 2018 and January 1, 2018, PRUs, RSUs and stock options to purchase 730, 528 and 255 shares of common stock, respectively, were not considered in calculating diluted earnings per share because the options’ exercise prices or the total expected proceeds under the treasury stock method for performance-based stock units, restricted stock units or stock options was greater than the average market price of common shares during the applicable year and, therefore, the effect would be anti-dilutive. The below is a summary of amounts convertible to common stock related to Convertible Senior Notes and related warrants: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Common stock related to Convertible Senior Notes 25,938 25,939 25,939 Warrants to purchase common stock 25,940 25,940 25,940 For the year ended December 30, 2019, the effect of shares of common stock related to the Company’s Convertible Senior Notes, based on the if-converted method, were not included in the computation of dilutive earnings per share as the impact would be anti-dilutive. Outstanding warrants for the year ended December 30, 2019, to purchase common stock were not included in the computation of dilutive earnings per share because the strike price of the warrants to purchase the Company’s common stock were greater than the average market price of common shares during the applicable year, and therefore, the effect would be anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (19 ) In the normal course of business, the Company’s foreign subsidiaries purchase laminate and prepreg from related parties in which a member of the Board of Directors of the Company holds an equity interest. The Company’s foreign subsidiaries purchased laminate and prepreg from these related parties in the amount of $33,695, $44,992 and $51,985 for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. The Company also sells PCBs to a related party which is a wholly owned subsidiary of an entity in which a member of the Board of Directors of the Company holds an equity interest. Sales to this related party for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 were $250, $8 and $78, respectively. As of December 30, 2019 and December 31, 2018, the Company’s consolidated balance sheets included $10,179 and $10,630, respectively, in accounts payable due to related parties for purchases of laminate and prepreg and such balances are included as a component of accounts payable on the consolidated balance sheets. Additionally, the Company’s consolidated balance sheets as of December 30, 2019 and December 31, 2018, included $7 and $13, respectively, in accounts receivable due from a related party for sales of PCBs, as mentioned above, and such balances are included as a component of accounts receivable, net on the consolidated balance sheets. |
Non-controlling Interest Holdin
Non-controlling Interest Holdings | 12 Months Ended |
Dec. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest Holdings | (20) During the fourth quarter of 2017, the Company acquired Desay Industrial’s 5% non-controlling equity interest in the manufacturing facility in Huiyang, China otherwise owned by the Company for 56,400 Chinese RMB or $8,568. The Company recorded an increase to additional paid-in capital for the difference between the purchase price and the carrying value of the non-controlling interest of $223. |
Acquisitions of Anaren, Inc.
Acquisitions of Anaren, Inc. | 12 Months Ended |
Dec. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions of Anaren, Inc. | (21) On April 18, 2018, the Company acquired all of the equity interests of Anaren for a total consideration of $787,911. Anaren was a leading provider of mission-critical RF solutions, microelectronics, and microwave components and assemblies for the wireless infrastructure and aerospace and defense electronics markets. Pro forma Financial Information (unaudited) The unaudited pro forma financial information below gives effect to this acquisition as if it had occurred at the beginning of fiscal 2017, or January 3, 2017. The pro forma financial information presented includes the effects of adjustments related to the amortization of acquired identifiable intangible assets and acquired inventory, depreciation of acquired fixed assets, and other non-recurring transactions costs directly associated with the acquisition such as legal, accounting and banking fees. The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the actual results that would have been achieved had the acquisition occurred at the beginning of the earliest period presented, or the results that may be achieved in future periods. For the Year Ended December 31, January 1, 2018 2018 (In thousands) Net sales $ 2,915,935 $ 2,892,192 Net income attributable to TTM Technologies, Inc. stockholders 190,198 106,881 Basic earnings per share $ 1.84 $ 1.05 Dilutive earnings per share $ 1.51 $ 0.91 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (2 2 ) In December 2019, a strain of coronavirus surfaced in China. As a result, there have been numerous factory closures. While many factories were closed for a few days because of the Chinese New Year holiday, the Chinese government ordered that businesses in various areas extend the Chinese New Year holiday due to the coronavirus outbreak. Moreover, because of the current restrictions on travel in China, the Company’s employees are affected and the Company experienced labor shortages. Also, it is possible that the Chinese government will announce new closures in the future. Some of the Company’s suppliers and customers in China have similarly been affected and experienced closures and risks of labor shortages. If these suppliers experience additional closures in the future, the Company may have difficulty sourcing materials necessary to fulfill production requirements and meet scheduled shipments, which will negatively affect revenues. Even if the Company is able to find alternate sources for such materials, they may cost more, which will affect profitability. If the Company’s customers in China experience additional closures in the future and are not able to accept orders or if they delay or cancel such orders, revenues will be negatively affected. At this point in time, there is significant uncertainty relating to the potential effect of the coronavirus on the Company’s business. Infections may become more widespread and there might be additional factory closures in the future, all of which will have a negative impact on the Company’s business, financial condition and operating results. As a result of this disruption, the Company’s financial results for the first quarter of 2020 will be negatively affected. On January 19, 2020, the Company entered into a definitive equity interests purchase agreement for the sale of the Company’s following subsidiaries: Shanghai Kaiser Electronics Co., Ltd. (SKE), Shanghai Meadville Electronics Co., Ltd. (SME), Shanghai Meadville Science & Technology Co., Ltd. (SP) and Guangzhou Meadville Electronics Co., Ltd. (GME) (collectively, the Mobility business unit) for a base purchase price of $550,000 in cash, subject to customary purchase price adjustments. The purchase agreement excludes from the sale certain accounts receivable related to the business, which the Company expects, based on the terms of the purchase agreement will result in an estimated $110,000 in additional cash to the Company. The accounting recognition and financial reporting for the sale of these subsidiaries will be reflected in the Company’s financial statements in the period corresponding with its closing. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2019 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net income. An adjustment has been made to combine the statutory surplus reserve with retained earnings on the consolidated statements of stockholders’ equity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Such estimates include the sales return reserve; accounts receivable; inventories; goodwill; intangible assets and other long-lived assets; product warranty liabilities; legal contingencies; income taxes; pension obligations; and fair values of financial instruments. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. The actual results we experienced may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and actual results, our future result of operations will be affected. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of TTM and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currency of certain of the Company’s subsidiaries is the Chinese Renminbi (RMB). Accordingly, assets and liabilities are translated into U.S. dollars using period-end exchange rates. Sales and expenses are translated at the average exchange rates in effect during the period. The resulting translation gains or losses are recorded as a component of accumulated other comprehensive (loss) income in the consolidated statement of stockholders’ equity and the consolidated statement of comprehensive income. Net gains and losses resulting from foreign currency remeasurements and transactions are included in income as a component of other, net in the consolidated statements of operations and totaled $1,430 loss, $3,529 gain and $22,802 loss for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. |
Cash Equivalents | Cash Equivalents The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts. The Company considers highly liquid investments with an effective maturity to the Company of more than three months and less than one year to be short-term investments. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are reflected at estimated net realizable value, do not bear interest and do not generally require collateral. The Company performs credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current creditworthiness. The Company maintains an allowance for doubtful accounts based upon a variety of factors. The Company reviews all open accounts and provides specific reserves for customer collection issues when it believes the loss is probable, considering such factors as the length of time receivables are past due, the financial condition of the customer, and historical experience. The Company also records a reserve for all customers, excluding those that have been specifically reserved for, based upon evaluation of historical losses. The Company’s allowance for doubtful accounts was $1,929, $2,750, and $2,468 as of December 30, 2019, December 31, 2018 and January 1, 2018, respectively. |
Inventories | Inventories Inventories are stated at the lower of cost (determined on a first-in, first-out and weighted average basis) or net realizable value. Assessments to value the inventory at the lower of the actual cost to purchase and / or manufacture the inventory, or net realizable value of the inventory, are based upon assumptions about future demand and market conditions. As a result of the Company’s assessments, when the net realizable value of inventory is less than the carrying value, the inventory cost is written down to the net realizable value and the write down is recorded as a charge to cost of goods sold. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment are recorded at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Assets recorded under leasehold improvements are amortized using the straight-line method over the lesser of their useful lives or the related lease term. The Company uses the following estimated useful lives: Land use rights 50-99 years Buildings and improvements 7-50 years Machinery and equipment 3-12 years Furniture and fixtures 3-7 years Upon retirement or other disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts. The resulting gain or loss is included in the determination of operating income in the period incurred. Depreciation and amortization expense on property, plant and equipment was $166,574, $162,708, and $150,809 for the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is amortized over the average useful lives of such assets, which primarily consist of buildings and machinery and equipment. The Company capitalized interest costs of $1,810, $1,438 and $1,494 during the years ended December 30, 2019, December 31, 2018 and January 1, 2018, respectively, in connection with various capital projects. Major renewals and betterments are capitalized and depreciated over their estimated useful lives while minor expenditures for maintenance and repairs are included in operating income as incurred. |
Goodwill | Goodwill Goodwill represents the excess of purchase price of an acquisition over the fair value of net assets acquired. Goodwill is not amortized but instead is assessed for impairment, at a reporting unit level, annually and when events and circumstances warrant an evaluation. In making this assessment, management relies on a number of factors, including expected future operating results, business plans, economic projections, anticipated future cash flows, business trends and declines in the Company’s market capitalization. The Company has two reportable segments consisting of PCB and E-M Solutions. Goodwill is only attributable to the Company’s PCB reportable segment. Goodwill is allocated to reporting units, which are operating segments or one level below the Company’s operating segments (the component level). Reporting units are determined by the discrete financial information available for the component and whether it is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. The Company’s PCB reportable segment is made up of two operating segments that consist of five reporting units. The Company evaluates its goodwill on an annual basis in the fourth quarter or more frequently if it believes indicators of impairment exist. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount or performs its annual impairment test. When tested quantitatively, the Company compares the fair value of the applicable reporting unit with its carrying value. The Company estimates the fair values of its reporting units using a combination of the income and market approaches. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount by which the carrying value exceeds the fair value is recognized as an impairment loss. In the fourth quarter of 201 9 , the Company performed its annual impairment test qualitatively and concluded that goodwill was not impaired. See Note 5 for further details. |
Intangible Assets | Intangible Assets Intangible assets include customer relationships and technology, which are being amortized over their estimated useful lives on a straight-line basis. The estimated useful lives of such intangibles range from 5 years to 13 years. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived tangible assets, including property, plant and equipment, assets held for sale, and definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset or asset groups may not be recoverable. The Company regularly evaluates whether events or circumstances have occurred that indicate possible impairment and relies on a number of factors, including expected future operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. Fair value is determined through various valuation techniques, including cost-based, market and income approaches as considered necessary. The Company classifies assets to be sold as assets held for sale when (i) Company management has approved and commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition and is ready for sale; (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated; (iv) the sale of the asset is probable; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets classified as held for sale are recorded at the lower of the carrying amount or fair value less the cost to sell and are included as a component of prepaid expenses and other current assets in the consolidated balance sheets. The Company classifies assets held for use when a decision to dispose of an asset or a business is made and the held for sale criteria are not met. Assets of the business are evaluated for recoverability in the following order: (i) assets other than goodwill, property and intangibles; (ii) property and intangibles subject to amortization; and (iii) goodwill. In evaluating the recoverability of property and intangible assets subject to amortization, in a held for use business, the carrying value is first compared to the sum of the undiscounted cash flows expected to result from the use and eventual disposition. If the carrying value exceeds the undiscounted expected cash flows, then a fair value analysis is performed. An impairment charge is recognized if the carrying value exceeds the fair value. |
Leases | Leases The Company adopted the new lease standard as of January 1, 2019 under the retrospective cumulative effect adjustment transition method. Therefore, the consolidated financial statements for the years ended December 31, 2018 and January 1, 2018 have not been adjusted and continued to be reported under previous U.S. GAAP guidance. As a result, beginning in the first quarter of 2019, the Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, and lease liabilities are included in other current liabilities and operating lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components and accounts for the lease and non-lease components as a single lease component. |
Revenue Recognition | Revenue Recognition The Company adopted the new revenue standard on January 2, 2018, using the cumulative effect transition method with adjustment to the opening balance of retained earnings at January 2, 2018 for all open contracts as of January 1, 2018. Therefore, comparative information has not been adjusted and continues to be reported under previous U.S. GAAP guidance for the consolidated statement of operations for the year ended January 1, 2018. The impact of the adoption of the new revenue standard on the Company’s statement of operations for the years ended December 30, 2019 and December 31, 2018 were an additional revenue of $5,058 and $3,507, respectively and additional cost of goods sold of $4,231 and $2,422, respectively. The Company derives revenues primarily from the sale of PCBs, custom electronic assemblies using customer-supplied engineering and design plans as well as the design and manufacture of RF and microwave components and assemblies. In the absence of a sales agreement, the Company’s standard terms and conditions apply. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in the new standard in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. Revenue Streams For PCBs and custom electronic assemblies, including pursuant to the Company’s long-term contracts related to the manufacture of components, assemblies and subsystems, orders for products generally correspond to the production schedules of the Company’s customers and are supported with firm purchase orders. The Company’s customers have continuous control of the work in progress and finished goods throughout the PCB and custom electronic assemblies manufacturing process, as these are built to customer specifications with no alternative use, and there is an enforceable right to payment for work performed to date. As a result, beginning in the first quarter of 2018, the Company began recognizing revenue over time based on the extent of progress towards completion of the performance obligation. Revenue recognized is based on the cost-to-cost method as it best depicts the transfer of control to the customer which takes place as we incur costs. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. In addition, the Company manufactures components, assemblies, and subsystems which service its wireless communications customers. The Company recognizes revenue at a point in time upon transfer of control of the products to the customer. Point in time recognition was determined as the customer does not simultaneously receive or consume the benefits provided by the Company’s performance and the asset being manufactured has alternative uses to the Company. Performance Obligations Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized upon transfer of control of the products to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company's contracts have a single performance obligation as the promise to transfer the individual good or service is not separately identifiable from other promises in the contract and is, therefore, not distinct. As of December 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations for the Company’s long-term contracts was $9,314. The Company expects to recognize revenue on approximately 100% of the remaining performance obligations for the Company’s long-term contracts over the next twelve months. The remaining performance obligations for the Company’s short-term contracts are expected to be recognized within one year or less. Transaction Price The Company provides customers a limited right of return for defective PCBs including components, subsystems and assemblies. Estimates of returns are treated as variable consideration for purposes of determining the transaction price. The Company accrues an estimate for sales returns and allowances progressively over time based on the extent of progress towards completion of the performance obligation using the Company’s judgment based on historical results and anticipated returns. To the extent actual experience varies from its historical experience, revisions to the sales returns and allowances accrual may be required. Sales returns and allowances are recorded as a reduction of revenue and included as a component of accrued expenses on the consolidated balance sheets. Shipping and handling fees and related freight costs and supplies associated with shipping products to customers are included as a component of cost of goods sold. Warranty-related services are not considered a separate performance obligation. Incremental warranty costs that are not related to sales returns are recorded in accrued expenses on the consolidated balance sheets and cost of goods sold on the consolidated statements of operations. The following summarizes the activity in the Company’s sales returns and allowances for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Balance at beginning of year $ 16,071 $ 8,171 $ 8,119 Addition charged as a reduction of sales (1) 15,632 23,525 14,574 Deductions (18,176 ) (15,602 ) (14,524 ) Effect of foreign currency exchange rates 17 (23 ) 2 Balance at end of year $ 13,544 $ 16,071 $ 8,171 (1) On the date of adopting the new revenue standard, the Company recorded an estimated sales returns and allowance in the amount of $5,213 as of January 2, 2018 Contract Balances Accounts receivable represents the Company’s unconditional right to receive consideration from its customer. Payments are generally due within 90 days or less of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. A contract asset is recognized when the Company has recognized revenue, but not issued an invoice for payment. Contract assets are classified as current assets and are transferred to receivables when the entitlement to payment becomes unconditional. The Company’s contract assets are generally converted to trade account receivables within 90 days, at which time the Company is entitled to payment of the fixed price upon delivery of the finished product subject to customer payment terms. Contract assets were $288,235 In 2019, there were no material impairment losses on contract assets. A contract liability is recognized when the Company has received payment in advance for the future transfer of goods or services. The Company’s contract liabilities are generally converted to revenue within 90 days. Contract liabilities were $3,838 and The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard. All incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. Disaggregated Revenue Revenue from products and services transferred to customers over time and at a point in time accounted for 98% and 2%, respectively, of the Company’s revenue in 2019 and 2018. In 2017, all revenue from products and services transferred to customers was recognized at a point in time. The following tables represent a disaggregation of revenue by principal end markets with the reportable segments: For the Year Ended December 30, 2019 PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 698,742 $ 543 $ 699,285 Automotive 322,382 102,004 424,386 Cellular Phone 336,725 — 336,725 Computing/Storage/Peripherals 360,262 288 360,550 Medical/Industrial/Instrumentation 355,072 29,682 384,754 Networking/Communications 321,952 94,435 416,387 Other 67,840 (619 ) 67,221 Total $ 2,462,975 $ 226,333 $ 2,689,308 For the Year Ended December 31, 2018 (1) PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 607,862 $ 858 $ 608,720 Automotive 415,772 86,828 502,600 Cellular Phone 385,757 — 385,757 Computing/Storage/Peripherals 399,692 1,694 401,386 Medical/Industrial/Instrumentation 370,171 39,852 410,023 Networking/Communications 381,038 96,894 477,932 Other 61,022 (179 ) 60,843 Total $ 2,621,314 $ 225,947 $ 2,847,261 For the Year Ended January 1, 2018 (2) PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 418,238 $ 1,544 $ 419,782 Automotive 434,775 76,401 511,176 Cellular Phone 483,805 — 483,805 Computing/Storage/Peripherals 352,862 4,247 357,109 Medical/Industrial/Instrumentation 330,093 38,257 368,350 Networking/Communications 390,335 88,506 478,841 Other 38,398 1,131 39,529 Total $ 2,448,506 $ 210,086 $ 2,658,592 (1) Amended for Anaren integration. (2) The Company adopted ASC Topic 606, Revenue from Contracts with Customers, |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense in its consolidated financial statements for its incentive compensation plan awards. The incentive compensation plan awards include performance-based restricted stock units, restricted stock units, and stock options. The associated compensation expense for all awards is based on the grant date fair value of the awards. For performance-based restricted stock units, compensation expense also includes management’s periodic assessment of annual financial performance goals to be achieved. Compensation expense for the incentive compensation plan awards is recognized on a straight line basis over the vesting period of the awards. The fair value of performance-based restricted stock units is estimated on the grant date using a Monte Carlo simulation model based on the underlying common stock closing price as of the date of grant, the expected term, stock price volatility, and risk-free interest rates. The fair value of restricted stock units is measured on the grant date based on the quoted closing market price of the Company’s common stock. The fair value of the stock options is estimated on the grant date using the Black-Scholes option pricing model based on the underlying common stock closing price as of the date of grant, the expected term, stock price volatility, and risk-free interest rates. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets or liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income 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 be settled or realized. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax assets are reviewed for recoverability, and the Company records a valuation allowance to reduce its deferred income tax assets when it is more likely than not that all or some portion of the deferred income tax assets will not be realized. The Company has various foreign subsidiaries formed or acquired to conduct or support its business outside the United States. The Company expects its earnings attributable to foreign subsidiaries will be indefinitely reinvested except for our material Chinese and Canadian plants and the respective holding companies where a deferred tax liability has been recorded for foreign withholding and estimated federal/state tax impact. For those other companies with earnings currently being reinvested outside of the U.S., no deferred tax liabilities on undistributed earnings are recorded. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Estimated interest and penalties related to underpayment of income taxes are recorded as a component of income tax provision in the consolidated statements of operations. |
Convertible Debt | Convertible Debt The accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion require the debt and equity components to be separately accounted for in a manner that reflects the Company’s nonconvertible borrowing rate when interest expense is recognized in subsequent periods. The amount recorded as debt is based on the fair value of the debt component as a standalone instrument, determined using an average interest rate for similar nonconvertible debt issued by entities with credit ratings comparable to the Company’s at the time of issuance. The difference between the debt recorded at inception and its principal amount is accreted to principal through interest expense during the estimated life of the note. |
Value Added and Sales Tax Collected from Customers | Value Added and Sales Tax Collected from Customers As a part of the Company’s normal course of business, value added and sales taxes are collected from customers. Such taxes collected are remitted, in a timely manner, to the appropriate governmental tax authority on behalf of the customer. Value added and sales taxes are excluded from reported revenues and costs of goods sold presented in the consolidated statements of operations and comprehensive income. |
Fair Value Measures | Fair Value Measures The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1 — Quoted market prices in active markets for identical assets or liabilities; Level 2 — Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs); and Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions. |
Earnings Per Share | Earnings Per Share Basic earnings per common share excludes dilution and is computed by dividing net income attributable to TTM Technologies, Inc. stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflect the potential dilution that could occur if stock options, Convertible Senior Notes or other common stock equivalents were exercised or converted into common stock. The dilutive effect of stock options or other common stock equivalents is calculated using the treasury stock method, while the dilutive effect of Convertible Senior Notes is calculated using the if-converted method. |
Comprehensive Income | Comprehensive Income Comprehensive income includes changes to equity accounts that were not the result of transactions with stockholders. Comprehensive income is comprised of net income, changes in the cumulative foreign currency translation adjustments, pension obligation adjustments, and realized and unrealized gains or losses on hedged derivative instruments. |
Non-controlling Interest Holdings | Non-controlling Interest Holdings Non-controlling interest consisted of a 5% equity interest in a manufacturing facility in Huiyang, China which was acquired along with other assets and liabilities of Viasystems Group Inc. (Viasystems). In 2017, the Company purchased the 5% equity interest from the non-controlling interest holder. See Note 20. |
Loss Contingencies | Loss Contingencies The Company establishes an accrual for an estimated loss contingency when it is both probable that an asset has been impaired or that a liability has been incurred and the amount of the loss can be reasonably estimated. Any legal fees expected to be incurred in connection with a contingency are expensed as incurred. |
Accounting for Retirement Benefit Plans | Accounting for Retirement Benefit Plans The Company accounts for its retirement benefit plans and postretirement and postemployment benefit obligations in accordance with ASC Topic 715, Compensation—Retirement Benefits |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements The Company adopted the new lease standard as of January 1, 2019 and utilized the retrospective cumulative effect adjustment transition method with a cumulative effect adjustment being recorded as of the adoption date. Therefore, comparative information has not been adjusted and continues to be reported under previous U.S. GAAP guidance for the consolidated balance sheet as of December 31, 2018 and the consolidated statements of operations for the years ended December 31, 2018 and January 1, 2018. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The Company elected certain available practical expedients including the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. Additionally, the Company elected an accounting policy to not record ROU assets and lease liabilities for leases with an initial term of twelve months or less on its consolidated balance sheet. The cumulative effect of the changes made to the Company’s January 1, 2019 consolidated balance sheet for the adoption of the new lease standard was as follows: Balance as of December 31, 2018 New Lease Standard Adjustment Balance as of January 1, 2019 (In thousands) Assets Operating lease right-of-use assets $ — $ 16,894 $ 16,894 Deposits and other non-current assets 55,597 (548 ) 55,049 Liabilities Other current liabilities 113,756 2,545 116,301 Operating lease liabilities — 14,356 14,356 Other long-term liabilities 94,777 (555 ) 94,222 The adoption of the new accounting guidance did not have a material impact to the consolidated statement of operations or the consolidated statement of cash flows for the year ended December 30, 2019. See Note 2 for further details. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payments In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Recently Issued Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20)—Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief 2016-13 to allow companies, upon adoption, to elect the fair value option on financial instruments that were previously recorded at amortized cost if they meet certain criteria. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies the treatment of expected recoveries for amounts previously written off on purchased receivables, provides transition relief for troubled debt restructurings, and allows for certain disclosure simplifications of accrued interest. All of these ASU s are effective for fiscal years beginning after December 15, 201 9 , including interim periods within those fiscal years. Early adoption is permitted. The Company has evaluated the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures and the impact is not expected to be material. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives Property, Plant and Equipment | The Company uses the following estimated useful lives: Land use rights 50-99 years Buildings and improvements 7-50 years Machinery and equipment 3-12 years Furniture and fixtures 3-7 years |
Summary of Revenue Recognition in Sales Returns and Allowances | The following summarizes the activity in the Company’s sales returns and allowances for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Balance at beginning of year $ 16,071 $ 8,171 $ 8,119 Addition charged as a reduction of sales (1) 15,632 23,525 14,574 Deductions (18,176 ) (15,602 ) (14,524 ) Effect of foreign currency exchange rates 17 (23 ) 2 Balance at end of year $ 13,544 $ 16,071 $ 8,171 (1) On the date of adopting the new revenue standard, the Company recorded an estimated sales returns and allowance in the amount of $5,213 as of January 2, 2018 |
Schedule of Disaggregation of Revenue by Principal End Markets with the Reportable Segment | The following tables represent a disaggregation of revenue by principal end markets with the reportable segments: For the Year Ended December 30, 2019 PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 698,742 $ 543 $ 699,285 Automotive 322,382 102,004 424,386 Cellular Phone 336,725 — 336,725 Computing/Storage/Peripherals 360,262 288 360,550 Medical/Industrial/Instrumentation 355,072 29,682 384,754 Networking/Communications 321,952 94,435 416,387 Other 67,840 (619 ) 67,221 Total $ 2,462,975 $ 226,333 $ 2,689,308 For the Year Ended December 31, 2018 (1) PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 607,862 $ 858 $ 608,720 Automotive 415,772 86,828 502,600 Cellular Phone 385,757 — 385,757 Computing/Storage/Peripherals 399,692 1,694 401,386 Medical/Industrial/Instrumentation 370,171 39,852 410,023 Networking/Communications 381,038 96,894 477,932 Other 61,022 (179 ) 60,843 Total $ 2,621,314 $ 225,947 $ 2,847,261 For the Year Ended January 1, 2018 (2) PCB E-M Solutions Total End Markets (In thousands) Aerospace and Defense $ 418,238 $ 1,544 $ 419,782 Automotive 434,775 76,401 511,176 Cellular Phone 483,805 — 483,805 Computing/Storage/Peripherals 352,862 4,247 357,109 Medical/Industrial/Instrumentation 330,093 38,257 368,350 Networking/Communications 390,335 88,506 478,841 Other 38,398 1,131 39,529 Total $ 2,448,506 $ 210,086 $ 2,658,592 (1) Amended for Anaren integration. (2) The Company adopted ASC Topic 606, Revenue from Contracts with Customers, |
Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet | The cumulative effect of the changes made to the Company’s January 1, 2019 consolidated balance sheet for the adoption of the new lease standard was as follows: Balance as of December 31, 2018 New Lease Standard Adjustment Balance as of January 1, 2019 (In thousands) Assets Operating lease right-of-use assets $ — $ 16,894 $ 16,894 Deposits and other non-current assets 55,597 (548 ) 55,049 Liabilities Other current liabilities 113,756 2,545 116,301 Operating lease liabilities — 14,356 14,356 Other long-term liabilities 94,777 (555 ) 94,222 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: For the Year Ended December 30, 2019 (In thousands) Operating lease cost $ 9,262 Variable lease cost 11,283 Short-term lease cost 1,273 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: For the Year Ended December 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,658 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 15,697 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: As of December 30, 2019 (In thousands) Operating lease right-of-use assets $ 24,156 Other current liabilities 8,178 Operating lease liabilities 16,517 Total operating lease liabilities $ 24,695 Weighted average remaining lease term 4.2 years Weighted average discount rate 3.81 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities were as follows (1) (In thousands) Less than one year $ 8,795 1 - 2 years 7,504 2 - 3 years 3,497 3 - 4 years 2,219 4 - 5 years 1,865 Thereafter 2,951 Total lease payments 26,831 Less imputed interest (2,136 ) Total $ 24,695 (1) Excludes $1,169 of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Future Minimum Lease Payments | The following is a schedule of future minimum lease payments as of December 31, 2018: Operating Leases (In thousands) 2019 $ 7,282 2020 4,701 2021 3,406 2022 2,408 2023 2,172 Thereafter 4,172 Total minimum lease payments $ 24,141 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Restructuring Costs by Reportable Segment | The below table summarizes such restructuring costs by reportable segment for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 Employee Separation/ Severance Contract Termination and Other Costs Total Employee Separation/ Severance Contract Termination and Other Costs Total Employee Separation/ Severance Contract Termination and Other Costs Total (In thousands) Reportable Segment: PCB $ 6,856 $ 15 $ 6,871 $ 2,008 $ — $ 2,008 $ 178 $ 99 $ 277 E-M Solutions — — — — — — — 520 520 Corporate 80 30 110 3,389 121 3,510 33 360 393 $ 6,936 $ 45 $ 6,981 $ 5,397 $ 121 $ 5,518 $ 211 $ 979 $ 1,190 |
Accrued Restructuring Costs | The below table shows the utilization of the accrued restructuring costs during the years ended December 30, 2019 and December 31, 2018: Employee Separation/ Severance Contract Termination and Other Costs Total (In thousands) Accrued as of January 1, 2018 $ — $ 499 $ 499 Charged to expense 5,397 121 5,518 Amount paid (2,239 ) (227 ) (2,466 ) Accrued as of December 31, 2018 $ 3,158 $ 393 $ 3,551 Charged to expense 6,936 45 6,981 Amount paid (9,834 ) (196 ) (10,030 ) Accrued as of December 30, 2019 $ 260 $ 242 $ 502 |
Composition of Certain Consol_2
Composition of Certain Consolidated Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Composition of Certain Consolidated Financial Statement Captions | As of December 30, 2019 December 31, 2018 (In thousands) Inventories: Raw materials $ 108,236 $ 97,600 Work-in-process 8,588 10,299 Finished goods 5,195 1,478 $ 122,019 $ 109,377 Property, plant and equipment, net: Land and land use rights $ 74,850 $ 75,431 Buildings and improvements 543,546 534,122 Machinery and equipment 1,436,795 1,357,035 Construction-in-progress, furniture and fixtures and other 71,416 42,713 2,126,607 2,009,301 Less: Accumulated depreciation (1,103,678 ) (957,277 ) $ 1,022,929 $ 1,052,024 Other current liabilities: Sales returns and allowances $ 13,544 $ 16,071 Income taxes payable 12,899 11,345 Interest 8,893 9,260 Restructuring 502 3,551 Other 74,729 73,529 $ 110,567 $ 113,756 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | As of December 30, 2019 and December 31, 2018, goodwill was as follows: Total (In thousands) Balance as of January 1, 2018 Goodwill 543,971 Accumulated impairment losses (171,400 ) 372,571 Goodwill recognized during the year 394,474 Balance as of December 31, 2018 Goodwill 938,445 Accumulated impairment losses (171,400 ) 767,045 Goodwill recognized during the year 7,746 Balance as of December 30, 2019 Goodwill 946,191 Accumulated impairment losses (171,400 ) $ 774,791 |
Definite-lived Intangibles (Tab
Definite-lived Intangibles (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Definite Lived Intangibles | As of December 30, 2019 and December 31, 2018, the components of definite-lived intangibles were as follows: Gross Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period (In thousands) (In years) December 30, 2019 Customer relationships $ 415,000 $ (123,674 ) $ 291,326 10.8 Technology 39,500 (8,064 ) 31,436 9.4 Acquired intangibles from current year acquisition Customer relationships 1,230 (31 ) 1,199 5.0 Technology 8,150 (103 ) 8,047 10.0 $ 463,880 $ (131,872 ) $ 332,008 December 31, 2018 Customer relationships $ 203,634 $ (123,522 ) $ 80,112 8.1 Technology 3,000 (3,000 ) — 3.0 Acquired intangibles from current year acquisition Customer relationships 267,500 (15,561 ) 251,939 12.2 Developed technology 39,500 (3,345 ) 36,155 9.4 Backlog 29,000 (21,283 ) 7,717 0.9 $ 542,634 $ (166,711 ) $ 375,923 |
Estimated Aggregate Amortization for Definite-Lived Intangible Assets | Estimated aggregate amortization for definite-lived intangible assets for the next five years and thereafter is as follows: (In thousands) 2020 $ 46,480 2021 43,190 2022 40,063 2023 37,351 2024 29,812 Thereafter 135,112 $ 332,008 |
Long-term Debt and Letters of_2
Long-term Debt and Letters of Credit (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The following table summarizes the long-term debt of the Company as of December 30, 2019 and December 31, 2018: Interest Rate as of December 30, 2019 Principal Outstanding as of December 30, 2019 Interest Rate as of December 31, 2018 Principal Outstanding as of December 31, 2018 (In thousands) Term Loan due September 2024 4.28 % $ 805,879 5.00 % $ 835,879 Senior Notes due October 2025 5.63 375,000 5.63 375,000 Convertible Senior Notes due December 2020 1.75 249,975 1.75 249,985 U.S. ABL Revolving Loan due June 2024 3.03 40,000 4.00 40,000 Asia ABL Revolving Loan due June 2024 3.18 30,000 3.90 30,000 1,500,854 1,530,864 Less: Long-term debt unamortized discount (11,943 ) (22,167 ) Long-term debt unamortized debt issuance costs (12,974 ) (16,272 ) 1,475,937 1,492,425 Less: current maturities (249,975 ) (30,000 ) Long-term debt, less current maturities $ 1,225,962 $ 1,462,425 |
Long -term Debt Maturities | The fiscal calendar maturities of long-term debt through 2024 and thereafter are as follows: (In thousands) 2020 $ 249,975 2021 — 2022 — 2023 — 2024 875,879 Thereafter 375,000 $ 1,500,854 |
Schedule of Liability and Equity Components of Convertible Senior Notes Included in Additional Paid-in Capital | As of December 30, 2019 and December 31, 2018, the following summarizes the equity components of the Convertible Senior Notes included in additional paid-in capital: As of December 30, 2019 As of December 31, 2018 Embedded conversion option — Convertible Senior Notes Embedded conversion option — Convertible Senior Notes Issuance Costs Total Embedded conversion option — Convertible Senior Notes Embedded conversion option — Convertible Senior Notes Issuance Costs Total (In thousands) Convertible Senior Notes due 2020 $ 60,213 $ (1,916 ) $ 58,297 $ 60,216 $ (1,916 ) $ 58,300 |
Components of Interest Expense from Convertible Senior Notes | The components of interest expense resulting from the Convertible Senior Notes for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 were as follows: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Contractual coupon interest $ 4,374 $ 4,375 $ 4,375 Amortization of debt discount $ 9,751 $ 9,142 $ 8,570 Amortization of debt issuance costs $ 977 $ 916 $ 858 |
Schedule of Remaining Unamortized Debt Discount and Debt Issuance Costs | As of December 30, 2019 and December 31, 2018, remaining unamortized debt discount and debt issuance costs for the Term Loan Facility, Senior Notes, and Convertible Senior Notes are as follows: As of December 30, 2019 As of December 31, 2018 Debt Issuance Costs Debt Discount Effective Interest Rate Debt Issuance Costs Debt Discount Effective Interest Rate (In thousands, except interest rates) Term Loan due September 2024 $ 6,663 $ 2,016 4.66 % $ 8,229 $ 2,489 4.66 % Senior Notes due October 2025 5,316 — 5.92 6,071 — 5.92 Convertible Senior Notes 995 9,927 6.48 1,972 19,678 6.48 $ 12,974 $ 11,943 $ 16,272 $ 22,167 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income (loss) Before Income Taxes | The components of income (loss) before income taxes for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 are: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) United States $ 16,066 $ 18,991 $ (4,178 ) Foreign 30,118 70,777 144,136 Income before income taxes $ 46,184 $ 89,768 $ 139,958 |
Components of Income Tax Benefit (Provision) | The components of income tax benefit (provision) for the years ended December 30, 2019, December 31, 2018 and January 1, 2018 are: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Current benefit (provision): Federal $ 294 $ 381 $ 82 State (2,922 ) (1,294 ) (462 ) Foreign (13,042 ) (12,045 ) (24,006 ) Total current (15,670 ) (12,958 ) (24,386 ) Deferred benefit (provision): Federal 1,004 97,723 11 State (1,076 ) 14,351 (31 ) Foreign 10,859 (15,300 ) 9,175 Total deferred 10,787 96,774 9,155 Total (provision) benefit $ (4,883 ) $ 83,816 $ (15,231 ) |
Reconciliation of Provision for Income Taxes at Statutory Federal Income Tax Rate Compared to Provision for Income Taxes | The following is a reconciliation of the provision for income taxes at the statutory federal income tax rate compared to the Company’s provision for income taxes for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Statutory federal income tax $ (9,699 ) $ (18,851 ) $ (48,985 ) State income taxes, net of federal benefit and state tax credits (3,163 ) (1,953 ) (462 ) Foreign deemed dividends — — (457 ) Transfer pricing — 1,483 — Acquisition related expenses — (1,737 ) — IRC Section 162(m) limitation (868 ) (3,702 ) — Stock options (252 ) 1,072 — Global Intangible Low-Taxed Income (457 ) — — Intercompany profit in inventory elimination — — (743 ) Permanently reinvested earnings assertion (2,903 ) (15,492 ) — Tax Act deferred tax revaluation — — (59,228 ) Foreign tax differential on foreign earnings & other permanent items 2,294 2,045 30,412 Change in valuation allowance 2,127 118,451 66,716 Uncertain tax positions 999 (954 ) (3,992 ) Federal research and development credits 4,582 2,996 1,270 Other 2,457 458 238 Total (provision) benefit for income taxes $ (4,883 ) $ 83,816 $ (15,231 ) |
Significant Components of Net Deferred Income Tax Assets and Liabilities | The significant components of the net deferred income tax assets (liabilities) as of December 30, 2019 and December 3 1, 2018 are as follows: As of December 30, 2019 December 31, 2018 (In thousands) Deferred income tax assets: Net operating loss carryforwards $ 88,798 $ 104,801 Reserves and accruals 28,240 29,358 Interest expense limitation 13,102 1,276 Unrealized loss on cash flow hedge 2,960 1,128 Tax credit carryforwards 37,889 30,962 Stock-based compensation 4,440 4,528 Original issue discount on Convertible Senior Notes 870 5,130 Property, plant and equipment 13,722 24,826 Other deferred income tax assets 756 228 190,777 202,237 Less: valuation allowance (25,874 ) (27,426 ) 164,903 174,811 Deferred income tax liabilities: Discount on Convertible Senior Notes — (4,683 ) Repatriation of foreign earnings (11,148 ) (20,282 ) Property, plant and equipment basis differences (54,310 ) (50,622 ) Goodwill and intangible amortization (73,219 ) (85,300 ) Other deferred income tax liabilities (100 ) (252 ) Net deferred income tax assets $ 26,126 $ 13,672 Deferred income tax assets, net: Non-current deferred income taxes 26,126 13,672 |
Summary of Activity in Valuation Allowance | The following summarizes the activity in the Company’s valuation allowance for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Balance at beginning of year $ 27,426 $ 167,238 $ 221,951 Reduction related to acquisition — (76,040 ) — Additions charged to expense 6,483 — 4,515 Reduction charged to expense — Tax Act — — (59,228 ) Other reduction charged to expense (8,035 ) (63,772 ) — Balance at end of year $ 25,874 $ 27,426 $ 167,238 |
Summary of HNTE and R&D Benefit and Effect on Earnings per Share | The HNTE status as well as enhanced research and development (R&D) deductions decreased Chinese taxes. HNTE and R&D benefit and effect on earnings per share are as follows: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands, except per share data) HNTE and R&D benefits $ 10,060 $ 11,970 $ 11,935 Basic shares 105,195 103,355 101,580 Diluted shares 106,332 134,036 132,476 Increases earnings per share: Basic $ 0.10 $ 0.12 $ 0.12 Diluted $ 0.09 $ 0.09 $ 0.09 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of accrued interest and penalties, is as follows: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Balance at beginning of year $ 37,849 $ 38,841 $ 39,727 Additions related to acquisition — 903 — Additions based on tax positions related to the current year 3,553 856 1,965 Additions for tax positions of prior years 4,952 117 1,661 Reductions for tax positions of prior years (103 ) (2,140 ) (3,846 ) Lapse of statute of limitations (1,221 ) (728 ) (666 ) Balance at end of year $ 45,030 $ 37,849 $ 38,841 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Values of Derivative Instruments in Consolidated Balance Sheets | The fair values of derivative instruments in the consolidated balance sheets are as follows: Asset/(Liability) Fair Value Balance Sheet Location December 30, 2019 December 31, 2018 (In thousands) Cash flow derivative instruments designated as hedges: Interest rate swap Other long-term liabilities $ (12,067 ) $ (4,735 ) Cash flow derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets 1 — Foreign exchange contracts Other current liabilities (29 ) (139 ) |
Summary of Accumulated Other Comprehensive Loss Related to Derivatives Designated as Cash Flow Hedges | The following table provides information about the amounts recorded in accumulated other comprehensive loss related to derivatives designated as cash flow hedges, as well as the amounts recorded in each caption in the consolidated statements of operations when derivative amounts are reclassified out of accumulated other comprehensive loss for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 Financial Statement Caption Loss Recognized in Other Comprehensive Loss Loss Reclassified into Income Loss Recognized in Other Comprehensive Loss Loss Reclassified into Income Gain Recognized in Other Comprehensive Loss Loss Reclassified into Income (In thousands) Cash flow hedge: Interest rate swap Interest expense $ (9,647 ) $ (2,315 ) $ (6,333 ) $ (1,598 ) $ — $ — Foreign currency forward Depreciation expense (4 ) (155 ) (21 ) (157 ) 276 (162 ) |
Summary of Activity of Designated Cash Flow Hedges in Accumulated Other Comprehensive Loss | The following table provides a summary of the activity associated with the designated cash flow hedges reflected in accumulated other comprehensive loss for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Beginning balance, net of tax $ (4,214 ) $ (742 ) $ (1,180 ) Changes in fair value (loss) gain, net of tax (7,296 ) (4,846 ) 276 Reclassification to earnings 1,893 1,374 162 Ending balance, net of tax $ (9,617 ) $ (4,214 ) $ (742 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax | The following provides a summary of the components of accumulated other comprehensive income (loss), net of tax as of December 30, 2019, December 31, 2018 and January 1, 2018: Foreign Currency Translation Pension Obligation Gains (Losses) on Cash Flow Hedges Total (In thousands) Ending balance as of January 1, 2018 $ 4,145 $ — $ (742 ) $ 3,403 Other comprehensive loss before reclassifications (2,567 ) (1,284 ) (4,846 ) (8,697 ) Amounts reclassified from accumulated other comprehensive income — — 1,374 1,374 Net year to date other comprehensive loss (2,567 ) (1,284 ) (3,472 ) (7,323 ) Ending balance as of December 31, 2018 1,578 (1,284 ) (4,214 ) (3,920 ) Other comprehensive loss before reclassifications (463 ) (300 ) (7,296 ) (8,059 ) Amounts reclassified from accumulated other comprehensive income — — 1,893 1,893 Net year to date other comprehensive loss (463 ) (300 ) (5,403 ) (6,166 ) Ending balance as of December 30, 2019 $ 1,115 $ (1,584 ) $ (9,617 ) $ (10,086 ) |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amount and estimated fair value of the Company’s financial instruments as of December 30, 2019 and December 31, 2018 were as follows: As of As of December 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Derivative assets, current $ 1 $ 1 $ — $ — Derivative liabilities, current 29 29 139 139 Derivative liabilities, non-current 12,067 12,067 4,735 4,735 Term Loan due September 2024 797,200 808,901 825,161 782,592 Senior Notes due October 2025 369,684 390,143 368,929 350,880 Convertible Senior Notes due December 2020 239,053 391,686 228,335 290,858 ABL Revolving Loans 70,000 70,000 70,000 70,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Performance-Based Restricted Stock Units Activity | PRU activity for the year ended December 3 0 , 201 9 was as follows: Shares Weighted Average Fair Value (In thousands) Outstanding shares as of December 31, 2018 255 $ 18.75 Granted 293 10.17 Vested (186 ) 16.98 Forfeited / cancelled (7 ) 15.18 Change in units due to annual performance achievement (141 ) 13.47 Outstanding shares as of December 30, 2019 214 $ 12.16 |
Assumptions Used in Determining Fair Value | For the years ended December 30, 2019, December 31, 2018 and January 1, 2018, the following assumptions were used in determining the fair value: For the Year Ended December 30, 2019 (1) December 31, 2018 (2) January 1, 2018 (3) Weighted-average fair value $ 10.17 $ 19.59 $ 22.90 Risk-free interest rate 2.18 % 2.14 % 1.20 % Dividend yield — — — Expected volatility 38 % 40 % 43 % Expected term in years 1.8 1.5 1.8 (1) Reflects the weighted-averages for the third year of the three-year performance period applicable to PRUs granted in 2017, the second year of the three-year performance period applicable to PRUs granted in 2018 and the first year of the three-year performance period applicable to PRUs granted in 2019. (2) Reflects the weighted-averages for the third year of the three-year performance period applicable to PRUs granted in 2016, the second year of the three-year performance period applicable to PRUs granted in 2017 and the first year of the three-year performance period applicable to PRUs granted in 2018. (3) Reflects the weighted-averages for the third year of the three-year performance period applicable to PRUs granted in 2015, the second year of the three-year performance period applicable to PRUs granted in 2016 and the first year of the three-year performance period applicable to PRUs granted in 2017. |
Restricted Stock Units Activity | RSU activity for the year ended December 30, 2019 was as follows: Shares Weighted Average Grant-Date Fair Value (In thousands) Non-vested RSUs outstanding as of December 31, 2018 2,125 $ 13.47 Granted 1,708 10.09 Vested (1,179 ) 11.84 Forfeited (127 ) 12.38 Non-vested RSUs outstanding as of December 30, 2019 2,527 $ 11.91 Vested and expected to vest as of December 30, 2019 2,997 $ 11.75 |
Stock Options Activity | Option activity under the Plan for the year ended December 30, 2019 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Outstanding as of December 31, 2018 100 $ 13.10 6.1 $ 4 Outstanding as of December 30, 2019 100 $ 13.10 5.1 $ 212 Vested and expected to vest as of December 30, 2019 100 $ 13.10 5.1 $ 212 Exercisable as of December 30, 2019 65 $ 12.06 3.3 $ 212 |
Amounts Recognized in Consolidated Financial Statements of Operations with Respect to Stock Based Compensation Plan | For the years ended December 30, 2019, December 31, 2018 and January 1, 2018, the amounts recognized in the consolidated statements of operations with respect to the stock-based compensation plan are as follows: For the Year Ended December 30, December 31, January 1, 2019 2018 2018 (In thousands) Cost of goods sold $ 3,158 $ 2,898 $ 2,252 Selling and marketing 1,973 1,964 1,458 General and administrative 11,685 15,819 14,580 Stock-based compensation expense recognized $ 16,816 $ 20,681 $ 18,290 |
Summary of Unrecognized Compensation Costs | The following is a summary of total unrecognized compensation costs as of December 30, 2019: Unrecognized Stock-Based Compensation Cost Remaining Weighted Average Recognition Period (In thousands) (In years) RSU awards $ 19,452 1.5 PRU awards 1,352 1.4 Stock options 242 1.7 $ 21,046 |
Employee Benefit Plans, Defer_2
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Changes in Benefit Obligation and Plan Assets in Defined Benefit Plan | The following tables set forth the changes in benefit obligation and the plan assets in the defined benefit plan described above for the years ended December 30, 2019 and December 31, 2018: For the Year Ended Change in Benefit Obligations December 30, 2019 December 31, 2018 (In thousands) Benefit obligation at beginning of year $ (27,661 ) $ (27,525 ) Service cost (397 ) (292 ) Interest cost (1,109 ) (758 ) Amendments/curtailments/special termination 1,636 — Actuarial (loss) gain (4,174 ) 264 Benefits paid 1,105 650 Benefit obligation at end of year $ (30,600 ) $ (27,661 ) Accumulated benefit obligation at end of year $ 30,600 $ 26,191 For the Year Ended Change in in Plan Assets December 30, 2019 December 31, 2018 (In thousands) Fair value of plan assets at beginning of year $ 18,251 $ 19,643 Actual return on plan assets 3,346 (1,021 ) Employer contributions 795 280 Benefits paid (1,105 ) (651 ) Fair value of plan assets at end of year $ 21,287 $ 18,251 Unfunded status $ (9,313 ) $ (9,410 ) Net amount recognized $ (9,313 ) $ (9,410 ) |
Schedule of Amounts Before Income Tax Effect Recognized in Consolidated Balance Sheets | Amounts before income tax effect recognized in the consolidated balance sheets consists of the following: As of As of December 30, 2019 December 31, 2018 (In thousands) Other long-term liabilities $ (9,313 ) $ (9,410 ) Net amount recognized $ (9,313 ) $ (9,410 ) |
Schedule of Amounts Before Income Tax Effect Included in Accumulated Other Comprehensive Loss | Amounts before income tax effect included in accumulated other comprehensive loss as of December 30, 2019 and December 30, 2019 December 31, 2018 (In thousands) Net actuarial loss $ (2,097 ) $ (1,677 ) Accumulated other comprehensive loss $ (2,097 ) $ (1,677 ) |
Schedule of Components Included in Net Periodic Benefit Cost and Increase in Minimum Liability Included in Other Comprehensive Loss | The components included in the net periodic benefit cost and the increase in minimum liability included in other comprehensive loss for the years ended December 30, 2019 and December 31, 2018 are as follows: December 30, 2019 December 31, 2018 (In thousands) Service cost $ 397 $ 292 Interest cost 1,109 758 Expected return on plan assets (1,228 ) (920 ) Net periodic benefit cost $ 278 $ 130 |
Schedule of Weighted-Average Assumptions | The weighted-average assumptions used to determine benefit obligations for this plan as of December 30, 2019 and December 30, 2019 December 31, 2018 Discount rate 3.02 % 4.09 % Rate of compensation increase 3.20 3.20 Expected return on plan assets 6.00 6.75 The weighted-average assumptions used to determine net periodic benefit cost for the year ended December 30, 2019 and December 31, 2018 are as follows: For the Year Ended December 30, 2019 December 31, 2018 Discount rate 4.09 % 3.96 % Rate of compensation increase 3.20 3.20 Expected return on plan assets 6.75 6.75 |
Schedule of Plan Target Allocation and Asset Allocation | The target allocation for 2020 and the plan asset allocation at the end of 2019 and 2018, in percentages, by asset category are as follows: Target Allocation 2020 December 30, 2019 December 31, 2018 Equity securities (1) 66 % 66 % 61 % Debt securities (2) 31 31 38 Cash and cash equivalents (3) 3 3 1 Total 100 % 100 % 100 % |
Summarizes Plan Assets Measured at Fair Value | The following table summarizes plan assets measured at fair value as of December 30, 2019 and December 31, 2018: As of December 30, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Equity securities (1) $ 14,131 $ 14,131 $ — $ — Debt securities (2) 6,488 6,488 — — Cash and cash equivalents (3) 668 668 — — Total $ 21,287 $ 21,287 $ — $ — As of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Equity securities (1) $ 11,184 $ 11,184 $ — $ — Debt securities (2) 6,929 6,929 — — Cash and cash equivalents (3) 138 138 — — Total $ 18,251 $ 18,251 $ — $ — (1) Equity securities include U.S. and foreign exchange traded common and preferred stocks and mutual funds. Common and preferred shares issued by U.S. and non-U.S. corporations are traded actively on exchanges and price quotes for these shares are readily available. Holdings of corporate stock are categorized as Level 1 investments. (2) Debt securities include the debt of the U.S. Treasury and U.S. and foreign corporate issuers. U.S. Treasury notes and bonds are actively traded and price quotes for these securities are readily available. Holdings of U.S. Treasury notes and bonds are categorized as Level 1 investments. (3) Cash and cash equivalents include short-term U.S. government investment notes, short-term money market mutual funds, accrued income and cash held on account. Cash held on account and short- term U.S. government investment notes (including accrued income thereon) for which there is an active market and daily pricing for the security are categorized as Level 1 investments. |
Schedule of Expected Future Service Benefits Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (In thousands) 2020 $ 1,185 2021 1,251 2022 1,309 2023 1,408 2024 1,506 Years 2025 through 2029 8,344 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Income (Loss) from Segments to Consolidated | For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Net Sales: PCB (1) $ 2,462,975 $ 2,621,314 $ 2,448,506 E-M Solutions 226,333 225,947 210,086 Total net sales $ 2,689,308 $ 2,847,261 $ 2,658,592 Operating Segment Income: PCB (1) $ 276,208 $ 329,668 $ 322,486 E-M Solutions 7,119 8,105 6,716 Corporate (109,910 ) (115,662 ) (92,808 ) Total operating segment income 173,417 222,111 236,394 Amortization of definite-lived intangibles (2) (53,296 ) (63,026 ) (23,634 ) Total operating income 120,121 159,085 212,760 Total other expense (73,937 ) (69,317 ) (72,802 ) Income before income taxes $ 46,184 $ 89,768 $ 139,958 For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Depreciation Expense: PCB (1) $ 155,163 $ 153,637 $ 144,256 E-M Solutions 3,476 2,850 2,471 Corporate 7,935 6,221 4,082 Total depreciation expense $ 166,574 $ 162,708 $ 150,809 Capital Expenditures: PCB (1) $ 130,799 $ 103,318 $ 161,152 E-M Solutions 2,302 3,918 5,438 Corporate 8,437 7,758 44,001 Total capital expenditures $ 141,538 $ 114,994 $ 210,591 (1) Figures for the year ended January 1, 2018 do not include Anaren, as the acquisition occurred on April 18, 2018. (2) Amortization of definite-lived intangibles relates to the PCB reportable segment. For the years ended December 30, 2019 and December 31, 2018, $4,822 and $3,345, respectively, of amortization expense is included in cost of goods sold. |
Reconciliation of Assets from Segment to Consolidated | As of December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Segment Assets: PCB (1) $ 2,126,765 $ 2,039,088 $ 1,991,049 E-M Solutions 156,580 146,693 143,344 Corporate 1,277,588 1,271,722 647,489 Total assets $ 3,560,933 $ 3,457,503 $ 2,781,882 |
Net Sales and Long-Lived Assets | Net sales and long-lived assets are as follows: 2019 2018 2017 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets (In thousands) United States $ 1,394,464 $ 1,348,741 $ 1,260,739 $ 1,315,174 $ 850,511 $ 642,256 China 551,861 754,514 548,853 851,789 957,296 866,126 Other 742,983 26,473 1,037,669 28,029 850,785 23,984 Total $ 2,689,308 $ 2,129,728 $ 2,847,261 $ 2,194,992 $ 2,658,592 $ 1,532,366 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator Used to Calculate Basic Earnings per Share and Diluted Earnings per Share | The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the years ended December 30, 2019, December 31, 2018 and January 1, 2018: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands, except per share amounts) Basic earnings: Basic earnings $ 41,301 $ 173,584 $ 124,214 Diluted earnings: Net income attributable to TTM Technologies, Inc. stockholders $ 41,301 $ 173,584 $ 124,214 Interest expense from Convertible Senior Notes, net of tax 11,090 11,906 13,803 Diluted earnings $ 52,391 $ 185,490 $ 138,017 Basic weighted average shares 105,195 103,355 101,580 Dilutive effect of performance-based restricted stock units, restricted stock units and stock options 1,137 1,677 2,157 Dilutive effect of outstanding warrants — 3,065 2,799 Dilutive effect of assumed conversion of Convertible Senior Notes outstanding — 25,939 25,940 Diluted shares 106,332 134,036 132,476 Earnings per share attributable to TTM Technologies, Inc. stockholders: Basic $ 0.39 $ 1.68 $ 1.22 Diluted $ 0.39 $ 1.38 $ 1.04 |
Effect of Shares of Common Stock, Excluded From Computation of Dilutive Earnings per Share | The below is a summary of amounts convertible to common stock related to Convertible Senior Notes and related warrants: For the Year Ended December 30, 2019 December 31, 2018 January 1, 2018 (In thousands) Common stock related to Convertible Senior Notes 25,938 25,939 25,939 Warrants to purchase common stock 25,940 25,940 25,940 |
Acquisitions of Anaren, Inc. (T
Acquisitions of Anaren, Inc. (Tables) | 12 Months Ended |
Dec. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Unaudited Pro forma Financial Information | The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the actual results that would have been achieved had the acquisition occurred at the beginning of the earliest period presented, or the results that may be achieved in future periods. For the Year Ended December 31, January 1, 2018 2018 (In thousands) Net sales $ 2,915,935 $ 2,892,192 Net income attributable to TTM Technologies, Inc. stockholders 190,198 106,881 Basic earnings per share $ 1.84 $ 1.05 Dilutive earnings per share $ 1.51 $ 0.91 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019USD ($)SegmentReporting_unit | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Gains (losses) from foreign currency transactions | $ (1,430) | $ 3,529 | $ (22,802) |
Allowance for doubtful accounts | 1,929 | 2,750 | 2,468 |
Depreciation of property, plant and equipment | 166,574 | 162,708 | 150,809 |
Capitalized interest costs | $ 1,810 | 1,438 | 1,494 |
Number of reportable segments | Segment | 2 | ||
Revenue | $ 2,689,308 | 2,847,261 | 2,658,592 |
Cost of goods sold | $ 2,287,625 | 2,390,227 | $ 2,229,011 |
Remaining revenue performance obligation, percentage | 100.00% | ||
Contract assets converted to trade account receivables, threshold period | 90 days | ||
Contract assets | $ 288,235 | 287,741 | |
Contract liabilities converted to revenue, threshold period | 90 days | ||
Contract liabilities | $ 3,838 | $ 3,220 | |
Percentage of recognized income tax positions | 50.00% | ||
Desay Industrials Company | |||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Minority interest percentage | 5.00% | ||
Transferred over Time | |||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Revenue from products and services transferred to customers, percentage | 98.00% | 98.00% | |
Transferred at Point in Time | |||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Revenue from products and services transferred to customers, percentage | 2.00% | 2.00% | |
New Revenue Standard | New Revenue Standard Adjustment | |||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Revenue | $ 5,058 | $ 3,507 | |
Cost of goods sold | $ 4,231 | 2,422 | |
Minimum | |||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of intangibles (in years) | 5 years | ||
Maximum | |||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of intangibles (in years) | 13 years | ||
Printed Circuit Board | |||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||
Number of reporting units | Reporting_unit | 5 | ||
Number of operating segments | Segment | 2 | ||
Revenue | $ 2,462,975 | $ 2,621,314 | $ 2,448,506 |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Properly, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 30, 2019 | |
Minimum | Land use rights | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 50 years |
Minimum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 7 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 3 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 3 years |
Maximum | Land use rights | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 99 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 50 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 12 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment (in years) | 7 years |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-12-31 $ in Thousands | Dec. 30, 2019USD ($) |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Transaction price allocated to remaining performance obligations | $ 9,314 |
Remaining performance obligation period | 1 year |
Summary of Revenue Recognition
Summary of Revenue Recognition in Sales Returns and Allowances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | ||
Accounting Policies [Abstract] | ||||
Balance at beginning of year | $ 16,071 | $ 8,171 | $ 8,119 | |
Addition charged as a reduction of sales (1) | [1] | 15,632 | 23,525 | 14,574 |
Deductions | (18,176) | (15,602) | (14,524) | |
Effect of foreign currency exchange rates | 17 | (23) | 2 | |
Balance at end of year | $ 13,544 | $ 16,071 | $ 8,171 | |
[1] | On the date of adopting the new revenue standard, the Company recorded an estimated sales returns and allowance in the amount of $5,213 as of January 2, 2018 |
Summary of Revenue Recognitio_2
Summary of Revenue Recognition in Sales Returns and Allowances (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 | Jan. 02, 2018 | Jan. 01, 2018 | Jan. 02, 2017 |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||||
Sales returns and allowance | $ 13,544 | $ 16,071 | $ 8,171 | $ 8,119 | |
New Revenue Standard | Effect of Change Increase (Decrease) | |||||
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |||||
Sales returns and allowance | $ 5,213 |
Disaggregation of Revenue by Pr
Disaggregation of Revenue by Principal End Markets with the Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | $ 2,689,308 | $ 2,847,261 | $ 2,658,592 |
Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 2,462,975 | 2,621,314 | 2,448,506 |
E-M Solutions | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 226,333 | 225,947 | 210,086 |
Aerospace and Defense | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 699,285 | 608,720 | 419,782 |
Aerospace and Defense | Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 698,742 | 607,862 | 418,238 |
Aerospace and Defense | E-M Solutions | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 543 | 858 | 1,544 |
Automotive | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 424,386 | 502,600 | 511,176 |
Automotive | Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 322,382 | 415,772 | 434,775 |
Automotive | E-M Solutions | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 102,004 | 86,828 | 76,401 |
Cellular Phone | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 336,725 | 385,757 | 483,805 |
Cellular Phone | Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 336,725 | 385,757 | 483,805 |
Computing/Storage/Peripherals | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 360,550 | 401,386 | 357,109 |
Computing/Storage/Peripherals | Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 360,262 | 399,692 | 352,862 |
Computing/Storage/Peripherals | E-M Solutions | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 288 | 1,694 | 4,247 |
Medical/Industrial/Instrumentation | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 384,754 | 410,023 | 368,350 |
Medical/Industrial/Instrumentation | Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 355,072 | 370,171 | 330,093 |
Medical/Industrial/Instrumentation | E-M Solutions | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 29,682 | 39,852 | 38,257 |
Networking/Communications | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 416,387 | 477,932 | 478,841 |
Networking/Communications | Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 321,952 | 381,038 | 390,335 |
Networking/Communications | E-M Solutions | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 94,435 | 96,894 | 88,506 |
Other | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 67,221 | 60,843 | 39,529 |
Other | Printed Circuit Board | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 67,840 | 61,022 | 38,398 |
Other | E-M Solutions | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | $ (619) | $ (179) | $ 1,131 |
Cumulative Effect of Changes to
Cumulative Effect of Changes to Consolidated Balance Sheet For Adoption of New Lease Standard (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Operating lease right-of-use assets | $ 24,156 | ||
Deposits and other non-current assets | 64,365 | $ 55,597 | |
Liabilities | |||
Other current liabilities | 110,567 | 113,756 | |
Operating lease liabilities | 16,517 | ||
Other long-term liabilities | $ 92,751 | 94,777 | |
Previously Reported | |||
Assets | |||
Deposits and other non-current assets | 55,597 | ||
Liabilities | |||
Other current liabilities | 113,756 | ||
Other long-term liabilities | $ 94,777 | ||
ASU 2016-02, Leases (Topic 842) | |||
Assets | |||
Operating lease right-of-use assets | $ 16,894 | ||
Deposits and other non-current assets | 55,049 | ||
Liabilities | |||
Other current liabilities | 116,301 | ||
Operating lease liabilities | 14,356 | ||
Other long-term liabilities | 94,222 | ||
ASU 2016-02, Leases (Topic 842) | New Lease Standard Adjustment | |||
Assets | |||
Operating lease right-of-use assets | 16,894 | ||
Deposits and other non-current assets | (548) | ||
Liabilities | |||
Other current liabilities | 2,545 | ||
Operating lease liabilities | 14,356 | ||
Other long-term liabilities | $ (555) |
Components of Lease Expense (De
Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 9,262 |
Variable lease cost | 11,283 |
Short-term lease cost | $ 1,273 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 8,658 |
Right-of-use assets obtained in exchange for new lease obligations: | |
Operating leases | $ 15,697 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Dec. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 24,156 |
Other current liabilities | $ 8,178 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Operating lease liabilities | $ 16,517 |
Total operating lease liabilities | $ 24,695 |
Weighted average remaining lease term | 4 years 2 months 12 days |
Weighted average discount rate | 3.81% |
Maturities of Operating Lease L
Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 30, 2019USD ($) |
Leases [Abstract] | |
Less than one year | $ 8,795 |
1 - 2 years | 7,504 |
2 - 3 years | 3,497 |
3 - 4 years | 2,219 |
4 - 5 years | 1,865 |
Thereafter | 2,951 |
Total lease payments | 26,831 |
Less imputed interest | (2,136) |
Total | $ 24,695 |
Maturities of Operating Lease_2
Maturities of Operating Lease Liabilities (Parenthetical) (Detail) | Dec. 30, 2019USD ($) |
Leases [Abstract] | |
Legally binding lease payments for leases signed but not yet commenced | $ 1,169,000 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 7,282 |
2020 | 4,701 |
2021 | 3,406 |
2022 | 2,408 |
2023 | 2,172 |
Thereafter | 4,172 |
Total minimum lease payments | $ 24,141 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Leases [Abstract] | ||
Total rent expense | $ 20,345 | $ 16,665 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | Apr. 18, 2018 | May 31, 2015 |
Anaren, Inc. | ||
Restructuring Cost and Reserve [Line Items] | ||
Business acquisition date | Apr. 18, 2018 | |
TTM Viasystems Group Inc | ||
Restructuring Cost and Reserve [Line Items] | ||
Business acquisition date | May 31, 2015 |
Summary of Restructuring Costs
Summary of Restructuring Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Reportable Segment: | |||
Restructuring charges | $ 6,981 | $ 5,518 | $ 1,190 |
Employee Separation/ Severance | |||
Reportable Segment: | |||
Restructuring charges | 6,936 | 5,397 | 211 |
Contract Termination and Other Costs | |||
Reportable Segment: | |||
Restructuring charges | 45 | 121 | 979 |
Reportable Segment | Printed Circuit Board | |||
Reportable Segment: | |||
Restructuring charges | 6,871 | 2,008 | 277 |
Reportable Segment | E-M Solutions | |||
Reportable Segment: | |||
Restructuring charges | 520 | ||
Reportable Segment | Employee Separation/ Severance | Printed Circuit Board | |||
Reportable Segment: | |||
Restructuring charges | 6,856 | 2,008 | 178 |
Reportable Segment | Contract Termination and Other Costs | Printed Circuit Board | |||
Reportable Segment: | |||
Restructuring charges | 15 | 99 | |
Reportable Segment | Contract Termination and Other Costs | E-M Solutions | |||
Reportable Segment: | |||
Restructuring charges | 520 | ||
Corporate | |||
Reportable Segment: | |||
Restructuring charges | 110 | 3,510 | 393 |
Corporate | Employee Separation/ Severance | |||
Reportable Segment: | |||
Restructuring charges | 80 | 3,389 | 33 |
Corporate | Contract Termination and Other Costs | |||
Reportable Segment: | |||
Restructuring charges | $ 30 | $ 121 | $ 360 |
Accrued Restructuring Costs (De
Accrued Restructuring Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 3,551 | $ 499 |
Charged to expense | 6,981 | 5,518 |
Amount paid | (10,030) | (2,466) |
Ending balance | 502 | 3,551 |
Employee Separation/ Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 3,158 | |
Charged to expense | 6,936 | 5,397 |
Amount paid | (9,834) | (2,239) |
Ending balance | 260 | 3,158 |
Contract Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 393 | 499 |
Charged to expense | 45 | 121 |
Amount paid | (196) | (227) |
Ending balance | $ 242 | $ 393 |
Schedule of Composition of Cert
Schedule of Composition of Certain Consolidated Financial Statement Captions (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Jan. 02, 2017 |
Inventories: | ||||
Raw materials | $ 108,236 | $ 97,600 | ||
Work-in-process | 8,588 | 10,299 | ||
Finished goods | 5,195 | 1,478 | ||
Inventories | 122,019 | 109,377 | ||
Property, plant and equipment, net: | ||||
Land and land use rights | 74,850 | 75,431 | ||
Buildings and improvements | 543,546 | 534,122 | ||
Machinery and equipment | 1,436,795 | 1,357,035 | ||
Construction-in-progress, furniture and fixtures and other | 71,416 | 42,713 | ||
Property, plant and equipment, gross | 2,126,607 | 2,009,301 | ||
Less: Accumulated depreciation | (1,103,678) | (957,277) | ||
Property, plant and equipment, net | 1,022,929 | 1,052,024 | ||
Other current liabilities: | ||||
Sales returns and allowance | 13,544 | 16,071 | $ 8,171 | $ 8,119 |
Income taxes payable | 12,899 | 11,345 | ||
Interest | 8,893 | 9,260 | ||
Restructuring | 502 | 3,551 | ||
Other | 74,729 | 73,529 | ||
Other current liabilities | $ 110,567 | $ 113,756 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 938,445 | $ 543,971 | $ 946,191 |
Accumulated impairment losses | (171,400) | (171,400) | (171,400) |
Goodwill, net | 767,045 | 372,571 | $ 774,791 |
Goodwill recognized during the year | $ 7,746 | $ 394,474 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 30, 2019 | Sep. 30, 2019 | |
Minimum | ||
Goodwill [Line Items] | ||
Discount rate to expected future cash flows | 14.00% | |
Maximum | ||
Goodwill [Line Items] | ||
Discount rate to expected future cash flows | 17.00% | |
Communications and Computing Reporting Unit | ||
Goodwill [Line Items] | ||
Goodwill taken into consideration for impairment evaluation | $ 39,300 | |
Reporting unit, percentage of fair value in excess of net book value | 19.00% | |
Automotive and Medical/Industrial/Instrumentation Reporting Unit | ||
Goodwill [Line Items] | ||
Goodwill taken into consideration for impairment evaluation | $ 185,500 | |
Reporting unit, percentage of fair value in excess of net book value | 8.00% |
Definite-lived Intangibles (Det
Definite-lived Intangibles (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 463,880 | $ 542,634 |
Accumulated Amortization | (131,872) | (166,711) |
Net Carrying Amount | 332,008 | 375,923 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 415,000 | 203,634 |
Accumulated Amortization | (123,674) | (123,522) |
Net Carrying Amount | $ 291,326 | $ 80,112 |
Weighted Average Amortization Period | 10 years 9 months 18 days | 8 years 1 month 6 days |
Customer Relationships | Acquired Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 1,230 | $ 267,500 |
Accumulated Amortization | (31) | (15,561) |
Net Carrying Amount | $ 1,199 | $ 251,939 |
Weighted Average Amortization Period | 5 years | 12 years 2 months 12 days |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 39,500 | $ 3,000 |
Accumulated Amortization | (8,064) | $ (3,000) |
Net Carrying Amount | $ 31,436 | |
Weighted Average Amortization Period | 9 years 4 months 24 days | 3 years |
Technology | Acquired Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 8,150 | |
Accumulated Amortization | (103) | |
Net Carrying Amount | $ 8,047 | |
Weighted Average Amortization Period | 10 years | |
Developed Technology | Acquired Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 39,500 | |
Accumulated Amortization | (3,345) | |
Net Carrying Amount | $ 36,155 | |
Weighted Average Amortization Period | 9 years 4 months 24 days | |
Backlog | Acquired Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 29,000 | |
Accumulated Amortization | (21,283) | |
Net Carrying Amount | $ 7,717 | |
Weighted Average Amortization Period | 10 months 24 days |
Definite-lived Intangibles - Ad
Definite-lived Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization of definite-lived intangibles | $ 53,296 | $ 63,026 | $ 23,634 |
Amortization of definite-lived intangibles included in cost of goods sold | $ 4,822 | $ 3,345 |
Estimated Aggregate Amortizatio
Estimated Aggregate Amortization for Definite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 46,480 | |
2021 | 43,190 | |
2022 | 40,063 | |
2023 | 37,351 | |
2024 | 29,812 | |
Thereafter | 135,112 | |
Net Carrying Amount | $ 332,008 | $ 375,923 |
Long-term Debt (Detail)
Long-term Debt (Detail) - USD ($) | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,500,854,000 | $ 1,530,864,000 |
Less: Long-term debt unamortized discount | (11,943,000) | (22,167,000) |
Long-term debt unamortized debt issuance costs | (12,974,000) | (16,272,000) |
Long-term debt, Carrying Amount | 1,475,937,000 | 1,492,425,000 |
Less: current maturities | (249,975,000) | (30,000,000) |
Long-term debt, less current maturities | 1,225,962,000 | 1,462,425,000 |
1.75% Convertible Senior Notes due December 15, 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 249,975,000 | 249,985,000 |
Less: Long-term debt unamortized discount | $ (9,927,000) | $ (19,678,000) |
Debt instrument, interest rate | 1.75% | 1.75% |
Term Loan Due September 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 805,879,000 | $ 835,879,000 |
Less: Long-term debt unamortized discount | $ (2,016,000) | $ (2,489,000) |
Interest rate at period end | 4.28% | 5.00% |
Senior Notes Due October 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 375,000,000 | $ 375,000,000 |
Debt instrument, interest rate | 5.63% | 5.63% |
U.S. Asset Based Lending Revolving Loan Due June 2024 | ||
Debt Instrument [Line Items] | ||
Revolving loan | $ 40,000,000 | $ 40,000,000 |
Long-term debt unamortized debt issuance costs | $ (2,511,000) | $ (1,420,000) |
Interest rate at period end | 3.03% | 4.00% |
Asia Asset Based Lending Revolving Loan Due June 2024 | ||
Debt Instrument [Line Items] | ||
Revolving loan | $ 30,000,000 | $ 30,000,000 |
Interest rate at period end | 3.18% | 3.90% |
Long-term Debt (Parenthetical)
Long-term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 30, 2019 | |
1.75% Convertible Senior Notes due December 15, 2020 | |
Debt Instrument [Line Items] | |
Long-term debt, maturity month and year | 2020-12 |
Term Loan Due September 2024 | |
Debt Instrument [Line Items] | |
Long-term debt, maturity month and year | 2024-09 |
Senior Notes Due October 2025 | |
Debt Instrument [Line Items] | |
Long-term debt, maturity month and year | 2025-10 |
U.S. Asset Based Lending Revolving Loan Due June 2024 | |
Debt Instrument [Line Items] | |
Long-term debt, maturity month and year | 2024-06 |
Asia Asset Based Lending Revolving Loan Due June 2024 | |
Debt Instrument [Line Items] | |
Long-term debt, maturity month and year | 2024-06 |
Long-term Debt Maturities (Deta
Long-term Debt Maturities (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 249,975 | |
2024 | 875,879 | |
Thereafter | 375,000 | |
Long-term debt, gross | $ 1,500,854 | $ 1,530,864 |
Long-term Debt and Letters of_3
Long-term Debt and Letters of Credit - Additional Information (Detail) | Apr. 18, 2018USD ($) | Jul. 31, 2019 | Dec. 30, 2019USD ($)sharesTranche$ / shares | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Apr. 17, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Allocated portion of commitments from lenders closed | $ 600,000,000 | |||||
Long-term debt, gross | $ 1,500,854,000 | $ 1,530,864,000 | ||||
Line of credit unused portion of commitment fee | 703,000 | 992,000 | $ 783,000 | |||
Remaining unamortized debt issuance costs | 12,974,000 | 16,272,000 | ||||
Loss on extinguishment of debt | $ 768,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum borrowing capacity | 150,000,000 | |||||
Revolving Credit Facility | CHINA | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum borrowing capacity | 28,588,000 | |||||
Long-term debt, maturity month and year | 2020-07 | |||||
Line of credit unused portion of commitment fee | 0 | |||||
Senior Notes Due October 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument amount | $ 375,000,000 | |||||
Long-term debt, maturity date | Oct. 1, 2025 | |||||
Debt instrument, interest rate | 5.63% | |||||
1.75% Convertible Senior Notes due December 15, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 249,975,000 | $ 249,985,000 | ||||
Long-term debt, maturity date | Dec. 15, 2020 | |||||
Debt instrument, interest rate | 1.75% | 1.75% | ||||
Convertible note, latest conversion date | Mar. 15, 2020 | |||||
Conversion rate, shares | 1.037613 | |||||
Common stock conversion price | $ / shares | $ 1 | |||||
Minimum days within prior period common stock price is in excess | 20 days | |||||
Period of time immediately preceding calendar quarter (days) | 30 days | |||||
Amount of excess necessary to be able to exercise conversion | 130.00% | |||||
Period of time when person can exercise conversion (days) | 5 days | |||||
Consecutive trading day period being observed | 10 days | |||||
Product deficit over observed period | 98.00% | |||||
Trading Day Observation Period (days) | 80 days | |||||
Maximum number of shares issuable upon conversion | shares | 32,422 | |||||
Repurchase amount in the event of a fundamental change or certain default events | 100.00% | |||||
Option to purchase common stock, shares | shares | 25,939,000 | |||||
Option to purchase common stock, strike price | $ / shares | $ 9.64 | |||||
Convertible note hedge expiration date | Dec. 15, 2020 | |||||
Warrants sold to purchase of additional common stock | shares | 25,940,000 | |||||
Price per share of additional common stock purchased | $ / shares | $ 14.26 | |||||
Warrants beginning, expiration date | Mar. 31, 2021 | |||||
Warrants ending, expiration date | Jan. 1, 2022 | |||||
Reduction of potential dilution by effectively increasing conversion price of the Convertible Notes | $ / shares | $ 14.26 | |||||
Long-term debt, maturity month and year | 2020-12 | |||||
Maximum | Letters of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding under U.S. ABL and Asia ABL, expiration period | 2020-03 | |||||
Weighted Average | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt discount and debt issuance costs, amortization period | 3 years 4 months 24 days | |||||
Term Loan Due September 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument amount | $ 948,250,000 | $ 348,250,000 | ||||
Long-term debt, gross | $ 805,879,000 | $ 835,879,000 | ||||
Interest rate at period end | 4.28% | 5.00% | ||||
Long-term debt, maturity date | Sep. 28, 2024 | |||||
Debt instrument, percentage of voting stock pledged as security | 65.00% | |||||
Secured leverage ratio, limit | 2 | |||||
Long-term debt, maturity month and year | 2024-09 | |||||
Term Loan Due September 2024 | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, weighted average discount percentage | 99.70% | |||||
Debt instrument, basis spread on variable rate | 2.50% | |||||
Term Loan Due September 2024 | Alternate Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
Base rate description | as defined in the Term Loan Credit Agreement | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate at period end | 3.03% | 4.00% | ||||
Long-term debt, maturity date | Jun. 3, 2024 | |||||
Debt instrument, percentage of voting stock pledged as security | 65.00% | |||||
Debt instrument, maximum borrowing capacity | $ 150,000,000 | |||||
Long-term debt, maturity month and year | 2024-06 | |||||
Debt instrument, incremental facility | $ 100,000,000 | |||||
Number of tranches | Tranche | 2 | |||||
Long-term debt | $ 40,000,000 | |||||
Commitment fee under credit agreement | 0.25% | |||||
Remaining unamortized debt issuance costs | $ 2,511,000 | $ 1,420,000 | ||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Letters of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum borrowing capacity | 50,000,000 | |||||
Letter of credit outstanding | 14,488,000 | |||||
Debt instrument, available borrowing capacity | 95,512,000 | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum borrowing capacity | $ 150,000,000 | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Alternate Base Rate | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.25% | |||||
Base rate description | defined as the greater of the prime rate, the New York Fed bank rate plus 0.5% or LIBOR plus 1.0% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Alternate Base Rate | Minimum | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.01% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Alternate Base Rate New York Fed Bank Rate | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.005% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Alternate Base Rate, LIBOR Rate | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.01% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Prime Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.25% | |||||
U.S. Asset Based Lending Revolving Loan Due June 2024 | Prime Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Asia Asset Based Lending Revolving Loan Due June 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate at period end | 3.18% | |||||
Long-term debt, maturity date | Jun. 4, 2024 | |||||
Long-term debt, maturity month and year | 2024-06 | |||||
Debt instrument, incremental facility | $ 50,000,000 | |||||
Number of tranches | Tranche | 2 | |||||
Long-term debt | $ 30,000,000 | |||||
Asia Asset Based Lending Revolving Loan Due June 2024 | Letters of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum borrowing capacity | 100,000,000 | |||||
Asia Asset Based Lending Revolving Loan Due June 2024 | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum borrowing capacity | $ 150,000,000 | |||||
Asia Asset Based Lending Revolving Loan Due June 2024 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.40% | |||||
Asia Asset Based Lending Revolving Loan Due June 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate at period end | 3.18% | 3.90% | ||||
Long-term debt, maturity month and year | 2024-06 | |||||
Commitment fee under credit agreement | 0.28% | |||||
Asia Asset Based Lending Revolving Loan Due June 2024 | Letters of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maximum borrowing capacity | $ 100,000,000 | |||||
Letter of credit outstanding | 21,709,000 | |||||
Debt instrument, available borrowing capacity | $ 98,291,000 |
Schedule of Liability and Equit
Schedule of Liability and Equity Components of Convertible Senior Notes Included in Additional Paid-in Capital (Detail) - 1.75% Convertible Senior Notes due December 15, 2020 - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Schedule of Convertible Notes [Line Items] | ||
Embedded conversion option — Convertible Senior Notes | $ 60,213 | $ 60,216 |
Embedded conversion option — Convertible Senior Notes Issuance Costs | (1,916) | (1,916) |
Total | $ 58,297 | $ 58,300 |
Components of Interest Expense
Components of Interest Expense from Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Debt Disclosure [Abstract] | |||
Contractual coupon interest | $ 4,374 | $ 4,375 | $ 4,375 |
Amortization of debt discount | 9,751 | 9,142 | 8,570 |
Amortization of debt issuance costs | $ 977 | $ 916 | $ 858 |
Long-term Debt and Letters of_4
Long-term Debt and Letters of Credit - Schedule of Remaining Unamortized Debt Discount and Debt Issuance Costs (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt Issuance Costs | $ 12,974 | $ 16,272 |
Debt Discount | 11,943 | 22,167 |
1.75% Convertible Senior Notes due December 15, 2020 | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs | 995 | 1,972 |
Debt Discount | $ 9,927 | $ 19,678 |
Effective Interest Rate | 6.48% | 6.48% |
Term Loan Due September 2024 | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs | $ 6,663 | $ 8,229 |
Debt Discount | $ 2,016 | $ 2,489 |
Effective Interest Rate | 4.66% | 4.66% |
Senior Notes Due October 2025 | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs | $ 5,316 | $ 6,071 |
Effective Interest Rate | 5.92% | 5.92% |
Components of Income (Loss) Bef
Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 16,066 | $ 18,991 | $ (4,178) |
Foreign | 30,118 | 70,777 | 144,136 |
Income before income taxes | $ 46,184 | $ 89,768 | $ 139,958 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||
Unrecognized deferred tax liability related to undistributed earnings | $ 3,589 | |
Tax credit carryforward, total | 46,393 | |
Tax credit carryforwards not subject to expiration | 6,693 | |
Unrecognized tax benefits including income tax penalties and interest accrued | 25,805 | $ 26,274 |
Unrecognized tax benefits, income tax penalties and interest accrued | 13,531 | 13,280 |
Reduction in deferred tax assets | 19,225 | $ 11,576 |
Unrecognized tax benefits that would impact effective tax rate | 39,336 | |
Decrease in unrecognized tax benefits over the next 12 months resulting from expiring statues | 3,864 | |
Unrecognized tax benefits, interest and penalties | 6,555 | |
TTM Viasystems Group Inc | ||
Income Taxes [Line Items] | ||
Utilization of the U.S. net operating losses | 9,826 | |
Increase in utilization of the U.S. net operating losses | $ 47,463 | |
Net operating loss utilization period | 5 years | |
TTM Viasystems Group Inc | Minimum | ||
Income Taxes [Line Items] | ||
Percentage of change in ownership | 50.00% | |
UNITED STATES | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 360,640 | |
UNITED STATES | Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Expiration year, operating loss carryforwards | 2023 | |
UNITED STATES | Latest Tax Year | ||
Income Taxes [Line Items] | ||
Expiration year, operating loss carryforwards | 2036 | |
Various U.S. States | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 48,025 | |
Various U.S. States | Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Expiration year, operating loss carryforwards | 2020 | |
Various U.S. States | Latest Tax Year | ||
Income Taxes [Line Items] | ||
Expiration year, operating loss carryforwards | 2036 | |
CHINA | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 64,676 | |
CHINA | Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Expiration year, operating loss carryforwards | 2020 | |
CHINA | Latest Tax Year | ||
Income Taxes [Line Items] | ||
Expiration year, operating loss carryforwards | 2029 | |
HONG KONG | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 60,087 | |
Foreign | ||
Income Taxes [Line Items] | ||
Deferred tax liability, undistributed earnings of foreign subsidiaries | 10,243 | |
Undistributed earnings of foreign subsidiaries | $ 60,769 | |
Foreign | Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Tax year remain subject to examination | 2009 | |
Foreign | Latest Tax Year | ||
Income Taxes [Line Items] | ||
Tax year remain subject to examination | 2019 | |
State and Local | ||
Income Taxes [Line Items] | ||
Deferred tax liability, undistributed earnings of foreign subsidiaries | $ 905 | |
State and Local | Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Tax year remain subject to examination | 2000 | |
State and Local | Latest Tax Year | ||
Income Taxes [Line Items] | ||
Tax year remain subject to examination | 2019 | |
U.S. Federal | Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Tax year remain subject to examination | 2000 | |
U.S. Federal | Latest Tax Year | ||
Income Taxes [Line Items] | ||
Tax year remain subject to examination | 2019 |
Components of Income Tax Benefi
Components of Income Tax Benefit (Provision) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current benefit (provision), Federal | $ 294 | $ 381 | $ 82 |
Current benefit (provision), State | (2,922) | (1,294) | (462) |
Current benefit (provision), Foreign | (13,042) | (12,045) | (24,006) |
Current benefit (provision), Total current | (15,670) | (12,958) | (24,386) |
Deferred benefit (provision), Federal | 1,004 | 97,723 | 11 |
Deferred benefit (provision), State | (1,076) | 14,351 | (31) |
Deferred benefit (provision), Foreign | 10,859 | (15,300) | 9,175 |
Deferred benefit (provision), Total deferred | 10,787 | 96,774 | 9,155 |
Total (provision) benefit | $ (4,883) | $ 83,816 | $ (15,231) |
Reconciliation of Provision for
Reconciliation of Provision for Income Taxes at Statutory Federal Income Tax Rate Compared to Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax | $ (9,699) | $ (18,851) | $ (48,985) |
State income taxes, net of federal benefit and state tax credits | (3,163) | (1,953) | (462) |
Foreign deemed dividends | (457) | ||
Transfer pricing | 1,483 | ||
Acquisition related expenses | (1,737) | ||
IRC Section 162(m) limitation | (868) | (3,702) | |
Stock options | (252) | 1,072 | |
Global Intangible Low-Taxed Income | (457) | ||
Intercompany profit in inventory elimination | (743) | ||
Permanently reinvested earnings assertion | (2,903) | (15,492) | |
Tax Act deferred tax revaluation | (59,228) | ||
Foreign tax differential on foreign earnings & other permanent items | 2,294 | 2,045 | 30,412 |
Change in valuation allowance | 2,127 | 118,451 | 66,716 |
Uncertain tax positions | 999 | (954) | (3,992) |
Federal research and development credits | 4,582 | 2,996 | 1,270 |
Other | 2,457 | 458 | 238 |
Total (provision) benefit | $ (4,883) | $ 83,816 | $ (15,231) |
Significant Components of Net D
Significant Components of Net Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax assets, Net operating loss carryforwards | $ 88,798 | $ 104,801 |
Deferred income tax assets, Reserves and accruals | 28,240 | 29,358 |
Deferred income tax assets, Interest expense limitation | 13,102 | 1,276 |
Deferred income tax assets, Unrealized loss on cash flow hedge | 2,960 | 1,128 |
Deferred income tax assets, Tax credit carryforwards | 37,889 | 30,962 |
Deferred income tax assets, Stock-based compensation | 4,440 | 4,528 |
Deferred income tax assets, Original issue discount on Convertible Senior Notes | 870 | 5,130 |
Deferred income tax assets, Property, plant and equipment | 13,722 | 24,826 |
Deferred income tax assets, Other deferred income tax assets | 756 | 228 |
Deferred income tax assets gross | 190,777 | 202,237 |
Less: valuation allowance | (25,874) | (27,426) |
Deferred income tax assets, net of valuation allowance | 164,903 | 174,811 |
Deferred income tax liabilities, Discount on Convertible Senior Notes | (4,683) | |
Deferred income tax liabilities, Repatriation of foreign earnings | (11,148) | (20,282) |
Deferred income tax liabilities, Property, plant and equipment basis differences | (54,310) | (50,622) |
Deferred income tax liabilities, Goodwill and intangible amortization | (73,219) | (85,300) |
Deferred income tax liabilities, Other deferred income tax liabilities | (100) | (252) |
Net deferred income tax assets | 26,126 | 13,672 |
Non-current deferred income taxes | $ 26,126 | $ 13,672 |
Summery of Activity in Company'
Summery of Activity in Company's Valuation Allowance (Detail) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of year | $ 27,426 | $ 167,238 | $ 221,951 |
Reduction related to acquisition | (76,040) | ||
Additions charged to expense | 6,483 | 4,515 | |
Reduction charged to expense — Tax Act | (59,228) | ||
Other reduction charged to expense | (8,035) | (63,772) | |
Balance at end of year | $ 25,874 | $ 27,426 | $ 167,238 |
Summary of HNTE and R&D Benefit
Summary of HNTE and R&D Benefit and Effect on Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Income Tax Disclosure [Abstract] | |||
HNTE and R&D benefits | $ 10,060 | $ 11,970 | $ 11,935 |
Basic shares | 105,195 | 103,355 | 101,580 |
Diluted shares | 106,332 | 134,036 | 132,476 |
Basic | $ 0.10 | $ 0.12 | $ 0.12 |
Diluted | $ 0.09 | $ 0.09 | $ 0.09 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 37,849 | $ 38,841 | $ 39,727 |
Additions related to acquisition | 903 | ||
Additions based on tax positions related to the current year | 3,553 | 856 | 1,965 |
Additions for tax positions of prior years | 4,952 | 117 | 1,661 |
Reductions for tax positions of prior years | (103) | (2,140) | (3,846) |
Lapse of statute of limitations | (1,221) | (728) | (666) |
Balance at end of year | $ 45,030 | $ 37,849 | $ 38,841 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | May 15, 2018 | Dec. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | |||
Accumulated other comprehensive income (loss) will be reclassified into the statement of operations, net of tax, in the next 12 months | $ (3,561,000) | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Interest rate derivatives, at fair value, net | $ 0 | ||
Derivative, ineffectiveness | 0 | $ 0 | |
Interest Rate Swap | Interest expense | |||
Derivative [Line Items] | |||
Derivative instrument, increased interest expense | 2,315,000 | 1,598,000 | |
Interest Rate Swap | Other Long-term Liabilities | |||
Derivative [Line Items] | |||
Interest rate derivative liability, at fair value | 12,067,000 | ||
Foreign Exchange Contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 3,304,000 | $ 4,313,000 | |
1-Month LIBOR | Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, maturity period | 4 years | ||
Derivative, notional amount | $ 400,000,000 | ||
Derivative, expiration date | Jun. 1, 2022 | ||
Derivative, fixed rate | 2.84% |
Summary of Fair Values of Deriv
Summary of Fair Values of Derivative Instruments in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Other Long-term Liabilities | Interest Rate Swap | ||
Cash flow derivative instruments designated as hedges: | ||
Cash flow derivative instruments designated as hedges, liability fair value | $ (12,067) | $ (4,735) |
Prepaid Expenses and Other Current Assets | Foreign Exchange Contracts | ||
Cash flow derivative instruments not designated as hedges: | ||
Cash flow derivative instruments not designated as hedges, liability fair value | 1 | |
Other Current Liabilities | Foreign Exchange Contracts | ||
Cash flow derivative instruments not designated as hedges: | ||
Cash flow derivative instruments designated as hedges, asset fair value | $ (29) | $ (139) |
Summary of Accumulated Other Co
Summary of Accumulated Other Comprehensive Loss Related to Derivatives Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Derivative Instruments Gain Loss [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Loss | $ (7,296) | $ (4,846) | $ 276 |
Interest Rate Swap | Interest expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Loss | (9,647) | (6,333) | |
Loss Reclassified into Income | (2,315) | (1,598) | |
Foreign currency forward | Depreciation expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Loss | (4) | (21) | 276 |
Loss Reclassified into Income | $ (155) | $ (157) | $ (162) |
Summary of Activity of Designat
Summary of Activity of Designated Cash Flow Hedges in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Derivative [Line Items] | |||
Beginning balance | $ 1,227,087 | ||
Ending balance | 1,279,037 | $ 1,227,087 | |
Gains (Losses) on Cash Flow Hedges | |||
Derivative [Line Items] | |||
Beginning balance | (4,214) | (742) | $ (1,180) |
Changes in fair value (loss) gain, net of tax | (7,296) | (4,846) | 276 |
Reclassification to earnings | 1,893 | 1,374 | 162 |
Ending balance | $ (9,617) | $ (4,214) | $ (742) |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 1,227,087 | $ 1,011,380 | $ 829,125 |
Other comprehensive (loss) income, net of tax | (6,166) | (7,323) | 47,732 |
Ending balance | 1,279,037 | 1,227,087 | 1,011,380 |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1,578 | 4,145 | |
Other comprehensive income (loss) before reclassifications | (463) | (2,567) | |
Other comprehensive (loss) income, net of tax | (463) | (2,567) | |
Ending balance | 1,115 | 1,578 | 4,145 |
Pension Obligation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,284) | ||
Other comprehensive income (loss) before reclassifications | (300) | (1,284) | |
Other comprehensive (loss) income, net of tax | (300) | (1,284) | |
Ending balance | (1,584) | (1,284) | |
Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (4,214) | (742) | |
Other comprehensive income (loss) before reclassifications | (7,296) | (4,846) | 276 |
Amounts reclassified from accumulated other comprehensive income | 1,893 | 1,374 | 162 |
Other comprehensive (loss) income, net of tax | (5,403) | (3,472) | |
Ending balance | (9,617) | (4,214) | (742) |
Accumulated Other Comprehensive (Loss) Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (3,920) | 3,403 | (44,329) |
Other comprehensive income (loss) before reclassifications | (8,059) | (8,697) | |
Amounts reclassified from accumulated other comprehensive income | 1,893 | 1,374 | |
Other comprehensive (loss) income, net of tax | (6,166) | (7,323) | 47,732 |
Ending balance | $ (10,086) | $ (3,920) | $ 3,403 |
Significant Customers and Con_2
Significant Customers and Concentration of Credit Risk - Additional Information (Detail) - Customer | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Concentration Risk [Line Items] | |||
Number of customers contributing to more than ten percent of revenue | 1 | 1 | 1 |
Net Sales | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of net sales, accounted by one customer | 15.00% | 15.00% | 20.00% |
Carrying Amount and Estimated F
Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets, current | $ 1 | |
Derivative liabilities, current | 29 | $ 139 |
Derivative liabilities, non-current | 12,067 | 4,735 |
Carrying Amount | 1.75% Convertible Senior Notes due December 15, 2020 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 239,053 | 228,335 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets, current | 1 | |
Derivative liabilities, current | 29 | 139 |
Derivative liabilities, non-current | 12,067 | 4,735 |
Fair Value | 1.75% Convertible Senior Notes due December 15, 2020 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 391,686 | 290,858 |
Term Loan Due September 2024 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 797,200 | 825,161 |
Term Loan Due September 2024 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 808,901 | 782,592 |
Senior Notes Due October 2025 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 369,684 | 368,929 |
Senior Notes Due October 2025 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 390,143 | 350,880 |
ABL Revolving Loans | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 70,000 | 70,000 |
ABL Revolving Loans | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 70,000 | $ 70,000 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 400,154,000 | $ 256,360,000 | |
Impairment of long-lived assets | 0 | 0 | $ 0 |
Domestic Subsidiaries | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 51,165,000 | ||
Foreign Subsidiaries | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 348,989,000 | ||
Defined Benefit Plan | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 21,287,000 | 18,251,000 | $ 19,643,000 |
Defined Benefit Plan | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | $ 21,287,000 | $ 18,251,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 4 Months Ended | 12 Months Ended | ||
Apr. 30, 2016shares | Dec. 30, 2019USD ($)Time$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Jan. 01, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total number of shares available in incentive compensation plan | 5,288,000 | 10,288,000 | ||
Expiration date | 2024-02 | |||
Number of additional shares authorized for issuance | 5,000,000 | |||
Options, outstanding | 100,000 | 100,000 | ||
Stock option granted | 0 | 40,000 | 0 | |
Weighted average fair value of stock options granted | $ / shares | $ 8.37 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of times common stock released at end of the period exceeds the target number | Time | 0 | |||
Percentage of performance to be applied to each participant's target award | 0.00% | |||
Percentage of performance modifier | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of times common stock released at end of the period exceeds the target number | Time | 2.4 | |||
Percentage of performance to be applied to each participant's target award | 160.00% | |||
Percentage of performance modifier | 150.00% | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Other than options, outstanding | 2,997,000 | |||
Restricted shares vested, but not released | 470,000 | |||
Weighted Average Grant-Date Fair Value Granted | $ / shares | $ 10.09 | $ 15.35 | $ 15.85 | |
Total fair value of options vested | $ | $ 13,954,000 | $ 12,599,000 | $ 9,446,000 | |
Restricted Stock Units (RSUs) | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vesting period (in years) | 3 years | |||
Restricted Stock Units (RSUs) | Non-Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vesting period (in years) | 1 year | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration of options not vesting, in years | 10 years | |||
Options, outstanding | 100,000 | |||
Total fair value of options vested | $ | $ 0 | $ 34,000 | 34,000 | |
Risk-free interest rate | 3.10% | |||
Expected volatility rate | 43.00% | |||
Expected term | 8 years 6 months | |||
Dividend yield | 0.00% | |||
Total intrinsic value of options exercised | $ | $ 0 | $ 128,000 | $ 27,000 | |
Performance-Based Restricted Stock Units (PRUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Other than options, outstanding | 400,000 | |||
Maximum payout provided to participants over initial payout due to new PRU Program | 2.4 | |||
Weighted Average Grant-Date Fair Value Granted | $ / shares | $ 10.17 | $ 19.59 | $ 22.90 | |
Risk-free interest rate | 2.18% | 2.14% | 1.20% | |
Expected volatility rate | 38.00% | 40.00% | 43.00% | |
Expected term | 1 year 9 months 18 days | 1 year 6 months | 1 year 9 months 18 days | |
Performance-Based Restricted Stock Units (PRUs) | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vesting period (in years) | 3 years |
Performance-Based Restricted St
Performance-Based Restricted Stock Units Activity (Detail) - Performance-Based Restricted Stock Units (PRUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding shares as of December 31, 2018 | 255 | ||
Granted | 293 | ||
Vested | (186) | ||
Forfeited / cancelled | (7) | ||
Change in units due to annual performance achievement | (141) | ||
Outstanding shares as of December 30, 2019 | 214 | 255 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding shares as of December 31, 2018 | $ 18.75 | ||
Granted | 10.17 | $ 19.59 | $ 22.90 |
Vested | 16.98 | ||
Forfeited / cancelled | 15.18 | ||
Change in units due to annual performance achievement | 13.47 | ||
Outstanding shares as of December 30, 2019 | $ 12.16 | $ 18.75 |
Assumptions Used in Determining
Assumptions Used in Determining Fair Value (Detail) - Performance-Based Restricted Stock Units (PRUs) - $ / shares | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value | $ 10.17 | $ 19.59 | $ 22.90 |
Risk-free interest rate | 2.18% | 2.14% | 1.20% |
Expected volatility | 38.00% | 40.00% | 43.00% |
Expected term in years | 1 year 9 months 18 days | 1 year 6 months | 1 year 9 months 18 days |
Restricted Stock Units Activity
Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Shares | |||
Outstanding shares as of December 31, 2018 | 2,125 | ||
Granted | 1,708 | ||
Vested | (1,179) | ||
Forfeited / cancelled | (127) | ||
Outstanding shares as of December 30, 2019 | 2,527 | 2,125 | |
Vested and expected to vest as of December 30, 2019 | 2,997 | ||
Weighted Average Grant-Date Fair Value | |||
Outstanding shares as of December 31, 2018 | $ 13.47 | ||
Granted | 10.09 | $ 15.35 | $ 15.85 |
Vested | 11.84 | ||
Forfeited / cancelled | 12.38 | ||
Outstanding shares as of December 30, 2019 | 11.91 | $ 13.47 | |
Vested and expected to vest as of December 30, 2019 | $ 11.75 |
Stock Options Activity (Detail)
Stock Options Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Number of shares | ||
Options, outstanding | 100 | 100 |
Vested and expected to vest as of December 30, 2019 | 100 | |
Exercisable as of December 30, 2019 | 65 | |
Weighted-average exercise price | ||
Outstanding, Weighted-average exercise price | $ 13.10 | $ 13.10 |
Vested and expected to vest as of December 30, 2019 | 13.10 | |
Exercisable as of December 30, 2019 | $ 12.06 | |
Weighted-Average Remaining Contractual Term (In years) | ||
Outstanding, Weighted-Average Remaining Contractual Term (In years) | 5 years 1 month 6 days | 6 years 1 month 6 days |
Vested and expected to vest, Weighted-Average Remaining Contractual Term (In years) | 5 years 1 month 6 days | |
Exercisable, Weighted-Average Remaining Contractual Term (In years) | 3 years 3 months 18 days | |
Aggregate intrinsic value | ||
Outstanding, Aggregate intrinsic value | $ 212 | $ 4 |
Vested and expected to vest as of December 30, 2019 | 212 | |
Exercisable as of December 30, 2019 | $ 212 |
Amounts Recognized in Consolida
Amounts Recognized in Consolidated Financial Statements of Operations with Respect to Stock Based Compensation Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 16,816 | $ 20,681 | $ 18,290 |
Cost of goods sold | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | 3,158 | 2,898 | 2,252 |
Selling and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | 1,973 | 1,964 | 1,458 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 11,685 | $ 15,819 | $ 14,580 |
Summary of Unrecognized Compens
Summary of Unrecognized Compensation Costs (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Cost | $ 21,046 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Cost | $ 19,452 |
Remaining Weighted Average Recognition Period (years) | 1 year 6 months |
Performance-Based Restricted Stock Units (PRUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Cost | $ 1,352 |
Remaining Weighted Average Recognition Period (years) | 1 year 4 months 24 days |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation Cost | $ 242 |
Remaining Weighted Average Recognition Period (years) | 1 year 8 months 12 days |
Employee Benefit Plans, Defer_3
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Additional Information (Detail) - USD ($) | Oct. 01, 2011 | Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to defined contribution plans | $ 54,395,000 | $ 58,445,000 | $ 42,461,000 | |
Percentage of annual bonus, participants are allowed to contribute, to deferred compensation plan | 100.00% | |||
Long-term target allocation, percentage | 100.00% | |||
Defined Benefit Plan, Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 66.00% | |||
Defined Benefit Plan, Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 3.00% | |||
Defined Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to defined contribution plans | $ 795,000 | $ 280,000 | ||
Percentage of funded status of accumulated benefit obligation | 70.00% | 70.00% | ||
Accumulated other comprehensive loss expected to be recognized as net periodic benefit | $ 0 | |||
Defined Benefit Plan | Large-Cap Stocks | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 29.00% | |||
Defined Benefit Plan | Mid-Cap Stocks | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 11.00% | |||
Defined Benefit Plan | Small-Cap Stocks | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 11.00% | |||
Defined Benefit Plan | International Stocks | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 11.00% | |||
Defined Benefit Plan | Broad Bond Market | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 34.00% | |||
Defined Benefit Plan | Real-Estate Market | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 3.00% | |||
Defined Benefit Plan | Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term target allocation, percentage | 0.00% | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of annual director fees, participants are allowed to contribute, to deferred compensation plan | 5.00% | |||
Minimum | Defined Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected required contribution to be funded in 2020 | $ 838,000 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of annual director fees, participants are allowed to contribute, to deferred compensation plan | 100.00% | |||
North America | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Description of savings plan | In North America, the Company has savings plans (the Savings Plans) in which eligible full-time employees can participate and contribute a percentage of compensation subject to the maximum allowed by the tax agencies. The Savings Plans provides for a partial match by the Company. |
Changes in Benefit Obligation a
Changes in Benefit Obligation and Plan Assets in Defined Benefit Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Change in in Plan Assets | |||
Employer contributions | $ 54,395 | $ 58,445 | $ 42,461 |
Defined Benefit Plan | |||
Change in Benefit Obligations | |||
Benefit obligation at beginning of year | (27,661) | (27,525) | |
Service cost | (397) | (292) | |
Interest cost | (1,109) | (758) | |
Amendments/curtailments/special termination | 1,636 | ||
Actuarial (loss) gain | (4,174) | 264 | |
Benefits paid | 1,105 | 650 | |
Benefit obligation at end of year | (30,600) | (27,661) | (27,525) |
Accumulated benefit obligation at end of year | 30,600 | 26,191 | |
Change in in Plan Assets | |||
Fair value of plan assets at beginning of year | 18,251 | 19,643 | |
Actual return on plan assets | 3,346 | (1,021) | |
Employer contributions | 795 | 280 | |
Benefits paid | (1,105) | (651) | |
Fair value of plan assets at end of year | 21,287 | 18,251 | $ 19,643 |
Unfunded status | (9,313) | (9,410) | |
Net amount recognized | $ (9,313) | $ (9,410) |
Employee Benefit Plans, Defer_4
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Amounts Before Income Tax Effect Recognized in Consolidated Balance Sheets (Detail) - Defined Benefit Plan - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other long-term liabilities | $ (9,313) | $ (9,410) |
Net amount recognized | $ (9,313) | $ (9,410) |
Employee Benefit Plans, Defer_5
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Amounts Before Income Tax Effect Included in Accumulated Other Comprehensive Loss (Detail) - Defined Benefit Plan - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ (2,097) | $ (1,677) |
Accumulated other comprehensive loss | $ (2,097) | $ (1,677) |
Employee Benefit Plans, Defer_6
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Components Included in Net Periodic Benefit Cost and Increase in Minimum Liability Included in Other Comprehensive Loss (Detail) - Defined Benefit Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 397 | $ 292 |
Interest cost | 1,109 | 758 |
Expected return on plan assets | (1,228) | (920) |
Net periodic benefit cost | $ 278 | $ 130 |
Employee Benefit Plans, Defer_7
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations Plans (Detail) - Defined Benefit Plan | Dec. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.02% | 4.09% |
Rate of compensation increase | 3.20% | 3.20% |
Expected return on plan assets | 6.00% | 6.75% |
Employee Benefit Plans, Defer_8
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) - Defined Benefit Plan | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.09% | 3.96% |
Rate of compensation increase | 3.20% | 3.20% |
Expected return on plan assets | 6.75% | 6.75% |
Employee Benefit Plans, Defer_9
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Plan Target Allocation and Asset Allocation (Detail) | Dec. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Plan Asset Allocation | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 66.00% | |
Plan Asset Allocation | 66.00% | 61.00% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 31.00% | |
Plan Asset Allocation | 31.00% | 38.00% |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 3.00% | |
Plan Asset Allocation | 3.00% | 1.00% |
Employee Benefit Plans, Defe_10
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Plan Assets Measured at Fair Value (Detail) - Defined Benefit Plan - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | $ 21,287 | $ 18,251 | $ 19,643 |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | 14,131 | 11,184 | |
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | 6,488 | 6,929 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | 668 | 138 | |
Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | 21,287 | 18,251 | |
Level 1 Inputs | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | 14,131 | 11,184 | |
Level 1 Inputs | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | 6,488 | 6,929 | |
Level 1 Inputs | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value Of Plan Assets | $ 668 | $ 138 |
Employee Benefit Plans, Defe_11
Employee Benefit Plans, Deferred Compensation Plan and Retirement Benefit Plan - Schedule of Expected Future Service Benefits Payments - (Detail) - Defined Benefit Plan $ in Thousands | Dec. 30, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 1,185 |
2021 | 1,251 |
2022 | 1,309 |
2023 | 1,408 |
2024 | 1,506 |
Years 2025 through 2029 | $ 8,344 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) | Dec. 30, 2019shares |
Equity [Abstract] | |
Preferred stock shares outstanding | 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019USD ($)SegmentCountry | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
Number of countries the parent company markets and sells its products | Country | 60 | ||
Percentage of total net sales, if exceed, the company does not conduct business | 10.00% | ||
Corporate | |||
Segment Reporting Information [Line Items] | |||
Business combination, acquisition related costs | $ | $ 6,902 | $ 13,279 | $ 2,266 |
Printed Circuit Board | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 | ||
Printed Circuit Board | Domestic PCB, RF Sub-System, and RF Component Fabrication Plants | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 16 | ||
Printed Circuit Board | Follow-On Value-Added Services | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 | ||
Printed Circuit Board | PCB Fabrication And RF Component Plants | CHINA | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 9 | ||
Printed Circuit Board | PCB Fabrication And RF Component Plants | Canada | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 1 | ||
E-M Solutions | Custom Electronic Assembly Plants | CHINA | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 |
Reconciliation of Operating Inc
Reconciliation of Operating Income (Loss) from Segments to Consolidated By Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,689,308 | $ 2,847,261 | $ 2,658,592 |
Operating income (loss) | 120,121 | 159,085 | 212,760 |
Amortization of definite-lived intangibles | (53,296) | (63,026) | (23,634) |
Total other expense | (73,937) | (69,317) | (72,802) |
Income before income taxes | 46,184 | 89,768 | 139,958 |
Total depreciation expense | 166,574 | 162,708 | 150,809 |
Total capital expenditures | 141,538 | 114,994 | 210,591 |
Printed Circuit Board | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,462,975 | 2,621,314 | 2,448,506 |
E-M Solutions | |||
Segment Reporting Information [Line Items] | |||
Net sales | 226,333 | 225,947 | 210,086 |
Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 173,417 | 222,111 | 236,394 |
Operating Segment | Printed Circuit Board | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,462,975 | 2,621,314 | 2,448,506 |
Operating income (loss) | 276,208 | 329,668 | 322,486 |
Total depreciation expense | 155,163 | 153,637 | 144,256 |
Total capital expenditures | 130,799 | 103,318 | 161,152 |
Operating Segment | E-M Solutions | |||
Segment Reporting Information [Line Items] | |||
Net sales | 226,333 | 225,947 | 210,086 |
Operating income (loss) | 7,119 | 8,105 | 6,716 |
Total depreciation expense | 3,476 | 2,850 | 2,471 |
Total capital expenditures | 2,302 | 3,918 | 5,438 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (109,910) | (115,662) | (92,808) |
Total depreciation expense | 7,935 | 6,221 | 4,082 |
Total capital expenditures | $ 8,437 | $ 7,758 | $ 44,001 |
Reconciliation of Assets from S
Reconciliation of Assets from Segment to Consolidated (Detail) - USD ($) $ in Thousands | Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 3,560,933 | $ 3,457,503 | $ 2,781,882 |
Operating Segment | Printed Circuit Board | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,126,765 | 2,039,088 | 1,991,049 |
Operating Segment | E-M Solutions | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 156,580 | 146,693 | 143,344 |
Corporate | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 1,277,588 | $ 1,271,722 | $ 647,489 |
Reconciliation of Assets from_2
Reconciliation of Assets from Segment to Consolidated (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2019 | Dec. 31, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Amortization of definite-lived intangibles | $ 4,822 | $ 3,345 |
Printed Circuit Board | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Amortization of definite-lived intangibles | $ 4,822 | $ 3,345 |
Net Sales and Long-Lived Assets
Net Sales and Long-Lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 2,689,308 | $ 2,847,261 | $ 2,658,592 |
Long-Lived Assets | 2,129,728 | 2,194,992 | 1,532,366 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,394,464 | 1,260,739 | 850,511 |
Long-Lived Assets | 1,348,741 | 1,315,174 | 642,256 |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 551,861 | 548,853 | 957,296 |
Long-Lived Assets | 754,514 | 851,789 | 866,126 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 742,983 | 1,037,669 | 850,785 |
Long-Lived Assets | $ 26,473 | $ 28,029 | $ 23,984 |
Reconciliation of Numerator and
Reconciliation of Numerator and Denominator Used to Calculate Basic Earnings per Share and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Basic earnings: | |||
Basic earnings | $ 41,301 | $ 173,584 | $ 124,214 |
Diluted earnings: | |||
Net income attributable to TTM Technologies, Inc. stockholders | 41,301 | 173,584 | 124,214 |
Interest expense from Convertible Senior Notes, net of tax | 11,090 | 11,906 | 13,803 |
Diluted earnings | $ 52,391 | $ 185,490 | $ 138,017 |
Basic weighted average shares | 105,195 | 103,355 | 101,580 |
Dilutive effect of performance-based restricted stock units, restricted stock units and stock options | 1,137 | 1,677 | 2,157 |
Dilutive effect of outstanding warrants | 3,065 | 2,799 | |
Dilutive effect of assumed conversion of Convertible Senior Notes outstanding | 25,939 | 25,940 | |
Diluted shares | 106,332 | 134,036 | 132,476 |
Earnings per share attributable to TTM Technologies, Inc. stockholders: | |||
Basic | $ 0.39 | $ 1.68 | $ 1.22 |
Diluted | $ 0.39 | $ 1.38 | $ 1.04 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Performance-Based Restricted Stock Units (PRUs), Restricted Stock Units (RSUs) and Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from calculating diluted earnings per share | 730 | 528 | 255 |
Effect of Shares of Common Stoc
Effect of Shares of Common Stock, Excluded From Computation of Dilutive Earnings per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Common Stock Related to Convertible Senior Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from calculating diluted earnings per share | 25,938 | 25,939 | 25,939 |
Warrants to Purchase Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from calculating diluted earnings per share | 25,940 | 25,940 | 25,940 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Related Party Transaction [Line Items] | |||
Sales to related party | $ 250 | $ 8 | $ 78 |
Accounts payable due to related parties | 10,179 | 10,630 | |
Accounts receivable due from related parties | 7 | 13 | |
Foreign Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | $ 33,695 | $ 44,992 | $ 51,985 |
Non-controlling Interest Hold_2
Non-controlling Interest Holdings - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 01, 2018USD ($) | Jan. 01, 2018CNY (¥) | Jan. 01, 2018USD ($) | |
Non-controlling Interest [Line Items] | |||
Purchase of non-controlling equity interest | $ (8,568) | ||
CHINA | |||
Non-controlling Interest [Line Items] | |||
Equity interest percentage acquired | 5.00% | 5.00% | 5.00% |
Equity investment value | $ 8,568 | ¥ 56,400 | |
Additional Paid-In Capital | |||
Non-controlling Interest [Line Items] | |||
Purchase of non-controlling equity interest | $ 223 | ||
Additional Paid-In Capital | CHINA | |||
Non-controlling Interest [Line Items] | |||
Purchase of non-controlling equity interest | $ 223 |
Acquisitions of Anaren, Inc. -
Acquisitions of Anaren, Inc. - Additional Information (Detail) - Anaren, Inc. $ in Thousands | Apr. 18, 2018USD ($) |
Business Acquisition [Line Items] | |
Business acquisition date | Apr. 18, 2018 |
Total consideration | $ 787,911 |
Summary of Unaudited Pro forma
Summary of Unaudited Pro forma Financial Information (Detail) - Anaren, Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Business Acquisition [Line Items] | ||
Net sales | $ 2,915,935 | $ 2,892,192 |
Net income attributable to TTM Technologies, Inc. stockholders | $ 190,198 | $ 106,881 |
Basic earnings per share | $ 1.84 | $ 1.05 |
Dilutive earnings per share | $ 1.51 | $ 0.91 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Events - Definitive Equity Interests Purchase Agreement $ in Thousands | Jan. 19, 2020USD ($) |
Subsequent Events [Line Items] | |
Proceeds from sale of subsidiaries of mobility business unit | $ 550,000 |
Estimated additional cash from sale of subsidiaries of mobility business unit | $ 110,000 |