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UCTT Ultra Clean Hldgs

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 27, 2020Apr. 24, 2020
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 27,
2020
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ1
Trading SymbolUCTT
Entity Registrant NameUltra Clean Holdings, Inc.
Entity Central Index Key0001275014
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Current Fiscal Year End Date--12-27
Entity Filer CategoryAccelerated Filer
Entity Shell Companyfalse
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Document Quarterly Reporttrue
Document Transition Reportfalse
Title of 12(b) SecurityCommon stock, par value $0.001 per share
Entity Incorporation, State or Country CodeDE
Security Exchange NameNASDAQ
Entity File Number000-50646
Entity Tax Identification Number61-1430858
Entity Address, Address Line One26462 Corporate Avenue
Entity Address, City or TownHayward
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code94545
City Area Code510
Local Phone Number576-4400
Entity Common Stock, Shares Outstanding39,900,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in MillionsMar. 27, 2020Dec. 27, 2019
Current assets:
Cash and cash equivalents $ 208.1 $ 162.5
Accounts receivable, net of allowance for doubtful accounts of $0.2 at March 27, 2020 and $0.3 at December 27, 2019113.2 112.7
Inventories187 172.4
Prepaid expenses and other current assets19.6 19.4
Total current assets527.9 467
Property, plant and equipment, net143.4 145.3
Goodwill171.1 171.1
Intangibles assets, net175.4 180.3
Deferred tax assets, net13.9 15.5
Operating lease right-of-use assets35.6 34.9
Other non-current assets4.9 5.2
Total assets1,072.2 1,019.3
Current liabilities:
Bank borrowings8.3 8.8
Accounts payable129.3 133.1
Accrued compensation and related benefits25 24.8
Operating lease liabilities13.4 13.2
Other current liabilities37 30.7
Total current liabilities213 210.6
Bank borrowings, net of current portion323.9 283.4
Deferred tax liabilities24.6 25.2
Operating lease liabilities28.8 28.8
Other liabilities19.1 18.8
Total liabilities609.4 566.8
Commitments and contingencies (See Note 9)
UCT stockholders’ equity:
Preferred stock — $0.001 par value, 10.0 shares authorized; none outstanding
Common stock — $0.001 par value, 90.0 shares authorized; 39.9 shares issued and outstanding at March 27, 2020 and December 27, 20190.1 0.1
Additional paid-in capital304 300.9
Common shares held in treasury, at cost, 0.6 shares at March 27, 2020 and December 27, 2019(3.3)(3.3)
Retained earnings149.7 140.3
Accumulated other comprehensive loss(4.6)(1.3)
Total UCT stockholders' equity445.9 436.7
Noncontrolling interests16.9 15.8
Total equity462.8 452.5
Total liabilities and equity $ 1,072.2 $ 1,019.3

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in MillionsMar. 27, 2020Dec. 27, 2019
Statement Of Financial Position [Abstract]
Account receivable, allowance for doubtful accounts $ 0.2 $ 0.3
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized10 10
Preferred stock, shares outstanding0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized90 90
Common stock, shares issued39.9 39.9
Common stock, shares outstanding39.9 39.9
Treasury stock, shares0.6 0.6

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Revenues:
Total revenues $ 320.9 $ 260.1
Cost of revenues:
Total cost of revenues255.2 215.3
Gross profit65.7 44.8
Operating expenses:
Research and development3.4 3.4
Sales and marketing5.8 5.4
General and administrative33.9 27.8
Total operating expenses43.1 36.6
Income from operations22.6 8.2
Interest income0.3 0.2
Interest expense(5.2)(6.6)
Other income (expense), net(2.7)1.1
Income before provision for income taxes15 2.9
Provision for income taxes4.5 1.5
Net income10.5 1.4
Less: Net income attributable to noncontrolling interests1.1 0.8
Net income attributable to UCT $ 9.4 $ 0.6
Net income per share attributable to UCT common stockholders:
Basic $ 0.24 $ 0.02
Diluted $ 0.23 $ 0.02
Shares used in computing net income per share:
Basic39.8 39.1
Diluted40.7 39.4
Product [Member]
Revenues:
Product $ 259.4 $ 200.2
Cost of revenues:
Product214.7 174.5
Services [Member]
Revenues:
Product61.5 59.9
Cost of revenues:
Product $ 40.5 $ 40.8

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (LOSS) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income $ 10.5 $ 1.4
Other comprehensive income (loss):
Change in cumulative translation adjustment(3.2)(0.9)
Change in defined benefit pension plan net actuarial loss(0.1)
Total other comprehensive loss(3.3)(0.9)
Other comprehensive income, attributable to noncontrolling interests1.1 0.8
Comprehensive income (loss) attributable to UCT $ 6.1 $ (0.3)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019Mar. 29, 2019
Cash flows from operating activities:
Net income $ 10.5 $ 1.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization6.4 6.8
Amortization of intangible assets4.9 4.9
Stock-based compensation3.1 2.9 $ 2.9
Amortization of debt issuance costs0.4 0.4
Loss on the disposal of assets and business0.2
Deferred income taxes1
Change in the fair value of financial instruments and earn-out liability3 (1.4)
Changes in assets and liabilities:
Accounts receivable(0.7)(4.2)
Inventories(14.7)5.5
Prepaid expenses and other current assets(0.2)(2.4)
Other non-current assets0.3 (0.9)
Accounts payable(4.1)(0.6)
Accrued compensation and related benefits0.2 3.1
Income taxes payable1.6 1.3
Operating lease assets and liabilities(0.4)
Other liabilities4.4 1.1
Net cash provided by operating activities15.7 18.1
Cash flows from investing activities:
Purchases of property, plant and equipment(6.7)(4.8)
Proceeds from sale of equipment0.6
Net cash used in investing activities(6.7)(4.2)
Cash flows from financing activities:
Proceeds from bank borrowings51.5 6.6
Principal payments on bank borrowings and finance leases(14.5)(8.9)
Withholding tax on employee equity compensation(0.8)
Net cash provided by (used in) financing activities37 (3.1)
Effect of exchange rate changes on cash and cash equivalents(0.4)(0.1)
Net increase in cash and cash equivalents45.6 10.7
Cash and cash equivalents at beginning of period162.5 144.1
Cash and cash equivalents at end of period208.1 154.8 $ 154.8
Supplemental cash flow information:
Income taxes paid, net of income tax refunds2 4
Interest paid4.8 5.6
Non-cash investing and financing activities:
Property, plant and equipment purchased included in accounts payable and other liabilities $ 2.9 $ 7.1

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in MillionsTotalCommon Stock [Member]Additional Paid-in Capital [Member]Treasury Shares [Member]Retained Earnings [Member]Accumulated Other Comprehensive Income (Loss) [Member]Total stock holder's Equity of UCT [Member]Noncontrolling Interests [Member]
Beginning balance at Dec. 28, 2018 $ 451 $ 0.1 $ 290.4 $ (3.3) $ 149.7 $ (0.6) $ 436.3 $ 14.7
Beginning balance, Shares at Dec. 28, 201839.1 0.6
Issuance under employee stock plans, Shares0.3
Stock-based compensation expense2.9 2.9 2.9
Employees’ taxes paid upon vesting of restricted stock units(0.9)(0.9)(0.9)
Employees' taxes paid upon vesting of restricted stock units, Shares(0.1)
Net income1.4 0.6 0.6 0.8
Other comprehensive loss(0.9)(0.9)(0.9)
Ending balance at Mar. 29, 2019453.5 $ 0.1 292.4 $ (3.3)150.3 (1.5)438 15.5
Ending balance, Shares at Mar. 29, 201939.3 0.6
Beginning balance at Dec. 27, 2019452.5 $ 0.1 300.9 $ (3.3)140.3 (1.3)436.7 15.8
Beginning balance, Shares at Dec. 27, 201939.9 0.6
Stock-based compensation expense3.1 3.1 3.1
Net income10.5 9.4 9.4 1.1
Other comprehensive loss(3.3)(3.3)(3.3)
Ending balance at Mar. 27, 2020 $ 462.8 $ 0.1 $ 304 $ (3.3) $ 149.7 $ (4.6) $ 445.9 $ 16.9
Ending balance, Shares at Mar. 27, 202039.9 0.6

Organization and Significant Ac

Organization and Significant Accounting Policies3 Months Ended
Mar. 27, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Significant Accounting Policies1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization — Ultra Clean Holdings, Inc., (the “Company” or “UCT”) a Delaware corporation, was founded in November 2002 and became a publicly traded company on the NASDAQ Global Market in March 2004. The Company is a global leader in the design, engineering and manufacture of production tools, modules and subsystems for the semiconductor and display capital equipment markets. The Company’s products include chemical delivery modules, frame assemblies, gas delivery systems, fluid delivery systems, precision robotics, process modules as well as other high-level assemblies. The Company’s services provide part cleaning, surface encapsulation, and high sensitivity micro contamination analysis primarily for the semiconductor device makers and wafer fabrication equipment markets. Historically, the Company operated under one segment. However, as a result of the acquisition of Quantum Global Technologies, LLC (“QGT”) The Company elected to reorganize its organizational and reporting structure to capture and operating leverage from its recent acquisition of QGT. Since that time, the Company reports results for two segments: Semiconductor Products and Solutions (“Products” or “SPS”) and Semiconductor Services Business (“Services” or “SSB”). Basis of Presentation — The unaudited Condensed Consolidated Financial Statements included in this quarterly report on Form 10-Q include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). This financial information reflects all adjustments which are, in the opinion of the Company, normal, recurring and necessary for the fair financial statement presentation for the dates and periods presented. Certain information and footnote disclosures normally included in our annual financial statements, prepared in accordance with GAAP, have been condensed or omitted. The Company’s December 27, 2019 balance sheet data were derived from its audited financial statements as of that date. Fiscal Year — The Company uses a 52-53 week fiscal year ending on the Friday nearest December 31. All references to quarters refer to fiscal quarters and all references to years refer to fiscal years. Principles of Consolidation — The Company’s Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries with the ownership interests of minority shareholders presented as noncontrolling interests. All intercompany accounts and transactions have been eliminated upon consolidation. Noncontrolling interests — The Company recognizes noncontrolling interests to reflect the portion of the equity of the majority-owned subsidiaries which is not attributable, directly or indirectly, to the controlling stockholder. The Company’s consolidated entities include partially-owned entities, which are (1) Cinos Co., Ltd (“Cinos Korea”), a South Korean company that provides outsourced cleaning and recycling of precision parts for the semiconductor industry through its operating facilities in South Korea, 86.0% of whose equity interests the Company is obligated to purchase and whose results the Company consolidates and (2) Cinos Xian Clean Technology, Ltd. (“Cinos China”), a Chinese entity that is 60.0% owned by Cinos. The interest held by others in Cinos Korea and in Cinos China are presented as noncontrolling interests in the accompanying Condensed Consolidated Financial Statements. The noncontrolling interests will continue to be attributed their share of gains and losses even if that attribution results in a deficit noncontrolling interests balance. Segments — The Financial Accounting Standards Board’s (“FASB”) guidance regarding disclosure about segments in an enterprise and related information establishes standards for the reporting by public business enterprises of information about reportable segments, products and services, geographic areas, and major customers. The method for determining what information to report is based on the manner in which management organizes the reportable segments within the Company for making operational decisions and assessments of financial performance. The Company’s chief operating decision-maker is the Chief Executive Officer. The Company operates and reports two segments. See Note 15 to the Company’s Consolidated Financial Statements. Foreign Currency Translation and Remeasurement — The functional currency of the SPS business unit’s foreign subsidiaries is mostly the U.S. dollar, except for its Czech Republic entity, which is the Euro. The functional currency of the SSB business unit’s foreign subsidiaries is mostly local except for its Singapore entity, which is the U.S. dollar. For the Company’s foreign subsidiaries where the local currency is the functional currency, the Company translates the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenue, costs and expenses. Translation gains and losses are recorded in AOCI as a component of stockholders' equity. For the Company’s foreign subsidiaries where the U.S. dollar is the functional currency, any gains and losses resulting from the translation of the assets and liabilities are recorded in other income (expense), net. The functional currency of the Company’s other international subsidiaries are either the U.S. dollar or their local currency. For the Company’s foreign subsidiaries where the local currency is the functional currency, the Company translates the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average rates of exchange for revenue, costs and expenses. Translation gains and losses are recorded in AOCI as a component of stockholders' equity. For the Company’s foreign subsidiaries where the U.S. dollar is the functional currency, any gains and losses resulting from the translation of the assets and liabilities of these subsidiaries are recorded in other income (expense), net. Use of Estimates — The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include revenue recognition, inventory valuation, accounting for income taxes, business combinations, valuation of goodwill, intangible assets and long-lived assets. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and the best estimates and judgments routinely require adjustments. Actual amounts may differ from those estimates. Cash and Cash Equivalents — The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. Concentration of Credit Risk — Financial instruments which subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company sells its products and provides services primarily to semiconductor capital equipment manufacturers in the United States. The Company performs credit evaluations of its customers’ financial condition and generally requires no collateral. Two of the Company’s customers accounted for 10% or more of revenues and their related revenues as a percentage of total revenues were as follows:
Three Months Ended
March 27,
March 29,
2020
2019
Lam Research Corporation
44.6
%
39.6
%
Applied Materials, Inc.
23.4
%
20.9
%
Total
68.0
%
60.5
% In addition, Fair Value of Measurements — The Company measures its cash equivalents, contingent earn-out liabilities and common stock purchase obligation at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 — Unobservable inputs that are supported by little or no market activities. Inventories — Inventories are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. The Company evaluates the valuation of all inventories, including raw materials, work-in-process, finished goods and spare parts on a periodic basis. Obsolete inventory or inventory in excess of management’s estimated usage is written-down to its estimated market value less costs to sell, if less than its cost. Inherent in the estimates of market value are management’s estimates related to economic trends, future demand for products, and technological obsolescence of the Company’s products. Inventory write downs inherently involve judgments as to assumptions about expected future demand and the impact of market conditions on those assumptions. Although the Company believes that the assumptions it used in estimating inventory write downs are reasonable, significant changes in any one of the assumptions in the future could produce a significantly different result. There can be no assurances that future events and changing market conditions will not result in significant increases in inventory write downs. Property, Plant and — Property, plant and equipment are stated at cost, or, in the case of equipment under finance leases, the present value of future minimum lease payments at inception of the related lease. Depreciation and amortization are computed using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the leases. Useful lives range from three to fifty years ten years Long-lived Assets — The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The Company assesses the fair value of the assets based on the amount of the undiscounted future cash flows that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset are less than the carrying value of the asset. If the Company identifies an impairment, the Company reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. The Company assessed the useful lives of its long-lived assets, including property, plant and equipment as well as its intangible assets as of March 27, 2020 and concluded that no impairment was required. Leases — The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement. When the Company determines the arrangement is a lease, or contains a lease, at lease inception, it then determines whether the lease is an operating lease or a finance lease. Operating and finance leases with lease terms of one year or greater result in the Company recording a right-of-use (ROU) asset and lease liability on its balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are initially recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit interest rate if readily determinable or when the implicit interest rate is not readily determinable, the Company uses its incremental borrowing rate. The incremental borrowing rate is not a commonly quoted rate and is derived through a combination of inputs including the Company’s credit rating and the impact of full collateralization. The incremental borrowing rate is based on the Company’s collateralized borrowing capabilities over a similar term of the lease payments. The Company utilizes the consolidated group incremental borrowing rate for all leases. The operating lease ROU asset also includes any lease payments made and excludes any lease incentives. Specific lease terms used in computing the ROU assets and lease liabilities may include options to extend or terminate the lease when the Company believes it is reasonably certain that it will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. As allowed by the guidance, the Company has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset. Operating leases are included in operating lease ROU assets, other current liabilities, and long-term operating lease liabilities on the Company’s consolidated balance sheet. The Company’s finance leases at March 27, 2020 and at December 27, 2019 were not significant. Goodwill and Indefinite Lived Intangible Assets — Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually. Intangible assets are presented at cost, net of accumulated amortization, and are amortized on either a straight-line method or on an accelerated method over their estimated future discounted cash flows. The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable, such as when reductions in demand or significant economic slowdowns in the semiconductor industry are present. Deferred Debt Issuance Costs — Debt issuance costs incurred in connection with obtaining debt financing are deferred and presented as a direct deduction from Bank Borrowings in the accompanying Condensed Consolidated Balance Sheets. Costs incurred in connection with revolving credit facilities and letter of credit facilities are deferred and presented as an offset to bank borrowings in the accompanying Condensed Consolidated Balance Sheets. Deferred costs are amortized on an effective interest method basis over the contractual term. Defined Benefit Pension Plan — The Company has a noncontributory defined benefit pension plan covering substantially all of the employees of one of its foreign entities upon termination of their employee services. For further discussion of the Company’s defined benefit pension plan see Note 8 of Notes to the Condensed Consolidated Financial Statements. Revenue Recognition — 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 the Company expects to be entitled to in exchange for those goods or services. The Company assesses collectability based on the credit worthiness of the customer and past transaction history. The Company performs on-going credit evaluations of customers and generally does not require collateral from customers. Shipping and Handling Costs — Shipping and handling costs are included as a component of cost of revenues. Research and Development Costs — Research and development costs are expensed as incurred. Stock-Based Compensation Expense — The Company maintains stock-based compensation plans which allow for the issuance of equity-based awards to executives and certain employees. These equity-based awards include stock options, restricted stock awards and restricted stock units. The Company also maintains an employee stock purchase plan (“ESPP”) that provides for the issuance of shares to all eligible employees of the Company at a discounted price. Income Taxes — The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating our ability to realize our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin with historical results and incorporate assumptions about the amount of future state, federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, we consider recent cumulative income (loss). A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. The Company continued to maintain a full valuation allowance on its federal and state deferred tax amounts as of March 27, 2020. Income tax positions must meet a more likely than not recognition threshold to be recognized. Income tax positions that previously failed to meet the more likely than not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the Condensed Consolidated Statements of Operations as income tax expense. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a significant impact on its results of operations and financial position. Management believes that it has adequately provided for any adjustments that may result from these examinations; however, the outcome of tax audits cannot be predicted with certainty. Net Income per Share — Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding for the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding and common equivalent shares from dilutive stock options and restricted stock using the treasury stock method, except when such shares are anti-dilutive. See Note 14 to the Company’s Condensed Consolidated Financial Statements. Business Combinations — The Company recognizes assets acquired (including goodwill and identifiable intangible assets), liabilities assumed and noncontrolling interest at fair value on the acquisition date. Subsequent changes to the fair value of such assets acquired and liabilities assumed are recognized in earnings, after the expiration of the measurement period, a period not to exceed 12 months from the acquisition date. Acquisition-related expenses and acquisition-related restructuring costs are recognized in earnings in the period in which they are incurred. Accounting Standard Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a significant impact on its consolidated financial statements.

Business Combinations

Business Combinations3 Months Ended
Mar. 27, 2020
Business Combinations [Abstract]
Business Combinations2. BUSINESS COMBINATIONS Dynamic Manufacturing Solutions, LLC (“DMS”) On April 15, 2019, the Company purchased substantially all of the assets of DMS, a semiconductor weldment and solutions provider. Pursuant to the purchase agreement, the former owners of DMS are entitled to up to $12.5 million of potential cash earn-out if the combined weldment business achieves certain gross profit and gross margin targets for the twelve months ending June 26, 2020. The fair value of the earn-out at the acquisition date was $1.4 million and was determined using a risk adjusted earnings projection utilizing the Monte Carlo Simulation method. These inputs are not observable in the market and thus represent a Level 3 measurement as discussed in Note 1 of the Company’s Condensed Consolidated Financial Statements. The total purchase consideration of DMS for purposes of the Company’s purchase price allocation was determined to be $31.4 million, which includes the cash payment of $29.9 million and the fair value of the potential earn-out payments of approximately $1.5 million. During the first quarter of fiscal year 2020, the Company reassessed the fair value of the earn-out payment, increasing the fair value from $9.5 million at December 27, 2019 to $12.3 million at March 27, 2020. The increase of $2.8 million was recorded as other expense in the condensed consolidated statement of operations for the three months ended March 27, 2020. During the quarter ended March 27, 2020, the Company completed the purchase price allocation for the DMS acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition:
Fair Market Values (in millions)
Accounts receivable
$
1.5
Inventories
8.9
Equipment and leasehold improvements
5.4
Goodwill
12.3
Purchased intangible assets
6.9
Other non-current assets
0.3
Total assets acquired
35.3
Accounts payable
(3.8
)
Other liabilities
(0.1
)
Total liabilities assumed
(3.9
)
Purchase price allocated
$
31.4
Purchased
Useful Life
Intangible Assets
(In years)
(In millions)
Customer relationships
6
$
6.9
In conjunction with the acquisition of DMS, the results of operations for the three months ended March 27, 2020, included net revenues of approximately $18.8 million and Pro Forma Consolidated Results The following unaudited pro forma consolidated results of operations assume the DMS acquisition was completed as of the beginning of the year of the reporting periods presented .
Unaudited Pro Forma Information
Year Ended
Three Months Ended
March 27,
March 29,
2020
2019
(In millions, except per share amounts)
Revenues
$
320.9
$
268.2
Net income
$
9.4
$
1.7
Basic income per share
$
0.24
$
0.04
Diluted income per share
$
0.23
$
0.04
The unaudited pro forma results above include adjustments related to the purchase price allocation and financing of the acquisition, primarily to increase amortization for the identifiable intangible assets, to increase interest expense for the additional debt incurred to complete the acquisition and to reflect the related income tax effect. The unaudited pro forma condensed combined financial information has been prepared by management for illustrative purposes only and are not necessarily indicative of the condensed consolidated financial position or results of operations in future periods or the results that would have been realized had UCT and DMS been a combined company during the specified periods. The unaudited pro forma condensed combined financial information does not reflect any operating efficiencies and/or cost savings that the Company may achieve with respect to the combined companies, or any liabilities that may result from integration activities.

Balance Sheet Information

Balance Sheet Information3 Months Ended
Mar. 27, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Balance Sheet Information3. BALANCE SHEET INFORMATION Inventories consisted of the following:
March 27,
December 27,
(In millions)
2020
2019
Raw materials
$
110.9
$
99.9
Work in process
61.0
57.6
Finished goods
15.1
14.9
Total
$
187.0
$
172.4
Property, plant and equipment, net, consisted of the following:
Useful Life
March 27,
December 27,
(In millions)
(in years)
2020
2019
Land
$
4.2
$
4.8
Buildings
50
33.2
36.9
Machinery and equipment
5-10
61.7
58.1
Leasehold improvements
*
43.8
41.8
Computer equipment and software
3-10
39.0
32.1
Furniture and fixtures
5
4.4
4.4
186.3
178.1
Accumulated depreciation
(61.9
)
(56.7
)
Construction in progress
19.0
23.9
Total
$
143.4
$
145.3
* Lesser of estimated useful life or remaining lease term Restructuring During the first quarter of fiscal year 2020, the Company made a strategic decision to fully integrate QGT’s corporate office responsibilities from Quakertown, PA to UCT’s corporate office in Hayward, CA. As a result, the Company recorded a restructuring charge of $0.8 million, in general and administrative expense,

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 27, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements4. FAIR VALUE MEASUREMENTS The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table summarizes, for assets or liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy:
Fair Value Measurement at
Reporting Date Using
Description
March 27, 2020
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
(In millions)
Other liabilities:
Contingent earn-out liability
$
12.3
$

$

$
12.3
Pension obligation
$
4.9
$

$

$
4.9
Common stock purchase obligation
$
7.0
$

$

$
7.0
Fair Value Measurement at
Reporting Date Using
Description
December 27, 2019
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
(In millions)
Other liabilities:
Contingent earn-out liability
$
9.5
$

$

$
9.5
Common stock purchase obligation
$
6.8
$

$

$
6.8
Pension obligation
$
4.4
$

$

$
4.4
There were no transfers from Level 1 or Level 2 to Level 3. Fair value adjustments were noncash, and therefore did not impact the Company’s liquidity or capital resources. Qualitative information about Level 3 fair value measurements are primarily as follows:
March 27,
Valuation
Unobservable
2020
Techniques
Input
Range
(Dollars in millions, except rate/multiple)
Contingent earn-out liability
$
12.3
Monte Carlo simulation
Revenue discount rate
7.5%
Revenue volatility rate
41.0%
Common stock purchase obligation
$
7.0
Discounted cash flow
Revenue multiple
1.3
EBITDA Multiple
5.0
Pension obligation
$
4.9
Projected unit credit method
Discount rate
2.0%
Rate on return
1.5%
Salary increase rate
4.5%
Following is a summary of the Level 3 activity:
(In millions)
Contingent earn-out liability
Purchase obligation
Pension obligation
As of December 27, 2019
$
9.5
$
6.8
$
4.4
Fair value adjustments
2.8
0.2
0.5
As of March 27, 2020
$
12.3
$
7.0
$
4.9

Goodwill and Intangible Assets

Goodwill and Intangible Assets3 Months Ended
Mar. 27, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets5. GOODWILL AND INTANGIBLE ASSETS The Company’s methodology for allocating the purchase price relating to an acquisition is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the consideration transferred over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. To test goodwill for impairment, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company concludes it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, the Company does not proceed to perform a quantitative impairment test. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative goodwill impairment test will be performed by comparing the fair value of each reporting unit to its carrying value. A quantitative impairment analysis, if necessary, considers the income approach, which requires estimates of the present value of expected future cash flows to determine a reporting unit’s fair value. Significant estimates include revenue growth rates and operating margins used to calculate projected future cash flows, discount rates, and future economic and market conditions. A goodwill impairment charge is recognized for the amount by which the reporting unit’s fair value is less than its carrying value. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends and lower projections of profitability that may impact future operating results. Details of aggregate goodwill of the Company are as follows:
(In millions)
SPS
SSB
Total
Balance at December 27, 2019
$
97.6
$
73.5
$
171.1
Adjustments



Balance at March 27, 2020
$
97.6
$
73.5
$
171.1
Intangible Assets Intangible assets are generally recorded in connection with a business acquisition. The Company evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, the Company reviews indefinite lived intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable and tests definite lived intangible assets at least annually for impairment. Management considers such indicators as significant differences in product demand from the estimates, changes in the competitive and economic environment, technological advances, and changes in cost structure. Details of intangible assets were as follows:
As of March 27, 2020
As of December 27, 2019
Gross
Gross
Useful Life
Carrying
Accumulated
Carrying
Carrying
Accumulated
Carrying
(Dollars in millions)
(in years)
Amount
Amortization
Value
Amount
Amortization
Value
Customer relationships
6 - 10
$
119.4
$
(42.5
)
$
76.9
$
119.4
$
(39.8
)
$
79.6
Tradename
4 - 6*
27.0
(9.0
)
18.0
27.0
(8.1
)
18.9
Intellectual property/know-how
7 - 12
13.9
(8.7
)
5.2
13.9
(8.4
)
5.5
Recipes
20
73.2
(5.8
)
67.4
73.2
(4.9
)
68.3
Standard operating procedures
20
8.6
(0.7
)
7.9
8.6
(0.6
)
8.0
Total
$
242.1
$
(66.7
)
$
175.4
$
242.1
$
(61.8
)
$
180.3
*
The Company concluded that the UCT tradename intangible asset amounting to $9.0 million has an indefinite life and is therefore not amortized but is reviewed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company amortizes its intangible assets on a straight-line or accelerated basis over the estimated economic life of the assets. Amortization expense was approximately $4.9 million and $4.9 million for the three months ended March 27, 2020 and March 29, 2019, respectively. Amortization expense related to QGT’s recipes and standard operating procedures is charged to cost of goods sold and the remainder is charged to general and administrative expense. As of March 27, 2020, future estimated amortization expense is expected to be as follows:
Amortization
(In millions)
Expense
2020 (remaining in year)
$
14.8
2021
19.6
2022
19.3
2023
14.2
2024
14.0
Thereafter
84.5
Total
$
166.4

Borrowing Arrangements

Borrowing Arrangements3 Months Ended
Mar. 27, 2020
Debt Disclosure [Abstract]
Borrowing Arrangements6. BORROWING ARRANGEMENTS In August 2018, the Company entered into a credit agreement with Barclays Bank that provided a Term Loan, a Revolving Credit Facility, and a Letter of Credit Facility (the “Credit Facilities”). UCT and certain of its subsidiaries have agreed to secure all of their obligations under the Credit Facilities by granting a first priority lien in substantially all of their respective personal property assets (subject to certain exceptions and limitations). In August 2018, the Company borrowed $350.0 million under the Term Loan and used the proceeds, together with cash on hand, to finance the acquisition of QGT and to refinance its previous credit facilities. The Term Loan has a maturity date of August 27, 2025, with monthly interest payments in arrears, quarterly principal payments of 0.625% of the original outstanding principal balance payable beginning January 2019, with the remaining principal paid upon maturity. The Term Loan accrues interest at a rate equal to a base LIBOR rate determined by reference to the London interbank offered rate for dollars, plus 4.5% (subject to certain adjustments quarterly based upon the Company’s consolidated leverage ratio). March 27, 2020 The Revolving Credit Facility has an initial available commitment of $65.0 million and a maturity date of August 27, 2023. The Company pays a quarterly commitment fee in arrears equal to 0.25% of the average daily available commitment outstanding. In March 2020, the Company drew $40.0 million under the Revolving Credit Facility to fund operations, and as of March 27, 2020 As of March 27, 2020 The Credit Agreement requires the Company to maintain certain financial covenants including a consolidated fixed charge coverage ratio (as defined in the New Credit Agreement) as of the last day of any fiscal quarter of at least 1.25 to 1.00, and a consolidated leverage ratio (as defined in the New Credit Agreement) as of the last day of any fiscal quarter of no greater than 3.75 to 1.00. The Company was in compliance with all financial covenants as of the quarter ended March 27, 2020 The Letter of Credit Facility has an initial available commitment of $50.0 million and a maturity date of August 27, 2023. The Company pays quarterly in arrears a fee equal to 2.5% (subject to certain adjustments as per the Term Loans) of the dollar equivalent of all outstanding letters of credit, and a fronting fee equal to 0.125% of the undrawn and unexpired amount of each letter of credit. As of March 27, 2020 FDS has a revolving credit facility which renews annually at the end of the fiscal second quarter. As of March 27, 2020, FDS had an outstanding amount of Cinos has Credit Agreements with various banks that provide Revolving Credit Facilities for a total available commitment of 1.9 billion Korean Won (approximately $1.6 million) with annual renewals that began in April 2020 and end in October 2020 and interest rates ranging from 1.4% - 5.4% As of March 27, 2020 March 27, 2020 The fair value of the Company’s long term-debt was based on Level 2 inputs, and fair value was determined using quoted prices for similar liabilities in inactive markets. The Company’s carrying value approximates fair value for the Company’s long-term debt.

Income Tax

Income Tax3 Months Ended
Mar. 27, 2020
Income Tax Disclosure [Abstract]
Income Tax7. INCOME TAX The Company’s income tax provision and effective tax rate for the three months ended March 27, 2020 were $4.5 million and 29.8%, respectively. The Company’s income tax provision and effective tax rate for the three months ended March 29, 2019 were $ 1. 5 Company management continuously evaluates the need for a valuation allowance and, as of March 27, 2020, concluded that a full valuation allowance on its federal and state deferred tax assets was still appropriate. The Company provides for U.S. income taxes on its undistributed earnings of foreign subsidiaries as required by the Tax Act Cuts and Jobs ( As of March 27, 2020 and March 29, 2019, the Company’s gross liability for unrecognized tax benefits, excluding interest, was $1.0 million for both periods. Although it is possible, that some of the unrecognized tax benefits could be settled within the next twelve months, the Company cannot reasonably estimate the outcome at this time. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law and GAAP requires recognition of the tax effects of new legislation during the reporting period that includes the enactment date. The CARES Act includes changes to the tax provisions that benefits business entities and makes certain technical corrections to the 2017 TCJA. The tax relief measures for businesses include a five-year net operating loss carryback, suspension of annual deduction limitation of 80% of taxable income from net operating losses generated in a tax year beginning after December 31, 2017, changes in the deductibility of interest, acceleration of alternative minimum tax credit refunds, payroll tax relief, and a technical correction to allow accelerated deductions for qualified improvement property. The Act also provides other non-tax benefits to assist those impacted by the pandemic. The Company evaluated the impact of the CARES Act and determined that there was no significant impact to the income tax provision for the quarter.

Retirement Plans

Retirement Plans3 Months Ended
Mar. 27, 2020
Compensation And Retirement Disclosure [Abstract]
Retirement Plans8. RETIREMENT PLANS Defined Benefit Pension Plan Cinos Korea has a noncontributory defined benefit pension plan covering substantially all of its employees upon their retirement. The benefits are based on expected years of service and average compensation. The net period costs are recognized as employees render the services necessary to earn the postretirement benefits. The Company records annual amounts relating to the pension plan based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current and expected rates return and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under the plan are reasonable based on its experience and market conditions. As of March 27, 2020 March 27, 2020 March 27, 2020 March 27, 2020 Employee Savings and Retirement Plan The Company sponsors a 401(k) savings and retirement plan (the “401(k) Plan”) for all employees who meet certain eligibility requirements. Participants could elect to contribute to the 401(k) Plan, on a pre-tax basis, up to 25% of their salary to a maximum of $19,500. The Company may make matching contributions of up to 3% of employee contributions based upon eligibility. The Company made approximately $0.6 million and $0.5 million discretionary employer contributions to the 401(k) Plan in the three months period ended March 27, 2020 and March 29, 2019, respectively.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 27, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies9. COMMITMENTS AND CONTINGENCIES Commitment The Company had commitments to purchase inventory totaling approximately $199.0 million as of March 27, 2020. Contingency From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, the Company has not had a history of outcomes to date that have been significant to the Condensed Consolidated Statements of Operations and does not believe that any of these proceedings or other claims will have a significant adverse effect on its consolidated financial condition, results of operations or cash flows.

Stockholders' Equity and Noncon

Stockholders' Equity and Noncontrolling Interests3 Months Ended
Mar. 27, 2020
Noncontrolling Interest [Abstract]
Stockholders' Equity and Noncontrolling Interests10. STOCKHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS Noncontrolling Interests QGT owns 51.0% of the outstanding shares of Cinos, a South Korean company that provides outsourced cleaning and recycling of precision parts for the semiconductor industry through its operating facilities in South Korea and, through a 60.0% interest in Cinos China. QGT is obligated to purchase shares held by two other shareholders of Cinos Korea representing a combined 35.0% interest. QGT accounted for this unconditional obligation as an assumed liability and derecognized any noncontrolling interest related to the 35.0%, which brings its controlling interest up to 86.0%. The carrying value of the remaining 14.0% interest held by others in Cinos Korea and the 40.0% interest in the Cinos joint venture are presented as noncontrolling interests in the accompanying Condensed Consolidated Financial Statements. The fair values of the noncontrolling interests were estimated based on the values of Cinos Korea and Cinos China on a 100.0% basis. The values were calculated based on the pro-rata portion of total forecasted QGT earnings before interest expense, taxes, depreciation and amortization ("EBITDA") contributed by each entity. Management indicated that each entity's pro-rata portion of EBITDA was reasonably reflective of each entity's invested capital value at the acquisition date. The Company is obligated to purchase shares owned by a Cinos Korea shareholder at a fixed price per share, while the purchase price per share for the other shareholder is the greater of the then fair value of the stock and the fixed price per share (floor). The Company has a firm obligation to purchase the shares and a call option, while the two shareholders have a put option. As of March 27, 2020, the fair value of the obligation is $7.0 million which has been recorded as a non-current liability in the accompanying consolidated balance sheets and represents a Level 3 measurement as discussed in Note 1 of the Company’s Consolidated Financial Statements. The agreement with Cinos Korea allows for the purchase obligation to become due in December 2022, and once completed, the Company will own 86% of Cinos Korea .

Employee Stock Plans

Employee Stock Plans3 Months Ended
Mar. 27, 2020
Postemployment Benefits [Abstract]
Employee Stock Plans11. EMPLOYEE STOCK PLANS The Company grants stock awards in the forms of restricted stock units (RSUs) and performance stock units (PSUs) to its employees as part of the Company’s long term equity compensation plan. These stock awards are granted to employees with a unit purchase price of zero dollars and typically vest over three years, subject to the employee’s continued service with the Company and, in the case of PSUs, subject to achieving certain performance goals. The Company also grants common stock to its board members in the form of restricted share awards (RSAs), which vest on the earlier of 1) the next Annual Shareholder Meeting, or 2) 365 days from date of grant. Stock-based compensation expense includes compensation costs related to estimated fair values of awards granted. The estimated fair value of the Company’s equity-based awards, net of expected forfeitures, is amortized on a straight-line basis over the awards’ vesting period and is adjusted for subsequent changes in estimated forfeitures related to all equity-based awards and performance as it relates to PSUs. The following table shows the Company’s stock-based compensation expense included in the Condensed Consolidated Statements of Operations:
Three Months Ended
March 27,
March 29,
(In millions)
2020
2019
Cost of goods sold (1)
$
0.4
$
0.6
Research and development
0.1
0.1
Sales and marketing
0.3
0.3
General and administrative
2.3
1.9
3.1
2.9
Income tax benefit
(0.9
)
(1.5
)
Stock-based compensation expense, net of tax
$
2.2
$
1.4
(1)
Stock-based compensation expense capitalized in inventory for the three months ended March 27, 2020 and March 29, 2019 was not significant. For purposes of determining compensation expense related to these RSUs, the fair value is determined based on the closing market price of the Company’s common stock on the date of award. There were 0.1 million RSUs granted during the quarter ended March 27, 2020, with a weighted average fair value of $24.0. As of March 27, 2020, approximately $13.1 million of stock-based compensation cost, net of estimated forfeitures, related to RSUs and PSUs remains to be amortized over a weighted average period of 1.6 years 1.8 million As of March 27, 2020, a total of 0.1 million RSAs were outstanding. The total unamortized expense of the Company’s unvested restricted stock awards as of March 27, 2020 was $0.2 million. The following table summarizes the Company’s combined RSU, PSU and RSA activity for the three months ended March 27, 2020:
(In millions)
Shares
Aggregate Fair
Unvested RSUs, PSUs and RSAs at December 27, 2019
1.8
$
41.9
Granted
0.1
Vested

Forfeited
(0.1
)
Unvested RSUs, PSUs and RSAs as of March 27, 2020
1.8
$
27.2
Vested and expected to vest RSUs, PSUs and RSAs as of March 27, 2020
1.6
$
24.7

Revenue Recognition

Revenue Recognition3 Months Ended
Mar. 27, 2020
Revenue From Contract With Customer [Abstract]
Revenue Recognition12. REVENUE RECOGNITION The Company sells its products and services primarily to customers in the semiconductor capital equipment industry. The Company’s revenues are highly concentrated, and we are therefore highly dependent upon a small number of customers. Typical payment terms with our customers range from thirty to sixty days. The Company’s SPS segment provides warranty on its products for a period of up to two years and provides for warranty costs at the time of sale based on historical activity. Determination of the warranty reserve requires the Company to make estimates of product return rates and expected costs to repair or replace the products under warranty. If actual return rates and/or repair and replacement costs differ significantly from these estimates, adjustments to recognize additional cost of goods sold may be required in future periods. The warranty reserve is included in other current liabilities on the Condensed Consolidated Balance Sheets and is not considered significant. The Company’s products are manufactured at our facilities in the U.S.A., China, Singapore and the Czech Republic. The Company provides services from operations in the U.S.A., Singapore, United Kingdom, Israel, Taiwan, South Korea, and China. Sales to customers are initiated through a purchase order and are governed by our standard terms and conditions, written agreements, or both. Revenue is recognized when performance obligations under the terms of an agreement with a customer are satisfied; generally, this occurs with the transfer of control of the products or when the Company provides the services. Transfer of control occurs at a specific point-in-time. Based on the enforceable rights included in our agreements or prevailing terms and conditions, products produced by the Company without an alternative use are not protected by an enforceable right of payment that includes a reasonable profit throughout the duration of the agreement. Consignment sales are recognized in revenue at the earlier of the period that the goods are consumed or after a period of time subsequent to receipt by the customer as specified by terms of the agreement, provided control of the promised goods or services has transferred. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales, value-add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Certain of our customers may receive cash-based incentives, such as rebates or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. As of March 27, 2020 The Company’s principal markets include America, Asia and Europe. The Company’s foreign operations are conducted primarily through its subsidiaries in China, Singapore, Israel, Taiwan, South Korea, the United Kingdom and the Czech Republic. Below revenues by geographic area represent revenues to unaffiliated customers and are based upon the location to which the products were shipped or services performed. The following table sets forth revenue by geographic area (in millions):
Three Months Ended
March 27,
March 29,
2020
2019
United States
$
142.6
$
137.3
Singapore
112.2
68.3
South Korea
20.3
18.4
Taiwan
15.2
8.9
Austria
14.5
14.2
China
9.1
8.0
Other
7.0
5.0
$
320.9
$
260.1

Leases

Leases3 Months Ended
Mar. 27, 2020
Leases [Abstract]
Leases13. LEASES The Company leases offices, facilities and equipment in locations throughout the United States, Asia and Europe. The Company’s leases do not provide an implicit rate, thus the Company uses an estimated incremental borrowing rate in determining the present value of lease payments. The components of lease expense were summarized as follows:
Three Months Ended
March 27,
March 29,
(Dollars in millions)
2020
2019
Operating lease cost
$
3.2
$
3.4
Short-term lease cost
0.3
0.2
Total lease cost
$
3.5
$
3.6
Operating cash flows from operating leases
$
4.4
$
3.4
Weighted-average remaining lease term – operating leases
2.3
2.9
Weighted-average discount rate – operating leases
5.5
%
7.0
% Future annual minimum lease payments and capital lease commitments as of March 27, 2020 were summarized as follows:
(In millions)
Operating Leases
2020 remaining
$
11.5
2021
11.8
2022
9.8
2023
5.1
2024
3.1
Thereafter
6.3
Total minimum lease payments
47.6
Less: imputed interest
5.4
Lease liability
$
42.2

Net Income Per Share

Net Income Per Share3 Months Ended
Mar. 27, 2020
Earnings Per Share [Abstract]
Net Income Per Share14. NET INCOME PER SHARE The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share:
Three Months Ended
March 27,
March 29,
(In millions, except share amounts)
2020
2019
Numerator:
Net income attributable to UCT
$
9.4
$
0.6
Denominator:
Shares used in computation — basic:
Weighted average common shares outstanding
39.8
39.1
Shares used in computation — diluted:
Weighted average common shares outstanding
39.8
39.1
Dilutive effect of common shares outstanding subject to repurchase
0.9
0.3
Dilutive effect of options outstanding


Shares used in computing diluted net income per share
40.7
39.4
Net income per share attributable to UCT — basic
$
0.24
$
0.02
Net income per share attributable to UCT — diluted
$
0.23
$
0.02

Reportable Segments

Reportable Segments3 Months Ended
Mar. 27, 2020
Segment Reporting [Abstract]
Reportable Segments15. REPORTABLE SEGMENTS The Company operates and reports results for two operating segments: SPS and SSB. These segments are organized primarily by the nature of the products and service they provide. The Company’s Chief Executive Officer (chief operating decision maker) views and evaluates operations based on the results of each of the reportable segments. The following table describes each segment:
Segment
Product or Services
Markets Served
Geographic Areas
SPS
Assembly Weldments Machining Fabrication
Semiconductor
United States Asia Europe
SSB
Cleaning Analytics
Semiconductor
United States Asia Europe The Company uses segment profit or loss as the primary measure of profitability to evaluate operating performance and to allocate capital resources. Segment profit or loss is defined as income or loss from continuing operations before other income and income taxes included in the accompanying condensed consolidated statements of operations. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations for the periods presented. Segment Data
Three Months Ended
March 27,
March 29,
2020
2019
Revenues:
SPS
$
259.4
$
200.2
SSB
61.5
59.9
Total segment revenues
$
320.9
$
260.1
Gross profit:
SPS
$
44.7
$
25.7
SSB
21.0
19.1
Total segment gross profit
$
65.7
$
44.8
Operating profit:
SPS
$
20.3
$
4.3
SSB
2.3
$
3.9
Consolidated income from operations
$
22.6
$
8.2
March 27,
December 27,
2020
2019
Assets
SPS
$
872.2
$
828.0
SSB
200.0
191.3
Total segment assets
$
1,072.2
$
1,019.3
As of March 27, 2020, approximately $79.1 million and $7.8 million of the Company’s net long-lived assets were located in Asia and Europe, respectively, and the remaining balances were located in the United States. At March 29, 2019, approximately $75.7 million and $7.0 million of the Company’s net long-lived assets were located in Asia and Europe, respectively, and the remaining balances were located in the United States.

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)3 Months Ended
Mar. 27, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of PresentationBasis of Presentation — The unaudited Condensed Consolidated Financial Statements included in this quarterly report on Form 10-Q include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). This financial information reflects all adjustments which are, in the opinion of the Company, normal, recurring and necessary for the fair financial statement presentation for the dates and periods presented. Certain information and footnote disclosures normally included in our annual financial statements, prepared in accordance with GAAP, have been condensed or omitted. The Company’s December 27, 2019 balance sheet data were derived from its audited financial statements as of that date.
Fiscal YearFiscal Year — The Company uses a 52-53 week fiscal year ending on the Friday nearest December 31. All references to quarters refer to fiscal quarters and all references to years refer to fiscal years.
Principles of ConsolidationPrinciples of Consolidation — The Company’s Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries with the ownership interests of minority shareholders presented as noncontrolling interests. All intercompany accounts and transactions have been eliminated upon consolidation.
Noncontrolling interestsNoncontrolling interests — The Company recognizes noncontrolling interests to reflect the portion of the equity of the majority-owned subsidiaries which is not attributable, directly or indirectly, to the controlling stockholder. The Company’s consolidated entities include partially-owned entities, which are (1) Cinos Co., Ltd (“Cinos Korea”), a South Korean company that provides outsourced cleaning and recycling of precision parts for the semiconductor industry through its operating facilities in South Korea, 86.0% of whose equity interests the Company is obligated to purchase and whose results the Company consolidates and (2) Cinos Xian Clean Technology, Ltd. (“Cinos China”), a Chinese entity that is 60.0% owned by Cinos. The interest held by others in Cinos Korea and in Cinos China are presented as noncontrolling interests in the accompanying Condensed Consolidated Financial Statements. The noncontrolling interests will continue to be attributed their share of gains and losses even if that attribution results in a deficit noncontrolling interests balance.
SegmentsSegments — The Financial Accounting Standards Board’s (“FASB”) guidance regarding disclosure about segments in an enterprise and related information establishes standards for the reporting by public business enterprises of information about reportable segments, products and services, geographic areas, and major customers. The method for determining what information to report is based on the manner in which management organizes the reportable segments within the Company for making operational decisions and assessments of financial performance. The Company’s chief operating decision-maker is the Chief Executive Officer. The Company operates and reports two segments. See Note 15 to the Company’s Consolidated Financial Statements.
Foreign Currency Translation and RemeasurementForeign Currency Translation and Remeasurement — The functional currency of the SPS business unit’s foreign subsidiaries is mostly the U.S. dollar, except for its Czech Republic entity, which is the Euro. The functional currency of the SSB business unit’s foreign subsidiaries is mostly local except for its Singapore entity, which is the U.S. dollar. For the Company’s foreign subsidiaries where the local currency is the functional currency, the Company translates the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenue, costs and expenses. Translation gains and losses are recorded in AOCI as a component of stockholders' equity. For the Company’s foreign subsidiaries where the U.S. dollar is the functional currency, any gains and losses resulting from the translation of the assets and liabilities are recorded in other income (expense), net. The functional currency of the Company’s other international subsidiaries are either the U.S. dollar or their local currency. For the Company’s foreign subsidiaries where the local currency is the functional currency, the Company translates the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average rates of exchange for revenue, costs and expenses. Translation gains and losses are recorded in AOCI as a component of stockholders' equity. For the Company’s foreign subsidiaries where the U.S. dollar is the functional currency, any gains and losses resulting from the translation of the assets and liabilities of these subsidiaries are recorded in other income (expense), net.
Use of EstimatesUse of Estimates — The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include revenue recognition, inventory valuation, accounting for income taxes, business combinations, valuation of goodwill, intangible assets and long-lived assets. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and the best estimates and judgments routinely require adjustments. Actual amounts may differ from those estimates.
Cash and Cash EquivalentsCash and Cash Equivalents — The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally.
Concentration of Credit RiskConcentration of Credit Risk — Financial instruments which subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company sells its products and provides services primarily to semiconductor capital equipment manufacturers in the United States. The Company performs credit evaluations of its customers’ financial condition and generally requires no collateral. Two of the Company’s customers accounted for 10% or more of revenues and their related revenues as a percentage of total revenues were as follows:
Three Months Ended
March 27,
March 29,
2020
2019
Lam Research Corporation
44.6
%
39.6
%
Applied Materials, Inc.
23.4
%
20.9
%
Total
68.0
%
60.5
% In addition,
Fair Value of MeasurementsFair Value of Measurements — The Company measures its cash equivalents, contingent earn-out liabilities and common stock purchase obligation at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 — Unobservable inputs that are supported by little or no market activities.
InventoriesInventories — Inventories are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. The Company evaluates the valuation of all inventories, including raw materials, work-in-process, finished goods and spare parts on a periodic basis. Obsolete inventory or inventory in excess of management’s estimated usage is written-down to its estimated market value less costs to sell, if less than its cost. Inherent in the estimates of market value are management’s estimates related to economic trends, future demand for products, and technological obsolescence of the Company’s products. Inventory write downs inherently involve judgments as to assumptions about expected future demand and the impact of market conditions on those assumptions. Although the Company believes that the assumptions it used in estimating inventory write downs are reasonable, significant changes in any one of the assumptions in the future could produce a significantly different result. There can be no assurances that future events and changing market conditions will not result in significant increases in inventory write downs.
Property, Plant and Equipment, netProperty, Plant and — Property, plant and equipment are stated at cost, or, in the case of equipment under finance leases, the present value of future minimum lease payments at inception of the related lease. Depreciation and amortization are computed using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the leases. Useful lives range from three to fifty years ten years
Long-lived AssetsLong-lived Assets — The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The Company assesses the fair value of the assets based on the amount of the undiscounted future cash flows that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset are less than the carrying value of the asset. If the Company identifies an impairment, the Company reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. The Company assessed the useful lives of its long-lived assets, including property, plant and equipment as well as its intangible assets as of March 27, 2020 and concluded that no impairment was required.
LeasesLeases — The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement. When the Company determines the arrangement is a lease, or contains a lease, at lease inception, it then determines whether the lease is an operating lease or a finance lease. Operating and finance leases with lease terms of one year or greater result in the Company recording a right-of-use (ROU) asset and lease liability on its balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are initially recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit interest rate if readily determinable or when the implicit interest rate is not readily determinable, the Company uses its incremental borrowing rate. The incremental borrowing rate is not a commonly quoted rate and is derived through a combination of inputs including the Company’s credit rating and the impact of full collateralization. The incremental borrowing rate is based on the Company’s collateralized borrowing capabilities over a similar term of the lease payments. The Company utilizes the consolidated group incremental borrowing rate for all leases. The operating lease ROU asset also includes any lease payments made and excludes any lease incentives. Specific lease terms used in computing the ROU assets and lease liabilities may include options to extend or terminate the lease when the Company believes it is reasonably certain that it will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. As allowed by the guidance, the Company has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset. Operating leases are included in operating lease ROU assets, other current liabilities, and long-term operating lease liabilities on the Company’s consolidated balance sheet. The Company’s finance leases at March 27, 2020 and at December 27, 2019 were not significant.
Goodwill and Indefinite Lived Intangible AssetsGoodwill and Indefinite Lived Intangible Assets — Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually. Intangible assets are presented at cost, net of accumulated amortization, and are amortized on either a straight-line method or on an accelerated method over their estimated future discounted cash flows. The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable, such as when reductions in demand or significant economic slowdowns in the semiconductor industry are present.
Deferred Debt Issuance CostsDeferred Debt Issuance Costs — Debt issuance costs incurred in connection with obtaining debt financing are deferred and presented as a direct deduction from Bank Borrowings in the accompanying Condensed Consolidated Balance Sheets. Costs incurred in connection with revolving credit facilities and letter of credit facilities are deferred and presented as an offset to bank borrowings in the accompanying Condensed Consolidated Balance Sheets. Deferred costs are amortized on an effective interest method basis over the contractual term.
Defined Benefit Pension PlanDefined Benefit Pension Plan — The Company has a noncontributory defined benefit pension plan covering substantially all of the employees of one of its foreign entities upon termination of their employee services. For further discussion of the Company’s defined benefit pension plan see Note 8 of Notes to the Condensed Consolidated Financial Statements.
Revenue RecognitionRevenue Recognition — 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 the Company expects to be entitled to in exchange for those goods or services. The Company assesses collectability based on the credit worthiness of the customer and past transaction history. The Company performs on-going credit evaluations of customers and generally does not require collateral from customers. Shipping and Handling Costs — Shipping and handling costs are included as a component of cost of revenues.
Research and Development CostsResearch and Development Costs — Research and development costs are expensed as incurred.
Stock-Based Compensation ExpenseStock-Based Compensation Expense — The Company maintains stock-based compensation plans which allow for the issuance of equity-based awards to executives and certain employees. These equity-based awards include stock options, restricted stock awards and restricted stock units. The Company also maintains an employee stock purchase plan (“ESPP”) that provides for the issuance of shares to all eligible employees of the Company at a discounted price.
Income TaxesIncome Taxes — The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating our ability to realize our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin with historical results and incorporate assumptions about the amount of future state, federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, we consider recent cumulative income (loss). A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. The Company continued to maintain a full valuation allowance on its federal and state deferred tax amounts as of March 27, 2020. Income tax positions must meet a more likely than not recognition threshold to be recognized. Income tax positions that previously failed to meet the more likely than not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the Condensed Consolidated Statements of Operations as income tax expense. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a significant impact on its results of operations and financial position. Management believes that it has adequately provided for any adjustments that may result from these examinations; however, the outcome of tax audits cannot be predicted with certainty.
Net Income per ShareNet Income per Share — Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding for the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding and common equivalent shares from dilutive stock options and restricted stock using the treasury stock method, except when such shares are anti-dilutive. See Note 14 to the Company’s Condensed Consolidated Financial Statements.
Business CombinationsBusiness Combinations — The Company recognizes assets acquired (including goodwill and identifiable intangible assets), liabilities assumed and noncontrolling interest at fair value on the acquisition date. Subsequent changes to the fair value of such assets acquired and liabilities assumed are recognized in earnings, after the expiration of the measurement period, a period not to exceed 12 months from the acquisition date. Acquisition-related expenses and acquisition-related restructuring costs are recognized in earnings in the period in which they are incurred.
Accounting Standard Not Yet AdoptedAccounting Standard Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a significant impact on its consolidated financial statements.

Organization and Significant _3

Organization and Significant Accounting Policies (Tables)3 Months Ended
Mar. 27, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Customers as Percentage of Total RevenuesTwo of the Company’s customers accounted for 10% or more of revenues and their related revenues as a percentage of total revenues were as follows:
Three Months Ended
March 27,
March 29,
2020
2019
Lam Research Corporation
44.6
%
39.6
%
Applied Materials, Inc.
23.4
%
20.9
%
Total
68.0
%
60.5
%

Business Combinations (Tables)

Business Combinations (Tables) - Dynamic Manufacturing Solutions [Member]3 Months Ended
Mar. 27, 2020
Business Acquisition [Line Items]
Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed at Date of AcquisitionThe following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition:
Fair Market Values (in millions)
Accounts receivable
$
1.5
Inventories
8.9
Equipment and leasehold improvements
5.4
Goodwill
12.3
Purchased intangible assets
6.9
Other non-current assets
0.3
Total assets acquired
35.3
Accounts payable
(3.8
)
Other liabilities
(0.1
)
Total liabilities assumed
(3.9
)
Purchase price allocated
$
31.4
Summary of Purchased Intangible AssetsPurchased
Useful Life
Intangible Assets
(In years)
(In millions)
Customer relationships
6
$
6.9
Unaudited Pro forma Consolidated Results of OperationsThe unaudited pro forma consolidated results of operations for the three months ended March 27, 2020 and March 29, 2019 are as follows:
Unaudited Pro Forma Information
Year Ended
Three Months Ended
March 27,
March 29,
2020
2019
(In millions, except per share amounts)
Revenues
$
320.9
$
268.2
Net income
$
9.4
$
1.7
Basic income per share
$
0.24
$
0.04
Diluted income per share
$
0.23
$
0.04

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)3 Months Ended
Mar. 27, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of InventoriesInventories consisted of the following:
March 27,
December 27,
(In millions)
2020
2019
Raw materials
$
110.9
$
99.9
Work in process
61.0
57.6
Finished goods
15.1
14.9
Total
$
187.0
$
172.4
Property, Plant and Equipment, NetProperty, plant and equipment, net, consisted of the following:
Useful Life
March 27,
December 27,
(In millions)
(in years)
2020
2019
Land
$
4.2
$
4.8
Buildings
50
33.2
36.9
Machinery and equipment
5-10
61.7
58.1
Leasehold improvements
*
43.8
41.8
Computer equipment and software
3-10
39.0
32.1
Furniture and fixtures
5
4.4
4.4
186.3
178.1
Accumulated depreciation
(61.9
)
(56.7
)
Construction in progress
19.0
23.9
Total
$
143.4
$
145.3

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Mar. 27, 2020
Fair Value Disclosures [Abstract]
Assets or Liabilities Measured at Fair ValueThe following table summarizes, for assets or liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy:
Fair Value Measurement at
Reporting Date Using
Description
March 27, 2020
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
(In millions)
Other liabilities:
Contingent earn-out liability
$
12.3
$

$

$
12.3
Pension obligation
$
4.9
$

$

$
4.9
Common stock purchase obligation
$
7.0
$

$

$
7.0
Fair Value Measurement at
Reporting Date Using
Description
December 27, 2019
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
(In millions)
Other liabilities:
Contingent earn-out liability
$
9.5
$

$

$
9.5
Common stock purchase obligation
$
6.8
$

$

$
6.8
Pension obligation
$
4.4
$

$

$
4.4
Summary of Qualitative Information About Level 3 Fair Value MeasurementsThere were no transfers from Level 1 or Level 2 to Level 3. Fair value adjustments were noncash, and therefore did not impact the Company’s liquidity or capital resources. Qualitative information about Level 3 fair value measurements are primarily as follows:
March 27,
Valuation
Unobservable
2020
Techniques
Input
Range
(Dollars in millions, except rate/multiple)
Contingent earn-out liability
$
12.3
Monte Carlo simulation
Revenue discount rate
7.5%
Revenue volatility rate
41.0%
Common stock purchase obligation
$
7.0
Discounted cash flow
Revenue multiple
1.3
EBITDA Multiple
5.0
Pension obligation
$
4.9
Projected unit credit method
Discount rate
2.0%
Rate on return
1.5%
Salary increase rate
4.5%
Summary of Level 3 ActivityFollowing is a summary of the Level 3 activity:
(In millions)
Contingent earn-out liability
Purchase obligation
Pension obligation
As of December 27, 2019
$
9.5
$
6.8
$
4.4
Fair value adjustments
2.8
0.2
0.5
As of March 27, 2020
$
12.3
$
7.0
$
4.9

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)3 Months Ended
Mar. 27, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Details of GoodwillDetails of aggregate goodwill of the Company are as follows:
(In millions)
SPS
SSB
Total
Balance at December 27, 2019
$
97.6
$
73.5
$
171.1
Adjustments



Balance at March 27, 2020
$
97.6
$
73.5
$
171.1
Purchased Intangible AssetsDetails of intangible assets were as follows:
As of March 27, 2020
As of December 27, 2019
Gross
Gross
Useful Life
Carrying
Accumulated
Carrying
Carrying
Accumulated
Carrying
(Dollars in millions)
(in years)
Amount
Amortization
Value
Amount
Amortization
Value
Customer relationships
6 - 10
$
119.4
$
(42.5
)
$
76.9
$
119.4
$
(39.8
)
$
79.6
Tradename
4 - 6*
27.0
(9.0
)
18.0
27.0
(8.1
)
18.9
Intellectual property/know-how
7 - 12
13.9
(8.7
)
5.2
13.9
(8.4
)
5.5
Recipes
20
73.2
(5.8
)
67.4
73.2
(4.9
)
68.3
Standard operating procedures
20
8.6
(0.7
)
7.9
8.6
(0.6
)
8.0
Total
$
242.1
$
(66.7
)
$
175.4
$
242.1
$
(61.8
)
$
180.3
*
The Company concluded that the UCT tradename intangible asset amounting to $9.0 million has an indefinite life and is therefore not amortized but is reviewed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.
Future Estimated Amortization ExpenseAs of March 27, 2020, future estimated amortization expense is expected to be as follows:
Amortization
(In millions)
Expense
2020 (remaining in year)
$
14.8
2021
19.6
2022
19.3
2023
14.2
2024
14.0
Thereafter
84.5
Total
$
166.4

Employee Stock Plans (Tables)

Employee Stock Plans (Tables)3 Months Ended
Mar. 27, 2020
Postemployment Benefits [Abstract]
Stock-Based Compensation Expense Included in Condensed Consolidated Statements of OperationsThe following table shows the Company’s stock-based compensation expense included in the Condensed Consolidated Statements of Operations:
Three Months Ended
March 27,
March 29,
(In millions)
2020
2019
Cost of goods sold (1)
$
0.4
$
0.6
Research and development
0.1
0.1
Sales and marketing
0.3
0.3
General and administrative
2.3
1.9
3.1
2.9
Income tax benefit
(0.9
)
(1.5
)
Stock-based compensation expense, net of tax
$
2.2
$
1.4
Summary of Restricted Stock Unit, Performance Stock Units and Restricted Stock Award ActivityThe following table summarizes the Company’s combined RSU, PSU and RSA activity for the three months ended March 27, 2020:
(In millions)
Shares
Aggregate Fair
Unvested RSUs, PSUs and RSAs at December 27, 2019
1.8
$
41.9
Granted
0.1
Vested

Forfeited
(0.1
)
Unvested RSUs, PSUs and RSAs as of March 27, 2020
1.8
$
27.2
Vested and expected to vest RSUs, PSUs and RSAs as of March 27, 2020
1.6
$
24.7

Revenue Recognition (Tables)

Revenue Recognition (Tables)3 Months Ended
Mar. 27, 2020
Revenue From Contract With Customer [Abstract]
Revenue by Geographic AreaThe following table sets forth revenue by geographic area (in millions):
Three Months Ended
March 27,
March 29,
2020
2019
United States
$
142.6
$
137.3
Singapore
112.2
68.3
South Korea
20.3
18.4
Taiwan
15.2
8.9
Austria
14.5
14.2
China
9.1
8.0
Other
7.0
5.0
$
320.9
$
260.1

Leases (Tables)

Leases (Tables)3 Months Ended
Mar. 27, 2020
Leases [Abstract]
Summary of Components of Lease ExpenseThe components of lease expense were summarized as follows:
Three Months Ended
March 27,
March 29,
(Dollars in millions)
2020
2019
Operating lease cost
$
3.2
$
3.4
Short-term lease cost
0.3
0.2
Total lease cost
$
3.5
$
3.6
Operating cash flows from operating leases
$
4.4
$
3.4
Weighted-average remaining lease term – operating leases
2.3
2.9
Weighted-average discount rate – operating leases
5.5
%
7.0
%
Summary of Future Annual Minimum Lease Payments and Capital Lease CommitmentFuture annual minimum lease payments and capital lease commitments as of March 27, 2020 were summarized as follows:
(In millions)
Operating Leases
2020 remaining
$
11.5
2021
11.8
2022
9.8
2023
5.1
2024
3.1
Thereafter
6.3
Total minimum lease payments
47.6
Less: imputed interest
5.4
Lease liability
$
42.2

Net Income Per Share (Tables)

Net Income Per Share (Tables)3 Months Ended
Mar. 27, 2020
Earnings Per Share [Abstract]
Basic and Diluted Net Income (loss) Per ShareThe following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share:
Three Months Ended
March 27,
March 29,
(In millions, except share amounts)
2020
2019
Numerator:
Net income attributable to UCT
$
9.4
$
0.6
Denominator:
Shares used in computation — basic:
Weighted average common shares outstanding
39.8
39.1
Shares used in computation — diluted:
Weighted average common shares outstanding
39.8
39.1
Dilutive effect of common shares outstanding subject to repurchase
0.9
0.3
Dilutive effect of options outstanding


Shares used in computing diluted net income per share
40.7
39.4
Net income per share attributable to UCT — basic
$
0.24
$
0.02
Net income per share attributable to UCT — diluted
$
0.23
$
0.02

Reportable Segments (Tables)

Reportable Segments (Tables)3 Months Ended
Mar. 27, 2020
Segment Reporting [Abstract]
Summary of Segment Description and DataThe following table describes each segment:
Segment
Product or Services
Markets Served
Geographic Areas
SPS
Assembly Weldments Machining Fabrication
Semiconductor
United States Asia Europe
SSB
Cleaning Analytics
Semiconductor
United States Asia Europe Segment Data
Three Months Ended
March 27,
March 29,
2020
2019
Revenues:
SPS
$
259.4
$
200.2
SSB
61.5
59.9
Total segment revenues
$
320.9
$
260.1
Gross profit:
SPS
$
44.7
$
25.7
SSB
21.0
19.1
Total segment gross profit
$
65.7
$
44.8
Operating profit:
SPS
$
20.3
$
4.3
SSB
2.3
$
3.9
Consolidated income from operations
$
22.6
$
8.2
March 27,
December 27,
2020
2019
Assets
SPS
$
872.2
$
828.0
SSB
200.0
191.3
Total segment assets
$
1,072.2
$
1,019.3

Organization and Significant _4

Organization and Significant Accounting Policies - Additional Information (Detail)3 Months Ended12 Months Ended
Mar. 27, 2020USD ($)SegmentCustomerDec. 27, 2019Customer
Concentration Risk [Line Items]
Number of operating segments2
Number of reportable segments2
Impairments of goodwill and intangible assets | $ $ 0
Customer Concentration Risk [Member] | Lam Research Corporation, Applied Materials, Inc. and ASM International, Inc. [Member]
Concentration Risk [Line Items]
Number of customers with accounts receivable greater than 10% | Customer3 3
Customer Concentration Risk [Member] | Lam Research Corporation, Applied Materials, Inc. and ASM International, Inc. [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration percentage70.40%66.70%
Cinos Co., Ltd [Member]
Concentration Risk [Line Items]
Noncontrolling interest, ownership percentage by parent86.00%
Cinos Xian Clean Technology, Ltd [Member]
Concentration Risk [Line Items]
Noncontrolling interest, ownership percentage by parent60.00%
Minimum [Member]
Concentration Risk [Line Items]
Fiscal year duration364 days
Useful lives range3 years
Minimum [Member] | Internal Use Software [Member]
Concentration Risk [Line Items]
Useful lives range3 years
Maximum [Member]
Concentration Risk [Line Items]
Fiscal year duration371 days
Useful lives range50 years
Measurement period to determine fair value of assets and liabilities12 months
Maximum [Member] | Internal Use Software [Member]
Concentration Risk [Line Items]
Useful lives range10 years

Organization and Significant _5

Organization and Significant Accounting Policies - Customers as Percentage of Total Revenues (Detail) - Sales [Member] - Customer Concentration Risk [Member]3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Concentration Risk [Line Items]
Total68.00%60.50%
Lam Research Corporation [Member]
Concentration Risk [Line Items]
Total44.60%39.60%
Applied Materials, Inc. [Member]
Concentration Risk [Line Items]
Total23.40%20.90%

Business Combinations - Additio

Business Combinations - Additional Information (Detail) - USD ($) $ in MillionsApr. 15, 2019Mar. 27, 2020Mar. 29, 2019Dec. 27, 2019
Business Acquisition [Line Items]
Increase in liability recorded as other expense $ 2.8
Net revenues320.9 $ 260.1
Amortization of purchased intangible assets4.9 $ 4.9
Dynamic Manufacturing Solutions [Member]
Business Acquisition [Line Items]
Date of acquisitionApr. 15,
2019
Business acquisition potential cash earn-out payments $ 12.5
Business acquisition fair value of potential earn-out payments1.4 1.5
Total purchase consideration31.4
Cash payment for acquisition $ 29.9
Earn-out payments, fair market value12.3 $ 9.5
Net revenues18.8
Amortization of purchased intangible assets $ 0.3

Business Combinations - Summary

Business Combinations - Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) - USD ($) $ in MillionsApr. 15, 2019Mar. 27, 2020Dec. 27, 2019
Business Acquisition [Line Items]
Goodwill $ 171.1 $ 171.1
Dynamic Manufacturing Solutions [Member]
Business Acquisition [Line Items]
Accounts receivable $ 1.5
Inventories8.9
Equipment and leasehold improvements5.4
Goodwill12.3
Purchased intangible assets6.9
Other non-current assets0.3
Total assets acquired35.3
Accounts payable(3.8)
Other liabilities(0.1)
Total liabilities assumed(3.9)
Purchase price allocated $ 31.4

Business Combinations - Summa_2

Business Combinations - Summary of Purchased Intangible Assets (Detail) - Dynamic Manufacturing Solutions [Member] $ in MillionsApr. 15, 2019USD ($)
Business Acquisition [Line Items]
Purchased intangible assets $ 6.9
Customer Relationships [Member]
Business Acquisition [Line Items]
Purchased intangible assets $ 6.9
Total purchased intangible assets, useful life6 years

Business Combinations - Unaudit

Business Combinations - Unaudited Pro forma Consolidated Results of Operations (Detail) - Dynamic Manufacturing Solutions [Member] - USD ($) $ / shares in Units, $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Business Acquisition [Line Items]
Revenues $ 320.9 $ 268.2
Net income $ 9.4 $ 1.7
Basic income per share $ 0.24 $ 0.04
Diluted income per share $ 0.23 $ 0.04

Balance Sheet Information - Sum

Balance Sheet Information - Summary of Inventories (Detail) - USD ($) $ in MillionsMar. 27, 2020Dec. 27, 2019
Inventory Disclosure [Abstract]
Raw materials $ 110.9 $ 99.9
Work in process61 57.6
Finished goods15.1 14.9
Total $ 187 $ 172.4

Balance Sheet Information - Pro

Balance Sheet Information - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Dec. 27, 2019
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements net excluding construction in progress $ 186.3 $ 178.1
Accumulated depreciation(61.9)(56.7)
Construction in progress19 23.9
Total $ 143.4 145.3
Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life50 years
Land [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 4.2 4.8
Buildings [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 33.2 36.9
Property, plant and equipment, useful life50 years
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 61.7 58.1
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life10 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 43.8 41.8
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 39 32.1
Computer Equipment and Software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life3 years
Computer Equipment and Software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life10 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 4.4 $ 4.4
Property, plant and equipment, useful life5 years

Balance Sheet Information - Add

Balance Sheet Information - Additional Information (Detail) $ in Millions3 Months Ended
Mar. 27, 2020USD ($)
Inventory Disclosure [Abstract]
Restructuring charge $ 0.8

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured (Details) - USD ($) $ in MillionsMar. 27, 2020Dec. 27, 2019
Common Stock Purchase Obligation [Member]
Other liabilities:
Liabilities measured at fair value $ 7 $ 6.8
Pension Obligation [Member]
Other liabilities:
Liabilities measured at fair value4.9 4.4
Contingent Earn-out Liability [Member]
Other liabilities:
Liabilities measured at fair value12.3 9.5
Significant Unobservable Inputs (Level 3) [Member] | Common Stock Purchase Obligation [Member]
Other liabilities:
Liabilities measured at fair value7 6.8
Significant Unobservable Inputs (Level 3) [Member] | Pension Obligation [Member]
Other liabilities:
Liabilities measured at fair value4.9 4.4
Significant Unobservable Inputs (Level 3) [Member] | Contingent Earn-out Liability [Member]
Other liabilities:
Liabilities measured at fair value $ 12.3 $ 9.5

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Qualitative Information About Level 3 Fair Value Measurements (Details) - Fair Value Level 3 [Member] $ in MillionsMar. 27, 2020USD ($)
Revenue Discount Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Range0.075
Revenue volatility Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Range0.410
Rate On Return [Member]
Defined Benefit Plan Disclosure [Line Items]
Range0.015
Measurement Input, EBITDA Multiple
Defined Benefit Plan Disclosure [Line Items]
Range0.050
Salary Increase Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Range0.045
Common Stock Purchase Obligation [Member]
Defined Benefit Plan Disclosure [Line Items]
Contingent consideration $ 7
Business Combination Contingent Consideration Liability Valuation Technique Extensible Listus-gaap:ValuationTechniqueDiscountedCashFlowMember
Common Stock Purchase Obligation [Member] | Revenue Discount Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Range0.013
Pension Obligation [Member]
Defined Benefit Plan Disclosure [Line Items]
Contingent consideration $ 4.9
Pension Obligation [Member]
Defined Benefit Plan Disclosure [Line Items]
Business Combination Contingent Consideration Liability Valuation Technique Extensible Listuctt:ValuationTechniqueProjectedUnitCreditMethodMember
Pension Obligation [Member] | Discount Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Range0.020
Contingent Earn-out Liability [Member]
Defined Benefit Plan Disclosure [Line Items]
Contingent consideration $ 12.3
Business Combination Contingent Consideration Liability Valuation Technique Extensible Listuctt:ValuationTechniqueMonteCarloSimulationMember

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of the Level 3 Activity - (Details) $ in Millions3 Months Ended
Mar. 27, 2020USD ($)
Pension Obligation [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Beginning balance $ 4.4
Fair value adjustments0.5
Ending balance4.9
Purchase Obligation [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Beginning balance6.8
Fair value adjustments0.2
Ending balance7
Contingent Earn-out Liability [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Beginning balance9.5
Fair value adjustments2.8
Ending balance $ 12.3

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Details of Goodwill (Detail) $ in Millions3 Months Ended
Mar. 27, 2020USD ($)
Goodwill [Line Items]
Goodwill $ 171.1
Adjustments0
Goodwill171.1
SPS [Member]
Goodwill [Line Items]
Goodwill97.6
Adjustments0
Goodwill97.6
SSB [Member]
Goodwill [Line Items]
Goodwill73.5
Adjustments0
Goodwill $ 73.5

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Purchased Intangible Assets (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Dec. 27, 2019
Finite Lived Intangible Assets [Line Items]
Definite lives intangible assets, accumulated amortization $ (66.7) $ (61.8)
Definite lives intangible assets, net carrying amount166.4
Intangible Assets, gross carrying value242.1 242.1
Intangible Assets, net carrying value $ 175.4 180.3
Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life7 years
Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life12 years
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Definite lives intangible assets, gross carrying amount $ 119.4 119.4
Definite lives intangible assets, accumulated amortization(42.5)(39.8)
Definite lives intangible assets, net carrying amount $ 76.9 79.6
Customer Relationships [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life6 years
Customer Relationships [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life10 years
Trade Name [Member]
Finite Lived Intangible Assets [Line Items]
Definite lives intangible assets, gross carrying amount $ 27 27
Definite lives intangible assets, accumulated amortization(9)(8.1)
Definite lives intangible assets, net carrying amount $ 18 18.9
Trade Name [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life4 years
Trade Name [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life6 years
Intellectual Properties/Know-How [Member]
Finite Lived Intangible Assets [Line Items]
Definite lives intangible assets, gross carrying amount $ 13.9 13.9
Definite lives intangible assets, accumulated amortization(8.7)(8.4)
Definite lives intangible assets, net carrying amount $ 5.2 5.5
Recipes [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life20 years
Definite lives intangible assets, gross carrying amount $ 73.2 73.2
Definite lives intangible assets, accumulated amortization(5.8)(4.9)
Definite lives intangible assets, net carrying amount $ 67.4 68.3
Standard Operating Procedures [Member]
Finite Lived Intangible Assets [Line Items]
Total purchased intangible assets, useful life20 years
Definite lives intangible assets, gross carrying amount $ 8.6 8.6
Definite lives intangible assets, accumulated amortization(0.7)(0.6)
Definite lives intangible assets, net carrying amount $ 7.9 $ 8

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Purchased Intangible Assets (Parenthetical) (Detail) $ in Millions3 Months Ended
Mar. 27, 2020USD ($)
UCT Tradename [Member]
Finite Lived Intangible Assets [Line Items]
Indefinite lived intangible assets acquired $ 9

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of purchased intangible assets $ 4.9 $ 4.9

Goodwill and Intangible Asset_6

Goodwill and Intangible Assets - Future Estimated Amortization Expense (Detail) $ in MillionsMar. 27, 2020USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
2020 (remaining in year) $ 14.8
202119.6
202219.3
202314.2
202414
Thereafter84.5
Definite lives intangible assets, net carrying amount $ 166.4

Borrowing Arrangements - Additi

Borrowing Arrangements - Additional Information (Detail) € in Millions, ₩ in Billions1 Months Ended3 Months Ended
Aug. 31, 2018USD ($)Mar. 27, 2020USD ($)Mar. 27, 2020EUR (€)Mar. 27, 2020KRW (₩)
Bank Debt [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs $ 9,200,000
Outstanding amount of borrowing classified as long-term debt $ 332,200,000
Bank Debt [Member] | Czech Republic [Member]
Debt Instrument [Line Items]
Debt instrument interest rate0.90%0.90%0.90%
Minimum [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio1.25%
Maximum [Member]
Debt Instrument [Line Items]
Consolidated leverage ratio3.75%
Dynamic Manufacturing Solutions [Member]
Debt Instrument [Line Items]
Proceeds from credit facility $ 40,000,000
Term Loan Credit Facility [Member] | Barclays Bank PLC [Member]
Debt Instrument [Line Items]
Cash borrowed for acquisition and refinancing $ 350,000,000
Term loan, maturity dateAug. 27,
2025
Percentage of original outstanding principal balance as quarterly principal payment0.625%
Debt instrument, frequency of periodic paymentThe Term Loan has a maturity date of August 27, 2025, with monthly interest payments in arrears, quarterly principal payments of 0.625% of the original outstanding principal balance payable beginning January 2019, with the remaining principal paid upon maturity
Description of interest rate termThe Term Loan accrues interest at a rate equal to a base LIBOR rate determined by reference to the London interbank offered rate for dollars, plus 4.5% (subject to certain adjustments quarterly based upon the Company’s consolidated leverage ratio)
Outstanding term loan $ 300,000,000
Unamortized debt issuance costs9,200,000
Term Loan Credit Facility [Member] | Barclays Bank PLC [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument variable interest rate4.50%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Outstanding amount under credit facility $ 0
Interest rate on outstanding loan3.10%3.10%3.10%
Revolving Credit Facility [Member] | Korea [Member] | Cinos Co., Ltd [Member]
Debt Instrument [Line Items]
Initial available commitment $ 1,600,000 ₩ 1.9
Revolving Credit Facility [Member] | Bank Debt [Member] | Czech Republic [Member]
Debt Instrument [Line Items]
Remaining available commitments7,700,000 € 7
Revolving Credit Facility [Member] | Bank Debt [Member] | United States [Member]
Debt Instrument [Line Items]
Remaining available commitments $ 25,000,000
Revolving Credit Facility [Member] | Minimum [Member] | Korea [Member] | Cinos Co., Ltd [Member]
Debt Instrument [Line Items]
Interest rate1.40%
Revolving Credit Facility [Member] | Maximum [Member] | Korea [Member] | Cinos Co., Ltd [Member]
Debt Instrument [Line Items]
Interest rate5.40%
Revolving Credit Facility [Member] | FDS [Member] | Bank Debt [Member] | Czech Republic [Member]
Debt Instrument [Line Items]
Outstanding amounts $ 1,400,000 € 1.3
Revolving Credit Facility [Member] | Barclays Bank PLC [Member]
Debt Instrument [Line Items]
Initial available commitment $ 65,000,000
Maturity dateAug. 27,
2023
Commitment fee percentage0.25%
Outstanding amount under credit facility40,000,000
Remaining available commitments $ 25,000,000
Term Loan [Member]
Debt Instrument [Line Items]
Interest rate on outstanding loan6.10%6.10%6.10%
Letter of Credit Facility [Member] | Barclays Bank PLC [Member]
Debt Instrument [Line Items]
Initial available commitment $ 50,000,000
Maturity dateAug. 27,
2023
Commitment fee percentage2.50%
Outstanding amount under credit facility $ 1,500,000
Percentage of undrawn and unexpired amount of letter of credit as fronting fee0.125%
Remaining available commitments $ 48,500,000

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Income Taxes [Line Items]
Income tax provision $ 4.5 $ 1.5
Effective tax rate29.80%52.70%
Undistributed earnings of foreign subsidiaries $ 241.6
Gross liability for unrecognized tax benefits, excluding interest $ 1 $ 1
Maximum [Member] | CARES ACT [Member]
Income Taxes [Line Items]
Percentage of annual deduction of taxable income from net operating losses80.00%

Retirement Plans - Additional I

Retirement Plans - Additional Information (Detail) - USD ($)3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Compensation And Retirement Disclosure [Abstract]
Benefit obligations $ 8,700,000
Fair value of benefit plan assets3,800,000
Unfunded balance of benefit plan4,900,000
Amounts recognized in accumulated other comprehensive income500,000
Contributions to the plan by the Company and its subsidiaries600,000
Benefits expected to be paid from pension plan in 2020800,000
Benefits expected to be paid from pension plan in 20211,000,000
Benefits expected to be paid from pension plan in 20222,100,000
Benefits expected to be paid from pension plan in 2023900,000
Benefits expected to be paid from pension plan in 2024900,000
Aggregate benefits expected to be paid in five years from 2025-2029 $ 4,500,000
Contribution from salary25.00%
Maximum contribution from salary $ 19,500
Matching contribution based upon eligibility3.00%
Discretionary employer contributions $ 600,000 $ 500,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in MillionsMar. 27, 2020USD ($)
Inventory [Member]
Long Term Purchase Commitment [Line Items]
Purchase commitments $ 199

Stockholders' Equity and Nonc_2

Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in MillionsMar. 27, 2020Aug. 27, 2018
Cinos Co., Ltd [Member]
Business Acquisition [Line Items]
Percentage of outstanding shares purchased35.00%
Quantum Global Technologies, LLC [Member]
Business Acquisition [Line Items]
Stock purchase obligation, fair value $ 7
Purchase obligation maturity period2022-12
Cinos Korea and Cinos China [Member]
Business Acquisition [Line Items]
Percentage of value used for fair value of non-controlling interest estimates100.00%
Quantum Global Technologies, LLC [Member] | Cinos Co., Ltd [Member]
Business Acquisition [Line Items]
Percentage of outstanding shares purchased51.00%
Noncontrolling interest, ownership percentage by parent86.00%
Quantum Global Technologies, LLC [Member] | Cinos Xian Clean Technology, Ltd [Member]
Business Acquisition [Line Items]
Percentage of outstanding shares purchased35.00%
Cinos China [Member] | Cinos Co., Ltd [Member]
Business Acquisition [Line Items]
Noncontrolling interest, ownership percentage by parent60.00%
Cinos Co., Ltd [Member]
Business Acquisition [Line Items]
Noncontrolling interest, ownership percentage by parent86.00%
Percentage of non-controlling interest14.00%
Cinos Joint Venture [Member]
Business Acquisition [Line Items]
Percentage of non-controlling interest40.00%

Employee Stock Plans - Addition

Employee Stock Plans - Additional Information (Detail) $ / shares in Units, $ in Millions3 Months Ended
Mar. 27, 2020USD ($)$ / sharesshares
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock units | shares100,000
Weighted average fair value, granted | $ / shares $ 24
Stock-based compensation cost, net of estimated forfeitures, recognized $ 13.1
Outstanding restricted stock | shares1,800,000
Aggregate fair value $ 27.2
Weighted average remaining contractual term (in years)1 year
Restricted Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vesting period, years1 year 7 months 6 days
Restricted Stock Units [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vesting period, years3 years
Unit purchase price of Restricted Stock Units $ 0
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation cost, net of estimated forfeitures, recognized $ 13.1
Outstanding restricted stock | shares1,800,000
Aggregate fair value $ 27.2
Weighted average remaining contractual term (in years)1 year
Performance Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vesting period, years1 year 7 months 6 days
Restricted Stock Awards [Member] | Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding restricted stock | shares100,000
Unamortized expense of company's unvested restricted stock awards $ 0.2

Employee Stock Plans - Stock-Ba

Employee Stock Plans - Stock-Based Compensation Expense Included in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019Mar. 29, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation $ 3.1 $ 2.9 $ 2.9
Income tax benefit(0.9)(1.5)
Stock-based compensation expense, net of tax2.2 1.4
Cost of Good Sold [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation[1]0.4 0.6
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation0.1 0.1
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation0.3 0.3
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation $ 2.3 $ 1.9
[1]Stock-based compensation expense capitalized in inventory for the three months ended March 27, 2020 and March 29, 2019 was not significant.

Employee Stock Plans - Summary

Employee Stock Plans - Summary of Restricted Stock Unit, Performance Stock Units and Restricted Stock Award Activity (Detail) - Restricted Stock Unit, Performance Stock Units and Restricted Stock Award [Member] - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Dec. 27, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested RSUs, PSUs and RSAs, Number of Shares, Beginning balance1,800,000
Granted, Number of Shares100,000
Forfeited, Number of Shares(100,000)
Unvested RSUs, PSUs and RSAs, Number of Shares, Ending balance1,800,000
Vested and expected to vest RSUs, PSUs and RSAs,Numbers of Shares1,600,000
Unvested RSUs, PSUs and RSAs, Aggregate Intrinsic Value $ 27.2 $ 41.9
Vested and expected to vest RSUs, PSUs and RSAs, Aggregate Intrinsic Value $ 24.7

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) $ in Millions3 Months Ended
Mar. 27, 2020USD ($)
Accrued Expenses [Member]
Concentration Risk [Line Items]
Unpaid customer rebates $ 2.1
Maximum [Member]
Concentration Risk [Line Items]
Product warranty period (in years)2 years

Revenue Recognition - Summary o

Revenue Recognition - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues $ 320.9 $ 260.1
United States [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues142.6 137.3
Singapore [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues112.2 68.3
South Korea [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues20.3 18.4
Taiwan [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues15.2 8.9
Austria [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues14.5 14.2
China [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues9.1 8
Other [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues $ 7 $ 5

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Leases [Abstract]
Operating lease cost $ 3.2 $ 3.4
Short-term lease cost0.3 0.2
Total lease cost3.5 3.6
Operating cash flows from operating leases $ 4.4 $ 3.4
Weighted-average remaining lease term – operating leases2 years 3 months 18 days2 years 10 months 24 days
Weighted-average discount rate – operating leases5.50%7.00%

Leases - Summary of Future Annu

Leases - Summary of Future Annual Minimum Lease Payments and Capital Lease Commitments (Detail) $ in MillionsMar. 27, 2020USD ($)
Leases [Abstract]
Operating Leases, 2020 (remaining in year) $ 11.5
Opeating Leases, 202111.8
Opeating Leases, 20229.8
Operating Leases, 20235.1
Operating Leases, 20243.1
Operating Leases, Thereafter6.3
Operating Leases, Total minimum lease payments47.6
Operating Leases, Less: imputed interest5.4
Operating Leases, Lease liability $ 42.2

Net Income Per Share - Basic an

Net Income Per Share - Basic and Diluted Net Income (loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019
Numerator:
Net income attributable to UCT $ 9.4 $ 0.6
Shares used in computation — basic:
Weighted average common shares outstanding39.8 39.1
Shares used in computation — diluted:
Weighted average common shares outstanding39.8 39.1
Dilutive effect of common shares outstanding subject to repurchase0.9 0.3
Shares used in computing diluted net income per share40.7 39.4
Net income per share attributable to UCT — basic $ 0.24 $ 0.02
Net income per share attributable to UCT — diluted $ 0.23 $ 0.02

Reportable Segments - Additiona

Reportable Segments - Additional Information (Detail) $ in Millions3 Months Ended
Mar. 27, 2020USD ($)SegmentMar. 29, 2019USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment2
Asia [Member]
Segment Reporting Information [Line Items]
Net long-lived assets $ 79.1 $ 75.7
Europe [Member]
Segment Reporting Information [Line Items]
Net long-lived assets $ 7.8 $ 7

Reportable Segments - Summary o

Reportable Segments - Summary of Segment Description (Detail)3 Months Ended
Mar. 27, 2020
SPS [Member]
Segment Reporting Information [Line Items]
Product or ServicesAssembly
Weldments
Machining
Fabrication
Markets ServedSemiconductor
Geographic AreasUnited States
Asia
Europe
SSB [Member]
Segment Reporting Information [Line Items]
Product or ServicesCleaning
Analytics
Markets ServedSemiconductor
Geographic AreasUnited States
Asia
Europe

Reportable Segments - Summary_2

Reportable Segments - Summary of Segment Data (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 29, 2019Dec. 27, 2019
Revenues:
Total segment revenues $ 320.9 $ 260.1
Gross profit:
Total segment gross profit65.7 44.8
Operating profit:
Total segment operating profit22.6 8.2
ASSETS
Total segment assets1,072.2 1,019.3 $ 1,019.3
SPS [Member]
Revenues:
Total segment revenues259.4 200.2
Gross profit:
Total segment gross profit44.7 25.7
Operating profit:
Total segment operating profit20.3 4.3
ASSETS
Total segment assets872.2 828
SSB [Member]
Revenues:
Total segment revenues61.5 59.9
Gross profit:
Total segment gross profit21 19.1
Operating profit:
Total segment operating profit2.3 3.9
ASSETS
Total segment assets $ 200 $ 191.3