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UCTT Ultra Clean Hldgs

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 26, 2021Apr. 23, 2021
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 26,
2021
Document Fiscal Year Focus2021
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--12-31
Entity Filer CategoryLarge Accelerated 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 Outstanding43,800,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in MillionsMar. 26, 2021Dec. 25, 2020
Current assets:
Cash and cash equivalents $ 264.3 $ 200.3
Accounts receivable, net of allowance for doubtful accounts of $0.2 and $0.3 at March 26, 2021 and December 25, 2020, respectively168 145.5
Inventories189.2 180.4
Prepaid expenses and other current assets14.7 18.9
Total current assets636.2 545.1
Property, plant and equipment, net157.3 159.2
Goodwill171.1 171.1
Intangibles assets, net155.6 160.5
Deferred tax assets, net22.3 23.5
Operating lease right-of-use assets41.7 37.8
Other non-current assets6.4 5.3
Total assets1,190.6 1,102.5
Current liabilities:
Bank borrowings8 7.4
Accounts payable164.9 121.3
Accrued compensation and related benefits30.9 34.5
Operating lease liabilities12.4 11.7
Other current liabilities46.9 26.3
Total current liabilities263.1 201.2
Bank borrowings, net of current portion259.8 261.6
Deferred tax liabilities33.6 33.6
Operating lease liabilities33.9 31.1
Other liabilities23.6 23.8
Total liabilities614 551.3
Commitments and contingencies (See Note 10)
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; 40.6 shares issued and outstanding at March 26, 2021 and December 25, 20200.1 0.1
Additional paid-in capital316.3 312.8
Common shares held in treasury, at cost, 0.6 shares at March 26, 2021 and December 25, 2020(3.3)(3.3)
Retained earnings242.9 217.9
Accumulated other comprehensive gain1.6 5.1
Total UCT stockholders' equity557.6 532.6
Noncontrolling interests19 18.6
Total equity576.6 551.2
Total liabilities and stockholders' equity $ 1,190.6 $ 1,102.5

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in MillionsMar. 26, 2021Dec. 25, 2020
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 authorized10,000,000 10,000,000
Preferred stock, shares outstanding0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized90,000,000 90,000,000
Common stock, shares issued40,600,000 40,600,000
Common stock, shares outstanding40,600,000 40,600,000
Treasury stock, shares600,000 600,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions3 Months Ended
Mar. 26, 2021Mar. 27, 2020
Revenues:
Total revenues $ 417.6 $ 320.9
Cost of revenues:
Total cost of revenues330.7 255.2
Gross profit86.9 65.7
Operating expenses:
Research and development4.2 3.4
Sales and marketing7.6 5.8
General and administrative34.7 33.9
Total operating expenses46.5 43.1
Income from operations40.4 22.6
Interest income0.1 0.3
Interest expense(3.6)(5.2)
Other income (expense), net(4.3)(2.7)
Income before provision for income taxes32.6 15
Provision for income taxes7 4.5
Net income25.6 10.5
Less: Net income attributable to noncontrolling interests0.6 1.1
Net income attributable to UCT $ 25 $ 9.4
Net income per share attributable to UCT common stockholders:
Basic $ 0.62 $ 0.24
Diluted $ 0.60 $ 0.23
Shares used in computing net income per share:
Basic40.6 39.8
Diluted41.6 40.7
Product [Member]
Revenues:
Products $ 345.6 $ 259.4
Cost of revenues:
Products283.6 214.7
Gross profit62 44.7
Operating expenses:
Income from operations34.2 20.3
Services [Member]
Revenues:
Products72 61.5
Cost of revenues:
Products47.1 40.5
Gross profit24.9 21
Operating expenses:
Income from operations $ 6.2 $ 2.3

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (loss) - USD ($) $ in Millions3 Months Ended
Mar. 26, 2021Mar. 27, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income $ 25.6 $ 10.5
Other comprehensive loss:
Change in cumulative translation adjustment(2.8)(3.2)
Change in fair value of derivatives(0.7)(0.1)
Total other comprehensive loss(3.5)(3.3)
Other comprehensive income, attributable to noncontrolling interests0.6 1.1
Comprehensive income attributable to UCT $ 21.5 $ 6.1

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions3 Months Ended
Mar. 26, 2021Mar. 26, 2021Mar. 27, 2020
Cash flows from operating activities:
Net income $ 25.6 $ 25.6 $ 10.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization6.5 6.4
Amortization of intangible assets4.9 4.9
Stock-based compensation3.5 3.5 3.1
Amortization of debt issuance costs0.4 0.4
Gain from insurance proceeds(7.3)
Deferred income taxes1.2 1
Change in the fair value of financial instruments and earn-out liability11.6 3
Others0.1
Changes in assets and liabilities:
Accounts receivable(22.5)(0.7)
Inventories(8.8)(14.7)
Prepaid expenses and other current assets3 (0.2)
Other non-current assets(1)0.3
Accounts payable43.3 (4.1)
Accrued compensation and related benefits(3.6)0.2
Income taxes payable2.8 1.6
Operating lease assets and liabilities(0.3)(0.4)
Other liabilities6.2 4.4
Net cash provided by operating activities65.6 15.7
Cash flows from investing activities:
Purchases of property, plant and equipment(6.5)(6.7)
Insurance proceeds7.3
Net cash provided by (used in) investing activities0.8 (6.7)
Cash flows from financing activities:
Proceeds from bank borrowings6.6 51.5
Principal payments on bank borrowings and finance leases(8.2)(14.5)
Net cash provided by (used in) financing activities(1.6)37
Effect of exchange rate changes on cash and cash equivalents(0.8)(0.4)
Net increase in cash and cash equivalents64 45.6
Cash and cash equivalents at beginning of period200.3 162.5
Cash and cash equivalents at end of period264.3 $ 264.3 208.1
Supplemental cash flow information:
Income taxes paid, net of income tax refunds2.7 2
Interest paid4.3 4.8
Non-cash investing and financing activities:
Property, plant and equipment purchased included in accounts payable and other liabilities $ 3.5 $ 2.9

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ 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. 27, 2019 $ 452.5 $ 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, 2020462.8 $ 0.1 304 $ (3.3)149.7 (4.6)445.9 16.9
Ending balance, Shares at Mar. 27, 202039.9 0.6
Beginning balance at Dec. 25, 2020551.2 $ 0.1 312.8 $ (3.3)217.9 5.1 532.6 18.6
Beginning balance, Shares at Dec. 25, 202040.6 0.6
Stock-based compensation expense3.5 3.5 3.5
Net income25.6 25 25 0.6
Dividend payments to a joint venture shareholder(0.2)(0.2)
Other comprehensive loss(3.5)(3.5)(3.5)
Ending balance at Mar. 26, 2021 $ 576.6 $ 0.1 $ 316.3 $ (3.3) $ 242.9 $ 1.6 $ 557.6 $ 19
Ending balance, Shares at Mar. 26, 202140.6 0.6

Organization and Significant Ac

Organization and Significant Accounting Policies3 Months Ended
Mar. 26, 2021
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. Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, ultra-high purity cleaning and analytical services primarily for the semiconductor industry. UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping and component manufacturing, and tool chamber parts cleaning and coating, as well as micro-contamination analytical services. The Company’s Products division (formerly known as “SPS”) provides 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 division (formerly known as “SSB”) provides part cleaning, surface encapsulation and high sensitivity micro contamination analysis primarily for the semiconductor device makers and wafer fabrication equipment markets. 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 majority-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 25, 2020 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 majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. Noncontrolling interests — Noncontrolling interests are recognized 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 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: Products and Services. See Note 16 of the Notes to the Condensed Consolidated Financial Statements. Foreign Currency Translation and Remeasurement — the functional currency of the Products division’s foreign subsidiaries is the U.S. dollar. The functional currency of the Service division’s foreign subsidiaries is the local currency except for that of its Singapore and Scotland entities, 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 accumulated other comprehensive income (AOCI) within UCT 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 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. The Company’s most significant customers (having accounted for 10% or more of revenues) and their related revenues as a percentage of total revenues were as follows:
Three Months Ended
March 26,
March 27,
2021
2020
Lam Research Corporation
45.7
%
44.6
%
Applied Materials, Inc.
23.5
%
23.4
%
Total
69.2
%
68.0
% Two customers’ accounts receivable balances, Lam Research Corporation and Applied Materials, Inc., were individually greater than 10% of accounts receivable as of March 26, 2021 Three Fair Value of Measurements — The Company measures its cash equivalents, derivative contracts, contingent earn-out liabilities, pension obligation 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. Derivative Financial Instruments — The Company uses forward contracts to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The purpose of the hedge is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated costs and eventual cash flows. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Condensed Consolidated Balance Sheets at fair value. The Company records changes in the fair value of the derivatives in the accompanying Condensed Consolidated Statements of Operations as other income (expense), net, or as a component of AOCI in the accompanying Condensed Consolidated Balance Sheets. Inventories — Inventories are stated at the lower of 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 based on 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. The Company also capitalizes interest on borrowings related to eligible capital expenditures. Capitalized interest is added to the cost of the qualified assets and is subject to depreciation. 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 26, 2021 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 26, 2021 and December 25, 2020 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. 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 9 of the 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 performs the following five steps to determine when to recognize revenue: (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. 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 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. Government Subsidies — Government subsidies are recognized where there is reasonable assurance that the subsidy will be received and all attached conditions will be complied with. When the subsidy relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the subsidy relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset. When the subsidy does not relate to specific expenses or assets, the income is accounted for in the period where there is reasonable assurance that the subsidy will be received. 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 federal, state, 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. Income tax positions must meet a more likely than not recognition threshold to be recognized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the consolidated statements of income as income tax expense. The Company accounts for Global Intangible Low-Taxed Income (“GILTI”) as period costs when incurred. 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 restricted stock using the treasury stock method, except when such shares are anti-dilutive. See Note 15 of the Notes to the 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 March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financing Reporting. This guidance provides temporary optional expedients and exceptions through December 31, 2022 to the U.S. GAAP guidance on contract modifications to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The Company expects to adopt this guidance and apply it to reference rate reform effected arrangement modifications. 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 material impact on its Consolidated Financial Statements.

Business Combinations

Business Combinations3 Months Ended
Mar. 26, 2021
Business Combinations [Abstract]
Business Combinations2. BUSINESS COMBINATIONS Dynamic Manufacturing Solutions, LLC On April 15, 2019, the Company purchased substantially all of the assets of DMS, a semiconductor weldment and solutions provider based in Austin, Texas. Pursuant to the purchase agreement, the former owners of DMS were entitled to receive up to $12.5 million of potential cash earn-out if the combined weldment business, after the acquisition, achieved certain gross profit and gross margin targets for the twelve months ending June 26, 2020. During the second quarter of fiscal year 2020, DMS achieved the specified performance target of the earn-out, which resulted in the maximum payment of $12.5 million paid in August 2020. In the first quarter of fiscal year 2020, the Company completed the acquisition accounting and the valuation of the fair value of the assets acquired and the liabilities assumed

Balance Sheet Information

Balance Sheet Information3 Months Ended
Mar. 26, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Balance Sheet Information3. BALANCE SHEET INFORMATION Inventories consisted of the following:
March 26,
December 25,
(In millions)
2021
2020
Raw materials
$
107.5
$
102.9
Work in process
66.8
64.5
Finished goods
14.9
13.0
Total
$
189.2
$
180.4
Property, plant and equipment, net, consisted of the following:
Useful Life
March 26,
December 25,
(In millions)
(in years)
2021
2020
Land
$
3.5
$
3.8
Buildings
50
36.0
37.2
Leasehold improvements
5-10
49.5
46.7
Machinery and equipment
*
75.2
73.8
Computer equipment and software
3-10
42.6
42.5
Furniture and fixtures
5
4.5
4.4
211.3
208.4
Accumulated depreciation
(89.1
)
(84.0
)
Construction in progress
35.1
34.8
Total
$
157.3
$
159.2
* 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 Quantum Global Technologies, LLC’s (“QGT”) general and administrative expense, Insurance Proceeds In September 2018, a fire in a facility owned by Cinos Korea destroyed certain assets, including equipment, the building and inventory owned by one of its customers. During the first fiscal quarter of 2021, the Company received final insurance proceeds related to the Cinos fire of $7.3 million, which was recorded in the accompanying Condensed Consolidated Statements of Operations as other income (expense), net. No insurance proceeds were received in the comparable period in the prior year.

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 26, 2021
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 26, 2021
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
(In millions)
Other current liabilities:
Forward contracts
$
0.7
$

$
0.7
$

Other liabilities:
Common stock purchase obligation
$
12.6
$

$

$
12.6
Pension obligation
$
5.0
$

$

$
5.0
Fair Value Measurement at
Reporting Date Using
Description
December 25, 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 assets:
Forward contracts
$
1.1
$

$
1.1
$

Other liabilities:
Common stock purchase obligation
$
12.6
$

$

$
12.6
Pension obligation
$
4.7
$

$

$
4.7
The estimated fair value of foreign currency forward contracts is based upon quoted market prices obtained from independent pricing services for similar derivative contracts and these financial instruments are characterized as Level 2 assets in the fair value hierarchy. The estimated fair value of common stock purchase obligation is based on a combination of an income and market valuation approach. The income and market valuation approaches may incorporate Level 3 fair value measures for instances when observable inputs are not available. The more significant judgmental assumptions used to estimate the value of common stock purchase obligation include an estimated discount rate, a range of assumptions that form the basis of the expected future net cash flows (e.g., the revenue growth rates and operating margins), and a company specific beta. The significant judgmental assumptions used that incorporate market data, including the relative weighting of market observable information and the comparability of that information in the valuation models, are forward-looking and could be affected by future economic and market conditions. The estimated fair value of pension obligation is based on expected years of service and average compensation. The valuation model used to value pension obligation utilizes mortality rate, inflation, interest rate risks and changes in the life expectancy for pensioners. These assumptions are routinely made in the appraisal process by the independent actuary thus resulted in a Level 3 classification. There were no transfers from Level 1 or Level 2. 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 is as follows:
March 26,
Valuation
Unobservable
2021
Techniques
Input
Range/Multiple
(Dollars in millions, except rate/multiple)
Common stock purchase obligation
$
12.6
Discounted cash flow
Revenue multiple
1.3 - 1.7
EBITDA Multiple
5.5 - 7.4
Discount rate
15.5% - 20.0%
Pension obligation
$
5.0
Projected unit credit method
Discount rate
2.1
%
Rate on return
2.4
%
Salary increase rate
4.0
% Following is a summary of the Level 3 activity:
(In millions)
Common stock Purchase obligation
Pension obligation
As of December 25, 2020
$
12.6
$
4.7
Fair value adjustments

0.3
As of March 26, 2021
$
12.6
$
5.0

Financial Instruments

Financial Instruments3 Months Ended
Mar. 26, 2021
Financial Instruments Disclosures [Abstract]
Financial Instruments5. FINANCIAL INSTRUMENTS Derivative Financial Instruments The Company utilizes foreign currency forward contracts to reduce the risk that its cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations Non-Designated Derivatives The Company uses foreign currency contracts to economically hedge the functional currency equivalent cash flows of non-U.S. dollar- denominated acquisition. The change in fair value of these derivatives is recorded through earnings in other income (expense), net. The Company records all derivatives in the Condensed Consolidated Balance Sheets at fair value. The Company’s accounting treatment for these derivative instruments is based on its hedge designation. The following tables show the Company’s derivative instruments at gross fair value as of March 26, 2021 and December 25, 2020.
March 26, 2021
Fair Value of
Fair Value of
Derivatives
Derivatives Not
Balance Sheet
Designated as
Designated as
Total
(In millions)
Location
Hedge Instruments
Hedge Instruments
Fair Value
Derivative liabilities:
Level 2:
Forward contracts
Other current liabilities
$
0.7
$

$
0.7
December 25, 2020
Fair Value of
Fair Value of
Derivatives
Derivatives Not
Balance Sheet
Designated as
Designated as
Total
(In millions)
Location
Hedge Instruments
Hedge Instruments
Fair Value
Derivative assets
Level 2:
Forward contracts
Prepaid expenses and other
$
-
$
1.1
$
1.1
The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below:
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion)
Three Months Ended
March 26,
March 27,
(In millions)
2021
2020
Derivatives in Cash Flow Hedging Relationship
Forward contracts
$
0.7
$

The amount of gain or loss reclassified from accumulated OCI into income is not significant for the three months ended March 26, 2021 and March 27, 2020.
Gains (Losses) Recognized in Income on Derivatives
Three Months Ended
March 26,
March 27,
(In millions)
Income Statement Location
2021
2020
Derivatives Not Designated As Hedging Instruments
Forward contracts
Other income (expense), net
$
(11.6
)
$

In 2020, the Company entered into multiple foreign currency contracts to hedge the functional currency equivalent cash flows related to the non-U.S. dollar-denominated acquisition price of Ham-Let (Israel-Canada) Ltd. ( current liabilities in the accompanying Condensed Consolidated Balance Sheets

Goodwill and Intangible Assets

Goodwill and Intangible Assets3 Months Ended
Mar. 26, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets6. 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. Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are 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. 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)
Products
Services
Total
Balance at December 25, 2020
$
97.6
$
73.5
$
171.1
Adjustments



Balance at March 26, 2021
$
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 26, 2021
As of December 25, 2020
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
$
(53.3
)
$
66.1
$
119.4
$
(50.6
)
$
68.8
Tradename
4 - 6*
27.0
(12.5
)
14.5
27.0
(11.7
)
15.3
Intellectual property/know-how
7 - 12
13.9
(10.1
)
3.8
13.9
(9.8
)
4.1
Recipes
20
73.2
(9.5
)
63.7
73.2
(8.5
)
64.7
Standard operating procedures
20
8.6
(1.1
)
7.5
8.6
(1.0
)
7.6
Total
$
242.1
$
(86.5
)
$
155.6
$
242.1
$
(81.6
)
$
160.5
*
The Company concluded that the asset life of the UCT tradename of $9.0 million is indefinite 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 for both three months ended March 26, 2021 and March 27, 2020. Amortization expense related to QGT’s recipes and standard operating procedures is charged to cost of revenues and the remainder is charged to general and administrative expense. As of March 26, 2021, future estimated amortization expense is expected to be as follows:
Amortization
(In millions)
Expense
2021 (remaining in year)
$
14.7
2022
19.3
2023
14.2
2024
14.0
2025
12.3
Thereafter
72.1
Total
$
146.6

Borrowing Arrangements

Borrowing Arrangements3 Months Ended
Mar. 26, 2021
Debt Disclosure [Abstract]
Borrowing Arrangements7. 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 Facility”). UCT and certain of its subsidiaries have agreed to secure all of their obligations under the Credit Facility 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). At March 26, 2021 March 26, 2021 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. 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 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 26, 2021 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 26, 2021 facility leases and government agencies making up the majority of the outstanding balance. The remaining available commitments are $ 47.6 million on the Letter of Credit Facility and $ million on the Revolving Credit Facility. In 2020, Cinos China amended its existing Credit Agreement and entered into two additional Credit Agreements with a local bank that provide Revolving Credit Facilities for a total available commitment of $3.5 million with various maturity dates through September 23, 2022 and interest rates ranging from 2.0% to 4.1%. As of March 26, 2021 Cinos Korea has Credit Agreements with various banks that provide Revolving Credit Facilities for a total available commitment of 1.6 billion Korean Won (approximately $1.4 million) with annual renewals beginning from April 2021 through June 2021 and interest rates ranging from 2.5% - 3.7% UCT Fluid Delivery Solutions s.r.o. (“FDS”) has a credit agreement with a local bank in the Czech Republic that provides for a revolving credit facility in the aggregate of up to 6.0 million euros. As of March 26, 2021 As of March 26, 2021 March 26, 2021 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. In conjunction with the acquisition of Ham-Let (Israel-Canada) Ltd. on March 31, 2021, the Company borrowed an additional $355.0 million under the of the Notes to the Condensed Consolidated Financial Statements.

Income Tax

Income Tax3 Months Ended
Mar. 26, 2021
Income Tax Disclosure [Abstract]
Income Tax8. INCOME TAX The Company's effective tax rate was 21.5% and 29.8% for the three months ended March 26, 2021 and March 27, 2020, respectively. The Company’s income tax provision The change in respective rates reflects, primarily, changes in the geographic mix of worldwide earnings and financial results in jurisdictions which are taxed at different rates and the impact of losses in jurisdictions with full federal and state valuation allowances. Company management continuously evaluates the need for a valuation allowance and, as of March 26, 2021, 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 the earnings of its foreign subsidiaries to the extent required by the Tax Cuts and Jobs Act (TCJA). In a prior period, the Company has also recognized a deferred tax liability for taxes that would be withheld on a distribution of a portion of the undistributed earnings of one of its China subsidiaries. However, the Company has not provided for withholding taxes on the remaining portion of the undistributed earnings of its China subsidiary nor for the undistributed earnings of its other foreign subsidiaries that it intends to reinvest indefinitely outside the U.S. The Company has also historically remitted earnings from its Singapore subsidiary to the U.S. and may do so again in the future. However, the Company has not provided for withholding taxes on undistributed Singapore earnings as Singapore does not currently impose a withholding tax on dividends. If the Company changes its intent to reinvest its undistributed foreign earnings indefinitely or if a greater amount of undistributed earnings is needed than the previous anticipated remaining unremitted foreign earnings, the Company could be required to accrue or pay foreign taxes on some or all of these undistributed earnings. As of March 26, 2021, the Company had undistributed earnings of foreign subsidiaries that are considered indefinitely invested outside of the U.S. of approximately $305.0 million. It is not practicable to determine the tax liability that might be incurred if these earnings were to be distributed. As of March 26, 2021 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was signed into law in response to the U.S. COVID-19 pandemic, which, among other things, suspends the 80.0% limitation on the deduction for NOLs in taxable years beginning before January 1, 2021, permits a 5-year depreciation. The Company has evaluated the impact of the CARES Act and determined that there was no significant impact to the income tax provision for the three months ended March 26, 2021 . On December 27, 2020, the U.S. government enacted the Consolidated Appropriations Act On March 11, 2021, the American Rescue Plan Act of 2021 (“American Rescue Plan”) was signed into law to provide additional relief in connection with the ongoing COVID-19 pandemic. The American Rescue Plan includes, among other things, provisions relating to PPP loan expansion, defined pension contributions, excessive employee remuneration, and the repeal of the election to allocate interest expense on a worldwide basis. The Company does not currently expect that such provisions will have a material impact on the Company’s Condensed Consolidated Financial Statements. In December 2019, the FASB issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes”, as part of its initiative to reduce complexity in the accounting standards. The ASU eliminates certain exceptions from ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. The Company adopted ASU 2019-12 on January 1, 2021. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

Retirement Plans

Retirement Plans3 Months Ended
Mar. 26, 2021
Compensation And Retirement Disclosure [Abstract]
Retirement Plans9. RETIREMENT PLANS Defined Benefit 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 of 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 26, 2021 March 26, 2021 March 26, 2021 March 26, 2021 Employee Savings and Retirement Plan The Company sponsors a 401(k) savings and retirement plan (the “401(k) Plan”) for all U.S. employees who meet certain eligibility requirements. Participants can elect to contribute to the 401(k) Plan, on a pre-tax basis, up to 25% of their salary to a maximum of the IRS limit. The Company matches 50.0% of participant salary up to 6.0% of employee contributions based upon eligibility. The Company made approximately $0.6 million discretionary employer contributions to the 401(k) Plan in the three months ended March 26, 2021 and for the three months ended March 27, 2020, respectively.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 26, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies10. COMMITMENTS AND CONTINGENCIES Commitment The Company had commitments to various third parties to purchase inventories totaling approximately $297.9 million as of March 26, 2021. 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 individually or in the aggregate cannot be predicted with certainty, the Company has not had a history of outcomes to date that have been material to the Condensed Consolidated Statements of O perations and does not believe that any of these proceedings or other claims will have a material adverse effect on its cons olidated financial condition, results of operations or cash flows .

Stockholders' Equity and Noncon

Stockholders' Equity and Noncontrolling Interests3 Months Ended
Mar. 26, 2021
Noncontrolling Interest [Abstract]
Stockholders' Equity and Noncontrolling Interests11. STOCKHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS Noncontrolling Interests QGT, through its wholly-owned subsidiary in Singapore, The carrying value of the remaining 14.0% interest held by another shareholder in Cinos Korea and the 40.0% interest in Cinos China 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 QGT earnings before interest expense, taxes, depreciation and amortization contributed by each entity. The Company is obligated to purchase shares owned by a Cinos Korea shareholder. A certain number of shares would be purchased at a fixed price per share, while the other remaining shares would be purchased based on 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 other shareholder has a put option. As of March 26, 2021, the fair value of the obligation is $12.6 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 4 of the Company’s Notes to Condensed Consolidated Financial Statements. The agreement with Cinos Korea allows for the common stock purchase obligation to become due in December 2022, and once completed, the Company will own 86.0% of Cinos Korea .

Employee Stock Plans

Employee Stock Plans3 Months Ended
Mar. 26, 2021
Postemployment Benefits [Abstract]
Employee Stock Plans12. EMPLOYEE The Company grants stock awards in the form 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 26,
March 27,
(In millions)
2021
2020
Cost of revenues (1)
$
0.5
$
0.4
Research and development
0.1
0.1
Sales and marketing
0.3
0.3
General and administrative
2.6
2.3
3.5
3.1
Income tax benefit
(0.8
)
(0.9
)
Stock-based compensation expense, net of tax
$
2.7
$
2.2
(1)
Stock-based compensation expense capitalized in inventory for the three months ended March 26, 2021 and March 27, 2020 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 38,146 RSUs granted during the quarter ended March 26, 2021, with a weighted average fair value of $42.08 per share. As of March 26, 2021, approximately $14.2 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 1.4 years. 0.9 year As of March 26, 2021, a total of 44,107 shares of RSAs were outstanding. The total unamortized expense of the Company’s unvested restricted stock awards as of March 26, 2021 was $0.1 million. The following table summarizes the Company’s combined RSU, PSU and RSA activity for the three months ended March 26, 2021:
(In millions)
Shares
Aggregate Fair
Unvested RSUs, PSUs and RSAs at December 25, 2020
1.7
$
54.1
Granted
0.1
Vested
-
Forfeited
(0.1
)
Unvested RSUs, PSUs and RSAs as of March 26, 2021
1.7
$
95.9
Vested and expected to vest RSUs, PSUs and RSAs as of March 26, 2021
1.7
$
95.9

Revenue Recognition

Revenue Recognition3 Months Ended
Mar. 26, 2021
Revenue From Contract With Customer [Abstract]
Revenue Recognition13. 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 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 Products division 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 revenues 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 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 Products 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 26, 2021 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. R evenues by geographic area are categorized based on the customer’s location to which the products were shipped or where the services were performed. The following table sets forth revenue by geographic area (in millions):
Three Months Ended
March 26,
March 27,
2021
2020
United States
$
172.6
$
142.6
Singapore
153.3
112.2
South Korea
26.6
20.3
Taiwan
20.2
15.2
Austria
18.7
14.5
China
16.0
9.1
Other
10.2
7.0
$
417.6
$
320.9

Leases

Leases3 Months Ended
Mar. 26, 2021
Leases [Abstract]
Leases14. 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 26,
March 27,
(Dollars in millions)
2021
2020
Operating lease cost
$
3.7
$
3.2
Short-term lease cost
0.4
0.3
Total lease cost
$
4.1
$
3.5
Operating cash flows from operating leases
$
3.7
$
4.4
Weighted-average remaining lease term – operating leases
2.4
2.3
Weighted-average discount rate – operating leases
5.5
%
5.5
% Future minimum payments under operating leases as of March 26, 2021 were summarized as follows:
(In millions)
Operating Leases
2021 remaining
$
10.5
2022
12.3
2023
9.5
2024
7.1
2025
4.9
Thereafter
8.8
Total minimum lease payments
53.1
Less: imputed interest
6.8
Lease liability
$
46.3
The Company entered into two new lease agreements in fiscal year 2020 with commencement dates in fiscal year 2021. The total minimum lease payments for these two new lease agreements is $22.1 million, which was included in the total contractual obligations

Net Income Per Share

Net Income Per Share3 Months Ended
Mar. 26, 2021
Earnings Per Share [Abstract]
Net Income Per Share15. 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 26,
March 27,
(In millions, except share amounts)
2021
2020
Numerator:
Net income attributable to UCT
$
25.0
$
9.4
Denominator:
Shares used in computation — basic:
Weighted average common shares outstanding
40.6
39.8
Shares used in computation — diluted:
Weighted average common shares outstanding
40.6
39.8
Dilutive effect of common shares outstanding subject to repurchase
1.0
0.9
Shares used in computing diluted net income per share
41.6
40.7
Net income per share attributable to UCT — basic
$
0.62
$
0.24
Net income per share attributable to UCT — diluted
$
0.60
$
0.23

Reportable Segments

Reportable Segments3 Months Ended
Mar. 26, 2021
Segment Reporting [Abstract]
Reportable Segments16. REPORTABLE SEGMENTS The Company operates and reports financial results for two operating segments: Products and Services. 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
Products
Assembly Weldments Machining Fabrication
Semiconductor
United States Asia Europe
Services
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 a segment’s 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 26,
March 27,
2021
2020
Revenues:
Products
$
345.6
$
259.4
Services
72.0
61.5
Total segment revenues
$
417.6
$
320.9
Gross profit:
Products
$
62.0
$
44.7
Services
24.9
21.0
Total segment gross profit
$
86.9
$
65.7
Operating profit:
Products
$
34.2
$
20.3
Services
6.2
2.3
Consolidated income from operations
$
40.4
$
22.6
March 26,
December 25,
2021
2020
Assets
Products
$
950.0
$
868.4
Services
240.6
234.1
Total segment assets
$
1,190.6
$
1,102.5
As of March 26, 2021, approximately $88.4 million and $9.6 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 December 25, 2020, approximately $90.4 million and $9.4 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.

Subsequent Events

Subsequent Events3 Months Ended
Mar. 26, 2021
Subsequent Events [Abstract]
Subsequent Events17. SUBSEQUENT EVENTS Acquisition On March 31, 2021, the Company completed the acquisition of Ham-Let, a public company organized under the laws of the State of In connection with the consummation of the acquisition, the Company entered into a Second Amendment dated March 31, 2021 to the Credit Agreement dated as of August 27, 2018, and amended as of October 1, 2018, to refinance and reprice its approximately $273.0 million of existing term B borrowings that will remain outstanding and obtain a $355.0 million senior secured incremental term loan B facility (the “Incremental Term Loan”) with Barclays Bank PLC, which increased the amount of term loan indebtedness outstanding under the Company’s Credit Agreement. The Incremental Term Loan, together with cash on hand, was used to finance the acquisition, to refinance the existing debt of Ham-Let and to pay fees and expenses incurred in connection with the Incremental Term Loan and the acquisition of Ham-Let. Equity Financing On April 13, 2021, the Company completed an underwritten public offering of 3,181,818 shares of the Company’s common stock, in which the Company received net proceeds of approximately $167.6 million, after deducting the underwriting discounts and offering expenses payable by the Company. On April 29, 2021, the Underwriters exercised the option to purchase an additional 477,272 shares of the Company’s common stock for approximately $25.2 million in cash. The Company intends to use the net proceeds from this offering for general corporate purposes, which may include working capital, sales and marketing activities, product development, general and administrative matters, and capital expenditures. The Company may use a portion of the net proceeds to acquire complementary businesses, products, services, or technologies, although it has no agreements, commitments, or plans for any specific acquisitions at this time.

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)3 Months Ended
Mar. 26, 2021
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 majority-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 25, 2020 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 majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation.
Noncontrolling interestsNoncontrolling interests — Noncontrolling interests are recognized 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
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: Products and Services. See Note 16 of the Notes to the Condensed Consolidated Financial Statements.
Foreign Currency Translation and RemeasurementForeign Currency Translation and Remeasurement — the functional currency of the Products division’s foreign subsidiaries is the U.S. dollar. The functional currency of the Service division’s foreign subsidiaries is the local currency except for that of its Singapore and Scotland entities, 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 accumulated other comprehensive income (AOCI) within UCT 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 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. The Company’s most significant customers (having accounted for 10% or more of revenues) and their related revenues as a percentage of total revenues were as follows:
Three Months Ended
March 26,
March 27,
2021
2020
Lam Research Corporation
45.7
%
44.6
%
Applied Materials, Inc.
23.5
%
23.4
%
Total
69.2
%
68.0
% Two customers’ accounts receivable balances, Lam Research Corporation and Applied Materials, Inc., were individually greater than 10% of accounts receivable as of March 26, 2021 Three
Fair Value of MeasurementsFair Value of Measurements — The Company measures its cash equivalents, derivative contracts, contingent earn-out liabilities, pension obligation 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.
Derivative Financial InstrumentsDerivative Financial Instruments — The Company uses forward contracts to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The purpose of the hedge is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated costs and eventual cash flows. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Condensed Consolidated Balance Sheets at fair value. The Company records changes in the fair value of the derivatives in the accompanying Condensed Consolidated Statements of Operations as other income (expense), net, or as a component of AOCI in the accompanying Condensed Consolidated Balance Sheets.
InventoriesInventories — Inventories are stated at the lower of 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 based on 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. The Company also capitalizes interest on borrowings related to eligible capital expenditures. Capitalized interest is added to the cost of the qualified assets and is subject to depreciation. 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 26, 2021 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 26, 2021 and December 25, 2020 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. 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 9 of the 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 performs the following five steps to determine when to recognize revenue: (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. 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 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.
Government SubsidiesGovernment Subsidies — Government subsidies are recognized where there is reasonable assurance that the subsidy will be received and all attached conditions will be complied with. When the subsidy relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the subsidy relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset. When the subsidy does not relate to specific expenses or assets, the income is accounted for in the period where there is reasonable assurance that the subsidy will be received.
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 federal, state, 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. Income tax positions must meet a more likely than not recognition threshold to be recognized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the consolidated statements of income as income tax expense. The Company accounts for Global Intangible Low-Taxed Income (“GILTI”) as period costs when incurred.
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 restricted stock using the treasury stock method, except when such shares are anti-dilutive. See Note 15 of the Notes to the 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 March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financing Reporting. This guidance provides temporary optional expedients and exceptions through December 31, 2022 to the U.S. GAAP guidance on contract modifications to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The Company expects to adopt this guidance and apply it to reference rate reform effected arrangement modifications. 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 material impact on its Consolidated Financial Statements.

Organization and Significant _3

Organization and Significant Accounting Policies (Tables)3 Months Ended
Mar. 26, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Customers as Percentage of Total RevenuesThe Company’s most significant customers (having accounted for 10% or more of revenues) and their related revenues as a percentage of total revenues were as follows:
Three Months Ended
March 26,
March 27,
2021
2020
Lam Research Corporation
45.7
%
44.6
%
Applied Materials, Inc.
23.5
%
23.4
%
Total
69.2
%
68.0
%

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)3 Months Ended
Mar. 26, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of InventoriesInventories consisted of the following:
March 26,
December 25,
(In millions)
2021
2020
Raw materials
$
107.5
$
102.9
Work in process
66.8
64.5
Finished goods
14.9
13.0
Total
$
189.2
$
180.4
Property, Plant and Equipment, NetProperty, plant and equipment, net, consisted of the following:
Useful Life
March 26,
December 25,
(In millions)
(in years)
2021
2020
Land
$
3.5
$
3.8
Buildings
50
36.0
37.2
Leasehold improvements
5-10
49.5
46.7
Machinery and equipment
*
75.2
73.8
Computer equipment and software
3-10
42.6
42.5
Furniture and fixtures
5
4.5
4.4
211.3
208.4
Accumulated depreciation
(89.1
)
(84.0
)
Construction in progress
35.1
34.8
Total
$
157.3
$
159.2

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Mar. 26, 2021
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 26, 2021
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
(In millions)
Other current liabilities:
Forward contracts
$
0.7
$

$
0.7
$

Other liabilities:
Common stock purchase obligation
$
12.6
$

$

$
12.6
Pension obligation
$
5.0
$

$

$
5.0
Fair Value Measurement at
Reporting Date Using
Description
December 25, 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 assets:
Forward contracts
$
1.1
$

$
1.1
$

Other liabilities:
Common stock purchase obligation
$
12.6
$

$

$
12.6
Pension obligation
$
4.7
$

$

$
4.7
Summary of Qualitative Information About Level 3 Fair Value MeasurementsThere were no transfers from Level 1 or Level 2. 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 is as follows:
March 26,
Valuation
Unobservable
2021
Techniques
Input
Range/Multiple
(Dollars in millions, except rate/multiple)
Common stock purchase obligation
$
12.6
Discounted cash flow
Revenue multiple
1.3 - 1.7
EBITDA Multiple
5.5 - 7.4
Discount rate
15.5% - 20.0%
Pension obligation
$
5.0
Projected unit credit method
Discount rate
2.1
%
Rate on return
2.4
%
Salary increase rate
4.0
%
Summary of Level 3 ActivityFollowing is a summary of the Level 3 activity:
(In millions)
Common stock Purchase obligation
Pension obligation
As of December 25, 2020
$
12.6
$
4.7
Fair value adjustments

0.3
As of March 26, 2021
$
12.6
$
5.0

Financial Instruments (Table)

Financial Instruments (Table)3 Months Ended
Mar. 26, 2021
Financial Instruments Disclosures [Abstract]
Schedule of Derivative Instruments at Gross Fair ValueThe following tables show the Company’s derivative instruments at gross fair value as of March 26, 2021 and December 25, 2020.
March 26, 2021
Fair Value of
Fair Value of
Derivatives
Derivatives Not
Balance Sheet
Designated as
Designated as
Total
(In millions)
Location
Hedge Instruments
Hedge Instruments
Fair Value
Derivative liabilities:
Level 2:
Forward contracts
Other current liabilities
$
0.7
$

$
0.7
December 25, 2020
Fair Value of
Fair Value of
Derivatives
Derivatives Not
Balance Sheet
Designated as
Designated as
Total
(In millions)
Location
Hedge Instruments
Hedge Instruments
Fair Value
Derivative assets
Level 2:
Forward contracts
Prepaid expenses and other
$
-
$
1.1
$
1.1
Schedule of The Effect of Derivative Instruments in Cash Flow Hedging Relationships on Income and Other Comprehensive Income (OCI)The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below:
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion)
Three Months Ended
March 26,
March 27,
(In millions)
2021
2020
Derivatives in Cash Flow Hedging Relationship
Forward contracts
$
0.7
$
Schedule of Amount of Gain or Loss Reclassified From Accumulated OCI into IncomeThe amount of gain or loss reclassified from accumulated OCI into income is not significant for the three months ended March 26, 2021 and March 27, 2020.
Gains (Losses) Recognized in Income on Derivatives
Three Months Ended
March 26,
March 27,
(In millions)
Income Statement Location
2021
2020
Derivatives Not Designated As Hedging Instruments
Forward contracts
Other income (expense), net
$
(11.6
)
$

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)3 Months Ended
Mar. 26, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Details of GoodwillDetails of aggregate goodwill of the Company are as follows:
(In millions)
Products
Services
Total
Balance at December 25, 2020
$
97.6
$
73.5
$
171.1
Adjustments



Balance at March 26, 2021
$
97.6
$
73.5
$
171.1
Purchased Intangible AssetsDetails of intangible assets were as follows:
As of March 26, 2021
As of December 25, 2020
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
$
(53.3
)
$
66.1
$
119.4
$
(50.6
)
$
68.8
Tradename
4 - 6*
27.0
(12.5
)
14.5
27.0
(11.7
)
15.3
Intellectual property/know-how
7 - 12
13.9
(10.1
)
3.8
13.9
(9.8
)
4.1
Recipes
20
73.2
(9.5
)
63.7
73.2
(8.5
)
64.7
Standard operating procedures
20
8.6
(1.1
)
7.5
8.6
(1.0
)
7.6
Total
$
242.1
$
(86.5
)
$
155.6
$
242.1
$
(81.6
)
$
160.5
*
The Company concluded that the asset life of the UCT tradename of $9.0 million is indefinite 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 26, 2021, future estimated amortization expense is expected to be as follows:
Amortization
(In millions)
Expense
2021 (remaining in year)
$
14.7
2022
19.3
2023
14.2
2024
14.0
2025
12.3
Thereafter
72.1
Total
$
146.6

Employee Stock Plans (Tables)

Employee Stock Plans (Tables)3 Months Ended
Mar. 26, 2021
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 26,
March 27,
(In millions)
2021
2020
Cost of revenues (1)
$
0.5
$
0.4
Research and development
0.1
0.1
Sales and marketing
0.3
0.3
General and administrative
2.6
2.3
3.5
3.1
Income tax benefit
(0.8
)
(0.9
)
Stock-based compensation expense, net of tax
$
2.7
$
2.2
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 26, 2021:
(In millions)
Shares
Aggregate Fair
Unvested RSUs, PSUs and RSAs at December 25, 2020
1.7
$
54.1
Granted
0.1
Vested
-
Forfeited
(0.1
)
Unvested RSUs, PSUs and RSAs as of March 26, 2021
1.7
$
95.9
Vested and expected to vest RSUs, PSUs and RSAs as of March 26, 2021
1.7
$
95.9

Revenue Recognition (Tables)

Revenue Recognition (Tables)3 Months Ended
Mar. 26, 2021
Revenue From Contract With Customer [Abstract]
Revenue by Geographic AreaThe following table sets forth revenue by geographic area (in millions):
Three Months Ended
March 26,
March 27,
2021
2020
United States
$
172.6
$
142.6
Singapore
153.3
112.2
South Korea
26.6
20.3
Taiwan
20.2
15.2
Austria
18.7
14.5
China
16.0
9.1
Other
10.2
7.0
$
417.6
$
320.9

Leases (Tables)

Leases (Tables)3 Months Ended
Mar. 26, 2021
Leases [Abstract]
Summary of Components of Lease ExpenseThe components of lease expense were summarized as follows:
Three Months Ended
March 26,
March 27,
(Dollars in millions)
2021
2020
Operating lease cost
$
3.7
$
3.2
Short-term lease cost
0.4
0.3
Total lease cost
$
4.1
$
3.5
Operating cash flows from operating leases
$
3.7
$
4.4
Weighted-average remaining lease term – operating leases
2.4
2.3
Weighted-average discount rate – operating leases
5.5
%
5.5
%
Summary of Future Minimum Payments under Operating LeasesFuture minimum payments under operating leases as of March 26, 2021 were summarized as follows:
(In millions)
Operating Leases
2021 remaining
$
10.5
2022
12.3
2023
9.5
2024
7.1
2025
4.9
Thereafter
8.8
Total minimum lease payments
53.1
Less: imputed interest
6.8
Lease liability
$
46.3

Net Income Per Share (Tables)

Net Income Per Share (Tables)3 Months Ended
Mar. 26, 2021
Earnings Per Share [Abstract]
Basic and Diluted Net Income 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 26,
March 27,
(In millions, except share amounts)
2021
2020
Numerator:
Net income attributable to UCT
$
25.0
$
9.4
Denominator:
Shares used in computation — basic:
Weighted average common shares outstanding
40.6
39.8
Shares used in computation — diluted:
Weighted average common shares outstanding
40.6
39.8
Dilutive effect of common shares outstanding subject to repurchase
1.0
0.9
Shares used in computing diluted net income per share
41.6
40.7
Net income per share attributable to UCT — basic
$
0.62
$
0.24
Net income per share attributable to UCT — diluted
$
0.60
$
0.23

Reportable Segments (Tables)

Reportable Segments (Tables)3 Months Ended
Mar. 26, 2021
Segment Reporting [Abstract]
Summary of Segment Description and DataThe following table describes each segment:
Segment
Product or Services
Markets Served
Geographic Areas
Products
Assembly Weldments Machining Fabrication
Semiconductor
United States Asia Europe
Services
Cleaning Analytics
Semiconductor
United States Asia Europe Segment Data
Three Months Ended
March 26,
March 27,
2021
2020
Revenues:
Products
$
345.6
$
259.4
Services
72.0
61.5
Total segment revenues
$
417.6
$
320.9
Gross profit:
Products
$
62.0
$
44.7
Services
24.9
21.0
Total segment gross profit
$
86.9
$
65.7
Operating profit:
Products
$
34.2
$
20.3
Services
6.2
2.3
Consolidated income from operations
$
40.4
$
22.6
March 26,
December 25,
2021
2020
Assets
Products
$
950.0
$
868.4
Services
240.6
234.1
Total segment assets
$
1,190.6
$
1,102.5

Organization and Significant _4

Organization and Significant Accounting Policies - Additional Information (Detail)3 Months Ended12 Months Ended
Mar. 26, 2021USD ($)SegmentCustomerDec. 25, 2020Customer
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% | Customer2 3
Customer Concentration Risk [Member] | Lam Research Corporation, Applied Materials, Inc. and ASM International, Inc. [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration percentage54.00%67.30%
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. 26, 2021Mar. 27, 2020
Concentration Risk [Line Items]
Total69.20%68.00%
Lam Research Corporation [Member]
Concentration Risk [Line Items]
Total45.70%44.60%
Applied Materials, Inc. [Member]
Concentration Risk [Line Items]
Total23.50%23.40%

Business Combinations - Additio

Business Combinations - Additional Information (Detail) - Dynamic Manufacturing Solutions [Member] - USD ($) $ in MillionsApr. 15, 2019Aug. 31, 2020
Business Acquisition [Line Items]
Date of acquisitionApr. 15,
2019
Business acquisition potential cash earn-out payments $ 12.5
Earn-out payments, fair market value $ 12.5

Balance Sheet Information - Sum

Balance Sheet Information - Summary of Inventories (Detail) - USD ($) $ in MillionsMar. 26, 2021Dec. 25, 2020
Inventory Disclosure [Abstract]
Raw materials $ 107.5 $ 102.9
Work in process66.8 64.5
Finished goods14.9 13
Total $ 189.2 $ 180.4

Balance Sheet Information - Pro

Balance Sheet Information - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 26, 2021Dec. 25, 2020
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements net excluding construction in progress $ 211.3 $ 208.4
Accumulated depreciation(89.1)(84)
Construction in progress35.1 34.8
Total $ 157.3 159.2
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 $ 3.5 3.8
Buildings [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 36 37.2
Property, plant and equipment, useful life50 years
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 75.2 73.8
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 $ 49.5 46.7
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Equipment and leasehold improvements, gross $ 42.6 42.5
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 $ 4.5 $ 4.4
Property, plant and equipment, useful life5 years

Balance Sheet Information - Add

Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2020Mar. 26, 2021
Causes Of Increase Decrease In Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]
Restructuring charge $ 0.8
Facility Fire [Member] | Cinos Korea | Other Income Expense [Member]
Causes Of Increase Decrease In Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]
Insurance settlements receivable $ 7.3

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured (Details) - USD ($) $ in MillionsMar. 26, 2021Dec. 25, 2020
Forward Contracts [Member]
Other current liabilities:
Liabilities measured at fair value $ 0.7
Other assets:
Assets measured at fair value $ 1.1
Common Stock Purchase Obligation [Member]
Other current liabilities:
Liabilities measured at fair value12.6 12.6
Pension Obligation [Member]
Other current liabilities:
Liabilities measured at fair value5 4.7
Significant Other Observable Inputs (Level 2) [Member] | Forward Contracts [Member]
Other current liabilities:
Liabilities measured at fair value0.7
Other assets:
Assets measured at fair value1.1
Significant Unobservable Inputs (Level 3) [Member] | Common Stock Purchase Obligation [Member]
Other current liabilities:
Liabilities measured at fair value12.6 12.6
Significant Unobservable Inputs (Level 3) [Member] | Pension Obligation [Member]
Other current liabilities:
Liabilities measured at fair value $ 5 $ 4.7

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. 26, 2021USD ($)
EBITDA Multiple [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.055
EBITDA Multiple [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.074
Discount Rate [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.155
Discount Rate [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.200
Rate on Return [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.024
Salary Increase Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.040
Common Stock Purchase Obligation [Member]
Defined Benefit Plan Disclosure [Line Items]
Contingent consideration $ 12.6
Business Combination Contingent Consideration Liability Valuation Technique Extensible Listus-gaap:ValuationTechniqueDiscountedCashFlowMember
Common Stock Purchase Obligation [Member] | Revenue Multiple [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.013
Common Stock Purchase Obligation [Member] | Revenue Multiple [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Range/Multiple0.017
Pension Obligation [Member]
Defined Benefit Plan Disclosure [Line Items]
Contingent consideration $ 5
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]
Range/Multiple0.021

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of the Level 3 Activity - (Details) $ in Millions3 Months Ended
Mar. 26, 2021USD ($)
Pension Obligation [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Beginning balance $ 4.7
Fair value adjustments0.3
Ending balance5
Common Stock Purchase Obligation [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Beginning balance12.6
Ending balance $ 12.6

Financial Instrument- Schedule

Financial Instrument- Schedule of Derivative Instruments at Gross Fair Value (Detail) - Forward Contracts [Member] - Significant Other Observable Inputs (Level 2) [Member] - USD ($) $ in MillionsMar. 26, 2021Dec. 25, 2020
Other Current Liabilities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Derivative Liabilities $ 0.7
Other Current Liabilities [Member] | Fair Value of Derivatives Designated as Hedging Instuments [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Derivative Liabilities $ 0.7
Prepaid Expensed and other [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Derivative Assets $ 1.1
Prepaid Expensed and other [Member] | Fair Value of Derivatives Not Designated as Hedging Instuments [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Derivative Assets $ 1.1

Financial Instrument - Schedule

Financial Instrument - Schedule of The Effect of Derivative Instruments in Cash Flow Hedging Relationships on Income and Other Comprehensive Income (OCI) (Detail) $ in Millions3 Months Ended
Mar. 26, 2021USD ($)
Forward Contracts [Member] | Derivatives in Cash Flow Hedging Relationship [Member]
Defined Benefit Plan Disclosure [Line Items]
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) $ 0.7

Financial Instrument - Schedu_2

Financial Instrument - Schedule of Amount of Gain or Loss Reclassified From Accumulated OCI into Income (Detail) $ in Millions3 Months Ended
Mar. 26, 2021USD ($)
Forward Contracts [Member] | Fair Value of Derivatives Not Designated as Hedging Instuments [Member] | Other income (expense) net [Member]
Defined Benefit Plan Disclosure [Line Items]
Gains (Losses) Recognized in Income on Derivatives $ (11.6)

Financial Instrument - Addition

Financial Instrument - Additional Information (Detail) $ in MillionsMar. 26, 2021USD ($)
Foreign Exchange Contract [Member]
Defined Benefit Plan Disclosure [Line Items]
Liability related to Forward Hedge contracts $ 10.4

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Details of Goodwill (Detail) $ in Millions3 Months Ended
Mar. 26, 2021USD ($)
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. 26, 2021Dec. 25, 2020
Finite Lived Intangible Assets [Line Items]
Definite lives intangible assets, accumulated amortization $ (86.5) $ (81.6)
Definite lives intangible assets, net carrying amount146.6
Intangible Assets, gross carrying value242.1 242.1
Intangible Assets, net carrying value $ 155.6 160.5
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(53.3)(50.6)
Definite lives intangible assets, net carrying amount $ 66.1 68.8
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(12.5)(11.7)
Definite lives intangible assets, net carrying amount $ 14.5 15.3
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(10.1)(9.8)
Definite lives intangible assets, net carrying amount $ 3.8 4.1
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(9.5)(8.5)
Definite lives intangible assets, net carrying amount $ 63.7 64.7
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(1.1)(1)
Definite lives intangible assets, net carrying amount $ 7.5 $ 7.6

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Purchased Intangible Assets (Parenthetical) (Detail) $ in Millions3 Months Ended
Mar. 26, 2021USD ($)
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. 26, 2021Mar. 27, 2020
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. 26, 2021USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
2021 (remaining in year) $ 14.7
202219.3
202314.2
202414
202512.3
Thereafter72.1
Definite lives intangible assets, net carrying amount $ 146.6

Borrowing Arrangements - Additi

Borrowing Arrangements - Additional Information (Detail) € in Millions, ₩ in Billions1 Months Ended3 Months Ended
Aug. 31, 2018USD ($)Mar. 26, 2021USD ($)Mar. 26, 2021KRW (₩)Mar. 26, 2021EUR (€)
Bank Debt [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs $ 7,400,000
Outstanding amount of borrowing classified as long-term debt267,800,000
Cincos Xian Clean Technology, Ltd [Member] | China [Member] | Bank Debt [Member]
Debt Instrument [Line Items]
Outstanding amounts $ 2,400,000
Debt instrument interest rate3.10%3.10%3.10%
Minimum [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio1.25%
Maximum [Member]
Debt Instrument [Line Items]
Consolidated leverage ratio3.75%
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 $ 272,800,000
Unamortized debt issuance costs7,400,000
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] | China [Member]
Debt Instrument [Line Items]
Outstanding amount under credit facility0
Revolving Credit Facility [Member] | Czech Republic [Member] | Bank Debt [Member]
Debt Instrument [Line Items]
Initial available commitment | € € 6
Revolving Credit Facility [Member] | United States [Member] | Bank Debt [Member]
Debt Instrument [Line Items]
Remaining available commitments65,000,000
Revolving Credit Facility [Member] | Czech Republic [Member] | Bank Debt [Member]
Debt Instrument [Line Items]
Remaining available commitments1,100,000
Revolving Credit Facility [Member] | Cinos Co., Ltd [Member] | Korea [Member]
Debt Instrument [Line Items]
Initial available commitment1,400,000 ₩ 1.6
Revolving Credit Facility [Member] | Cincos Xian Clean Technology, Ltd [Member] | China [Member]
Debt Instrument [Line Items]
Initial available commitment $ 3,500,000
Maturity dateSep. 23,
2022
Revolving Credit Facility [Member] | Minimum [Member] | Cinos Co., Ltd [Member] | Korea [Member]
Debt Instrument [Line Items]
Interest rate2.50%
Revolving Credit Facility [Member] | Minimum [Member] | Cincos Xian Clean Technology, Ltd [Member] | China [Member]
Debt Instrument [Line Items]
Interest rate2.00%
Revolving Credit Facility [Member] | Maximum [Member] | Cinos Co., Ltd [Member] | Korea [Member]
Debt Instrument [Line Items]
Interest rate3.70%
Revolving Credit Facility [Member] | Maximum [Member] | Cincos Xian Clean Technology, Ltd [Member] | China [Member]
Debt Instrument [Line Items]
Interest rate4.10%
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%
Remaining available commitments $ 65,000,000
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%
Percentage of undrawn and unexpired amount of letter of credit as fronting fee0.125%
Outstanding amount under credit facility2,400,000
Remaining available commitments $ 47,600,000

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($)3 Months Ended
Mar. 26, 2021Mar. 26, 2021Mar. 27, 2020
Income Taxes [Line Items]
Income tax provision $ 7,000,000 $ 7,000,000 $ 4,500,000
Effective tax rate21.50%29.80%
Undistributed earnings of foreign subsidiaries305,000,000 $ 305,000,000
Gross liability for unrecognized tax benefits, excluding interest1,000,000 1,000,000 $ 1,000,000
Provision for income taxes $ 7,000,000 7,000,000 $ 4,500,000
CARES ACT [Member]
Income Taxes [Line Items]
Income tax provision $ 0
Percentage removal of taxable income limitation on net operating losses deduction80.00%
Taxable years for carryback of NOLs2005
Caps for limitation on the deduction for interest expense50.00%
Percentage of corporate charitable deduction limit of taxable income25.00%
Eligible for cost recovery years15 years
Percentage of bonus depreciation100.00%
Provision for income taxes $ 0

Retirement Plans - Additional I

Retirement Plans - Additional Information (Detail) - USD ($)3 Months Ended
Mar. 26, 2021Mar. 27, 2020
Compensation And Retirement Disclosure [Abstract]
Benefit obligations $ 9,700,000
Fair value of benefit plan assets6,400,000
Unfunded balance of benefit plan3,300,000
Amounts recognized in accumulated other comprehensive income500,000
Contributions to the plan by the Company and its subsidiaries17,000
Benefits expected to be paid from pension plan in 2021700,000
Benefits expected to be paid from pension plan in 20221,000,000
Benefits expected to be paid from pension plan in 20232,300,000
Benefits expected to be paid from pension plan in 20241,000,000
Benefits expected to be paid from pension plan in 20251,000,000
Aggregate benefits expected to be paid in five years from 2026-2031 $ 5,700,000
Contribution from salary25.00%
Matching contribution of participation salary50.00%
Matching contribution based upon eligibility6.00%
Discretionary employer contributions $ 600,000 $ 600,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in MillionsMar. 26, 2021USD ($)
Inventories [Member]
Long Term Purchase Commitment [Line Items]
Purchase commitments $ 297.9

Stockholders' Equity and Nonc_2

Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 26, 2021Aug. 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 $ 12.6
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. 26, 2021USD ($)$ / sharesshares
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock units | shares38,146,000
Weighted average fair value, granted | $ / shares $ 42.08
Stock-based compensation cost, net of estimated forfeitures, recognized $ 14.2
Outstanding restricted stock | shares1,600,000
Aggregate fair value $ 93.4
Weighted average remaining contractual term (in years)10 months 24 days
Restricted Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vesting period, years1 year 4 months 24 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]
Shares vesting period, years1 year 4 months 24 days
Stock-based compensation cost, net of estimated forfeitures, recognized $ 14.2
Outstanding restricted stock | shares1,600,000
Aggregate fair value $ 93.4
Weighted average remaining contractual term (in years)10 months 24 days
Restricted Stock Awards [Member] | Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding restricted stock | shares44,107
Unamortized expense of company's unvested restricted stock awards $ 0.1

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. 26, 2021Mar. 26, 2021Mar. 27, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation $ 3.5 $ 3.5 $ 3.1
Income tax benefit(0.8)(0.9)
Stock-based compensation expense, net of tax2.7 2.2
Cost of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation[1]0.5 0.4
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 $ 2.6 $ 2.3
[1]Stock-based compensation expense capitalized in inventory for the three months ended March 26, 2021 and March 27, 2020 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. 26, 2021Dec. 25, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested RSUs, PSUs and RSAs, Number of Shares, Beginning balance1,700,000
Granted, Number of Shares100,000
Forfeited, Number of Shares(100,000)
Unvested RSUs, PSUs and RSAs, Number of Shares, Ending balance1,700,000
Vested and expected to vest RSUs, PSUs and RSAs,Numbers of Shares1,700,000
Unvested RSUs, PSUs and RSAs, Aggregate Intrinsic Value $ 95.9 $ 54.1
Vested and expected to vest RSUs, PSUs and RSAs, Aggregate Intrinsic Value $ 95.9

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 26, 2021Dec. 25, 2020
Accounts Receivable [Member]
Concentration Risk [Line Items]
Unpaid customer rebates $ 3.4 $ 3.4
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. 26, 2021Mar. 27, 2020
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues $ 417.6 $ 320.9
United States [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues172.6 142.6
Singapore [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues153.3 112.2
South Korea [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues26.6 20.3
Taiwan [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues20.2 15.2
Austria [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues18.7 14.5
China [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues16 9.1
Other [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues $ 10.2 $ 7

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 26, 2021Mar. 27, 2020
Leases [Abstract]
Operating lease cost $ 3.7 $ 3.2
Short-term lease cost0.4 0.3
Total lease cost4.1 3.5
Operating cash flows from operating leases $ 3.7 $ 4.4
Weighted-average remaining lease term – operating leases2 years 4 months 24 days2 years 3 months 18 days
Weighted-average discount rate – operating leases5.50%5.50%

Leases - Summary of Future Mini

Leases - Summary of Future Minimum Payments under Operating Leases (Detail) $ in MillionsMar. 26, 2021USD ($)
Leases [Abstract]
Operating Leases, 2021 (remaining in year) $ 10.5
Operating Leases, 202212.3
Operating Leases, 20239.5
Operating Leases, 20247.1
Operating Leases, 20254.9
Operating Leases, Thereafter8.8
Operating Leases, Total minimum lease payments53.1
Operating Leases, Less: imputed interest6.8
Operating Leases, Lease liability $ 46.3

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Millions12 Months Ended
Dec. 25, 2020Mar. 26, 2021
Lessee Lease Description [Line Items]
Total minimum lease payments $ 53.1
Two New Lease Arrangement [Member]
Lessee Lease Description [Line Items]
Lease commencement year2021
Total minimum lease payments $ 22.1

Net Income Per Share - Basic an

Net Income Per Share - Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended
Mar. 26, 2021Mar. 27, 2020
Numerator:
Net income attributable to UCT $ 25 $ 9.4
Shares used in computation — basic:
Weighted average common shares outstanding40.6 39.8
Shares used in computation — diluted:
Weighted average common shares outstanding40.6 39.8
Dilutive effect of common shares outstanding subject to repurchase1 0.9
Shares used in computing diluted net income per share41.6 40.7
Net income per share attributable to UCT — basic $ 0.62 $ 0.24
Net income per share attributable to UCT — diluted $ 0.60 $ 0.23

Reportable Segments - Additiona

Reportable Segments - Additional Information (Detail) $ in Millions3 Months Ended
Mar. 26, 2021USD ($)SegmentDec. 25, 2020USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment2
Asia [Member]
Segment Reporting Information [Line Items]
Net long-lived assets $ 88.4 $ 90.4
Europe [Member]
Segment Reporting Information [Line Items]
Net long-lived assets $ 9.6 $ 9.4

Reportable Segments - Summary o

Reportable Segments - Summary of Segment Description (Detail)3 Months Ended
Mar. 26, 2021
Product [Member]
Segment Reporting Information [Line Items]
Product or ServicesAssembly
Weldments
Machining
Fabrication
Markets ServedSemiconductor
Geographic AreasUnited States
Asia
Europe
Services [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. 26, 2021Mar. 27, 2020Dec. 25, 2020
Revenues:
Total segment revenues $ 417.6 $ 320.9
Gross profit:
Total segment gross profit86.9 65.7
Operating profit:
Consolidated income from operations40.4 22.6
ASSETS
Total segment assets1,190.6 $ 1,102.5
Product [Member]
Revenues:
Total segment revenues345.6 259.4
Gross profit:
Total segment gross profit62 44.7
Operating profit:
Consolidated income from operations34.2 20.3
ASSETS
Total segment assets950 868.4
Services [Member]
Revenues:
Total segment revenues72 61.5
Gross profit:
Total segment gross profit24.9 21
Operating profit:
Consolidated income from operations6.2 $ 2.3
ASSETS
Total segment assets $ 240.6 $ 234.1

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ in MillionsApr. 13, 2021Mar. 31, 2021Apr. 29, 2021Mar. 26, 2021Dec. 25, 2020
Subsequent Event [Line Items]
Common stock, shares authorized90,000,000 90,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock, shares authorized477,272
Sale of stock, consideration received on transaction $ 25.2
Subsequent Event [Member] | Underwritten Public Offering [Member]
Subsequent Event [Line Items]
Stock issued during period, shares, new issues3,181,818
Proceeds from issuance of common stock $ 167.6
Ham-Let (Israel Canada) Ltd [Member]
Subsequent Event [Line Items]
Cash $ 351
Ham-Let (Israel Canada) Ltd [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Cash borrowed for acquisition and refinancing273
Ham-Let (Israel Canada) Ltd [Member] | Senior Secured Term Loan B Facility | Subsequent Event [Member]
Subsequent Event [Line Items]
Cash borrowed for acquisition and refinancing $ 355
Ham-Let (Israel Canada) Ltd [Member] | Incremental Term Loan Agreement [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Term loan, maturity dateAug. 27,
2025
Percentage of original outstanding principal balance as quarterly principal payment0.625%
Debt instrument, frequency of periodic paymentThe Incremental 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 July 2021, with the remaining principal balance 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 3.75% (subject to certain adjustments quarterly based upon the Company’s consolidated leverage ratio).
Ham-Let (Israel Canada) Ltd [Member] | Incremental Term Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt instrument variable interest rate3.75%