Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 29, 2019 | Jul. 26, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | COHU INC | |
Entity Central Index Key | 0000021535 | |
Trading Symbol | cohu | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 41,095,618 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 29, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 143,014 | $ 164,460 | [1] |
Short-term investments | 581 | 560 | [1] |
Accounts receivable, net | 134,435 | 149,276 | [1] |
Inventories | 137,229 | 139,314 | [1] |
Prepaid expenses | 22,304 | 26,206 | [1] |
Other current assets | 1,144 | 1,682 | [1] |
Current assets of discontinued operations (Note 10) | 4,100 | 3,741 | [1] |
Total current assets | 442,807 | 485,239 | [1] |
Property, plant and equipment, net | 71,776 | 74,332 | [1] |
Goodwill | 241,466 | 242,127 | [1] |
Intangible assets, net | 297,211 | 318,961 | [1] |
Other assets | 14,955 | 13,264 | [1] |
Operating lease right of use assets | 35,224 | [1] | |
Noncurrent assets of discontinued operations (Note 10) | 65 | 79 | [1] |
1,103,504 | 1,134,002 | [1] | |
Current liabilities: | |||
Short-term borrowings | 3,244 | 3,115 | [1] |
Current installments of long-term debt | 3,243 | 3,672 | [1] |
Accounts payable | 54,453 | 48,117 | [1] |
Accrued compensation and benefits | 24,820 | 29,402 | [1] |
Accrued warranty | 6,616 | 7,769 | [1] |
Deferred profit | 8,163 | 6,896 | |
Income taxes payable | 6,036 | 11,055 | [1] |
Other accrued liabilities | 39,732 | 50,045 | [1] |
Current liabilities of discontinued operations (Note 10) | 624 | 518 | [1] |
Total current liabilities | 146,931 | 160,589 | [1] |
Accrued retirement benefits | 20,296 | 19,740 | [1] |
Noncurrent deferred gain on sale of facility | 8,776 | [1] | |
Deferred income taxes | 31,691 | 38,942 | [1] |
Noncurrent income tax liabilities | 9,591 | 9,711 | [1] |
Long-term debt | 341,978 | 346,041 | [1] |
Other accrued liabilities | 5,795 | 4,259 | [1] |
Long-term lease liabilities | 32,773 | [1] | |
Stockholders' equity: | |||
Preferred stock, $1 par value; 1,000 shares authorized, none issued | [1] | ||
Common stock, $1 par value; 60,000 shares authorized, 41,100 shares issued and outstanding in 2019 and 40,763 shares in 2018 | 41,100 | 40,763 | [1] |
Paid-in capital | 425,609 | 419,690 | [1] |
Retained earnings | 75,115 | 111,670 | [1] |
Accumulated other comprehensive loss | (27,019) | (25,880) | |
Total Cohu stockholders' equity | 514,805 | 546,243 | [1] |
Noncontrolling interest | (356) | (299) | [1] |
Total equity | 514,449 | 545,944 | [1] |
$ 1,103,504 | $ 1,134,002 | [1] | |
[1] | Derived from December 29, 2018 audited financial statements |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | [1] |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 60,000 | 60,000 | |
Common stock, shares issued (in shares) | 41,100 | 40,763 | |
Common stock, shares outstanding (in shares) | 41,100 | 40,763 | |
[1] | Derived from December 29, 2018 audited financial statements |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Net sales | [1] | $ 150,011 | $ 99,817 | $ 297,820 | $ 194,967 |
Cost and expenses: | |||||
Cost of sales (1) | [2] | 87,605 | 57,677 | 180,999 | 112,600 |
Research and development | 22,108 | 11,051 | 44,841 | 22,826 | |
Selling, general and administrative | 36,428 | 19,303 | 74,714 | 35,089 | |
Amortization of purchased intangible assets | 9,987 | 1,019 | 20,006 | 2,093 | |
Restructuring charges | 8,545 | 9,906 | |||
164,673 | 89,050 | 330,466 | 172,608 | ||
Income (loss) from operations | (14,662) | 10,767 | (32,646) | 22,359 | |
Other (expense) income: | |||||
Interest expense | (5,282) | (11) | (10,789) | (22) | |
Interest income | 191 | 329 | 413 | 576 | |
Foreign transaction gain (loss) and other | (546) | 3,031 | (328) | 1,452 | |
Income (loss) from continuing operations before taxes | (20,299) | 14,116 | (43,350) | 24,365 | |
Income tax provision (benefit) | (916) | 2,468 | (1,116) | 4,595 | |
Income (loss) from continuing operations | (19,383) | 11,648 | (42,234) | 19,770 | |
Income from discontinued operations, net of tax | 24 | 188 | |||
Net income (loss) | (19,359) | 11,648 | (42,046) | 19,770 | |
Net loss attributable to noncontrolling interest | (36) | (80) | |||
Net income (loss) attributable to Cohu | $ (19,323) | $ 11,648 | $ (41,966) | $ 19,770 | |
Weighted average shares used in computing income (loss) per share: | |||||
Basic (in shares) | 41,125 | 28,893 | 40,999 | 28,747 | |
Diluted (in shares) | 41,125 | 29,651 | 40,999 | 29,591 | |
Cash dividends declared per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 | |
Basic: | |||||
Income (loss) from continuing operations before noncontrolling interest (in dollars per share) | (0.47) | 0.40 | (1.03) | 0.69 | |
Income from discontinued operations (in dollars per share) | 0 | 0.01 | |||
Net loss attributable to noncontrolling interest (in dollars per share) | 0 | 0 | |||
Net income (loss) attributable to Cohu (in dollars per share) | (0.47) | 0.40 | (1.02) | 0.69 | |
Diluted: | |||||
Income (loss) from continuing operations before noncontrolling interest (in dollars per share) | (0.47) | 0.39 | (1.03) | 0.67 | |
Income from discontinued operations (in dollars per share) | 0 | 0.01 | |||
Net loss attributable to noncontrolling interest (in dollars per share) | 0 | 0 | |||
Net income (loss) attributable to Cohu (in dollars per share) | $ (0.47) | $ 0.39 | $ (1.02) | $ 0.67 | |
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | ||||
[2] | Excludes amortization of $7,625 and $639 for the three months ended June 29, 2019, and June 30, 2018, respectively, and $15,266 and $1,315 for the six months ended June 29, 2019, and June 30, 2018, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Net income (loss) | $ (19,359) | $ 11,648 | $ (42,046) | $ 19,770 |
Net loss attributable to noncontrolling interest | (36) | (80) | ||
Net income (loss) attributable to Cohu | (19,323) | 11,648 | (41,966) | 19,770 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 3,684 | (6,814) | (1,578) | (2,960) |
Adjustments related to postretirement benefits | (39) | 114 | 435 | 41 |
Change in unrealized gain/loss on investments | 8 | (2) | ||
Other comprehensive income (loss), net of tax | 3,645 | (6,692) | (1,143) | (2,921) |
Other comprehensive loss attributable to noncontrolling interest | (4) | |||
Other comprehensive income (loss) attributable to Cohu | 3,645 | (6,692) | (1,139) | (2,921) |
Comprehensive income (loss) | (15,714) | 4,956 | (43,189) | 16,849 |
Comprehensive loss attributable to noncontrolling interest | (36) | (84) | ||
Comprehensive income (loss) attributable to Cohu | $ (15,678) | $ 4,956 | $ (43,105) | $ 16,849 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | ||
Balance at Dec. 30, 2017 | $ 28,489 | $ 127,663 | $ 150,726 | $ (17,787) | $ 289,091 | |||
Net income (loss) | 19,770 | 19,770 | ||||||
Changes in cumulative translation adjustment | (2,960) | (2,960) | ||||||
Adjustments related to postretirement benefits, net of tax | 41 | 41 | ||||||
Cash dividends | (3,513) | (3,513) | ||||||
Exercise of stock options | 50 | 464 | 514 | |||||
Shares issued under ESPP | 41 | 721 | 762 | |||||
Shares issued for restricted stock units vested | 468 | (468) | ||||||
Repurchase and retirement of stock | (165) | (3,749) | (3,914) | |||||
Share-based compensation expense | 3,617 | 3,617 | ||||||
Cumulative effect of accounting change at Dec. 30, 2017 | [1] | 1,057 | 1,057 | |||||
Changes in unrealized gains and losses on investments, net of tax | (2) | (2) | ||||||
Balance at Jun. 30, 2018 | 28,883 | 128,248 | 168,040 | (20,708) | 304,463 | |||
Balance at Mar. 31, 2018 | 28,796 | 125,448 | 158,124 | (14,016) | 298,352 | |||
Net income (loss) | 11,648 | 11,648 | ||||||
Changes in cumulative translation adjustment | (6,814) | (6,814) | ||||||
Adjustments related to postretirement benefits, net of tax | 114 | 114 | ||||||
Cash dividends | (1,732) | (1,732) | ||||||
Exercise of stock options | 31 | 280 | 311 | |||||
Shares issued under ESPP | 41 | 721 | 762 | |||||
Shares issued for restricted stock units vested | 20 | (20) | ||||||
Repurchase and retirement of stock | (5) | (129) | (134) | |||||
Share-based compensation expense | 1,948 | 1,948 | ||||||
Changes in unrealized gains and losses on investments, net of tax | 8 | 8 | ||||||
Balance at Jun. 30, 2018 | 28,883 | 128,248 | 168,040 | (20,708) | 304,463 | |||
Balance at Dec. 29, 2018 | 40,763 | 419,690 | 111,670 | (25,880) | (299) | 545,944 | [2] | |
Net income (loss) | (42,046) | (42,046) | ||||||
Changes in cumulative translation adjustment | (1,574) | (4) | (1,578) | |||||
Adjustments related to postretirement benefits, net of tax | 435 | 435 | ||||||
Cash dividends | (4,914) | (4,914) | ||||||
Exercise of stock options | 15 | 107 | 122 | |||||
Shares issued under ESPP | 64 | 743 | 807 | |||||
Shares issued for restricted stock units vested | 394 | (394) | ||||||
Repurchase and retirement of stock | (136) | (1,892) | (2,028) | |||||
Share-based compensation expense | 7,355 | 7,355 | ||||||
Cumulative effect of accounting change at Dec. 29, 2018 | [1] | 10,352 | 10,352 | |||||
Noncontrolling interest | 53 | (53) | ||||||
Changes in unrealized gains and losses on investments, net of tax | ||||||||
Balance at Jun. 29, 2019 | 41,100 | 425,609 | 75,115 | (27,019) | (356) | 514,449 | ||
Balance at Mar. 30, 2019 | 41,015 | 421,381 | 96,938 | (30,664) | (356) | 528,314 | ||
Net income (loss) | (19,359) | (19,359) | ||||||
Changes in cumulative translation adjustment | 3,684 | 3,684 | ||||||
Adjustments related to postretirement benefits, net of tax | (39) | (39) | ||||||
Cash dividends | (2,464) | (2,464) | ||||||
Exercise of stock options | 5 | 39 | 44 | |||||
Shares issued under ESPP | 64 | 743 | 807 | |||||
Shares issued for restricted stock units vested | 29 | (29) | ||||||
Repurchase and retirement of stock | (13) | (187) | (200) | |||||
Share-based compensation expense | 3,662 | 3,662 | ||||||
Changes in unrealized gains and losses on investments, net of tax | ||||||||
Balance at Jun. 29, 2019 | $ 41,100 | $ 425,609 | $ 75,115 | $ (27,019) | $ (356) | $ 514,449 | ||
[1] | Cumulative effect of accounting change relates to our adoption of ASU 2014-09. | |||||||
[2] | Derived from December 29, 2018 audited financial statements |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Retained Earnings [Member] | ||||
Cash dividend, per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Cash dividend, per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) attributable to Cohu | $ (41,966,000) | $ 19,770,000 |
Net loss attributable to noncontrolling interest | (80,000) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Loss on disposal of assets | 237,000 | 40,000 |
Depreciation and amortization | 30,143,000 | 4,874,000 |
Share-based compensation expense | 7,355,000 | 3,617,000 |
Amortization of inventory step-up and inventory related charges | 5,245,000 | |
Deferred income taxes | (7,460,000) | 486,000 |
Increase in accrued retiree medical benefits | 443,000 | |
Changes in other accrued liabilities | 2,693,000 | (294,000) |
Changes in other assets | (971,000) | (322,000) |
Amortization of debt discounts and issuance costs | 546,000 | 0 |
Adjustment to contingent consideration liability | 428,000 | |
Changes in current assets and liabilities, excluding effects from acquisitions: | ||
Accounts receivable | 14,746,000 | (21,289,000) |
Other current assets | (8,609,000) | (2,432,000) |
Inventories | (2,499,000) | (1,396,000) |
Deferred profit | 1,266,000 | (3,653,000) |
Accounts payable | 4,019,000 | 3,853,000 |
Income taxes payable | (4,097,000) | 1,728,000 |
Accrued compensation, warranty and other liabilities | (5,784,000) | 505,000 |
Net cash provided by (used in) operating activities | (4,773,000) | 5,915,000 |
Cash flows from investing activities, excluding effects from acquisitions: | ||
Purchases of property, plant and equipment | (8,397,000) | (1,860,000) |
Purchases of short-term investments | (27,374,000) | |
Sales and maturities of short-term investments | 24,838,000 | |
Cash received from sale of fixed assets | 811,000 | 4,000 |
Net cash used in investing activities | (7,586,000) | (4,392,000) |
Cash flows from financing activities: | ||
Cash dividends paid | (4,893,000) | (3,484,000) |
Repurchases of common stock, net | (1,099,000) | (2,638,000) |
Payment of contingent consideration for Kita | (823,000) | |
Repayments of long-term debt | (2,611,000) | (686,000) |
Net cash used in financing activities | (8,603,000) | (7,631,000) |
Effect of exchange rate changes on cash and cash equivalents | (195,000) | (1,170,000) |
Net decrease in cash and cash equivalents | (21,157,000) | (7,278,000) |
Cash and cash equivalents including discontinued operations at beginning of period | 164,921,000 | 134,286,000 |
Cash and cash equivalents including discontinued operations at end of period | 143,764,000 | 127,008,000 |
Cash held by discontinued operations at end of period (Note 10) | (750,000) | |
Cash and cash equivalents from continuing operations at end of the period | 143,014,000 | 127,008,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 10,088,000 | |
Cash paid for income taxes | 10,690,000 | 2,608,000 |
Inventory capitalized as property, plant and equipment | 195,000 | 149,000 |
Dividends declared but not yet paid | 2,466,000 | 1,733,000 |
Property, plant and equipment purchases included in accounts payable | 938,000 | 166,000 |
Capitalized cloud computing service costs included in accounts payable | $ 1,477,000 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting Policies Basis of Presentation Our fiscal years are based on a 52 - or 53 -week period ending on the last Saturday in December. The condensed consolidated balance sheet at December 29, 2018, has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of June 29, 2019, ( also referred to as “the second quarter of fiscal 2019” and “the first six months of fiscal 2019” ) and June 30, 2018, ( also referred to as “the second quarter of fiscal 2018” and “the first six months of fiscal 2018” ) are unaudited. However, in management’s opinion, these financial statements reflect all adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. The three - and six -month periods ended June 29, 2019, were comprised of 13 and 26 weeks, respectively. The three - and six -month periods ended June 30, 2018, were comprised of 13 and 26 weeks, respectively. Our interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended December 29, 2018, which are included in our 2018 Annual Report on Form 10 -K, filed with the U. S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”. The condensed consolidated financial statements include the accounts of Cohu and a variable interest entity (“VIE”) that was acquired as part of our acquisition of Xcerra Corporation (“Xcerra”) and in which we have determined we are the primary beneficiary. The non-controlling interest in ALBS Solutions Sdn Bhd (“ALBS”) represents the 80% equity interest that is not held by Cohu. ALBS is a privately held corporation which provides high-tech semiconductor automation systems to different industrial users. All significant consolidated transactions and balances have been eliminated in consolidation. Principles of Consolidation for Variable Interest Entities We follow ASC Topic 810 - 10 - 15 guidance with respect to accounting for VIEs. These entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support from other parties or whose equity investors lack any of the characteristics of a controlling financial interest. A variable interest is an investment or other interest that will absorb portions of a VIE’s expected losses or receive portions of its expected residual returns and are contractual, ownership, or pecuniary in nature and that change with changes in the fair value of the entity’s net assets. A reporting entity is the primary beneficiary of a VIE and must consolidate it when that party has a variable interest, or combination of variable interests, that provides it with a controlling financial interest. A party is deemed to have a controlling financial interest if it meets both of the power and losses/benefits criteria. The power criterion is the ability to direct the activities of the VIE that most significantly impact its economic performance. The losses/benefits criterion is the obligation to absorb losses from, or right to receive benefits from, the VIE that could potentially be significant to the VIE. The VIE model requires an ongoing reconsideration of whether a reporting entity is the primary beneficiary of a VIE due to changes in facts and circumstances. As of June 29, 2019 and December 29, 2018, we consolidated one VIE. Cohu is the primary beneficiary of ALBS which qualifies as a VIE that meets the definition of a business. As such, the assets, liabilities, and noncontrolling interest of ALBS were measured at fair value upon acquisition in accordance with ASC 805, Business Combinations ("ASC 805" ). The assets and liabilities and revenues and expenses of this VIE are included in our condensed consolidated financial statements. As of June 29, 2019 and December 29, 2018, the assets and liabilities of ALBS set are immaterial to Cohu and, therefore, not shown separately on our condensed consolidated balance sheets. The third -party equity interest of ALBS is referred to as noncontrolling interest. The portion of net income (loss) attributable to the noncontrolling interest of ALBS is presented as net income (loss) allocated to noncontrolling interests in the condensed consolidated statements of operations and comprehensive loss, and the portion of stockholders' equity of ALBS is presented as noncontrolling interest in the condensed consolidated statements of stockholders' equity. Reclassifications In conjunction with the acquisition of Xcerra, we assessed the need to realign its financial statement presentation and certain income statement classifications were adjusted with prior periods reclassified to conform with current period presentation. The changes made were as follows: ● Amortization of intangibles previously were presented in cost of sales and SG&A. These amounts are now presented as a separate line item “Amortization of purchased intangibles” within operating expenses. ● Gains and losses associated with foreign currency translation and remeasurement were included within SG&A. These amounts are now presented as “Foreign transaction gain (loss) and other”. A summary of the reclassifications described above and the impact on our condensed consolidated statements of operations is as follows: Three Months Ended June 30, 2018 As Presented Amortization of Purchased Intangibles Foreign Transaction Gains and Losses As Adjusted Cost of sales $ 58,316 (639 ) - $ 57,677 SG&A expense $ 16,652 (380 ) 3,031 $ 19,303 Six Months Ended June 30, 2018 As Presented Amortization of Purchased Intangibles Foreign Transaction Gains and Losses As Adjusted Cost of sales $ 113,915 (1,315 ) - $ 112,600 SG&A expense $ 34,415 (778 ) 1,452 $ 35,089 Concentration of Credit Risk Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one issuer. Trade accounts receivable are presented net of allowance for doubtful accounts of $0.3 million at both June 29, 2019 and December 29, 2018. Our customers include semiconductor manufacturers and semiconductor test subcontractors throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at June 29, 2019, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding collectability. Inventories Inventories are stated at the lower of cost, determined on a first -in, first -out basis, or net realizable value. Cost includes labor, material and overhead costs. Determining net realizable value of inventories involves numerous estimates and judgments including projecting average selling prices and sales volumes for future periods and costs to complete and dispose of inventory. As a result of these analyses, we record a charge to cost of sales in advance of the period when the inventory is sold when estimated net realizable values are below our costs. Inventories by category were as follows ( in thousands ): June 29, December 29, 2019 2018 Raw materials and purchased parts $ 68,125 $ 60,112 Work in process 52,769 57,953 Finished goods 16,335 21,249 Total inventories $ 137,229 $ 139,314 Property, Plant and Equipment Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of thirty to forty years for buildings, five to fifteen years for building improvements and three to ten years for machinery, equipment and software. Land is not depreciated. Property, plant and equipment, at cost, consisted of the following (in thousands) : June 29, December 29, 2019 2018 Land and land improvements $ 12,182 $ 11,905 Buildings and building improvements 39,243 37,265 Machinery and equipment 65,370 64,791 116,795 113,961 Less accumulated depreciation and amortization (45,019 ) (39,629 ) Property, plant and equipment, net $ 71,776 $ 74,332 Segment Information We applied the provisions of ASC Topic 280, Segment Reporting , (“ASC 280” ), which sets forth a management approach to segment reporting and establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker and for which discrete financial information is available. Subsequent to the acquisition of Xcerra on October 1, 2018, we have determined that our four identified operating segments are: Test Handler Group (THG), Semiconductor Tester Group (STG), Interface Solutions Group (ISG) and PCB Test Group (PTG). Our THG, STG and ISG operating segments qualify for aggregation under ASC 280 due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in two segments, Semiconductor Test and Inspection Equipment (“Semiconductor Test & Inspection”) and PCB Test Equipment (“PCB Test”). Goodwill, Other Intangible Assets and Long-lived Assets We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimated the fair values of our reporting units primarily using the income approach valuation methodology that includes the discounted cash flow method, taking into consideration the market approach and certain market multiples as a validation of the values derived using the discounted cash flow methodology. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on customer forecasts, industry trade organization data and general economic conditions. We conduct our annual impairment test as of October 1st of each year, and have determined there was no impairment as of October 1, 2018 as we determined that the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. As of June 29, 2019, we do not believe that circumstances have occurred that indicate impairment of our goodwill is more-likely-than- not. In the event we determine that an interim goodwill impairment review is required in a future period, the review may result in an impairment charge, which would have a negative impact on our results of operations. We evaluate our indefinite-lived intangible assets associated with in-process research and development by comparing the fair value of each project with its carrying value. Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value. Product Warranty Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 12 - to 36 -months. Parts and labor are typically covered under the terms of the warranty agreement. Our warranty expense accruals are based on historical and estimated costs by product and configuration. From time-to-time we offer customers extended warranties beyond the standard warranty period. In those situations the revenue relating to the extended warranty is deferred at its estimated relative standalone selling price and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred. Restructuring Costs We record restructuring activities including costs for one -time termination benefits in accordance with ASC Topic 420 (“ASC 420” ), Exit or Disposal Cost Obligations. The timing of recognition for severance costs accounted for under ASC 420 depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefits covered by existing benefit arrangements are recorded in accordance with ASC Topic 712, Nonretirement Postemployment Benefits. These costs are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable. Debt Issuance Costs We capitalize costs related to the issuance of debt. Debt issuance costs directly related to our Term Loam B are presented as a reduction of current installments of long-term debt and long-term debt in our consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 million and $0.5 million for the three and six months ended June 29, 2019. We obtained the Term B Loan on October 1, 2018, so there were no debt issuance costs amortized during the three and six months ended June 30, 2018. Foreign Remeasurement and Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During the three and six months ended June 29, 2019, we recognized foreign exchange losses of $0.5 million and $0.3 million, respectively, in our condensed consolidated statements of operations. During the three and six months ended June 30, 2018, we recognized foreign exchange gains of $3.0 million and $1.5 million in our condensed consolidated statements of operations, respectively. Certain of our foreign subsidiaries have designated the local currency as their functional currency and, as a result, their assets and liabilities are translated at the rate of exchange at the balance sheet date, while revenue and expenses are translated using the average exchange rate for the period. Cumulative translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity. Share-Based Compensation We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results. Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands) : Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Cost of sales $ 208 $ 162 $ 333 $ 283 Research and development 776 395 1,414 744 Selling, general and administrative 2,678 1,391 5,608 2,590 Total share-based compensation 3,662 1,948 7,355 3,617 Income tax benefit (79 ) (126 ) (359 ) (440 ) Total share-based compensation, net $ 3,583 $ 1,822 $ 6,996 $ 3,177 Income (Loss) Per Share Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock and performance stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three and six months ended June 29, 2019, stock options and awards to issue approximately 610,000 and 502,000 shares of common stock were excluded from the computation, respectively. For the three and six months ended June 30, 2018, stock options and awards to issue approximately 3,000 and 19,000 shares of common stock were excluded from the computation, respectively. The following table reconciles the denominators used in computing basic and diluted income (loss) per share ( in thousands) : Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Weighted average common shares 41,125 28,893 40,999 28,747 Effect of dilutive securities - 758 - 844 41,125 29,651 40,999 29,591 Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Leases We adopted ASU 2016 - 02, Leases (Topic 842 ) , as of December 30, 2018. We determine if a contract contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other accrued liabilities, and long-term lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and long-term lease liabilities on our consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rates for the remaining lease terms based on the information available at the adoption date or commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may include renewal options to extend the lease when it is reasonably certain that we will exercise those options. In addition, we include purchase option amounts in our calculations when it is reasonably certain that we will exercise those options. Rent expense for minimum payments under operating leases is recognized on a straight-line basis over the term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, but recognized in the consolidated statements of operations on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component and include both in our calculation of the ROU assets and liabilities. We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities. None of our subleases contain extension options. Variable lease payments in our subleases include tax payments that are based on prevailing rates. We account for lease and non-lease components as a single lease component. Revenue Recognition Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not transferred until destination or acceptance, we defer revenue recognition until such events occur. Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not determinable and in the case of new products, revenue and cost of sales are deferred until customer acceptance has been received. Our post-shipment obligations typically include installation and standard warranties. The estimated fair value of installation related revenue is recognized in the period the installation is performed. Service revenue is recognized over time as we transfer control to our customer for the related contract or upon completion of the services if they are short-term in nature. Spares, contactor and kit revenue is generally recognized upon shipment. Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations may occur at different points in time or over different periods of time. For arrangements containing multiple performance obligations, the revenue relating to the undelivered performance obligation is deferred using the relative standalone selling price method utilizing estimated sales prices until satisfaction of the deferred performance obligation. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At June 29, 2019, we have $13.5 million of revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) for contracts with original expected durations of over one year. As allowed under ASC 606, we have opted to not disclose unsatisfied performance obligations for contracts with original expected durations of less than one year. We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees (ASC 460 ), and not as a separate performance obligation. The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to customers that are known as of the end of the reporting period. Variable consideration includes sales in which the amount of consideration that we will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to certain customers with cumulative tier volume discounts offered. Variable consideration arrangements are rare; however, when they occur, we estimate variable consideration as the expected value to which we expect to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration that does not meet revenue recognition criteria is deferred. Our contracts are typically less than one year in duration and we have elected to use the practical expedient available in ASC 606 to expense cost to obtain contracts as they are incurred because they would be amortized over less than one year. Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not exceed one year from the invoice date and therefore do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the condensed consolidated balance sheet in any of the periods presented. On shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our condensed consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. At June 29, 2019, we had deferred revenue totaling approximately $16.7 million, current deferred profit of $8.2 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $4.3 million. At December 29, 2018, we had deferred revenue totaling approximately $10.8 million, current deferred profit of $6.9 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $2.0 million. Net sales of our reportable segments, by type, are as follows (in thousands): Three Months Ended Six Months Ended Net Sales (1) June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Systems: Semiconductor Test & Inspection $ 76,155 $ 55,663 $ 156,095 $ 110,568 PCB Test 8,407 N/A 15,379 N/A Non-systems: Semiconductor Test & Inspection 61,424 44,154 118,177 84,399 PCB Test 4,025 N/A 8,169 N/A Total net sales $ 150,011 $ 99,817 $ 297,820 $ 194,967 ( 1 ) After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu’s historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. Revenue by geographic area based upon product shipment destination ( in thousands ): Three Months Ended Six Months Ended Net Sales June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 China $ 32,738 $ 19,140 $ 56,289 $ 39,383 United States 19,408 15,662 36,509 30,140 Malaysia 16,993 13,048 34,707 24,857 Taiwan 17,202 2,905 32,172 5,846 Philippines 11,395 9,916 25,936 20,462 Rest of the World 52,275 39,146 112,207 74,279 Total net sales $ 150,011 $ 99,817 $ 297,820 $ 194,967 A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Semiconductor Test & Inspection (1) Customers individually accounting for more than 10% of net sales one one one one Percentage of net sales 12 % 11 % 12 % 11 % PCB Test Customers individually accounting for more than 10% of net sales * N/A * N/A Percentage of net sales * N/A * N/A * No single customer represented more than 10% of consolidated net sales. ( 1 ) After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu’s historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. Accumulated Other Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $27.0 million and $25.9 million at June 29, 2019 and December 29, 2018, respectively, and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain of our subsidiary accounts where the functional currency is not the U.S. Dollar and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss during the first six months of fiscal 2019 and 2018 were not significant. Retiree Medical Benefits We provide post-retirement health benefits to certain retired executives, one director (who is a former executive) and their eligible dependents under a noncontributory plan. These benefits are no longer offered to any other retired Cohu employees. The net periodic benefit cost incurred during the first six months of fiscal 2019 and 2018 was not significant. Discontinued Operations Management has determined that the fixtures services business, that was acquired as part of Xcerra, does not align with Cohu’s long-term strategic plan and management is in the process of divesting this portion of the business. As a result, the assets of our fixtures business are considered “held for sale” and the operations of our fixtures business are considered “discontinued operations” as of December 29, 2018. See Note 10, “Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements We adopted ASU 2016 - 02, Leases (Topic 842 ) , as of December 30, 2018, using the optional transition method which allowed us to record existing leases at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward the historical lease classification. We made an accounting policy election to not record ROU assets and lease liabilities for leases with an initial term of 12 months or less. We recognized those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We also made an accounting policy election to use the practical expedient allowed in the standard to not separate lease and non-lease components when calculating the ROU asset and lease liability. Related to adoption of the new standard, we have implemented internal controls and a lease accounting technology system to track the ROU asset and lease liability balances and prepare the related footnote disclosures. Adoption of the new standard resulted in the recording of add |
Note 2 - Business Acquisitions,
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Business Acquisitions, Goodwill and Purchased Intangible Assets Xcerra Pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated as of May 7, 2018, October 1, 2018 ( $794.4 Cohu financed the Merger, including all related fees and expenses, with the following: ● $160.5 ● The incurrence of $350.0 ● The issuance of 11,776,149 ● The issuance of 529,995 $0.8 On October 1, 2018, may $350.0 0.25% may not October 1, 2025. 3.00%. may Immediately prior to the Effective Time, each Xcerra RSU that was vested was cancelled and the holder received cash and share consideration for the outstanding shares. Each unvested RSU held by employees of Xcerra were assumed by Cohu and converted into an RSU representing the number of whole shares of Cohu common stock based on a conversion formula resulting in the number of assumed RSUs described above. The acquisition method of accounting is based on ASC 805, 820, Fair Value Measurement 820” may may one 1 2 The acquisition was nontaxable to Cohu and certain of the assets acquired, including goodwill and intangibles, will not ASC 805 805 $25.10 September 28, 2018, ASC 820 820 may not not Under ASC 805, not $0.4 $4.1 first six June 29, 2019 June 30, 2018, The table below summarizes the preliminary assets acquired and liabilities assumed as of October 1, 2018 ( in thousands Current assets, including cash received $ 375,990 Property, plant and equipment 40,729 Other assets * 1,051 Intangible assets 321,160 Goodwill * 179,961 Total assets acquired 918,891 Liabilities assumed * (124,461 ) Net assets acquired $ 794,430 * Includes a measurement period adjustment recorded during the three June 29, 2019, $1.1 $0.4 $0.7 We recorded a $19.6 The preliminary allocation of the intangible assets subject to amortization is as follows (in thousands) Estimated Fair Value Weighted Average Useful Life (years) Developed technology $ 194,600 7.8 Customer relationships 65,890 10.6 In-process technology 36,360 indefinite Product backlog 6,410 0.8 Trade names 16,800 11.0 Favorable leases 1,100 5.5 Total intangible assets $ 321,160 Acquired intangible assets reported above are being amortized using the straight-line method over their estimated useful lives which approximates the pattern of how the economic benefit is expected to be used. This includes amounts allocated to customer relationships because of anticipated high customer retention rates that are common in the semiconductor capital equipment industry. The value assigned to developed technology was determined by using the multi-period excess earnings method under the income approach. Developed technology, which comprises products that have reached technological feasibility, includes the products in Xcerra’s product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by Xcerra and competitors. The estimated cash flows were based on revenues for the developed technology net of operating expenses and net of contributory asset charges. The discount rate utilized to discount the net cash flows of the developed technology to present value was based on the risk associated with the respective cash flows taking into consideration the perceived risk of the technology relative to the other acquired assets, the weighted average cost of capital, the internal rate of return, and the weighted average return on assets. The value assigned to customer relationships was determined by using the with and without method under the income approach, which analyzes the difference in discounted cash flows generated with the customer relationships in place compared to the discounted cash flows generated without the customer relationships in place. In-process research and development (“IPR&D”) represents the estimated fair value assigned to research and development projects acquired in a business combination that have not no The value assigned to backlog acquired was estimated based upon the contractual nature of the backlog as of October 1, 2018, The value assigned to trademarks and trade names was estimated using the relief-from-royalty method of the income approach. This approach is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty in order to exploit the related benefits of this intangible asset. In our preliminary estimate of the fair value of Xcerra’s net assets, Cohu identified leases that appear to be at both favorable and unfavorable rates compared to current market rates. As a result, Cohu has recorded both favorable and unfavorable lease assets, which are being recognized within rent expense over the terms of the related lease. Goodwill and Intangible Assets Changes in the carrying value of goodwill during the year ended December 29, 2018, six June 29, 2019, in thousands Semiconductor Test & Inspection (1) PCB Test Total Balance, December 30, 2017 $ 65,613 $ - $ 65,613 Additions, net 157,661 21,602 179,263 Impact of currency exchange (2,466 ) (283 ) (2,749 ) Balance, December 29, 2018 220,808 21,319 242,127 Adjustments (2) 1,681 (983 ) 698 Impact of currency exchange (1,377 ) 18 (1,359 ) Balance, June 29, 2019 $ 221,112 $ 20,354 $ 241,466 ( 1 After the acquisition of Xcerra on October 1, 2018 two ( 2 Amounts represent adjustments to the preliminary goodwill from the Xcerra acquisition. Purchased intangible assets, subject to amortization are as follows ( in thousands June 29, 2019 December 29, 2018 Remaining Weighted Gross Average Gross Carrying Accum. Amort. Carrying Accum. Amount Amort. Period (years) Amount Amort. Developed technology $ 216,620 $ 35,347 6.9 $ 214,266 $ 21,197 Customer relationships 73,226 11,202 9.7 73,104 7,378 Trade names 22,775 2,872 10.0 22,701 1,807 Backlog 6,371 6,142 0.1 6,372 4,696 Favorable leases - - 4.9 1,100 62 Covenant not-to-compete 327 82 7.5 314 63 Total intangible assets $ 319,319 $ 55,645 $ 317,857 $ 35,203 The table above excludes $33.5 $36.3 June 29, 2019 December 29, 2018, six June 29, 2019, $2.7 Amortization expense related to intangible assets was approximately $10.0 second 2019 $20.0 first six 2019. $1.0 second 2018 $2.1 first six 2018. |
Note 3 - Borrowings and Credit
Note 3 - Borrowings and Credit Agreements | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 3. Borrowings and Credit Agreements The following table is a summary of our borrowings as of June 29, 2019 December 29, 2018 ( in thousands) June 29, December 29, 2019 2018 Bank Term Loan under Credit Agreement $ 347,375 $ 349,125 Bank Term Loans-Kita 4,180 4,576 Bank Term Loan-Xcerra 1,670 1,839 Lines of Credit 3,244 3,115 Total debt 356,469 358,655 Less: financing fees and discount (8,004 ) (8,551 ) Less: current portion (6,487 ) (6,676 ) Total long-term debt $ 341,978 $ 343,428 Credit Agreement On October 1, 2018, $350.0 0.25% October 1, 2025. 3.00%. June 29, 2019, $339.4 $2.4 June 29, 2019, $336.1 June 29, 2019 2 2, Kita Term Loans As a result of our acquisition of Kita, we assumed term loans from a series of Japanese financial institutions primarily related to the expansion of Kita’s facility in Osaka, Japan. The loans are collateralized by the facility and land, carry interest rates ranging from 0.05% 0.45%, 2034. June 29, 2019, $4.2 $0.5 June 29, 2019. The term loans are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Xcerra Term Loan As a result of our acquisition of Xcerra, we assumed a term loan related to the purchase of Xcerra’s facility in Rosenheim, Germany. The loan is payable over 10 2.35%. March 2024. June 29, 2019, $1.7 $0.3 June 29, 2019. The term loan is denominated in Euros and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Lines of Credit As a result of our acquisition of Kita, we assumed a series of revolving credit facilities with various financial institutions in Japan. The credit facilities renew monthly and provide Kita with access to working capital totaling up to $6.5 June 29, 2019, $3.2 The revolving lines of credit are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Our wholly owned Ismeca subsidiary has one 2.0 June 29, 2019, December 29, 2018., no |
Note 4 - Restructuring Charges
Note 4 - Restructuring Charges | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 4. Restructuring Charges Subsequent to the acquisition of Xcerra on October 1 st fourth 2018, 2, 2019. second 2019 As a result of the activities described above, we recognized total pretax charges of $9.9 first six June 29, 2019, 420, Exit or Disposal Cost Obligations 420” Costs associated with restructuring activities are presented in our consolidated statements of operations as restructuring charges, except for certain costs associated with inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products, which are classified within cost of sales. Other restructuring costs include expenses for professional fees associated with employee severance and impairments of fixed assets. The following table summarizes the activity within the restructuring related accounts for the Integration Program during the six June 29, 2019 (in thousands) Severance and Other Exit Other Payroll Costs Total Balance, December 29, 2018 $ 4,026 $ - $ 4,026 Costs accrued 9,412 494 9,906 Amounts paid or charged (5,290 ) (494 ) (5,784 ) Impact of currency exchange 26 - 26 Balance, June 29, 2019 $ 8,174 $ - $ 8,174 At June 29, 2019, 2019. Cohu, Inc. Notes to Unaudited Condensed Consolidated Financial Statements June 29, 2019 |
Note 5 - Financial Instruments
Note 5 - Financial Instruments Measured at Fair Value | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 5. Financial Instruments Measured at Fair Value Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. We do not Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not not Investments that we have classified as short-term, by security type, are as follows ( in thousands ) June 29, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 581 $ - $ - $ 581 December 29, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 560 $ - $ - $ 560 ( 1 As of June 29, 2019 December 29, 2018, no Effective maturities of short-term investments are as follows (in thousands) June 29, 2019 December 29, 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due after one year through three years $ 581 $ 581 $ 560 $ 560 Accounting standards pertaining to fair value measurements establish a three 1, 2, 3, no 1. 2. The following table summarizes, by major security type, our financial instruments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands) Fair value measurements at June 29, 2019 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 130,051 $ - $ - $ 130,051 Money market funds - 12,963 - 12,963 Foreign government security - 581 - 581 $ 130,051 $ 13,544 $ - $ 143,595 Fair value measurements at December 29, 2018 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 144,696 $ - $ - $ 144,696 Money market funds - 19,764 - 19,764 Foreign government security - 560 - 560 $ 144,696 $ 20,324 $ - $ 165,020 |
Note 6 - Employee Stock Benefit
Note 6 - Employee Stock Benefit Plans | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 6. Employee Stock Benefit Plans Our 2005 “2005 may not June 29, 2019, 2,500,306 2005 May 8, 2019, 2005 2,000,000 may Stock Options Stock options may one four 2005 ten first six 2019 not 14,650 At June 29, 2019, 390,276 $10.29 $2.0 3.2 Restricted Stock Units We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from one four not not not June 29, 2019. In the first six 2019 661,621 359,367 June 29, 2019, 1,539,067 $23.9 1.5 Performance Stock Units We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted in 2019, 2018 2017 25% 200% three 2019, 2018 2017 100% third We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number outstanding at June 29, 2019. In the first six 2019, 167,226 34,292 June 29, 2019, 369,811 $5.7 1.9 Employee Stock Purchase Plan The Cohu, Inc. 1997 may 85 6 first six 2019, 63,998 1,034,612 May 8, 2019, may 500,000. |
Note 7 - Income Taxes
Note 7 - Income Taxes | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. Income Taxes Ordinarily, interim tax provisions are calculated using the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year. However, when a reliable estimate of the annual ETR cannot be made, the actual ETR for the year-to-date period may three six June 29, 2019, 2019 three six June 30, 2018, three June 29, 2019 June 30, 2018 4.5% 17.5%, 2.6% 18.9% six June 29, 2019 June 30, 2018, 2019 2018 Our German subsidiary's income tax returns for 2012 2016 There was no three six June 29, 2019 June 30, 2018. |
Note 8 - Segment and Geographic
Note 8 - Segment and Geographic Information | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 8. Segment and Geographic Information We applied the provisions of ASC Topic 280, Segment Reporting 280” October 1, 2018, four 280 two three June 29, 2019 June 30, 2018. Prior to the acquisition of Xcerra on October 1, 2018, Financial information by reportable segment is as follows (in thousands) Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Net sales by segment: 2019 2018 2019 2018 Semiconductor Test & Inspection $ 137,578 $ 99,817 $ 274,272 $ 194,967 PCB Test 12,433 - 23,548 - Total consolidated net sales for reportable segments $ 150,011 $ 99,817 $ 297,820 $ 194,967 Segment profit (loss) before tax: Semiconductor Test & Inspection $ (14,400 ) $ 18,997 $ (29,444 ) $ 31,132 PCB Test 740 - 1,759 - Profit (loss) for reportable segments (13,660 ) 18,997 (27,685 ) 31,132 Other unallocated amounts: Corporate expenses (1,548 ) (5,199 ) (5,289 ) (7,321 ) Interest expense (5,282 ) (11 ) (10,789 ) (22 ) Interest income 191 329 413 576 Income (loss) from continuing operations before taxes $ (20,299 ) $ 14,116 $ (43,350 ) $ 24,365 The following table summarizes our total assets by reportable business segment (in thousands) June 29, December 29, 2019 2018 Semiconductor Test & Inspection $ 1,021,348 $ 1,038,053 PCB Test 62,031 57,762 Total assets for reportable segments 1,083,379 1,095,815 Corporate, principally cash and investments 15,960 34,367 Discontinued operations 4,165 3,820 Total consolidated assets $ 1,103,504 $ 1,134,002 For revenues by geography and information on customer concentration, see Note 1, |
Note 9 - Leases
Note 9 - Leases | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | 9. Leases We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms with 12 not Our leases have remaining lease terms of 1 39 one 25 We sublease certain leased assets to third (in thousands) Classification June 29, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 35,224 Finance lease assets Property, plant and equipment, net (1) 2,604 Total lease assets $ 37,828 Liabilities Current Operating Other accrued liabilities $ 4,958 Finance Other accrued liabilities 35 Noncurrent Operating Long-term lease liabilities 30,168 Finance Long-term lease liabilities 2,605 Total lease liabilities $ 37,766 Weighted-average remaining lease term (years) Operating leases 8.2 Finance leases 1.0 Weighted-average discount rate Operating leases 6.1 % Finance leases 4.5 % ( 1 Finance lease assets are recorded net of accumulated amortization of $0.1 The components of lease expense were as follows: Three Months Ended Six Months Ended (in thousands) June 29, 2019 June 29, 2019 Operating leases $ 2,139 $ 4,261 Variable leases 635 1,201 Short-term operating leases 66 144 Finance leases Amortization of leased assets 21 62 Interest on lease liabilities 29 88 Sublease income (34 ) (70 ) Net lease cost $ 2,856 $ 5,686 Future minimum lease payments at June 29, 2019, Operating Finance (in thousands) leases (1) leases Total 2019 $ 3,079 $ 76 $ 3,155 2020 6,825 2,682 9,507 2021 5,631 - 5,631 2022 5,374 - 5,374 2023 4,940 - 4,940 Thereafter 21,037 - 21,037 Total lease payments 46,886 2,758 49,644 Less: Interest (11,760 ) (118 ) (11,878 ) Present value of lease liabilities $ 35,126 $ 2,640 $ 37,766 ( 1 Excludes sublease income of $0.1 2019 2020. Supplemental cash flow information related to leases was as follows: Six Months Ended (in thousands) June 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,628 Operating cash flows from finance leases $ 73 Financing cash flows from finance leases $ 17 Leased assets obtained in exchange for new operating lease liabilities $ 38,487 |
Note 10 - Discontinued Operatio
Note 10 - Discontinued Operations | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 10. Discontinued Operations On October 1, 2018, fourth 2018, not not October 1, 2018. 12 Balance sheet information for our fixtures services business presented as discontinued operations is summarized as follows (in thousands) June 29, December 29, 2019 2018 Assets: Cash and cash equivalents $ 750 $ 461 Accounts receivable, net 1,856 1,718 Inventories 1,432 1,388 Other current assets 62 174 Total current assets 4,100 3,741 Property, plant and equipment, net 52 66 Other noncurrent assets 13 13 Total assets $ 4,165 $ 3,820 Liabilities: Other accrued current liabilities $ 624 $ 518 Total current liabilities 624 518 Noncurrent liabilities - - Total liabilities $ 624 $ 518 Operating results of our discontinued segment are summarized as follows (in thousands) Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Net sales $ 1,708 $ 3,300 Operating income before income taxes $ 38 $ 227 Income tax provision 14 39 Income, net of tax $ 24 $ 188 |
Note 11 - Contingencies
Note 11 - Contingencies | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 11. Contingencies From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our business. The outcome of any litigation is inherently uncertain. While there can be no not |
Note 12 - Guarantees
Note 12 - Guarantees | 6 Months Ended |
Jun. 29, 2019 | |
Notes to Financial Statements | |
Commitments Contingencies and Guarantees [Text Block] | 12. Guarantees Product Warranty Our products are generally sold with warranty periods that range from 12 36 460, not Changes in accrued warranty were as follows ( in thousands Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Balance at beginning of period $ 7,088 $ 4,916 $ 8,014 $ 4,848 Warranty expense accruals 1,830 1,806 3,558 3,388 Warranty payments (2,066 ) (1,774 ) (4,720 ) (3,288 ) Balance at end of period $ 6,852 $ 4,948 $ 6,852 $ 4,948 Accrued warranty amounts expected to be incurred after one $0.2 June 29, 2019 December 29, 2018. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation Our fiscal years are based on a 52 53 December. December 29, 2018, June 29, 2019, ( second 2019” first six 2019” June 30, 2018, ( second 2018” first six 2018” three six June 29, 2019, 13 26 three six June 30, 2018, 13 26 Our interim results are not December 29, 2018, 2018 10 The condensed consolidated financial statements include the accounts of Cohu and a variable interest entity (“VIE”) that was acquired as part of our acquisition of Xcerra Corporation (“Xcerra”) and in which we have determined we are the primary beneficiary. The non-controlling interest in ALBS Solutions Sdn Bhd (“ALBS”) represents the 80% not |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Principles of Consolidation for Variable Interest Entities We follow ASC Topic 810 10 15 not As of June 29, 2019 December 29, 2018, one 805, Business Combinations 805" June 29, 2019 December 29, 2018, not third |
Reclassification, Policy [Policy Text Block] | Reclassifications In conjunction with the acquisition of Xcerra, we assessed the need to realign its financial statement presentation and certain income statement classifications were adjusted with prior periods reclassified to conform with current period presentation. The changes made were as follows: ● Amortization of intangibles previously were presented in cost of sales and SG&A. These amounts are now presented as a separate line item “Amortization of purchased intangibles” within operating expenses. ● Gains and losses associated with foreign currency translation and remeasurement were included within SG&A. These amounts are now presented as “Foreign transaction gain (loss) and other”. A summary of the reclassifications described above and the impact on our condensed consolidated statements of operations is as follows: Three Months Ended As Presented Amortization of Purchased Intangibles Foreign Transaction Gains and Losses As Adjusted Cost of sales $ 58,316 (639 ) - $ 57,677 SG&A expense $ 16,652 (380 ) 3,031 $ 19,303 Six Months Ended As Presented Amortization of Purchased Intangibles Foreign Transaction Gains and Losses As Adjusted Cost of sales $ 113,915 (1,315 ) - $ 112,600 SG&A expense $ 34,415 (778 ) 1,452 $ 35,089 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one Trade accounts receivable are presented net of allowance for doubtful accounts of $0.3 June 29, 2019 December 29, 2018. June 29, 2019, may |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined on a first first Inventories by category were as follows ( in thousands June 29, December 29, 2019 2018 Raw materials and purchased parts $ 68,125 $ 60,112 Work in process 52,769 57,953 Finished goods 16,335 21,249 Total inventories $ 137,229 $ 139,314 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of thirty forty five fifteen three ten not Property, plant and equipment, at cost, consisted of the following (in thousands) June 29, December 29, 2019 2018 Land and land improvements $ 12,182 $ 11,905 Buildings and building improvements 39,243 37,265 Machinery and equipment 65,370 64,791 116,795 113,961 Less accumulated depreciation and amortization (45,019 ) (39,629 ) Property, plant and equipment, net $ 71,776 $ 74,332 |
Segment Reporting, Policy [Policy Text Block] | Segment Information We applied the provisions of ASC Topic 280, Segment Reporting 280” October 1, 2018, four 280 two |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill, Other Intangible Assets and Long-lived Assets We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not first second We conduct our annual impairment test as of October 1st no October 1, 2018 may June 29, 2019, not not. may We evaluate our indefinite-lived intangible assets associated with in-process research and development by comparing the fair value of each project with its carrying value. Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not may not not |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 12 36 |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring Costs We record restructuring activities including costs for one 420 420” Exit or Disposal Cost Obligations. 420 712, Nonretirement Postemployment Benefits. |
Debt, Policy [Policy Text Block] | Debt Issuance Costs We capitalize costs related to the issuance of debt. Debt issuance costs directly related to our Term Loam B are presented as a reduction of current installments of long-term debt and long-term debt in our consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 $0.5 three six June 29, 2019. October 1, 2018, no three six June 30, 2018. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Remeasurement and Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During the three six June 29, 2019, $0.5 $0.3 three six June 30, 2018, $3.0 $1.5 |
Share-based Payment Arrangement [Policy Text Block] | Share-Based Compensation We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results. Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands) Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Cost of sales $ 208 $ 162 $ 333 $ 283 Research and development 776 395 1,414 744 Selling, general and administrative 2,678 1,391 5,608 2,590 Total share-based compensation 3,662 1,948 7,355 3,617 Income tax benefit (79 ) (126 ) (359 ) (440 ) Total share-based compensation, net $ 3,583 $ 1,822 $ 6,996 $ 3,177 |
Income Tax, Policy [Policy Text Block] | Income (Loss) Per Share Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock and performance stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three six June 29, 2019, 610,000 502,000 three six June 30, 2018, 3,000 19,000 The following table reconciles the denominators used in computing basic and diluted income (loss) per share ( in thousands) Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Weighted average common shares 41,125 28,893 40,999 28,747 Effect of dilutive securities - 758 - 844 41,125 29,651 40,999 29,591 Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. |
Lessee, Leases [Policy Text Block] | Leases We adopted ASU 2016 02, 842 December 30, 2018. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may Leases with an initial term of 12 not We sublease certain leased assets to third None |
Revenue [Policy Text Block] | Revenue Recognition Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations may Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At June 29, 2019, $13.5 one 606, not one We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees 460 not The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may not not Our contracts are typically less than one 606 one Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not one not no no On shipments where sales are not June 29, 2019, $16.7 $8.2 one $4.3 December 29, 2018, $10.8 $6.9 one $2.0 Net sales of our reportable segments, by type, are as follows (in thousands): Three Months Ended Six Months Ended Net Sales (1) June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Systems: Semiconductor Test & Inspection $ 76,155 $ 55,663 $ 156,095 $ 110,568 PCB Test 8,407 N/A 15,379 N/A Non-systems: Semiconductor Test & Inspection 61,424 44,154 118,177 84,399 PCB Test 4,025 N/A 8,169 N/A Total net sales $ 150,011 $ 99,817 $ 297,820 $ 194,967 ( 1 After the acquisition of Xcerra on October 1, 2018 two Revenue by geographic area based upon product shipment destination ( in thousands Three Months Ended Six Months Ended Net Sales June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 China $ 32,738 $ 19,140 $ 56,289 $ 39,383 United States 19,408 15,662 36,509 30,140 Malaysia 16,993 13,048 34,707 24,857 Taiwan 17,202 2,905 32,172 5,846 Philippines 11,395 9,916 25,936 20,462 Rest of the World 52,275 39,146 112,207 74,279 Total net sales $ 150,011 $ 99,817 $ 297,820 $ 194,967 A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Semiconductor Test & Inspection (1) Customers individually accounting for more than 10% of net sales one one one one Percentage of net sales 12 % 11 % 12 % 11 % PCB Test Customers individually accounting for more than 10% of net sales * N/A * N/A Percentage of net sales * N/A * N/A * No 10% ( 1 After the acquisition of Xcerra on October 1, 2018 two |
Comprehensive Income, Policy [Policy Text Block] | Accumulated Other Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $27.0 $25.9 June 29, 2019 December 29, 2018, not first six 2019 2018 not |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Retiree Medical Benefits We provide post-retirement health benefits to certain retired executives, one no first six 2019 2018 not |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations Management has determined that the fixtures services business, that was acquired as part of Xcerra, does not December 29, 2018. 10, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements We adopted ASU 2016 02, 842 December 30, 2018, We made an accounting policy election to not 12 not Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $30.7 $29.9 December 30, 2018. 840 $10.2 840 $0.5 $0.6 not no Recently Issued Accounting Pronouncements In August 2018, 2018 14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans not December 15, 2020 not 2018 14 In August 2018, 2018 13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement not December 15, 2019. 3 not 2018 13 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Reclassification of Amounts on Income Statement [Table Text Block] | Three Months Ended As Presented Amortization of Purchased Intangibles Foreign Transaction Gains and Losses As Adjusted Cost of sales $ 58,316 (639 ) - $ 57,677 SG&A expense $ 16,652 (380 ) 3,031 $ 19,303 Six Months Ended As Presented Amortization of Purchased Intangibles Foreign Transaction Gains and Losses As Adjusted Cost of sales $ 113,915 (1,315 ) - $ 112,600 SG&A expense $ 34,415 (778 ) 1,452 $ 35,089 |
Schedule of Inventory, Current [Table Text Block] | June 29, December 29, 2019 2018 Raw materials and purchased parts $ 68,125 $ 60,112 Work in process 52,769 57,953 Finished goods 16,335 21,249 Total inventories $ 137,229 $ 139,314 |
Property, Plant and Equipment [Table Text Block] | June 29, December 29, 2019 2018 Land and land improvements $ 12,182 $ 11,905 Buildings and building improvements 39,243 37,265 Machinery and equipment 65,370 64,791 116,795 113,961 Less accumulated depreciation and amortization (45,019 ) (39,629 ) Property, plant and equipment, net $ 71,776 $ 74,332 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Cost of sales $ 208 $ 162 $ 333 $ 283 Research and development 776 395 1,414 744 Selling, general and administrative 2,678 1,391 5,608 2,590 Total share-based compensation 3,662 1,948 7,355 3,617 Income tax benefit (79 ) (126 ) (359 ) (440 ) Total share-based compensation, net $ 3,583 $ 1,822 $ 6,996 $ 3,177 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Weighted average common shares 41,125 28,893 40,999 28,747 Effect of dilutive securities - 758 - 844 41,125 29,651 40,999 29,591 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended Net Sales (1) June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Systems: Semiconductor Test & Inspection $ 76,155 $ 55,663 $ 156,095 $ 110,568 PCB Test 8,407 N/A 15,379 N/A Non-systems: Semiconductor Test & Inspection 61,424 44,154 118,177 84,399 PCB Test 4,025 N/A 8,169 N/A Total net sales $ 150,011 $ 99,817 $ 297,820 $ 194,967 Three Months Ended Six Months Ended Net Sales June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 China $ 32,738 $ 19,140 $ 56,289 $ 39,383 United States 19,408 15,662 36,509 30,140 Malaysia 16,993 13,048 34,707 24,857 Taiwan 17,202 2,905 32,172 5,846 Philippines 11,395 9,916 25,936 20,462 Rest of the World 52,275 39,146 112,207 74,279 Total net sales $ 150,011 $ 99,817 $ 297,820 $ 194,967 |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Semiconductor Test & Inspection (1) Customers individually accounting for more than 10% of net sales one one one one Percentage of net sales 12 % 11 % 12 % 11 % PCB Test Customers individually accounting for more than 10% of net sales * N/A * N/A Percentage of net sales * N/A * N/A |
Note 2 - Business Acquisition_2
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Fair Value Weighted Average Useful Life (years) Developed technology $ 194,600 7.8 Customer relationships 65,890 10.6 In-process technology 36,360 indefinite Product backlog 6,410 0.8 Trade names 16,800 11.0 Favorable leases 1,100 5.5 Total intangible assets $ 321,160 June 29, 2019 December 29, 2018 Remaining Weighted Gross Average Gross Carrying Accum. Amort. Carrying Accum. Amount Amort. Period (years) Amount Amort. Developed technology $ 216,620 $ 35,347 6.9 $ 214,266 $ 21,197 Customer relationships 73,226 11,202 9.7 73,104 7,378 Trade names 22,775 2,872 10.0 22,701 1,807 Backlog 6,371 6,142 0.1 6,372 4,696 Favorable leases - - 4.9 1,100 62 Covenant not-to-compete 327 82 7.5 314 63 Total intangible assets $ 319,319 $ 55,645 $ 317,857 $ 35,203 |
Schedule of Goodwill [Table Text Block] | Semiconductor Test & Inspection (1) PCB Test Total Balance, December 30, 2017 $ 65,613 $ - $ 65,613 Additions, net 157,661 21,602 179,263 Impact of currency exchange (2,466 ) (283 ) (2,749 ) Balance, December 29, 2018 220,808 21,319 242,127 Adjustments (2) 1,681 (983 ) 698 Impact of currency exchange (1,377 ) 18 (1,359 ) Balance, June 29, 2019 $ 221,112 $ 20,354 $ 241,466 |
Xcerra [Member] | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets, including cash received $ 375,990 Property, plant and equipment 40,729 Other assets * 1,051 Intangible assets 321,160 Goodwill * 179,961 Total assets acquired 918,891 Liabilities assumed * (124,461 ) Net assets acquired $ 794,430 |
Note 3 - Borrowings and Credi_2
Note 3 - Borrowings and Credit Agreements (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 29, December 29, 2019 2018 Bank Term Loan under Credit Agreement $ 347,375 $ 349,125 Bank Term Loans-Kita 4,180 4,576 Bank Term Loan-Xcerra 1,670 1,839 Lines of Credit 3,244 3,115 Total debt 356,469 358,655 Less: financing fees and discount (8,004 ) (8,551 ) Less: current portion (6,487 ) (6,676 ) Total long-term debt $ 341,978 $ 343,428 |
Note 4 - Restructuring Charges
Note 4 - Restructuring Charges (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Severance and Other Exit Other Payroll Costs Total Balance, December 29, 2018 $ 4,026 $ - $ 4,026 Costs accrued 9,412 494 9,906 Amounts paid or charged (5,290 ) (494 ) (5,784 ) Impact of currency exchange 26 - 26 Balance, June 29, 2019 $ 8,174 $ - $ 8,174 |
Note 5 - Financial Instrument_2
Note 5 - Financial Instruments Measured at Fair Value (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | June 29, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 581 $ - $ - $ 581 December 29, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 560 $ - $ - $ 560 |
Investments Classified by Contractual Maturity Date [Table Text Block] | June 29, 2019 December 29, 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due after one year through three years $ 581 $ 581 $ 560 $ 560 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair value measurements at June 29, 2019 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 130,051 $ - $ - $ 130,051 Money market funds - 12,963 - 12,963 Foreign government security - 581 - 581 $ 130,051 $ 13,544 $ - $ 143,595 Fair value measurements at December 29, 2018 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 144,696 $ - $ - $ 144,696 Money market funds - 19,764 - 19,764 Foreign government security - 560 - 560 $ 144,696 $ 20,324 $ - $ 165,020 |
Note 8 - Segment and Geograph_2
Note 8 - Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Net sales by segment: 2019 2018 2019 2018 Semiconductor Test & Inspection $ 137,578 $ 99,817 $ 274,272 $ 194,967 PCB Test 12,433 - 23,548 - Total consolidated net sales for reportable segments $ 150,011 $ 99,817 $ 297,820 $ 194,967 Segment profit (loss) before tax: Semiconductor Test & Inspection $ (14,400 ) $ 18,997 $ (29,444 ) $ 31,132 PCB Test 740 - 1,759 - Profit (loss) for reportable segments (13,660 ) 18,997 (27,685 ) 31,132 Other unallocated amounts: Corporate expenses (1,548 ) (5,199 ) (5,289 ) (7,321 ) Interest expense (5,282 ) (11 ) (10,789 ) (22 ) Interest income 191 329 413 576 Income (loss) from continuing operations before taxes $ (20,299 ) $ 14,116 $ (43,350 ) $ 24,365 June 29, December 29, 2019 2018 Semiconductor Test & Inspection $ 1,021,348 $ 1,038,053 PCB Test 62,031 57,762 Total assets for reportable segments 1,083,379 1,095,815 Corporate, principally cash and investments 15,960 34,367 Discontinued operations 4,165 3,820 Total consolidated assets $ 1,103,504 $ 1,134,002 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Leases, Balance Sheet Information [Table Text Block] | (in thousands) Classification June 29, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 35,224 Finance lease assets Property, plant and equipment, net (1) 2,604 Total lease assets $ 37,828 Liabilities Current Operating Other accrued liabilities $ 4,958 Finance Other accrued liabilities 35 Noncurrent Operating Long-term lease liabilities 30,168 Finance Long-term lease liabilities 2,605 Total lease liabilities $ 37,766 Weighted-average remaining lease term (years) Operating leases 8.2 Finance leases 1.0 Weighted-average discount rate Operating leases 6.1 % Finance leases 4.5 % |
Lease, Cost [Table Text Block] | Three Months Ended Six Months Ended (in thousands) June 29, 2019 June 29, 2019 Operating leases $ 2,139 $ 4,261 Variable leases 635 1,201 Short-term operating leases 66 144 Finance leases Amortization of leased assets 21 62 Interest on lease liabilities 29 88 Sublease income (34 ) (70 ) Net lease cost $ 2,856 $ 5,686 |
Lessee, Lease, Liability, Maturity [Table Text Block] | Operating Finance (in thousands) leases (1) leases Total 2019 $ 3,079 $ 76 $ 3,155 2020 6,825 2,682 9,507 2021 5,631 - 5,631 2022 5,374 - 5,374 2023 4,940 - 4,940 Thereafter 21,037 - 21,037 Total lease payments 46,886 2,758 49,644 Less: Interest (11,760 ) (118 ) (11,878 ) Present value of lease liabilities $ 35,126 $ 2,640 $ 37,766 |
Lease, Cash Flow Information [Table Text Block] | Six Months Ended (in thousands) June 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,628 Operating cash flows from finance leases $ 73 Financing cash flows from finance leases $ 17 Leased assets obtained in exchange for new operating lease liabilities $ 38,487 |
Note 10 - Discontinued Operat_2
Note 10 - Discontinued Operations (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Xcerra [Member] | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | June 29, December 29, 2019 2018 Assets: Cash and cash equivalents $ 750 $ 461 Accounts receivable, net 1,856 1,718 Inventories 1,432 1,388 Other current assets 62 174 Total current assets 4,100 3,741 Property, plant and equipment, net 52 66 Other noncurrent assets 13 13 Total assets $ 4,165 $ 3,820 Liabilities: Other accrued current liabilities $ 624 $ 518 Total current liabilities 624 518 Noncurrent liabilities - - Total liabilities $ 624 $ 518 Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Net sales $ 1,708 $ 3,300 Operating income before income taxes $ 38 $ 227 Income tax provision 14 39 Income, net of tax $ 24 $ 188 |
Note 12 - Guarantees (Tables)
Note 12 - Guarantees (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Balance at beginning of period $ 7,088 $ 4,916 $ 8,014 $ 4,848 Warranty expense accruals 1,830 1,806 3,558 3,388 Warranty payments (2,066 ) (1,774 ) (4,720 ) (3,288 ) Balance at end of period $ 6,852 $ 4,948 $ 6,852 $ 4,948 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) | Dec. 30, 2018USD ($) | Oct. 01, 2018USD ($) | Jun. 29, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Jun. 29, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Dec. 29, 2018USD ($) | |
Number of VIEs Consolidated | 1 | 1 | ||||||
Accounts Receivable, Allowance for Credit Loss, Current | $ 300,000 | $ 300,000 | $ 0.30 | |||||
Number of Operating Segments | 4 | |||||||
Number of Reportable Segments | 2 | |||||||
Goodwill and Intangible Asset Impairment, Total | $ 0 | |||||||
Amortization of Debt Issuance Costs and Discounts, Total | 300,000 | $ 0 | $ 546,000 | $ 0 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ 500,000 | $ 3,000,000 | $ 300,000 | $ 1,500,000 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 610,000 | 3,000 | 502,000 | 19,000 | ||||
Revenue, Remaining Performance Obligation, Amount | $ 13,500,000 | $ 13,500,000 | ||||||
Accounts Receivable, Credit Loss Expense (Reversal) | 0 | |||||||
Contract with Customer, Liability, Total | 0 | 0 | ||||||
Contract with Customer, Liability, Current | 16,700,000 | 16,700,000 | 10,800,000 | |||||
Deferred Profit | 8,163,000 | 8,163,000 | 6,896,000 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | (27,019,000) | (27,019,000) | (25,880,000) | |||||
Assets, Total | 1,103,504,000 | 1,103,504,000 | 1,134,002,000 | [1] | ||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Lease Assets | $ 30,700,000 | |||||||
Lease Liabilities | 29,900,000 | |||||||
Cumulative Effect on Retained Earnings, Net of Tax, Total | 10,200,000 | |||||||
Assets, Total | (500,000) | |||||||
Liabilities, Total | $ (600,000) | |||||||
Non-current Other Accrued Liabilities [Member] | ||||||||
Deferred Profit Recognized After Year One | $ 4,300,000 | $ 4,300,000 | $ 2,000,000 | |||||
Minimum [Member] | ||||||||
Standard Product Warranty Term | 1 year | |||||||
Maximum [Member] | ||||||||
Standard Product Warranty Term | 3 years | |||||||
Building [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 30 years | |||||||
Building [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 40 years | |||||||
Building Improvements [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||||
Building Improvements [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||||
Machinery, Equipment and Software [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||
Machinery, Equipment and Software [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||||
ALBS [Member] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 80.00% | 80.00% | ||||||
Variable Interest Entity, Consolidated, Assets, Pledged, Total | $ 0 | $ 0 | ||||||
[1] | Derived from December 29, 2018 audited financial statements |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Cost of sales | [1] | $ 87,605 | $ 57,677 | $ 180,999 | $ 112,600 |
SG&A expense | $ 36,428 | 19,303 | $ 74,714 | 35,089 | |
Previously Reported [Member] | |||||
Cost of sales | 58,316 | 113,915 | |||
SG&A expense | 16,652 | 34,415 | |||
Restatement Adjustment [Member] | Amortization of Purchased Intangibles [Member] | |||||
Cost of sales | (639) | (1,315) | |||
SG&A expense | (380) | (778) | |||
Restatement Adjustment [Member] | Foreign Transaction Gains and (Losses) [Member] | |||||
Cost of sales | |||||
SG&A expense | $ 3,031 | $ 1,452 | |||
[1] | Excludes amortization of $7,625 and $639 for the three months ended June 29, 2019, and June 30, 2018, respectively, and $15,266 and $1,315 for the six months ended June 29, 2019, and June 30, 2018, respectively. |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | |
Raw materials and purchased parts | $ 68,125 | $ 60,112 | |
Work in process | 52,769 | 57,953 | |
Finished goods | 16,335 | 21,249 | |
Total inventories | $ 137,229 | $ 139,314 | [1] |
[1] | Derived from December 29, 2018 audited financial statements |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | |
Property, plant and equipment | $ 116,795 | $ 113,961 | |
Less accumulated depreciation and amortization | (45,019) | (39,629) | |
Property, plant and equipment, net | 71,776 | 74,332 | [1] |
Land and Land Improvements [Member] | |||
Property, plant and equipment | 12,182 | 11,905 | |
Building and Building Improvements [Member] | |||
Property, plant and equipment | 39,243 | 37,265 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment | $ 65,370 | $ 64,791 | |
[1] | Derived from December 29, 2018 audited financial statements |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Allocated share-based compensation | $ 3,662 | $ 1,948 | $ 7,355 | $ 3,617 |
Income tax benefit | (79) | (126) | (359) | (440) |
Total share-based compensation, net | 3,583 | 1,822 | 6,996 | 3,177 |
Cost of Sales [Member] | ||||
Allocated share-based compensation | 208 | 162 | 333 | 283 |
Research and Development Expense [Member] | ||||
Allocated share-based compensation | 776 | 395 | 1,414 | 744 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated share-based compensation | $ 2,678 | $ 1,391 | $ 5,608 | $ 2,590 |
Note 1 - Summary of Significa_8
Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Weighted average common shares (in shares) | 41,125 | 28,893 | 40,999 | 28,747 |
Effect of dilutive securities (in shares) | 758 | 844 | ||
(in shares) | 41,125 | 29,651 | 40,999 | 29,591 |
Note 1 - Summary of Significa_9
Note 1 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Net sales | [1] | $ 150,011 | $ 99,817 | $ 297,820 | $ 194,967 |
Semiconductor Test and Inspection [Member] | |||||
Net sales | 137,578 | 99,817 | 274,272 | 194,967 | |
PCB Test [Member] | |||||
Net sales | 12,433 | 23,548 | |||
Systems [Member] | Semiconductor Test and Inspection [Member] | |||||
Net sales | [1] | 76,155 | 55,663 | 156,095 | 110,568 |
Systems [Member] | PCB Test [Member] | |||||
Net sales | [1] | 8,407 | 15,379 | ||
Non-systems [Member] | Semiconductor Test and Inspection [Member] | |||||
Net sales | [1] | 61,424 | 44,154 | 118,177 | 84,399 |
Non-systems [Member] | PCB Test [Member] | |||||
Net sales | [1] | 4,025 | 8,169 | ||
CHINA | |||||
Net sales | 32,738 | 19,140 | 56,289 | 39,383 | |
UNITED STATES | |||||
Net sales | 19,408 | 15,662 | 36,509 | 30,140 | |
Malaysia [Member] | |||||
Net sales | 16,993 | 13,048 | 34,707 | 24,857 | |
TAIWAN, PROVINCE OF CHINA | |||||
Net sales | 17,202 | 2,905 | 32,172 | 5,846 | |
PHILIPPINES | |||||
Net sales | 11,395 | 9,916 | 25,936 | 20,462 | |
Rest of the World [Member] | |||||
Net sales | $ 52,275 | $ 39,146 | $ 112,207 | $ 74,279 | |
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. |
Note 1 - Summary of Signific_10
Note 1 - Summary of Significant Accounting Policies - Customer Concentration (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |||
Semiconductor Test and Inspection [Member] | ||||||
Customers individually accounting for more than 10% of net sales | [1] | 1 | 1 | 1 | 1 | |
Semiconductor Test and Inspection [Member] | One Customer [Member] | ||||||
Percentage of net sales | [1] | 12.00% | 11.00% | 12.00% | 11.00% | |
PCB Test [Member] | ||||||
Customers individually accounting for more than 10% of net sales | [1] | [2] | ||||
Percentage of net sales | [1] | [2] | ||||
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | |||||
[2] | No single customer represented more than 10% of consolidated net sales. |
Note 2 - Business Acquisition_3
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 |
Share Price | $ 25.10 | |||||
Transfer From In-Process Technology to Developed Technology | $ 2,700 | |||||
Amortization of Intangible Assets, Total | $ 9,987 | $ 1,019 | 20,006 | $ 2,093 | ||
Secured Term Loan Facility [Member] | ||||||
Debt Instrument, Face Amount | $ 350,000 | |||||
Debt Instrument, Amortization, Percentage of Principal Amount | 0.25% | |||||
Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||
Xcerra [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 794,400 | |||||
Payments to Acquire Businesses, Gross | 160,500 | |||||
Business Combination, Acquisition Related Costs | 400 | $ 4,100 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | 1,100 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 400 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 700 | |||||
Xcerra [Member] | In-process Technology [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 33,500 | $ 33,500 | $ 36,300 | |||
Xcerra [Member] | Fair Value Adjustment to Inventory [Member] | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 19,600 | |||||
Xcerra [Member] | Common Stock [Member] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 11,776,149 | |||||
Xcerra [Member] | Cohu RSUs [Member] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 529,995 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Attributed to Pre-Merger Services | $ 800 |
Note 2 - Business Acquisition_4
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Purchase Price Allocation, Xcerra Acquisition (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | [1] | Oct. 01, 2018 | Dec. 30, 2017 | |
Goodwill | $ 241,466 | $ 242,127 | $ 65,613 | |||
Xcerra [Member] | ||||||
Current assets, including cash received | $ 375,990 | |||||
Property, plant and equipment | 40,729 | |||||
Other assets | [2] | 1,051 | ||||
Intangible assets | 321,160 | |||||
Goodwill | [2] | 179,961 | ||||
Total assets acquired | 918,891 | |||||
Liabilities assumed | [2] | (124,461) | ||||
Net assets acquired | $ 794,430 | |||||
[1] | Derived from December 29, 2018 audited financial statements | |||||
[2] | Includes a measurement period adjustment recorded during the three months ended June 29, 2019, as a result of obtaining new facts and circumstances related to certain assets acquired ($1.1 million) and liabilities assumed ($0.4 million) as of the date of acquisition. The net impact of this measurement period adjustment, totaling $0.7 million, was offset against goodwill. |
Note 2 - Business Acquisition_5
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Preliminary Allocation of Intangible Assets, Xcerra Acquisition (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Jun. 29, 2019 | Dec. 29, 2018 |
Intangible assets, estimated fair value | $ 321,160 | ||
Gross carrying amount | $ 319,319 | $ 317,857 | |
Accumulated amortization | $ 55,645 | 35,203 | |
Remaining weighted average amortization period (Year) | |||
In-process Technology [Member] | |||
Indefinite-lived intangible assets, estimated fair value | 36,360 | ||
Developed Technology Rights [Member] | |||
Finite-lived intangible assets, estimated fair value | $ 194,600 | ||
Finite-lived intangible assets, average useful life (Year) | 7 years 292 days | ||
Gross carrying amount | $ 216,620 | 214,266 | |
Accumulated amortization | $ 35,347 | 21,197 | |
Remaining weighted average amortization period (Year) | 6 years 328 days | ||
Customer Relationships [Member] | |||
Finite-lived intangible assets, estimated fair value | $ 65,890 | ||
Finite-lived intangible assets, average useful life (Year) | 10 years 219 days | ||
Gross carrying amount | $ 73,226 | 73,104 | |
Accumulated amortization | $ 11,202 | 7,378 | |
Remaining weighted average amortization period (Year) | 9 years 255 days | ||
Order or Production Backlog [Member] | |||
Finite-lived intangible assets, estimated fair value | $ 6,410 | ||
Finite-lived intangible assets, average useful life (Year) | 292 days | ||
Gross carrying amount | $ 6,371 | 6,372 | |
Accumulated amortization | $ 6,142 | 4,696 | |
Remaining weighted average amortization period (Year) | 36 days | ||
Trade Names [Member] | |||
Finite-lived intangible assets, estimated fair value | $ 16,800 | ||
Finite-lived intangible assets, average useful life (Year) | 11 years | ||
Gross carrying amount | $ 22,775 | 22,701 | |
Accumulated amortization | $ 2,872 | 1,807 | |
Remaining weighted average amortization period (Year) | 10 years | ||
Off-Market Favorable Lease [Member] | |||
Finite-lived intangible assets, estimated fair value | $ 1,100 | ||
Finite-lived intangible assets, average useful life (Year) | 5 years 182 days | ||
Gross carrying amount | 1,100 | ||
Accumulated amortization | 62 | ||
Remaining weighted average amortization period (Year) | 4 years 328 days | ||
Noncompete Agreements [Member] | |||
Gross carrying amount | $ 327 | 314 | |
Accumulated amortization | $ 82 | $ 63 | |
Remaining weighted average amortization period (Year) | 7 years 182 days |
Note 2 - Business Acquisition_6
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Acquired Goodwill Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 29, 2019 | Dec. 29, 2018 | ||||
Balance | $ 242,127 | [1] | $ 65,613 | ||
Additions, net | 179,263 | ||||
Impact of currency exchange | (1,359) | (2,749) | |||
Adjustments | [2] | 698 | |||
Balance | 241,466 | 242,127 | [1] | ||
Semiconductor Test and Inspection [Member] | |||||
Balance | [3] | 220,808 | 65,613 | ||
Additions, net | [3] | 157,661 | |||
Impact of currency exchange | [3] | (1,377) | (2,466) | ||
Adjustments | [2],[3] | 1,681 | |||
Balance | [3] | 221,112 | 220,808 | ||
PCB Test [Member] | |||||
Balance | 21,319 | ||||
Additions, net | 21,602 | ||||
Impact of currency exchange | 18 | (283) | |||
Adjustments | [2] | (983) | |||
Balance | $ 20,354 | $ 21,319 | |||
[1] | Derived from December 29, 2018 audited financial statements | ||||
[2] | Amounts represent adjustments to the preliminary goodwill from the Xcerra acquisition. | ||||
[3] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Prior year amounts would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. |
Note 3 - Borrowings and Credi_3
Note 3 - Borrowings and Credit Agreements (Details Textual) $ in Thousands, SFr in Millions | Oct. 01, 2018USD ($) | Jun. 29, 2019USD ($) | Jun. 29, 2019CHF (SFr) | Dec. 29, 2018USD ($) |
Long-term Debt, Current Maturities, Total | $ 6,487 | $ 6,676 | ||
Long-term Line of Credit, Total | 3,244 | 3,115 | ||
Ismeca [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | SFr | SFr 2 | |||
Long-term Line of Credit, Total | $ 0 | $ 0 | ||
Number of Available Lines of Credit | 1 | 1 | ||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,500 | |||
Long-term Line of Credit, Total | 3,200 | |||
Secured Term Loan Facility [Member] | ||||
Debt Instrument, Face Amount | $ 350,000 | |||
Debt Instrument, Amortization, Percentage of Principal Amount | 0.25% | |||
Long-term Debt, Total | 339,400 | |||
Long-term Debt, Current Maturities, Total | 2,400 | |||
Long-term Debt, Fair Value | 336,100 | |||
Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||
Kita Term Loans [Member] | ||||
Long-term Debt, Total | 4,200 | |||
Long-term Debt, Current Maturities, Total | $ 500 | |||
Kita Term Loans [Member] | Minimum [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.05% | 0.05% | ||
Kita Term Loans [Member] | Maximum [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.45% | 0.45% | ||
Xcerra Term Loan [Member] | ||||
Long-term Debt, Total | $ 1,700 | |||
Long-term Debt, Current Maturities, Total | $ 300 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.35% | 2.35% | ||
Debt Instrument, Term | 10 years |
Note 3 - Borrowings and Credi_4
Note 3 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Lines of Credit | $ 3,244 | $ 3,115 |
Total debt | 356,469 | 358,655 |
Less: financing fees and discount | (8,004) | (8,551) |
Less: current portion | (6,487) | (6,676) |
Total long-term debt | 341,978 | 343,428 |
Secured Term Loan Facility [Member] | ||
Bank Term Loan under Credit Agreement | 347,375 | 349,125 |
Less: current portion | (2,400) | |
Kita Term Loans [Member] | ||
Bank Term Loan under Credit Agreement | 4,180 | 4,576 |
Less: current portion | (500) | |
Xcerra [Member] | ||
Bank Term Loan under Credit Agreement | $ 1,670 | $ 1,839 |
Note 4 - Restructuring Charge_2
Note 4 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Restructuring Charges, Total | $ 8,545 | $ 9,906 |
Note 4 - Restructuring Charge_3
Note 4 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Restructuring Charges, Total | $ 8,545 | $ 9,906 | ||
Integration Program [Member] | ||||
Accrued restructuring, beginning balance | 4,026 | |||
Restructuring Charges, Total | 9,906 | |||
Amounts paid or charged | (5,784) | |||
Impact of currency exchange | 26 | |||
Accrued restructuring, ending balance | 8,174 | 8,174 | ||
Employee Severance [Member] | Integration Program [Member] | ||||
Accrued restructuring, beginning balance | 4,026 | |||
Restructuring Charges, Total | 9,412 | |||
Amounts paid or charged | (5,290) | |||
Impact of currency exchange | 26 | |||
Accrued restructuring, ending balance | 8,174 | 8,174 | ||
Other Restructuring [Member] | Integration Program [Member] | ||||
Accrued restructuring, beginning balance | ||||
Restructuring Charges, Total | 494 | |||
Amounts paid or charged | (494) | |||
Impact of currency exchange | ||||
Accrued restructuring, ending balance |
Note 5 - Financial Instrument_3
Note 5 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 0 | $ 0 |
Note 5 - Financial Instrument_4
Note 5 - Financial Instruments Measured at Fair Value - Short-term Investments by Security Type (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | ||
Short-term investments | $ 581 | $ 560 | [1] | |
Debt Security, Government, Non-US [Member] | ||||
Amortized Cost | 581 | 560 | ||
Gross Unrealized Gains | ||||
Gross Unrealized Losses | [2] | |||
Short-term investments | $ 581 | $ 560 | ||
[1] | Derived from December 29, 2018 audited financial statements | |||
[2] | As of June 29, 2019 and December 29, 2018, there were no investments in our portfolio in a loss position. |
Note 5 - Financial Instrument_5
Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Due after one year through three years, amortized cost | $ 581 | $ 560 |
Due after one year through three years, fair value | $ 581 | $ 560 |
Note 5 - Financial Instrument_6
Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
$ 143,595 | $ 165,020 | |
Debt Security, Government, Non-US [Member] | ||
Short-term investments | 581 | 560 |
Cash [Member] | ||
Cash and cash equivalents | 130,051 | 144,696 |
Money Market Funds [Member] | ||
Cash and cash equivalents | 12,963 | 19,764 |
Fair Value, Inputs, Level 1 [Member] | ||
130,051 | 144,696 | |
Fair Value, Inputs, Level 1 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | ||
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Cash and cash equivalents | 130,051 | 144,696 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | ||
13,544 | 20,324 | |
Fair Value, Inputs, Level 2 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | 581 | 560 |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents | 12,963 | 19,764 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Inputs, Level 3 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | ||
Fair Value, Inputs, Level 3 [Member] | Cash [Member] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents |
Note 6 - Employee Stock Benef_2
Note 6 - Employee Stock Benefit Plans (Details Textual) - USD ($) $ / shares in Units, $ in Millions | May 08, 2019 | Mar. 30, 2019 | Jun. 29, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 14,650 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 390,276 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 10.29 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 73 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 661,621 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 359,367 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,539,067 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 23.9 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 182 days | ||
Restricted Stock Units (RSUs) [Member] | Vesting Over One Year Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Restricted Stock Units (RSUs) [Member] | Vesting Over Four Year Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 167,226 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 34,292 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 369,811 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 5.7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 328 days | ||
Equity Based Performance Stock Units Granted in 2018, 2017, and 2016 [Member] | Vest on the Third Anniversary of Awards Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||
Minimum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 25.00% | ||
Maximum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 200.00% | ||
Equity Incentive Plan 2005 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,500,306 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,000,000 | ||
Equity Incentive Plan 2005 [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Equity Incentive Plan 2005 [Member] | Minimum [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Equity Incentive Plan 2005 [Member] | Maximum [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,034,612 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 500,000 | ||
Stock Issued During Period, Shares, New Issues | 63,998 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 4.50% | 17.50% | 2.60% | 18.90% |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | $ 0 | $ 0 | $ 0 | $ 0 |
Note 8 - Segment and Geograph_3
Note 8 - Segment and Geographic Information (Details Textual) | 6 Months Ended |
Jun. 29, 2019 | |
Number of Operating Segments | 4 |
Number of Reportable Segments | 2 |
Note 8 - Segment and Geograph_4
Note 8 - Segment and Geographic Information - Summary of Current Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |||
Net sales | [1] | $ 150,011 | $ 99,817 | $ 297,820 | $ 194,967 | ||
Segment profit (loss) before tax: | |||||||
Profit (loss) for reportable segments | (13,660) | 18,997 | (27,685) | 31,132 | |||
Interest expense | (5,282) | (11) | (10,789) | (22) | |||
Interest income | 191 | 329 | 413 | 576 | |||
Income (loss) from continuing operations before taxes | (20,299) | 14,116 | (43,350) | 24,365 | |||
Total assets for reportable segments | 1,103,504 | 1,103,504 | $ 1,134,002 | [2] | |||
Total assets | 4,165 | 4,165 | 3,820 | ||||
Corporate, Non-Segment [Member] | |||||||
Segment profit (loss) before tax: | |||||||
Corporate expenses | (1,548) | (5,199) | (5,289) | (7,321) | |||
Total assets for reportable segments | 15,960 | 15,960 | 34,367 | ||||
Semiconductor Test and Inspection [Member] | |||||||
Net sales | 137,578 | 99,817 | 274,272 | 194,967 | |||
Segment profit (loss) before tax: | |||||||
Profit (loss) for reportable segments | (14,400) | 18,997 | (29,444) | 31,132 | |||
Total assets for reportable segments | 1,021,348 | 1,021,348 | 1,038,053 | ||||
PCB Test [Member] | |||||||
Net sales | 12,433 | 23,548 | |||||
Segment profit (loss) before tax: | |||||||
Profit (loss) for reportable segments | 740 | 1,759 | |||||
Total assets for reportable segments | 62,031 | 62,031 | 57,762 | ||||
Semiconductor Test and Inspection and PCB Test [Member] | |||||||
Segment profit (loss) before tax: | |||||||
Total assets for reportable segments | $ 1,083,379 | $ 1,083,379 | $ 1,095,815 | ||||
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | ||||||
[2] | Derived from December 29, 2018 audited financial statements |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) $ in Millions | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Lessee, Operating Lease, Renewal Term | 25 years |
Finance Lease Right-of-use Asset, Accumulated Amortization | $ 0.1 |
Lessee, Sublease Income, Receivable, Remainder of Fiscal Year | 0.1 |
Lessee, Sublease Income, Receivable, Year Two | $ 0.1 |
Minimum [Member] | |
Lessee, Lease, Remaining Term of Contract | 1 year |
Maximum [Member] | |
Lessee, Lease, Remaining Term of Contract | 39 years |
Note 9 - Leases - Balance Sheet
Note 9 - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | [1] | |
Operating lease assets | $ 35,224 | |||
Finance lease assets | [2] | 2,604 | ||
Total lease assets | 37,828 | |||
Operating | 30,168 | |||
Finance | 2,605 | |||
Total lease liabilities | $ 37,766 | |||
Operating leases (Year) | 8 years 73 days | |||
Finance leases (Year) | 1 year | |||
Operating leases | 6.10% | |||
Finance leases | 4.50% | |||
Other Accrued Liabilities [Member] | ||||
Operating | $ 4,958 | |||
Finance | $ 35 | |||
[1] | Derived from December 29, 2018 audited financial statements | |||
[2] | Finance lease assets are recorded net of accumulated amortization of $0.1 million. |
Note 9 - Leases - Lease Expense
Note 9 - Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 29, 2019 | Jun. 29, 2019 | |
Operating leases | $ 2,139 | $ 4,261 |
Variable leases | 635 | 1,201 |
Short-term operating leases | 66 | 144 |
Amortization of leased assets | 21 | 62 |
Interest on lease liabilities | 29 | 88 |
Sublease income | (34) | (70) |
Net lease cost | $ 2,856 | $ 5,686 |
Note 9 - Leases - Future Minimu
Note 9 - Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 29, 2019USD ($) | |
2019, operating leases | $ 3,079 | [1] |
2019, finance leases | 76 | |
2019, total | 3,155 | |
2020, operating leases | 6,825 | [1] |
2020, finance leases | 2,682 | |
2020, total | 9,507 | |
2021, operating leases | 5,631 | [1] |
2021, finance leases | ||
2021, total | 5,631 | |
2022, operating leases | 5,374 | [1] |
2022, finance leases | ||
2022, total | 5,374 | |
2023, operating leases | 4,940 | [1] |
2023, finance leases | ||
2023, total | 4,940 | |
Thereafter, operating leases | 21,037 | [1] |
Thereafter, finance leases | ||
Thereafter, total | 21,037 | |
Total lease payments, operating leases | 46,886 | [1] |
Total lease payments, finance leases | 2,758 | |
Total lease payments, total | 49,644 | |
Less: Interest, operating leases | (11,760) | [1] |
Less: Interest, finance leases | (118) | |
Less: Interest, total | (11,878) | |
Present value of lease liabilities, operating leases | 35,126 | [1] |
Present value of lease liabilities, finance leases | 2,640 | |
Present value of lease liabilities, total | $ 37,766 | |
[1] | Excludes sublease income of $0.1 million and $0.1 million for 2019 and 2020, respectively. |
Note 9 - Leases - Cash Flow Inf
Note 9 - Leases - Cash Flow Information (Details) $ in Thousands | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Operating cash flows from operating leases | $ 3,628 |
Operating cash flows from finance leases | 73 |
Financing cash flows from finance leases | 17 |
Leased assets obtained in exchange for new operating lease liabilities | $ 38,487 |
Note 10 - Discontinued Operat_3
Note 10 - Discontinued Operations - Balance Sheet Information and Operating Results for Fixture Services Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | ||
Assets: | ||||||
Total current assets | $ 4,100 | $ 4,100 | $ 3,741 | [1] | ||
Total assets | 4,165 | 4,165 | 3,820 | |||
Liabilities: | ||||||
Total current liabilities | 624 | 624 | 518 | [1] | ||
Income, net of tax | 24 | 188 | ||||
Xcerra [Member] | ||||||
Liabilities: | ||||||
Net sales | 1,708 | 3,300 | ||||
Operating income before income taxes | 38 | 227 | ||||
Income tax provision | 14 | 39 | ||||
Income, net of tax | 24 | 188 | ||||
Xcerra [Member] | Discontinued Operations, Held-for-sale [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 750 | 750 | 461 | |||
Accounts receivable, net | 1,856 | 1,856 | 1,718 | |||
Inventories | 1,432 | 1,432 | 1,388 | |||
Other current assets | 62 | 62 | 174 | |||
Total current assets | 4,100 | 4,100 | 3,741 | |||
Property, plant and equipment, net | 52 | 52 | 66 | |||
Other noncurrent assets | 13 | 13 | 13 | |||
Total assets | 4,165 | 4,165 | 3,820 | |||
Liabilities: | ||||||
Other accrued current liabilities | 624 | 624 | 518 | |||
Total current liabilities | 624 | 624 | 518 | |||
Noncurrent liabilities | ||||||
Total liabilities | $ 624 | $ 624 | $ 518 | |||
[1] | Derived from December 29, 2018 audited financial statements |
Note 12 - Guarantees (Details T
Note 12 - Guarantees (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2019 | Dec. 29, 2018 | |
Non-current Other Accrued Liabilities [Member] | ||
Product Warranty Accrual, Noncurrent | $ 0.2 | $ 0.2 |
Minimum [Member] | ||
Standard Product Warranty Term | 1 year | |
Maximum [Member] | ||
Standard Product Warranty Term | 3 years |
Note 12 - Guarantees - Changes
Note 12 - Guarantees - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Balance at beginning of period | $ 7,088 | $ 4,916 | $ 8,014 | $ 4,848 |
Warranty expense accruals | 1,830 | 1,806 | 3,558 | 3,388 |
Warranty payments | (2,066) | (1,774) | (4,720) | (3,288) |
Balance at end of period | $ 6,852 | $ 4,948 | $ 6,852 | $ 4,948 |