DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 28, 2019 | Nov. 08, 2019 | Mar. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 28, 2019 | ||
Entity File Number | 0-121 | ||
Entity Registrant Name | KULICKE & SOFFA INDUSTRIES INC | ||
Entity Central Index Key | 0000056978 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Address, Address Line One | 23A Serangoon North Avenue 5 | ||
Entity Address, Address Line Two | #01-01 | ||
Entity Address, Address Line Three | K&S Corporate Headquarters | ||
Entity Address, City or Town | Singapore | ||
Entity Address, Country | SG | ||
Entity Address, Postal Zip Code | 554369 | ||
City Area Code | 215 | ||
Local Phone Number | 784-6000 | ||
Title of 12(b) Security | Common Stock, Without Par Value | ||
Trading Symbol | KLIC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,444.9 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Tax Identification Number | 23-1498399 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Current Fiscal Year End Date | --09-28 | ||
Entity Common Stock, Shares Outstanding | 63,028,039 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 364,184 | $ 320,630 | |
Restricted cash | [1] | 0 | 518 |
Short-term investments | [2] | 229,000 | 293,000 |
Accounts and notes receivable, net of allowance for doubtful accounts of $597 and $385, respectively | 195,830 | 243,373 | |
Inventories, net | 89,308 | 115,191 | |
Prepaid expenses and other current assets | 15,429 | 14,561 | |
Total current assets | 893,751 | 987,273 | |
Property, plant and equipment, net | 72,370 | 76,067 | |
Goodwill | 55,691 | 56,550 | |
Intangible assets, net | 42,651 | 52,871 | |
Deferred tax assets | 6,409 | 9,017 | |
Equity investments | 6,250 | 1,373 | |
Other assets | 2,494 | 2,589 | |
TOTAL ASSETS | 1,079,616 | 1,185,740 | |
Current liabilities: | |||
Short term debt | 60,904 | 0 | |
Accounts payable | 36,711 | 48,527 | |
Accrued expenses and other current liabilities | 64,533 | 105,978 | |
Income taxes payable | 12,494 | 19,571 | |
Total current liabilities | 174,642 | 174,076 | |
Financing obligation | 14,207 | 15,187 | |
Deferred tax liabilities | 32,054 | 25,591 | |
Income taxes payable | 80,290 | 81,491 | |
Other liabilities | 9,360 | 9,188 | |
TOTAL LIABILITIES | 310,553 | 305,533 | |
Commitments and contingent liabilities (Note 15) | |||
SHAREHOLDERS' EQUITY: | |||
Preferred stock, without par value: | 0 | 0 | |
Authorized 200,000 shares; issued 85,364 and 84,659 respectively; outstanding 63,172 and 67,143 shares, respectively | 533,590 | 519,244 | |
Treasury stock, at cost, 22,192 and 17,516 shares, respectively | (349,212) | (248,664) | |
Retained earnings | 594,625 | 613,529 | |
Accumulated other comprehensive loss | (9,940) | (3,902) | |
TOTAL SHAREHOLDERS' EQUITY | 769,063 | 880,207 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,079,616 | $ 1,185,740 | |
[1] | Fair value approximates cost basis. | ||
[2] | All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the fiscal years ended 2019 and 2018. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts and notes receivable | $ 597 | $ 385 |
Preferred stock, without par value (usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 85,364 | 84,659 |
Common stock, shares outstanding | 63,172 | 67,143 |
Treasury stock, shares | 22,192 | 17,516 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Income Statement [Abstract] | ||||
Net revenue | $ 540,052 | $ 889,121 | $ 809,041 | |
Cost of sales | 285,462 | 479,680 | 426,947 | |
Gross profit | 254,590 | 409,441 | 382,094 | |
Selling, general and administrative | 116,811 | 123,188 | 133,601 | |
Research and development | 116,169 | 119,621 | 100,203 | |
Impairment charges | 0 | 0 | 35,207 | |
Operating expenses | 232,980 | 242,809 | 269,011 | |
Income from operations | 21,610 | 166,632 | 113,083 | |
Interest income | 15,132 | 11,971 | 6,491 | |
Interest expense | (2,055) | (1,054) | (1,059) | |
Income before income taxes | 34,687 | 177,549 | 118,515 | |
Provision for (benefit from) income tax | 22,910 | 120,744 | (7,394) | |
Share of results of equity-method investee, net of tax | 124 | 129 | (190) | |
Net income | $ 11,653 | $ 56,676 | $ 126,099 | |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.18 | [1] | $ 0.82 | $ 1.78 |
Diluted (in dollars per share) | 0.18 | [1] | 0.80 | 1.75 |
Common Stock, Dividends, Per Share, Declared | $ 0.48 | $ 0.24 | $ 0 | |
Weighted average shares outstanding: | ||||
Basic (in shares) | 65,286 | 69,380 | 70,906 | |
Diluted (in shares) | 65,948 | 70,419 | 72,063 | |
[1] | EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 11,653 | $ 56,676 | $ 126,099 |
Other comprehensive income: | |||
Foreign currency translation adjustment | (6,534) | (3,633) | 1,960 |
Unrecognized actuarial gain on pension plan, net of tax | 22 | 116 | 990 |
Other Comprehensive Income (Loss), Foreign Currency Transaction, Translation Adjustment and unrecognized actuarial (loss), Net of Tax, Portion Attributable to Parent | (6,512) | (3,517) | 2,950 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (741) | (669) | 669 |
Other Comprehensive Loss, Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1,215 | (1,755) | 1,146 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 474 | (2,424) | 1,815 |
Total other comprehensive (loss) / income | (6,038) | (5,941) | 4,765 |
Comprehensive income | $ 5,615 | $ 50,735 | $ 130,864 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Retained earnings | Accumulated Other Comprehensive (loss) / income |
Beginning Balance at Oct. 01, 2016 | $ 799,524 | $ 498,676 | $ (139,407) | $ 442,981 | $ (2,726) |
Beginning Balance, shares at Oct. 01, 2016 | 70,420,000 | ||||
Issuance of stock for services rendered | 750 | $ 750 | |||
Treasury Stock, Shares, Acquired | (945,000) | ||||
Issuance of stock for services rendered, shares | 45,000 | ||||
Repurchase of common stock | (18,197) | $ (18,197) | |||
Exercise of stock options | 509 | $ 509 | |||
Exercise of stock options, shares | 61,000 | ||||
Issuance of shares for equity-based compensation | 0 | $ 0 | |||
Issuance of shares for market-based restricted stock and time-based restricted stock, shares | 616,000 | ||||
Excess tax benefits from stock based compensation | (4,392) | $ (4,392) | |||
Equity-based compensation expense | 10,972 | 10,972 | |||
Components of comprehensive income: | |||||
Net income | 126,099 | 126,099 | |||
Other comprehensive loss | 4,765 | ||||
Comprehensive income | 130,864 | 126,099 | 4,765 | ||
Ending Balance at Sep. 30, 2017 | 920,030 | $ 506,515 | $ (157,604) | 569,080 | 2,039 |
Ending Balance, shares at Sep. 30, 2017 | 70,197,000 | ||||
Cumulative effect of accounting changes | $ 1,414 | 4,006 | |||
Issuance of stock for services rendered | 780 | $ 780 | |||
Treasury Stock, Shares, Acquired | (3,760,000) | ||||
Issuance of stock for services rendered, shares | 33,000 | ||||
Repurchase of common stock | (91,060) | $ (91,060) | |||
Exercise of stock options | 55 | $ 55 | |||
Exercise of stock options, shares | 6,000 | ||||
Issuance of shares for equity-based compensation | 0 | $ 0 | |||
Issuance of shares for market-based restricted stock and time-based restricted stock, shares | 667,000 | ||||
Equity-based compensation expense | 10,480 | $ 10,480 | |||
Cash dividend declared | (16,233) | (16,233) | |||
Components of comprehensive income: | |||||
Net income | 56,676 | 56,676 | |||
Other comprehensive loss | (5,941) | ||||
Comprehensive income | 50,735 | 56,676 | (5,941) | ||
Ending Balance at Sep. 29, 2018 | 880,207 | $ 519,244 | $ (248,664) | 613,529 | (3,902) |
Ending Balance, shares at Sep. 29, 2018 | 67,143,000 | ||||
Cumulative effect of accounting changes | 534 | $ 0 | 534 | ||
Issuance of stock for services rendered | $ 834 | $ 834 | |||
Treasury Stock, Shares, Acquired | (4,700,000) | (4,676,000) | |||
Issuance of stock for services rendered, shares | 37,000 | ||||
Repurchase of common stock | $ (100,548) | $ (100,548) | |||
Exercise of stock options | 14 | $ 14 | |||
Exercise of stock options, shares | 2,000 | ||||
Issuance of shares for equity-based compensation | 0 | $ 0 | |||
Issuance of shares for market-based restricted stock and time-based restricted stock, shares | 667,000 | ||||
Equity-based compensation expense | 13,498 | $ 13,498 | |||
Cash dividend declared | (31,091) | (31,091) | |||
Components of comprehensive income: | |||||
Net income | 11,653 | 11,653 | |||
Other comprehensive loss | (6,038) | ||||
Comprehensive income | 5,615 | 11,653 | (6,038) | ||
Ending Balance at Sep. 28, 2019 | $ 769,063 | $ 533,590 | $ (349,212) | $ 594,625 | $ (9,940) |
Ending Balance, shares at Sep. 28, 2019 | 63,173,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 1,634 | $ 1,054 | $ 1,059 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 11,653 | 56,676 | 126,099 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,304 | 19,015 | 16,257 |
Impairment charges | 0 | 0 | 35,207 |
Equity-based compensation and employee benefits | 14,332 | 11,685 | 11,722 |
(Excess tax benefits) / Reversal of excess tax benefits from stock based compensation | 0 | (50) | 4,392 |
Adjustment for doubtful accounts | 212 | 383 | (136) |
Adjustment for inventory valuation | 2,657 | 4,897 | 10,925 |
Deferred taxes | 8,825 | 22,519 | (16,758) |
Gain/(loss) on disposal of property, plant and equipment | 20 | (676) | (999) |
Unrealized foreign currency translation | (3,325) | (2,002) | 1,362 |
Share of results of equity-method investee | 124 | 129 | (190) |
Changes in operating assets and liabilities, net of assets and liabilities assumed in businesses combinations: | |||
Accounts and notes receivable | 47,395 | (45,154) | (67,879) |
Inventory | 24,105 | 1,631 | (47,425) |
Prepaid expenses and other current assets | (490) | 9,405 | (8,468) |
Accounts payable, accrued expenses and other current liabilities | (53,759) | (30,868) | 63,425 |
Income taxes payable | (7,758) | 77,968 | 3,946 |
Other, net | 1,672 | (2,059) | 4,830 |
Net cash provided by operating activities | 65,967 | 123,499 | 136,310 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of business, net of cash acquired | 0 | 0 | (27,119) |
Purchases of property, plant and equipment | (11,742) | (20,496) | (25,590) |
Proceeds from sales of property, plant and equipment | 210 | 625 | 1,352 |
Purchase of equity investments | (5,000) | 0 | (1,312) |
Purchase of short term investments | (619,000) | (684,000) | (305,000) |
Maturity of short term investments | 683,000 | 607,000 | 213,000 |
Net cash provided by / (used in) investing activities | 47,468 | (96,871) | (144,669) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment on debts | (30,773) | (704) | (604) |
Proceeds from exercise of common stock options | 14 | 55 | 509 |
Repurchase of common stock | (99,897) | (90,310) | (18,197) |
(Reversal of excess tax benefits) / Excess tax benefits from stock based compensation | 0 | 0 | (4,392) |
Proceeds from short term debt | 90,904 | 0 | 0 |
Common stock cash dividends paid | (31,566) | (8,176) | 0 |
Net cash used in financing activities | (71,318) | (99,135) | (22,684) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 919 | 715 | 76 |
Changes in cash, cash equivalents and restricted cash | 43,036 | (71,792) | (30,967) |
Cash, cash equivalents and restricted cash at beginning of period | 321,148 | 392,940 | 423,907 |
Cash, cash equivalents and restricted cash at end of period | 364,184 | 321,148 | 392,940 |
CASH PAID FOR: | |||
Income taxes | $ 22,073 | $ 13,179 | $ 8,283 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION These consolidated financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (the “Company”), with appropriate elimination of intercompany balances and transactions. Fiscal Year Each of the Company's first three fiscal quarters ends on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter. The fourth quarter of each fiscal year ends on the Saturday closest to September 30. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. The 2019, 2018, and 2017 fiscal years ended on September 28, 2019 , September 29, 2018 and September 30, 2017 , respectively. Nature of Business The Company designs, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company's operating results depend upon the capital and operating expenditures of semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers (“OSATs”), and other electronics manufacturers, including automotive electronics suppliers, worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry's demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, including those sold by the Company. These downturns and slowdowns have in the past adversely affected the Company's operating results. The Company believes such volatility will continue to characterize the industry and the Company's operations in the future. Use of Estimates The preparation of consolidated financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, income taxes, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company's assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of September 28, 2019 and September 29, 2018 consisted primarily of trade receivables. The Company manages credit risk associated with investments by investing its excess cash in highly rated debt instruments of the U.S. government and its agencies, financial institutions, and corporations. The Company has established investment guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified as appropriate. The Company does not have any exposure to sub-prime financial instruments or auction rate securities. The Company's trade receivables result primarily from the sale of semiconductor equipment, related accessories and replacement parts, and tools to a relatively small number of large manufacturers in a highly concentrated industry. Write-offs of uncollectible accounts have historically not been significant. The Company actively monitors its customers' financial strength to reduce the risk of loss. The Company's products are complex and require raw materials, components and subassemblies having a high degree of reliability, accuracy and performance. The Company relies on subcontractors to manufacture many of these components and subassemblies and it relies on sole source suppliers for some important components and raw material inventory. Foreign Currency Translation and Remeasurement The majority of the Company's business is transacted in U.S. dollars; however, the functional currencies of some of the Company's subsidiaries are their local currencies. In accordance with ASC No. 830, Foreign Currency Matters (“ASC 830”), for a subsidiary of the Company that has a functional currency other than the U.S. dollar, gains and losses resulting from the translation of the functional currency into U.S. dollars for financial statement presentation are not included in determining net income, but are accumulated in the cumulative translation adjustment account as a separate component of shareholders' equity (accumulated other comprehensive income / (loss)). Under ASC 830, cumulative translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Gains and losses resulting from foreign currency transactions are included in the determination of net income. The Company's operations are exposed to changes in foreign currency exchange rates due to transactions denominated in currencies other than the location's functional currency. The Company is also exposed to foreign currency fluctuations that impact the remeasurement of net monetary assets of those operations whose functional currency, the U.S. dollar, differs from their respective local currencies, most notably in Israel, Singapore and Switzerland. In addition to net monetary remeasurement, the Company has exposures related to the translation of subsidiary financial statements from their functional currency, the local currency, into its reporting currency, the U.S. dollar, most notably in the Netherlands, China, Taiwan, Japan and Germany. The Company's U.S. operations also have foreign currency exposure due to net monetary assets denominated in currencies other than the U.S. dollar. Derivative Financial Instruments The Company’s primary objective for holding derivative financial instruments is to manage the fluctuation in foreign exchange rates and accordingly is not speculative in nature. The Company’s international operations are exposed to changes in foreign exchange rates as described above. The Company has established a program to monitor the forecasted transaction currency risk to protect against foreign exchange rate volatility. Generally, the Company uses foreign exchange forward contracts in these hedging programs. These instruments, which have maturities of up to twelve months, are recorded at fair value and are included in prepaid expenses and other current assets, or accrued expenses and other current liabilities. Our accounting policy for derivative financial instruments is based on whether they meet the criteria for designation as a cash flow hedge. A designated hedge with exposure to variability in the functional currency equivalent of the future foreign currency cash flows of a forecasted transaction is referred to as a cash flow hedge. The criteria for designating a derivative as a cash flow hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction, and the assessment of the probability that the underlying transaction will occur. For derivatives with cash flow hedge accounting designation, we report the after-tax gain / (loss) from the effective portion of the hedge as a component of accumulated other comprehensive income / (loss) and reclassify it into earnings in the same period in which the hedged transaction affects earnings and in the same line item on the consolidated statement of operations as the impact of the hedged transaction. Derivatives that we designate as cash flow hedges are classified in the consolidated statement of cash flows in the same section as the underlying item, primarily within cash flows from operating activities. The hedge effectiveness of these derivative instruments is evaluated by comparing the cumulative change in the fair value of the hedge contract with the cumulative change in the fair value of the forecasted cash flows of the hedged item. If a cash flow hedge is discontinued because it is no longer probable that the original hedged transaction will occur as previously anticipated, the cumulative unrealized gain or loss on the related derivative is reclassified from accumulated other comprehensive income / (loss) into earnings. Subsequent gain / (loss) on the related derivative instrument is recognized into earnings in each period until the instrument matures, is terminated, is re-designated as a qualified cash flow hedge, or is sold. Ineffective portions of cash flow hedges, as well as amounts excluded from the assessment of effectiveness, are recognized in earnings. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents are measured at fair value based on level one measurement, or quoted market prices, as defined by ASC No. 820, Fair Value Measurements and Disclosures . Equity Investments The Company invests in equity securities in companies to promote business and strategic objectives. Equity investments are measured and recorded as follows: • Equity method investments are equity securities in investees that provide the Company with the ability to exercise significant influence in which it lacks a controlling financial interest. Our proportionate share of the income or loss is recognized on a one-quarter lag and is recorded as share of results of equity-method investee, net of tax. • Non-marketable equity securities are equity securities without readily determinable fair value that are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its customers' failure to make required payments. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company is also subject to concentrations of customers and sales to a few geographic locations, which could also impact the collectability of certain receivables. If global or regional economic conditions deteriorate or political conditions were to change in some of the countries where the Company does business, it could have a significant impact on the results of operations, and the Company's ability to realize the full value of its accounts receivable. Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or net realizable value. The Company generally provides reserves for obsolete inventory and for inventory considered to be in excess of demand. Demand is generally defined as 18 months forecasted future consumption for equipment, 24 months forecasted future consumption for spare parts, and 12 months forecasted future consumption for tools. Forecasted consumption is based upon internal projections, historical sales volumes, customer order activity and a review of consumable inventory levels at customers' facilities. The Company communicates forecasts of its future consumption to its suppliers and adjusts commitments to those suppliers accordingly. If required, the Company reserves the difference between the carrying value of its inventory and the lower of cost or net realizable value, based upon projections about future consumption, and market conditions. If actual market conditions are less favorable than projections, additional inventory reserves may be required. Inventory reserve provision for certain subsidiaries is determined based on management's estimate of future consumption for equipment and spare parts. This estimate is based on historical sales volumes, internal projections and market developments and trends. Property, Plant and Equipment Property, plant and equipment are carried at cost. The cost of additions and those improvements which increase the capacity or lengthen the useful lives of assets are capitalized while repair and maintenance costs are expensed as incurred. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives as follows: buildings 25 years ; machinery, equipment, furniture and fittings 3 to 10 years ; toolings 1 year ; and leasehold improvements are based on the shorter of the life of lease or life of asset . Purchased computer software costs related to business and financial systems are amortized over a five-year period on a straight-line basis. Land is not depreciated. Valuation of Long-Lived Assets In accordance with ASC No. 360, Property, Plant & Equipment ("ASC 360"), the Company's property, plant and equipment is tested for impairment based on undiscounted cash flows when triggering events occur, and if impaired, written-down to fair value based on either discounted cash flows or appraised values. ASC 360 also provides a single accounting model for long-lived assets to be disposed of by sale and establishes additional criteria that would have to be met to classify an asset as held for sale. The carrying amount of an asset or asset group is not recoverable to the extent it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Estimates of future cash flows used to test the recoverability of a long-lived asset or asset group must incorporate the entity's own assumptions about its use of the asset or asset group and must factor in all available evidence. ASC 360 requires that long-lived assets be tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Such events include significant under-performance relative to historical internal forecasts or projected future operating results; significant changes in the manner of use of the assets; significant negative industry or economic trends; or significant changes in market capitalization. During the fiscal years ended September 28, 2019 and September 29, 2018 , no "triggering" events occurred. Accounting for Impairment of Goodwill ASC No. 350, Intangibles - Goodwill and Other ("ASC 350") requires goodwill and other intangible assets with indefinite lives to be reviewed for impairment annually, or more frequently if circumstances indicate a possible impairment. We assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, a company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing the impairment test is unnecessary. However, if a company concludes otherwise, then it is required to perform the goodwill impairment test. Following the Company's early adoption of ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment in the third quarter of fiscal 2017, the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment (i.e. step 2 of the goodwill impairment test) was eliminated. Accordingly, the Company's impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. As part of the annual evaluation, the Company performs an impairment test of its goodwill in the fourth quarter of each fiscal year to coincide with the completion of its annual forecasting and refreshing of its business outlook processes. On an ongoing basis, the Company monitors if a “triggering” event has occurred that may have the effect of reducing the fair value of a reporting unit below its respective carrying value. Adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment charge in the future. Impairment assessments inherently involve judgment as to the assumptions made about the expected future cash flows and the impact of market conditions on those assumptions. Future events and changing market conditions may impact the assumptions as to prices, costs, growth rates or other factors that may result in changes in the estimates of future cash flows. Although the Company believes the assumptions that it has used in testing for impairment are reasonable, significant changes in any one of the assumptions could produce a significantly different result. Indicators of potential impairment may lead the Company to perform interim goodwill impairment assessments, including significant and unforeseen customer losses, a significant adverse change in legal factors or in the business climate, a significant adverse action or assessment by a regulator, a significant stock price decline or unanticipated competition. For further information on goodwill and other intangible assets, see Note 3 below. Revenue Recognition In accordance with ASC No. 606, Revenue from Contracts with Customers , the Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. The Company recognizes revenue from sales of our products, including sales to our distributors, at a point in time, generally upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order. Control is considered transferred when title and risk of loss pass, when the customer becomes obligated to pay and, where applicable, when the customer has accepted the products or upon expiration of the acceptance period. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. Our business is subject to contingencies related to customer orders, including: • Right of Return : A large portion of our revenue comes from the sale of equipment used in the semiconductor assembly process. Other product sales relate to consumable products, which are sold in high-volume quantities, and are generally maintained at low stock levels at customers' facilities. Customer returns have historically represented a very small percentage of customer sales on an annual basis. • Warranties : Our equipment is generally shipped with a one-year warranty against manufacturing defects. We establish reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management's estimate of future expenses, including product parts replacement, freight charges and labor costs expected to be incurred to correct product failures during the warranty period. • Conditions of Acceptance: Sales of our consumable products generally do not have customer acceptance terms. In certain cases, sales of our equipment have customer acceptance clauses which may require the equipment to perform in accordance with customer specifications or when installed at the customer's facility. In such cases, if the terms of acceptance are satisfied at our facility prior to shipment, the revenue for the equipment will be recognized upon shipment. If the terms of acceptance are satisfied at our customers' facilities, the revenue for the equipment will not be recognized until acceptance, which is typically obtained after installation and testing, is received from the customer. Service revenue is generally recognized over time as the services are performed. For the fiscal year ended September 28, 2019 , the service revenue is not material. The Company measures revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Any variable consideration such as sales incentives are recognized as a reduction of net revenue at the time of revenue recognition. The length of time between invoicing and payment is not significant under our payment terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. Shipping and handling costs billed to customers are recognized in net revenue. Shipping and handling costs paid by the Company are included in cost of sales. Research and Development The Company charges research and development costs associated with the development of new products to expense when incurred. In certain circumstances, pre-production machines that the Company intends to sell are carried as inventory until sold. Income Taxes In accordance with ASC No. 740, Income Taxes , deferred income taxes are determined using the balance sheet method . The Company records a valuation allowance to reduce its deferred tax assets to the amount expected, on a more likely than not basis, to be realized. While the Company has considered future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance, if it were to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period when such determination is made. Likewise, should the Company determine it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the deferred tax asset would decrease income in the period when such determination is made. The Company determines the amount of unrecognized tax benefit with respect to uncertain tax positions taken or expected to be taken on its income tax returns in accordance with ASC No. 740 Topic 10, Income Taxes, General (“ASC 740.10”). Under ASC 740.10, the Company utilizes a two-step approach for evaluating uncertain tax positions. Step one, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon examination solely based on its technical merit. Step two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority, including resolution of related appeals or litigation processes, if any. Equity-Based Compensation The Company accounts for equity-based compensation under the provisions of ASC No. 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 requires the recognition of the fair value of the equity-based compensation in net income. Compensation expense associated with Relative TSR Performance Share Units is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based and Special/Growth Performance Share Units is determined based on the number of shares granted and the fair value on the date of grant. See Note 9 for a summary of the terms of these performance-based awards. The fair value of the Company's stock option awards is estimated using a Black-Scholes option valuation model. The fair value of equity-based awards is amortized over the vesting period of the award, and the Company elected to use the straight-line method for awards granted after the adoption of ASC 718. Earnings per Share Earnings per share (“EPS”) are calculated in accordance with ASC No. 260, Earnings per Share . Basic EPS include only the weighted average number of common shares outstanding during the period. Diluted EPS include the weighted average number of common shares and the dilutive effect of stock options, restricted stock awards, performance share units and restricted share units outstanding during the period, when such instruments are dilutive. Accounting for Business Acquisitions The Company accounts for business acquisitions in accordance with ASC No. 805, Business Combinations . The fair value of the net assets acquired and the results of operations of the acquired businesses are included in the consolidated financial statements from the acquisition date forward. The Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, deferred revenue, intangible assets and related deferred tax balances, useful lives of plant and equipment, and amortizable lives of acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. Restructuring Charges Restructuring charges may consist of voluntary or involuntary severance-related charges, asset-related charges and other costs due to exit activities. We recognize voluntary termination benefits when an employee accepts the offered benefit arrangement. We recognize involuntary severance-related charges depending on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. If the former, we recognize the charges once they are probable and the amounts are estimable. If the latter, we recognize the charges once the benefits have been communicated to employees. Recent Accounting Pronouncements Income Taxes In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . The new guidance is effective for the Company in the first quarter of fiscal 2019 and requires the tax effects of intercompany transactions (other than transfers of inventory) to be recognized currently. The Company has adopted the modified retrospective approach for the transition based on the new guidance and, as of the beginning of the period of adoption, has recorded the cumulative effect of adjustments related to intra-entity transfers of intangible and fixed assets of $0.5 million in prior years as an increase to retained earnings. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA and requires entities to provide certain disclosures regarding stranded tax effects, if any. The ASU is effective for us in the first quarter of 2020. However, we do not expect the adoption of this ASU to have a material impact on our financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current GAAP. Subsequently in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides additional information concerning the new leases standard in ASU 2016-02, Leases (Topic 842). The targeted improvements provide entities with additional and optional transition methods. In November 2018, the FASB issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors . This ASU provides guidance in several areas, including the accounting policy election for sales taxes and other similar taxes collected from lessees, accounting for certain lessor costs and accounting for variable payments for contracts with lease and nonlease components. The Company will adopt these ASUs utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of its first fiscal quarter of 2020 and not restate prior periods. In addition, we will elect the package of practical expedients permitted under the transition guidance that allowed us to apply prior conclusions related to lease definition, classification and initial direct costs. The adoption of these ASUs is expected to result in an increase to our consolidated balance sheet of approximately $23.8 million in operating lease liabilities and $22.2 million in right-of-use assets, decrease of approximately $14.5 million in financing obligation, decrease of approximately $15.3 million in property, plant and equipment, and an adjustment of $0.8 million to retained earnings. Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the impairment methodology in current GAAP, which delays recognition of credit losses until it is probable a loss has been incurred, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for us beginning in our first quarter of fiscal 2021. Early adoption is permitted beginning in our first fiscal quarter of 2020. We do not expect the adoption of this ASU itself to have a material impact on our financial statements. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) . The new guidance expands and refines hedge accounting for both financial and non-financial risks. The new guidance also modifies disclosure requirements for hedging activities. The new guidance will be effective for us beginning in our first quarter of fiscal 2020, and early adoption is permitted in any interim period. We do not expect the adoption of this ASU to have a material impact on our financial statements. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount to which an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20” and collectively, the “new revenue standards”). The Company has performed an evaluation of this ASU (and related ASUs) and its impact on the financial statements. This included identifying contracts and performance obligations and reviewing the applicable revenue streams. We have completed our assessment and implemented policies, processes, and controls to support the standard's measurement and disclosure requirements. The new standard was adopted in the first quarter of fiscal 2019 using a modified retrospective approach. Based on our review of all our customer agreements for the affected periods, our revenue from sales of our products, such as equipment and spare parts, will continue to be recognized at a point in time, generally upon shipment or delivery to customers or distributo |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS The following tables reflect the components of significant balance sheet accounts as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Short term investments, available-for-sale (1) $ 229,000 $ 293,000 Inventories, net: Raw materials and supplies $ 52,853 $ 63,894 Work in process 32,026 37,829 Finished goods 33,742 40,357 118,621 142,080 Inventory reserves (29,313 ) (26,889 ) $ 89,308 $ 115,191 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements (2) 41,961 41,616 Leasehold improvements (2) 24,441 23,561 Data processing equipment and software 36,302 35,469 Machinery, equipment, furniture and fixtures 71,465 68,666 Construction in progress 6,512 6,940 182,863 178,434 Accumulated depreciation (110,493 ) (102,367 ) $ 72,370 $ 76,067 Accrued expenses and other current liabilities: Accrued customer obligations (3) $ 26,292 $ 34,918 Wages and benefits 18,188 44,505 Commissions and professional fees 2,024 5,549 Dividends payable 7,582 8,057 Deferred rent 1,721 1,847 Severance 1,500 1,415 Other 7,226 9,687 $ 64,533 $ 105,978 (1) All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the fiscal years ended 2019 and 2018. (2) Certain balances as at September 29, 2018 relating to property, plant and equipment have been reclassified. These reclassifications have no impact to the Consolidated Balance Sheet as at September 29, 2018. (3) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process. The Company performed its annual assessment in the fourth quarter of fiscal 2019 and concluded that no impairment charge was required. During the fiscal year ended September 28, 2019 , the Company reviewed qualitative factors to ascertain if a "triggering" event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value and concluded that no triggering event had occurred. The following table summarizes the Company's recorded goodwill by reportable segments as of September 28, 2019 and September 29, 2018 : (in thousands) Capital Equipment APS Balance at September 29, 2018 $ 30,159 $ 26,391 Other (679 ) (180 ) Balance at September 28, 2019 $ 29,480 $ 26,211 Intangible Assets Intangible assets with determinable lives are amortized over their estimated useful lives. The Company's intangible assets consist primarily of developed technology, customer relationships and trade and brand names. The following table reflects net intangible assets as of September 28, 2019 and September 29, 2018 : As of Average estimated (dollar amounts in thousands) September 28, 2019 September 29, 2018 useful lives (in years) Developed technology $ 87,209 $ 90,500 7.0 to 15.0 Accumulated amortization (48,718 ) (45,229 ) Net developed technology $ 38,491 $ 45,271 Customer relationships $ 35,180 $ 36,131 5.0 to 6.0 Accumulated amortization (31,862 ) (29,820 ) Net customer relationships $ 3,318 $ 6,311 Trade and brand names $ 7,219 $ 7,377 7.0 to 8.0 Accumulated amortization (6,377 ) (6,088 ) Net trade and brand names $ 842 $ 1,289 Other intangible assets $ 2,500 $ 2,500 1.9 Accumulated amortization (2,500 ) (2,500 ) Net wedge bonder other intangible assets $ — $ — Net intangible assets $ 42,651 $ 52,871 The following table reflects estimated annual amortization expense related to intangible assets as of September 28, 2019 : As of (in thousands) September 28, 2019 Fiscal 2020 $ 7,196 Fiscal 2021 5,212 Fiscal 2022 4,271 Fiscal 2023 4,177 Fiscal 2024 and thereafter 21,795 Total amortization expense $ 42,651 |
CASH, CASH EQUIVALENTS, RESTRIC
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Sep. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. In general, these investments are free of trading restrictions. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 28, 2019 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 201,005 $ — $ — $ 201,005 Cash equivalents: Money market funds (1) 163,172 — — 163,172 Time deposits (2) 7 — — 7 Total cash and cash equivalents $ 364,184 $ — $ — $ 364,184 Restricted Cash (2) $ — $ — $ — $ — Total restricted cash $ — $ — $ — $ — Short-term investments (2) : Time deposits $ 130,000 $ — $ — $ 130,000 Deposits (3) 99,000 — — 99,000 Total short-term investments $ 229,000 $ — $ — $ 229,000 Total cash, cash equivalents, restricted cash and short-term investments $ 593,184 $ — $ — $ 593,184 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) Fair value approximates cost basis. (3) Represents deposits that require a notice period of three months for withdrawal. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 29, 2018 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 42,446 $ — $ — $ 42,446 Cash equivalents: Money market funds (1) 209,172 — (5 ) 209,167 Time deposits (2) 69,017 — — 69,017 Total cash and cash equivalents $ 320,635 $ — $ (5 ) $ 320,630 Restricted Cash (2) $ 518 $ — $ — $ 518 Total restricted cash $ 518 $ — $ — $ 518 Short-term investments (2) : Time deposits $ 197,000 $ — $ — $ 197,000 Deposits (3) 96,000 — — 96,000 Total short-term investments $ 293,000 $ — $ — $ 293,000 Total cash, cash equivalents, restricted cash and short-term investments $ 614,153 $ — $ (5 ) $ 614,148 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) Fair value approximates cost basis. (3) |
EQUITY INVESTMENTS (Notes)
EQUITY INVESTMENTS (Notes) | 12 Months Ended |
Sep. 28, 2019 | |
Equity Investments [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Equity Investments Equity investments consisted of the following as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Non-marketable equity securities (1) $ 5,000 $ — Equity method investments 1,250 1,373 Total $ 6,250 $ 1,373 (1) On January 30, 2019, the Company made a $5.0 million investment in one of our collaborative partners, over which the Company does not have significant influence. During the fiscal year ended September 28, 2019 , there was no impairment or adjustment to the observable price. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASURMENTS | FAIR VALUE MEASUREMENTS Accounting standards establish three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2) and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities at fair value on a recurring basis. There were no transfers between fair value measurement levels during the fiscal year ended September 28, 2019 . Fair Value Measurements on a Nonrecurring Basis Our non-financial assets such as intangible assets and property, plant and equipment are carried at cost unless impairment is deemed to have occurred. Our equity method investments are recorded at fair value only if an impairment is recognized. Fair Value of Financial Instruments Amounts reported as accounts receivables, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENT (Notes) | 12 Months Ended |
Sep. 28, 2019 | |
Derivative financial Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE FINANCIAL INSTRUMENTS The Company’s international operations are exposed to changes in foreign exchange rates due to transactions denominated in currencies other than U.S. dollars. Most of the Company’s revenue and cost of materials are transacted in U.S. dollars. However, a significant amount of the Company’s operating expenses is denominated in foreign currencies, primarily in Singapore. The foreign currency exposure of our operating expenses is generally hedged with foreign exchange forward contracts. The Company’s foreign exchange risk management programs include using foreign exchange forward contracts with cash flow hedge accounting designation to hedge exposures to the variability in the U.S.-dollar equivalent of forecasted non-U.S. dollar-denominated operating expenses. These instruments generally mature within twelve months . For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss), and we reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the Consolidated Statements of Operations as the impact of the hedged transaction. The fair value of derivative instruments on our Consolidated Balance Sheet as of September 28, 2019 and September 29, 2018 is as follows: As of (in thousands) September 28, 2019 September 29, 2018 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Liability Derivatives (1) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 33,834 $ 597 $ 43,095 $ 1,071 Total derivatives $ 33,834 $ 597 $ 43,095 $ 1,071 (1) The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet. (2) Hedged amounts expected to be recognized into earnings within the next twelve months . The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Operations for the fiscal year ended September 28, 2019 and September 29, 2018 was as follows: (in thousands) Fiscal 2019 2018 Foreign exchange forward contract in cash flow hedging relationships: Net loss recognized in OCI, net of tax (1) $ (741 ) $ (669 ) Net (loss) / gain reclassified from accumulated OCI into earnings, net of tax (2) $ (1,215 ) $ 1,755 (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) |
DEBT AND OTHER OBLIGATIONS
DEBT AND OTHER OBLIGATIONS | 12 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER OBLIGATIONS | DEBT AND OTHER OBLIGATIONS Financing Obligation On December 1, 2013, Kulicke & Soffa Pte Ltd. (“Pte”), the Company's wholly owned subsidiary, signed a lease with DBS Trustee Limited as trustee of Mapletree Industrial Trust (the “Landlord”) to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of a building in Singapore as our corporate headquarters, as well as a manufacturing, technology, sales and service center (the “Building”). The lease has a 10 year non-cancellable term (the "Initial Term") and contains options to renew for 2 further 10 -year terms. The annual rent and service charge for the initial term range from $4 million to $5 million Singapore dollars. Pursuant to ASC No. 840, Leases ("ASC 840"), we have classified the Building on our balance sheet as Property, Plant and Equipment, which we are depreciating over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. At the inception of the lease, the asset and financing obligation recorded on the balance sheet was $20.0 million , which was based on an interest rate of 6.3% over the Initial Term. As of September 28, 2019 , the financing obligation related to the Building is $15.0 million , which approximates fair value (Level 2). The financing obligation will be settled through a combination of periodic cash rental payments and the return of the leased property at the expiration of the lease. We do not report rent expense for the property, which is deemed owned for accounting purposes. Rather, rental payments required under the lease are considered debt service and applied to the deemed landlord financing obligation and interest expense. The Building and financing obligation are being amortized in a manner that will not generate a gain or loss upon lease termination. Bank Guarantees On November 22, 2013, the Company obtained a $5.0 million credit facility with Citibank in connection with the issuance of bank guarantees for operational purposes. As of September 28, 2019 and September 29, 2018 , the outstanding amount was $3.1 million and $4.0 million respectively. Credit Facilities On February 15, 2019, the Company entered into a Facility Letter and Overdraft Agreement (collectively, the “Facility Agreements”) with MUFG Bank, Ltd., Singapore Branch (the “Bank”). The Facility Agreements provide the Company with an overdraft line of credit facility of up to $150.0 million (the “Overdraft Facility”) for general corporate purposes. Amounts outstanding under the Overdraft Facility, including interest, are payable upon thirty days' written demand by the Bank. Interest on the Overdraft Facility is calculated on a daily basis, and the applicable interest rate is calculated at the overnight U.S. Dollar LIBOR rate plus a margin of 1.5% per annum. The Overdraft Facility is an unsecured facility per the terms of the Facility Agreements. The Facility Agreements contain customary non-financial covenants, including, without limitation, covenants that restrict the Company’s ability to sell or dispose of its assets, cease owning at least 51% of one of its subsidiaries (the "Subsidiary"), or encumber its assets with material security interests (including any pledge of monies in the Subsidiary’s cash deposit account with the Bank). The Facility Agreements also contain typical events of default, including, without limitation, non-payment of financial obligations when due, cross defaults to other material indebtedness of the Company or any breach of a representation or warranty under the Facility Agreements. As of September 28, 2019 , the outstanding amount under the Facility Agreements is $60.9 million . |
SHAREHOLDERS' EQUITY AND EMPLOY
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS | SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS Common Stock and 401(k) Retirement Income Plans The Company has a 401(k) retirement plan (the “Plan”) for eligible U.S. employees. The Plan allows for employee contributions and matching Company contributions from 4% to 6% based upon terms and conditions of the 401(k) Plan. The following table reflects the Company’s contributions to the Plan during fiscal 2019 and 2018: Fiscal (in thousands) 2019 2018 Cash $ 1,648 $ 1,610 Share Repurchase Program On August 15, 2017 , the Company's Board of Directors authorized a program (the "Program") to repurchase up to $100 million of the Company’s common stock on or before August 1, 2020. On July 10, 2018, the Company's Board of Directors increased the share repurchase authorization under the Program to $200 million . On January 31, 2019, the Board of Directors further increased the share repurchase authorization under the Program to $300 million . The Company has entered into a written trading plan under Rule 10b5-1 of the Exchange Act to facilitate repurchases under the Program. The Program may be suspended or discontinued at any time and is funded using the Company's available cash, cash equivalents and short-term investments. Under the Program, shares may be repurchased through open market and/or privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under the Program depend on market conditions as well as corporate and regulatory considerations. During the fiscal year ended September 28, 2019 , the Company repurchased a total of 4.7 million shares of common stock at a cost of $100.5 million . The share repurchases were recorded in the periods they were delivered and accounted for as treasury stock in the Company’s Consolidated Balance Sheet. The Company records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid-in capital associated with prior treasury stock transactions is insufficient to cover the difference between acquisition cost and the reissue price, this difference is recorded against retained earnings. As of September 28, 2019 , our remaining share repurchase authorization under the Program was approximately $97.1 million. Dividends On August 7, 2019, May 20, 2019, February 28, 2019 and December 12, 2018, the Board of Directors declared a quarterly dividend $0.12 per share of common stock. During the fiscal year ended September 28, 2019 , the Company declared dividends of $0.48 per share of common stock. The declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on the Company's financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that such dividends are in the best interests of the Company's stockholders. Accumulated Other Comprehensive Income The following table reflects accumulated other comprehensive income / (loss) reflected on the Consolidated Balance Sheets as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Loss from foreign currency translation adjustments $ (7,745 ) $ (1,211 ) Unrecognized actuarial loss on pension plan, net of tax (1,598 ) (1,620 ) Unrealized loss on hedging (597 ) (1,071 ) Accumulated other comprehensive loss $ (9,940 ) $ (3,902 ) Equity-Based Compensation The Company has stockholder-approved equity-based employee compensation plans (the “Employee Plans”) and director compensation plans (the “Director Plans”) (collectively, the “Equity Plans”). As of September 28, 2019 , 4.0 million shares of common stock are available for grant to the Company's employees and directors under the 2017 Equity Plan, including previously registered shares that have been carried forward for issuance under the 2009 Equity Plan. • Relative TSR Performance Share Units ("Relative TSR PSUs") entitle the employee to receive common shares of the Company on the award vesting date if market performance objectives which measure relative total shareholder return (“TSR”) are attained. Relative TSR is calculated based upon the 90 -calendar day average price of the Company's stock as compared to specific peer companies that comprise the GICS (45301020) Semiconductor Index. TSR is measured for the Company and each peer company over a performance period, which is generally three years . Vesting percentages range from 0% to 200% of awards granted. The provisions of the Relative TSR PSUs are reflected in the grant date fair value of the award; therefore, compensation expense is recognized regardless of whether the market condition is ultimately satisfied. Compensation expense is reversed if the award is forfeited prior to the vesting date. • In general, stock options and Time-based Restricted Share Units ("Time-based RSUs") awarded to employees vest annually over a three-year period provided the employee remains employed by the Company. The Company follows the non-substantive vesting method for stock options and recognizes compensation expense immediately for awards granted to retirement-eligible employees, or over the period from the grant date to the date retirement eligibility is achieved. • Special/Growth Performance Share Units (“Special/Growth PSUs”) entitle the employee to receive common shares of the Company on the three-year anniversary of the grant date (if employed by the Company) if revenue growth targets set by the Management Development and Compensation Committee (“MDCC”) of the Board of Directors on the date of grant are met. If revenue growth targets are not met, the Special/Growth PSUs do not vest. Certain Special/Growth PSUs vest based on achievement of strategic goals over a certain time period or periods set by the MDCC. If the strategic goals are not achieved, the Special/Growth PSUs do not vest. • In general, Performance-based Restricted Stock entitles the employee to receive common shares of the Company on the three-year anniversary of the grant date (if employed by the Company) if return on invested capital and revenue growth targets set by the Management Development and Compensation Committee (“MDCC”) of the Board of Directors on the date of grant are met. If return on invested capital and revenue growth targets are not met, Performance-based Restricted Stock does not vest. Certain PSUs vest based on achievement of strategic goals over a certain time period or periods set by the MDCC. If the strategic goals are not achieved, the PSUs do not vest. Equity-based compensation expense recognized in the Consolidated Statements of Operations for fiscal 2019, 2018, and 2017 was based upon awards ultimately expected to vest. Following the early adoption in the first quarter of fiscal 2018 of ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , forfeitures have been accounted for when they occur. The following table reflects total equity-based compensation expense, which includes Relative TSR PSUs, Time-based RSUs, Special/Growth PSUs, Performance-based Restricted Stock and common stock, included in the Consolidated Statements of Operations for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Cost of sales $ 632 $ 515 $ 463 Selling, general and administrative 10,503 8,548 9,015 Research and development 3,197 2,622 2,244 Total equity-based compensation expense $ 14,332 $ 11,685 $ 11,722 The following table reflects equity-based compensation expense, by type of award, for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Relative TSR PSUs $ 4,220 $ 3,583 $ 3,480 Time-based RSUs 8,603 7,027 7,492 Special/Growth PSUs 675 295 — Common stock 834 780 750 Total equity-based compensation expense $ 14,332 $ 11,685 $ 11,722 Equity-Based Compensation: Relative TSR PSUs The following table reflects Relative TSR PSUs activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Relative TSR PSUs outstanding as of October 1, 2016 484 $ 2,924 1.0 Granted 388 $ 13.47 Forfeited or expired (3 ) Vested (196 ) Relative TSR PSUs outstanding as of September 30, 2017 673 $ 6,204 1.4 Granted 180 $ 29.60 Forfeited or expired (146 ) Vested (168 ) Relative TSR PSUs outstanding as of September 29, 2018 539 $ 4,629 1.1 Granted 166 $ 23.15 Forfeited or expired (27 ) Vested (117 ) Relative TSR PSUs outstanding as of September 28, 2019 561 $ 4,136 0.9 The following table reflects the assumptions used to calculate compensation expense related to the Company’s Relative TSR PSUs issued during fiscal 2019, 2018, and 2017 : Fiscal 2019 2018 2017 Grant Price $ 20.87 $ 19.65 $ 12.51 Expected dividend yield (1) 2.30 % 0.12 % N/A Expected stock price volatility 34.20 % 31.71 % 30.39 % Risk-free interest rate 2.92 % 1.68 % 0.96 % (1) The expected dividend yield for fiscal 2018 includes the effect of 10,511 grants which were issued in the quarter ended September 29, 2018 with an assumed dividend yield of 1.91% Equity-Based Compensation: Time-based RSUs The following table reflects Time-based RSUs activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Time-based RSUs outstanding as of October 1, 2016 1,015 $ 6,440 1.5 Granted 715 $ 13.32 Forfeited or expired (50 ) Vested (600 ) Time-based RSUs outstanding as of September 30, 2017 1,080 $ 7,770 1.5 Granted 459 $ 22.32 Forfeited or expired (87 ) Vested (542 ) Time-based RSUs outstanding as of September 29, 2018 910 $ 9,038 1.4 Granted 521 $ 20.95 Forfeited or expired (42 ) Vested (442 ) Time-based RSUs outstanding as of September 28, 2019 947 $ 10,555 1.4 Equity-Based Compensation: Special/Growth PSUs The following table reflects Special/Growth PSUs activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Special/Growth PSUs outstanding as of September 30, 2017 — Granted 60 $ 22.57 Forfeited or expired (14 ) Vested — Special/Growth PSUs outstanding as of September 29, 2018 46 $ 702 2.1 Granted $ 55 $ 21.07 Forfeited or expired $ (4 ) Vested $ — Special/Growth PSUs outstanding as of September 28, 2019 $ 97 $ 1,128 1.6 The following table reflects employee stock option activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of October 1, 2016 90 $ 8.41 Exercised (61 ) $ 8.31 $ 531 Forfeited or expired (13 ) $ 8.50 Options outstanding as of September 30, 2017 16 $ 8.73 Exercised (6 ) $ 8.74 $ 73 Forfeited or expired (8 ) $ 8.74 Options outstanding as of September 29, 2018 2 $ 8.64 Exercised (2 ) $ 8.64 $ 24 Forfeited or expired — $ — Options outstanding as of September 28, 2019 — $ — — $ — Options vested and expected to vest as of September 28, 2019 — $ — — $ — Options exercisable as of September 28, 2019 — $ — — In the money exercisable options as of September 28, 2019 — $ — Intrinsic value of stock options exercised is determined by calculating the difference between the market value of the Company's stock price at the time an option is exercised and the exercise price, multiplied by the number of shares. As of September 28, 2019 , there were no unvested employee stock options. Equity-Based Compensation: Non-Employee Directors The 2017 Equity Plan provides for the grant of common shares to each non-employee director upon initial election to the board and on the first business day of each calendar quarter while serving on the board. The grant to a non-employee director upon initial election to the board is that number of common shares closest in value to, without exceeding, $120,000 . The quarterly grant to a non-employee director upon the first business day of each calendar quarter is that number of common shares closest in value to, without exceeding, $37,000 . The following table reflects shares of common stock issued to non-employee directors and the corresponding fair value for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Number of common shares issued 37 33 45 Fair value based upon market price at time of issue $ 834 $ 780 $ 750 Pension Plan The following table reflects the Company's defined benefits pension obligations, mainly in Switzerland and Taiwan, as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Switzerland pension obligation $ 1,962 $ 1,980 Taiwan pension obligation 1,191 1,256 Other Plans |
REVENUE AND CONTRACT LIABILITIE
REVENUE AND CONTRACT LIABILITIES | 12 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND CONTRACT LIABILITIES | REVENUE AND CONTRACT LIABILITIES The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. For the fiscal years ended September 28, 2019 , and September 29, 2018 , service revenue is not material. Please refer to Note 1: Basis of Presentation- Revenue Recognition , for additional disclosure on the Company's revenue recognition policy. The Company reports revenue based on our reportable segments. The Company believes that reporting revenue on this basis provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 14: Segment Information, for disclosure of revenue by segment. Contract Liabilities Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations, and are reported in the accompanying consolidated condensed balance sheets within accrued expenses and other current liabilities. Contract liabilities increase as a result of receiving new advance payments from customers and decrease as revenue is recognized from customers purchasing product under advance payment arrangements upon meeting the performance obligations. The following table shows the changes in contract liability balances during the fiscal year ended September 28, 2019 : Fiscal (in thousands) 2019 Contract liabilities, beginning of period $ 997 Revenue recognized (7,935 ) Additions 8,834 Contract liabilities, end of period $ 1,896 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic income per share is calculated using the weighted average number of shares of common stock outstanding during the period. Stock options and restricted stock are included in the calculation of diluted earnings per share, except when their effect would be anti-dilutive. The following tables reflect a reconciliation of the shares used in the basic and diluted net income per share computation for fiscal 2019, 2018, and 2017 : Fiscal (in thousands, except per share) 2019 2018 2017 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 11,653 $ 11,653 $ 56,676 $ 56,676 $ 126,099 $ 126,099 DENOMINATOR: Weighted average shares outstanding - Basic 65,286 65,286 69,380 69,380 70,906 70,906 Dilutive effect of Equity Plans 662 1,039 1,157 Weighted average shares outstanding - Diluted 65,948 70,419 72,063 EPS: Net income per share - Basic $ 0.18 $ 0.18 $ 0.82 $ 0.82 $ 1.78 $ 1.78 Effect of dilutive shares $ — $ (0.02 ) $ (0.03 ) Net income per share - Diluted $ 0.18 $ 0.80 $ 1.75 |
OTHER FINANCIAL DATA (Notes)
OTHER FINANCIAL DATA (Notes) | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL DATA | OTHER FINANCIAL DATA The following table reflects other financial data for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Incentive compensation expense $ 423 $ 25,607 $ 29,612 Rent expense 4,889 4,914 5,071 Warranty and retrofit expense 13,030 13,110 13,740 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table reflects U.S and foreign income before income taxes for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 United States $ (14,125 ) $ 25,211 $ (4,114 ) Foreign 48,812 152,338 122,629 Income before tax $ 34,687 $ 177,549 $ 118,515 The following table reflects the current and deferred components of provision for (benefit from) income taxes for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Current: Federal $ 6,580 $ 83,159 $ (3,975 ) State 214 58 64 Foreign 6,384 16,980 13,290 Deferred: Federal 2,959 23,346 (15,374 ) State — (2 ) 40 Foreign 6,773 (2,797 ) (1,439 ) Provision for (benefit from) income taxes $ 22,910 $ 120,744 $ (7,394 ) The following table reconciles the provision for (benefit from) income taxes with the expected income tax provision computed based on the applicable U.S. federal statutory tax rate for fiscal 2019, 2018, and 2017 : Fiscal (dollar amounts in thousands) 2019 2018 2017 Expected income provision based on the U.S. federal statutory tax rate $ 7,284 $ 43,568 $ 41,358 Effect of earnings of foreign subsidiaries subject to different tax rates (4,335 ) (12,947 ) (22,832 ) Benefit from tax incentives (5,084 ) (20,429 ) (23,294 ) Benefit from research and development tax credits (3,041 ) (2,785 ) (1,859 ) Benefit from foreign tax credits (22,744 ) (3,939 ) (26,119 ) U.S. one-time transition tax 9,369 101,854 — Remeasurement of deferred taxes 5,480 2,760 — Non-deductible goodwill impairment — — 8,805 Valuation allowance 25,289 7,366 6,458 Foreign operations (withholding taxes, taxes on unrepatriated foreign earnings, and deemed dividends) 8,578 5,746 6,039 Unrecognized tax benefit 156 530 2,936 Non-deductible items 2,248 (758 ) 778 Other, net (290 ) (222 ) 336 Provision for (benefit from) income taxes $ 22,910 $ 120,744 $ (7,394 ) Effective tax rate 66.0 % 68.0 % (6.2 )% On December 22, 2017, the TCJA was signed into law. Among the many U.S. tax law changes, the TCJA reduced the U.S. federal statutory tax rate from 35% to 21% , imposed a one-time transition tax on deemed repatriation of previously untaxed accumulated earnings and profits of certain foreign subsidiaries, and created a new foreign minimum tax. In accordance with Staff Accounting Bulletin No. 118 ("SAB 118"), the accounting for the tax effects of the TCJA was completed in the first quarter of fiscal 2019. In fiscal 2019, the Company recorded an additional tax expense of $9.4 million due to newly issued TCJA regulations and guidance on the computation of the U.S. one-time transition tax. The Company recognized an aggregate tax expense for fiscal 2018 and 2019 of $114.0 million , comprised primarily of $2.8 million from the re-measurement of U.S. deferred tax assets and liabilities to reflect the decrease in the U.S. federal statutory tax rate in fiscal 2018, and $111.2 million related to the U.S. one-time transition tax on deemed repatriation of previously untaxed accumulated earnings and profits of certain foreign subsidiaries, net of related foreign tax credits and unrecognized tax benefit in fiscal 2018 and 2019. The Company also recorded $5.5 million in fiscal 2019 to revalue certain foreign deferred assets and liabilities to reflect enacted foreign statutory tax rates in Singapore and the Netherlands. During fiscal 2019, the Company completed its evaluation of the future cash needs of its U.S. and foreign operations, the alignment of cash balances with the Company’s long-term capital allocation strategy, and the impact of the TCJA which generally allows U.S. corporations to make distributions without incurring additional U.S. income tax. As a result of this reassessment, a portion of the Company’s undistributed foreign earnings are no longer deemed to be indefinitely reinvested outside the U.S. as of September 28, 2019. The Company recorded $0.7 million of tax expense in the second quarter of fiscal 2019 as part of the initial change in assertion and $1.8 million of tax expense cumulatively by the end of fiscal 2019 primarily due to subsequent changes in foreign exchange rates from the date of the initial change. Further, we operate in a number of foreign jurisdictions, including Singapore, where we have a tax incentive that allows for a reduced tax rate on certain classes of income, provided the Company meets certain employment and investment conditions through the expiration date in fiscal 2020. This tax incentive arrangement may be renewed subject to the agreement of the Singapore government on additional requirements that must be satisfied. In fiscal 2019, 2018, and 2017, the tax incentive arrangement helped to reduce the Company’s provision for income taxes by $5.0 million or $0.08 per share, $20.4 million or $0.29 per share and $23.3 million or $0.33 per share, respectively. The following table reflects deferred tax balances based on the tax effects of cumulative temporary differences for fiscal 2019 and 2018 : Fiscal (in thousands) 2019 2018 Accruals and reserves $ 5,514 $ 6,652 Tax credit carryforwards 23,448 4,532 Net operating loss carryforwards 36,050 39,856 Gross deferred tax assets $ 65,012 $ 51,040 Valuation allowance $ (58,411 ) $ (37,249 ) Deferred tax assets, net of valuation allowance $ 6,601 $ 13,791 Taxes on undistributed foreign earnings $ (24,542 ) $ (21,988 ) Fixed and intangible assets (7,704 ) (8,377 ) Deferred tax liabilities $ (32,246 ) $ (30,365 ) Net deferred tax liabilities $ (25,645 ) $ (16,574 ) Reported as Deferred tax assets $ 6,409 $ 9,017 Deferred tax liabilities (32,054 ) (25,591 ) Net deferred tax liabilities $ (25,645 ) $ (16,574 ) As of September 28, 2019 , the Company has foreign net operating loss carryforwards of $110.6 million , state net operating loss carryforwards of $146.5 million , and U.S. federal and state tax credit carryforwards of $7.8 million that can be used to offset future income tax obligations. These net operating loss and tax credit carryforwards can be utilized prior to their expiration dates in fiscal years 2020 through 2035, with the exception of certain credits and foreign net operating losses that can be carried forward indefinitely. The Company has recorded valuation allowances against certain foreign and state net operating loss carryforwards and state tax credits which are expected to expire unutilized. The Company continues to evaluate the realizability of its net deferred tax assets at each reporting date and records a benefit for deferred tax assets to the extent it has projected future taxable income or deferred tax liabilities that provide a source of future income to benefit such deferred tax assets. As a result of this analysis, the Company continues to maintain a valuation allowance against certain state and foreign deferred tax assets as the realization of these assets is not more likely than not given uncertainty of future apportioned earnings in these jurisdictions. The following table reconciles the beginning and ending balances of the Company's unrecognized tax benefit, excluding related accrued interest and penalties, for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Unrecognized tax benefit, beginning of year $ 13,038 $ 12,062 $ 7,453 Additions for tax positions, current year 410 1,482 3,657 Additions for tax positions, prior year — — 1,834 Reductions for tax positions, prior year (523 ) (506 ) (882 ) Unrecognized tax benefit, end of year $ 12,925 $ 13,038 $ 12,062 The Company recognizes interest and penalties related to potential income tax liabilities as a component of unrecognized tax benefit and in provision for income taxes. For the fiscal year ended September 28, 2019, the Company recognized $1.4 million of accrued interest and penalties related to unrecognized tax benefit. The amount of interest and penalties related to unrecognized tax benefit recorded in the provision for income taxes was not material for any period presented. As of September 28, 2019 , approximately $13.1 million of unrecognized tax benefit, including related interest and penalties, if recognized, would impact the Company's effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months due to the expected lapse of statutes of limitation and/or settlements of tax examinations. Given the number of years and numerous matters that remain subject to examination in various tax jurisdictions, we cannot practicably estimate the financial outcomes of these examinations. The Company files a U.S. federal income tax return, as well as income tax returns in various state and foreign jurisdictions. For U.S. federal income tax returns purposes, tax years following fiscal 2016 remain subject to examination. For most state tax returns, tax years following fiscal 2001 remain subject to examination as a result of the generation of net operating loss carry-forwards. In the foreign jurisdictions where the Company files income tax returns, the statutes of limitations with respect to these jurisdictions vary from jurisdiction to jurisdiction and range from 4 to 6 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Reportable segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company's Chief Executive Officer is the Company's chief operating decision maker. The chief operating decision-maker does not review discrete asset information. The following table reflects operating information by segment for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Net revenue: Capital Equipment $ 386,820 $ 719,390 $ 651,934 APS 153,232 169,731 157,107 Net revenue 540,052 889,121 809,041 Income from operations: Capital Equipment (12,577 ) 132,563 107,115 APS 34,187 34,069 5,968 Income from operations $ 21,610 $ 166,632 $ 113,083 The following tables reflect capital expenditures, depreciation and amortization expense by segment for fiscal 2019, 2018, and 2017 . Fiscal (in thousands) 2019 2018 2017 Capital expenditures: Capital Equipment $ 5,380 $ 7,029 $ 14,415 APS 6,449 13,412 11,273 Capital expenditures $ 11,829 $ 20,441 $ 25,688 Fiscal (in thousands) 2019 2018 2017 Depreciation expense: Capital Equipment $ 7,584 $ 7,435 $ 6,306 APS 5,308 3,754 3,397 Depreciation expense $ 12,892 $ 11,189 $ 9,703 Fiscal (in thousands) 2019 2018 2017 Amortization expense: Capital Equipment $ 3,977 $ 4,203 $ 2,841 APS 3,435 3,623 3,713 Amortization expense $ 7,412 $ 7,826 $ 6,554 Geographical information The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 China $ 252,179 $ 408,567 $ 323,803 Taiwan 63,440 126,676 100,738 Malaysia 41,568 65,354 72,329 United States 36,393 68,774 57,728 Singapore 25,680 19,648 7,119 Korea 15,236 38,551 73,410 Germany 13,594 19,018 18,754 Hong Kong 12,096 14,194 14,314 Philippines 12,057 26,372 25,165 Vietnam 10,978 20,864 29,330 All other 56,831 81,103 86,351 Total destination sales to unaffiliated customers $ 540,052 $ 889,121 $ 809,041 Fiscal (in thousands) 2019 2018 2017 Long-lived assets: Singapore $ 25,620 $ 30,240 $ 31,553 United States 27,665 23,696 43,440 China 18,969 18,333 11,148 Israel 8,288 8,460 4,549 All other 6,981 6,944 6,899 Total long-lived assets $ 87,523 $ 87,673 $ 97,589 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 12 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Warranty Expense The Company's equipment is generally shipped with a one -year warranty against manufacturing defects. The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management's estimate of future warranty costs, including product part replacement, freight charges and related labor costs expected to be incurred to correct product failures during the warranty period. The following table reflects the reserve for product warranty activity for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Reserve for warranty, beginning of period $ 14,474 $ 13,796 $ 12,544 Provision for warranty 12,140 12,603 11,743 Utilization of reserve (12,429 ) (11,925 ) (10,491 ) Reserve for warranty, end of period $ 14,185 $ 14,474 $ 13,796 Other Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Balance Sheet as of September 28, 2019 : Payments due by fiscal year (in thousands) Total 2020 2021 2022 2023 thereafter Inventory purchase obligation (1) $ 83,278 $ 83,278 $ — $ — $ — $ — Operating lease obligations (2) 16,273 4,089 2,576 2,182 1,967 5,459 Total $ 99,551 $ 87,367 $ 2,576 $ 2,182 $ 1,967 $ 5,459 (1) The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. (2) The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2019 (not including lease extension options, if applicable). Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company was considered the owner of the Building during the construction phase. The Building was completed on December 1, 2013 and Pte signed an agreement with the Landlord to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of the Building. Following the completion of construction, we performed a sale-leaseback analysis pursuant to ASC 840 and determined that because of our continuing involvement, ASC 840 precluded us from derecognizing the asset and associated financing obligation. As such, we reclassified the asset from construction in progress to Property, Plant and Equipment and began to depreciate the building over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. As of September 28, 2019 , we recorded a financing obligation related to the Building of $15.0 million (see Note 8 above). The financing obligation is not reflected in the table above. Concentrations The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2019, 2018, and 2017 : Fiscal 2019 2018 2017 Haoseng Industrial Co., Ltd (1) * 12.8 % 10.1 % * Represents less than 10% of total net revenue (1) Distributor of the Company's products The following table reflects significant customer concentrations as a percentage of total accounts receivable as of September 28, 2019 and September 29, 2018 : As of September 28, 2019 September 29, 2018 Xinye (HK) Electronics Co. (1) 16.0 % * Forehope Electronic (Ningbo) Co., Ltd 15.3 % * Super Power International Ltd. (1) 13.5 % 13.6 % Haoseng Industrial Co., Ltd (1) * 32.9 % * Represents less than 10% of total accounts receivable (1) Distributor of the Company's products |
SELECTED QUARTERLY FINANCIAL RE
SELECTED QUARTERLY FINANCIAL RESULTS (Notes) | 12 Months Ended |
Sep. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL RESULTS | SELECTED QUARTERLY FINANCIAL DATA (unaudited) Presented below is a summary of the unaudited quarterly financial information for fiscal 2019 and 2018 (in thousands, except per share amounts). Fiscal 2019 for the Quarter Ended (in thousands, except per share amounts) December 29 March 30 June 29 September 28 Fiscal 2019 Net revenue $ 157,208 $ 115,908 $ 127,109 $ 139,827 $ 540,052 Gross profit 74,799 55,573 58,780 65,438 254,590 Income / (loss) from operations 14,555 (2,465 ) 1,827 7,693 21,610 Provision for income taxes 10,570 4,672 3,864 3,804 22,910 Net income / (loss) $ 7,517 $ (3,555 ) $ 1,287 $ 6,404 $ 11,653 Net income / (loss) per share (1) : Basic $ 0.11 $ (0.05 ) $ 0.02 $ 0.10 $ 0.18 Diluted $ 0.11 $ (0.05 ) $ 0.02 $ 0.10 $ 0.18 Weighted average shares outstanding: Basic 67,176 65,930 64,683 63,401 65,286 Diluted 67,851 65,930 65,431 64,251 65,948 Fiscal 2018 for the Quarter Ended (in thousands, except per share amounts) December 30 March 30 June 30 September 29 Fiscal 2018 Net revenue $ 213,691 $ 221,772 $ 268,834 $ 184,824 $ 889,121 Gross profit 97,202 99,447 126,969 85,823 409,441 Income from operations 39,159 38,436 64,463 24,574 166,632 Provision for (benefit from) income taxes 110,412 4,800 7,282 (1,750 ) 120,744 Net (loss) / income $ (69,528 ) $ 36,313 $ 60,256 $ 29,635 $ 56,676 Net (loss) / income per share (1) : Basic $ (0.99 ) $ 0.52 $ 0.87 $ 0.44 $ 0.82 Diluted $ (0.99 ) $ 0.51 $ 0.86 $ 0.43 $ 0.80 Weighted average shares outstanding: Basic 70,577 70,361 69,125 67,462 69,380 Diluted 70,577 71,425 70,302 68,675 70,419 (1) EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Sep. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On October 24, 2019 , the Company entered into foreign exchange forward contracts with notional amounts of $10.0 million . We entered into these foreign exchange forward contracts to hedge a portion of our forecasted foreign currency-denominated expenses in the normal course of business and, accordingly, they are not speculative in nature. These foreign exchange forward contracts have maturities of up to twelve months |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | KULICKE AND SOFFA INDUSTRIES, INC. Schedule II-Valuation and Qualifying Accounts Fiscal 2019: Beginning of period Charged to Costs and Expenses Other Additions Other Deductions End of period Allowance for doubtful accounts $ 385 $ 212 $ — $ — (1) $ 597 Inventory reserve $ 26,889 $ 2,657 $ — $ (233 ) (2) $ 29,313 Valuation allowance for deferred taxes $ 37,249 $ — (3) $ 21,162 $ — $ 58,411 Fiscal 2018: Allowance for doubtful accounts $ 79 $ 383 $ — $ (77 ) (1) $ 385 Inventory reserve $ 24,639 $ 4,897 $ — $ (2,647 ) (2) $ 26,889 Valuation allowance for deferred taxes $ 29,614 $ — (3) $ 7,635 $ — $ 37,249 Fiscal 2017: Allowance for doubtful accounts $ 506 $ (136 ) $ — $ (291 ) (1) $ 79 Inventory reserve $ 21,080 $ 10,925 $ — $ (7,366 ) (2) $ 24,639 Valuation allowance for deferred taxes $ 27,381 $ — (3) $ 2,233 $ — $ 29,614 (1) Represents write-offs of specific accounts receivable. (2) Sale or scrap of previously reserved inventory. (3) Reflects the net increase in the valuation allowance primarily associated with the Company's U.S. tax credits, U.S. and foreign net operating losses and other deferred tax assets. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | These consolidated financial statements include the accounts of Kulicke and Soffa Industries, Inc. and its subsidiaries (the “Company”), with appropriate elimination of intercompany balances and transactions. |
Fiscal Year | Fiscal Year Each of the Company's first three fiscal quarters ends on the Saturday that is 13 weeks after the end of the immediately preceding fiscal quarter. The fourth quarter of each fiscal year ends on the Saturday closest to September 30. In fiscal years consisting of 53 weeks, the fourth quarter will consist of 14 weeks. The 2019, 2018, and 2017 fiscal years ended on September 28, 2019 , September 29, 2018 and September 30, 2017 |
Nature of Business | Nature of Business The Company designs, manufactures and sells capital equipment and tools as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company's operating results depend upon the capital and operating expenditures of semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers (“OSATs”), and other electronics manufacturers, including automotive electronics suppliers, worldwide which, in turn, depend on the current and anticipated market demand for semiconductors and products utilizing semiconductors. The semiconductor industry is highly volatile and experiences downturns and slowdowns which can have a severe negative effect on the semiconductor industry's demand for semiconductor capital equipment, including assembly equipment manufactured and sold by the Company and, to a lesser extent, tools, including those sold by the Company. These downturns and slowdowns have in the past adversely affected the Company's operating results. The Company believes such volatility will continue to characterize the industry and the Company's operations in the future. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets and liabilities, net revenue and expenses during the reporting periods, and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. On an ongoing basis, management evaluates estimates, including but not limited to, those related to accounts receivable, reserves for excess and obsolete inventory, carrying value and lives of fixed assets, goodwill and intangible assets, income taxes, equity-based compensation expense, and warranties. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable. As a result, management makes judgments regarding the carrying values of the Company's assets and liabilities that are not readily apparent from other sources. Authoritative pronouncements, historical experience and assumptions are used as the basis for making estimates, and on an ongoing basis, management evaluates these estimates. Actual results may differ from these estimates. |
Vulnerability to Certain Concentrations | Vulnerability to Certain Concentrations Financial instruments which may subject the Company to concentrations of credit risk as of September 28, 2019 and September 29, 2018 consisted primarily of trade receivables. The Company manages credit risk associated with investments by investing its excess cash in highly rated debt instruments of the U.S. government and its agencies, financial institutions, and corporations. The Company has established investment guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified as appropriate. The Company does not have any exposure to sub-prime financial instruments or auction rate securities. The Company's trade receivables result primarily from the sale of semiconductor equipment, related accessories and replacement parts, and tools to a relatively small number of large manufacturers in a highly concentrated industry. Write-offs of uncollectible accounts have historically not been significant. The Company actively monitors its customers' financial strength to reduce the risk of loss. The Company's products are complex and require raw materials, components and subassemblies having a high degree of reliability, accuracy and performance. The Company relies on subcontractors to manufacture many of these components and subassemblies and it relies on sole source suppliers for some important components and raw material inventory. |
Foreign Currency Translation | Foreign Currency Translation and Remeasurement The majority of the Company's business is transacted in U.S. dollars; however, the functional currencies of some of the Company's subsidiaries are their local currencies. In accordance with ASC No. 830, Foreign Currency Matters (“ASC 830”), for a subsidiary of the Company that has a functional currency other than the U.S. dollar, gains and losses resulting from the translation of the functional currency into U.S. dollars for financial statement presentation are not included in determining net income, but are accumulated in the cumulative translation adjustment account as a separate component of shareholders' equity (accumulated other comprehensive income / (loss)). Under ASC 830, cumulative translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Gains and losses resulting from foreign currency transactions are included in the determination of net income. The Company's operations are exposed to changes in foreign currency exchange rates due to transactions denominated in currencies other than the location's functional currency. The Company is also exposed to foreign currency fluctuations that impact the remeasurement of net monetary assets of those operations whose functional currency, the U.S. dollar, differs from their respective local currencies, most notably in Israel, Singapore and Switzerland. In addition to net monetary remeasurement, the Company has exposures related to the translation of subsidiary financial statements from their functional currency, the local currency, into its reporting currency, the U.S. dollar, most notably in the Netherlands, China, Taiwan, Japan and Germany. The Company's U.S. operations also have foreign currency exposure due to net monetary assets denominated in currencies other than the U.S. dollar. |
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | Derivative Financial Instruments The Company’s primary objective for holding derivative financial instruments is to manage the fluctuation in foreign exchange rates and accordingly is not speculative in nature. The Company’s international operations are exposed to changes in foreign exchange rates as described above. The Company has established a program to monitor the forecasted transaction currency risk to protect against foreign exchange rate volatility. Generally, the Company uses foreign exchange forward contracts in these hedging programs. These instruments, which have maturities of up to twelve months, are recorded at fair value and are included in prepaid expenses and other current assets, or accrued expenses and other current liabilities. Our accounting policy for derivative financial instruments is based on whether they meet the criteria for designation as a cash flow hedge. A designated hedge with exposure to variability in the functional currency equivalent of the future foreign currency cash flows of a forecasted transaction is referred to as a cash flow hedge. The criteria for designating a derivative as a cash flow hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction, and the assessment of the probability that the underlying transaction will occur. For derivatives with cash flow hedge accounting designation, we report the after-tax gain / (loss) from the effective portion of the hedge as a component of accumulated other comprehensive income / (loss) and reclassify it into earnings in the same period in which the hedged transaction affects earnings and in the same line item on the consolidated statement of operations as the impact of the hedged transaction. Derivatives that we designate as cash flow hedges are classified in the consolidated statement of cash flows in the same section as the underlying item, primarily within cash flows from operating activities. The hedge effectiveness of these derivative instruments is evaluated by comparing the cumulative change in the fair value of the hedge contract with the cumulative change in the fair value of the forecasted cash flows of the hedged item. If a cash flow hedge is discontinued because it is no longer probable that the original hedged transaction will occur as previously anticipated, the cumulative unrealized gain or loss on the related derivative is reclassified from accumulated other comprehensive income / (loss) into earnings. Subsequent gain / (loss) on the related derivative instrument is recognized into earnings in each period until the instrument matures, is terminated, is re-designated as a qualified cash flow hedge, or is sold. Ineffective portions of cash flow hedges, as well as amounts excluded from the assessment of effectiveness, are recognized in earnings. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash equivalents are measured at fair value based on level one measurement, or quoted market prices, as defined by ASC No. 820, Fair Value Measurements and Disclosures . |
Investments | Equity Investments The Company invests in equity securities in companies to promote business and strategic objectives. Equity investments are measured and recorded as follows: • Equity method investments are equity securities in investees that provide the Company with the ability to exercise significant influence in which it lacks a controlling financial interest. Our proportionate share of the income or loss is recognized on a one-quarter lag and is recorded as share of results of equity-method investee, net of tax. • Non-marketable equity securities are equity securities without readily determinable fair value that are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its customers' failure to make required payments. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company is also subject to concentrations of customers and sales to a few geographic locations, which could also impact the collectability of certain receivables. If global or regional economic conditions deteriorate or political conditions were to change in some of the countries where the Company does business, it could have a significant impact on the results of operations, and the Company's ability to realize the full value of its accounts receivable. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or net realizable value. The Company generally provides reserves for obsolete inventory and for inventory considered to be in excess of demand. Demand is generally defined as 18 months forecasted future consumption for equipment, 24 months forecasted future consumption for spare parts, and 12 months forecasted future consumption for tools. Forecasted consumption is based upon internal projections, historical sales volumes, customer order activity and a review of consumable inventory levels at customers' facilities. The Company communicates forecasts of its future consumption to its suppliers and adjusts commitments to those suppliers accordingly. If required, the Company reserves the difference between the carrying value of its inventory and the lower of cost or net realizable value, based upon projections about future consumption, and market conditions. If actual market conditions are less favorable than projections, additional inventory reserves may be required. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. The cost of additions and those improvements which increase the capacity or lengthen the useful lives of assets are capitalized while repair and maintenance costs are expensed as incurred. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives as follows: buildings 25 years ; machinery, equipment, furniture and fittings 3 to 10 years ; toolings 1 year ; and leasehold improvements are based on the shorter of the life of lease or life of asset . Purchased computer software costs related to business and financial systems are amortized over a five-year period on a straight-line basis. Land is not depreciated. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets In accordance with ASC No. 360, Property, Plant & Equipment ("ASC 360"), the Company's property, plant and equipment is tested for impairment based on undiscounted cash flows when triggering events occur, and if impaired, written-down to fair value based on either discounted cash flows or appraised values. ASC 360 also provides a single accounting model for long-lived assets to be disposed of by sale and establishes additional criteria that would have to be met to classify an asset as held for sale. The carrying amount of an asset or asset group is not recoverable to the extent it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Estimates of future cash flows used to test the recoverability of a long-lived asset or asset group must incorporate the entity's own assumptions about its use of the asset or asset group and must factor in all available evidence. ASC 360 requires that long-lived assets be tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Such events include significant under-performance relative to historical internal forecasts or projected future operating results; significant changes in the manner of use of the assets; significant negative industry or economic trends; or significant changes in market capitalization. During the fiscal years ended September 28, 2019 and September 29, 2018 |
Accounting for Impairment of Goodwill | Accounting for Impairment of Goodwill ASC No. 350, Intangibles - Goodwill and Other ("ASC 350") requires goodwill and other intangible assets with indefinite lives to be reviewed for impairment annually, or more frequently if circumstances indicate a possible impairment. We assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, after assessing the qualitative factors, a company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing the impairment test is unnecessary. However, if a company concludes otherwise, then it is required to perform the goodwill impairment test. Following the Company's early adoption of ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment in the third quarter of fiscal 2017, the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment (i.e. step 2 of the goodwill impairment test) was eliminated. Accordingly, the Company's impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. As part of the annual evaluation, the Company performs an impairment test of its goodwill in the fourth quarter of each fiscal year to coincide with the completion of its annual forecasting and refreshing of its business outlook processes. On an ongoing basis, the Company monitors if a “triggering” event has occurred that may have the effect of reducing the fair value of a reporting unit below its respective carrying value. Adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment charge in the future. Impairment assessments inherently involve judgment as to the assumptions made about the expected future cash flows and the impact of market conditions on those assumptions. Future events and changing market conditions may impact the assumptions as to prices, costs, growth rates or other factors that may result in changes in the estimates of future cash flows. Although the Company believes the assumptions that it has used in testing for impairment are reasonable, significant changes in any one of the assumptions could produce a significantly different result. Indicators of potential impairment may lead the Company to perform interim goodwill impairment assessments, including significant and unforeseen customer losses, a significant adverse change in legal factors or in the business climate, a significant adverse action or assessment by a regulator, a significant stock price decline or unanticipated competition. For further information on goodwill and other intangible assets, see Note 3 below. |
Revenue Recognition | Revenue Recognition In accordance with ASC No. 606, Revenue from Contracts with Customers , the Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. The Company recognizes revenue from sales of our products, including sales to our distributors, at a point in time, generally upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order. Control is considered transferred when title and risk of loss pass, when the customer becomes obligated to pay and, where applicable, when the customer has accepted the products or upon expiration of the acceptance period. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. Our business is subject to contingencies related to customer orders, including: • Right of Return : A large portion of our revenue comes from the sale of equipment used in the semiconductor assembly process. Other product sales relate to consumable products, which are sold in high-volume quantities, and are generally maintained at low stock levels at customers' facilities. Customer returns have historically represented a very small percentage of customer sales on an annual basis. • Warranties : Our equipment is generally shipped with a one-year warranty against manufacturing defects. We establish reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management's estimate of future expenses, including product parts replacement, freight charges and labor costs expected to be incurred to correct product failures during the warranty period. • Conditions of Acceptance: Sales of our consumable products generally do not have customer acceptance terms. In certain cases, sales of our equipment have customer acceptance clauses which may require the equipment to perform in accordance with customer specifications or when installed at the customer's facility. In such cases, if the terms of acceptance are satisfied at our facility prior to shipment, the revenue for the equipment will be recognized upon shipment. If the terms of acceptance are satisfied at our customers' facilities, the revenue for the equipment will not be recognized until acceptance, which is typically obtained after installation and testing, is received from the customer. Service revenue is generally recognized over time as the services are performed. For the fiscal year ended September 28, 2019 , the service revenue is not material. The Company measures revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Any variable consideration such as sales incentives are recognized as a reduction of net revenue at the time of revenue recognition. The length of time between invoicing and payment is not significant under our payment terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. Shipping and handling costs billed to customers are recognized in net revenue. Shipping and handling costs paid by the Company are included in cost of sales. |
Research and Development | Research and Development The Company charges research and development costs associated with the development of new products to expense when incurred. In certain circumstances, pre-production machines that the Company intends to sell are carried as inventory until sold. |
Income Taxes | Income Taxes In accordance with ASC No. 740, Income Taxes , deferred income taxes are determined using the balance sheet method . The Company records a valuation allowance to reduce its deferred tax assets to the amount expected, on a more likely than not basis, to be realized. While the Company has considered future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance, if it were to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period when such determination is made. Likewise, should the Company determine it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the deferred tax asset would decrease income in the period when such determination is made. The Company determines the amount of unrecognized tax benefit with respect to uncertain tax positions taken or expected to be taken on its income tax returns in accordance with ASC No. 740 Topic 10, Income Taxes, General (“ASC 740.10”). Under ASC 740.10, the Company utilizes a two-step approach for evaluating uncertain tax positions. Step one, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon examination solely based on its technical merit. Step two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority, including resolution of related appeals or litigation processes, if any. |
Equity-Based Compensation | Equity-Based Compensation The Company accounts for equity-based compensation under the provisions of ASC No. 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 requires the recognition of the fair value of the equity-based compensation in net income. Compensation expense associated with Relative TSR Performance Share Units is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based and Special/Growth Performance Share Units is determined based on the number of shares granted and the fair value on the date of grant. See Note 9 for a summary of the terms of these performance-based awards. The fair value of the Company's stock option awards is estimated using a Black-Scholes option valuation model. The fair value of equity-based awards is amortized over the vesting period of the award, and the Company elected to use the straight-line method for awards granted after the adoption of ASC 718. |
Earnings per Share | Earnings per Share Earnings per share (“EPS”) are calculated in accordance with ASC No. 260, Earnings per Share . Basic EPS include only the weighted average number of common shares outstanding during the period. Diluted EPS include the weighted average number of common shares and the dilutive effect of stock options, restricted stock awards, performance share units and restricted share units outstanding during the period, when such instruments are dilutive. |
Accounting for Business Acquisitions | Accounting for Business Acquisitions The Company accounts for business acquisitions in accordance with ASC No. 805, Business Combinations . The fair value of the net assets acquired and the results of operations of the acquired businesses are included in the consolidated financial statements from the acquisition date forward. The Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, deferred revenue, intangible assets and related deferred tax balances, useful lives of plant and equipment, and amortizable lives of acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. |
Restructuring charges | Restructuring Charges Restructuring charges may consist of voluntary or involuntary severance-related charges, asset-related charges and other costs due to exit activities. We recognize voluntary termination benefits when an employee accepts the offered benefit arrangement. We recognize involuntary severance-related charges depending on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. If the former, we recognize the charges once they are probable and the amounts are estimable. If the latter, we recognize the charges once the benefits have been communicated to employees. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Income Taxes In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . The new guidance is effective for the Company in the first quarter of fiscal 2019 and requires the tax effects of intercompany transactions (other than transfers of inventory) to be recognized currently. The Company has adopted the modified retrospective approach for the transition based on the new guidance and, as of the beginning of the period of adoption, has recorded the cumulative effect of adjustments related to intra-entity transfers of intangible and fixed assets of $0.5 million in prior years as an increase to retained earnings. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA and requires entities to provide certain disclosures regarding stranded tax effects, if any. The ASU is effective for us in the first quarter of 2020. However, we do not expect the adoption of this ASU to have a material impact on our financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current GAAP. Subsequently in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides additional information concerning the new leases standard in ASU 2016-02, Leases (Topic 842). The targeted improvements provide entities with additional and optional transition methods. In November 2018, the FASB issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors . This ASU provides guidance in several areas, including the accounting policy election for sales taxes and other similar taxes collected from lessees, accounting for certain lessor costs and accounting for variable payments for contracts with lease and nonlease components. The Company will adopt these ASUs utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of its first fiscal quarter of 2020 and not restate prior periods. In addition, we will elect the package of practical expedients permitted under the transition guidance that allowed us to apply prior conclusions related to lease definition, classification and initial direct costs. The adoption of these ASUs is expected to result in an increase to our consolidated balance sheet of approximately $23.8 million in operating lease liabilities and $22.2 million in right-of-use assets, decrease of approximately $14.5 million in financing obligation, decrease of approximately $15.3 million in property, plant and equipment, and an adjustment of $0.8 million to retained earnings. Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the impairment methodology in current GAAP, which delays recognition of credit losses until it is probable a loss has been incurred, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for us beginning in our first quarter of fiscal 2021. Early adoption is permitted beginning in our first fiscal quarter of 2020. We do not expect the adoption of this ASU itself to have a material impact on our financial statements. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) . The new guidance expands and refines hedge accounting for both financial and non-financial risks. The new guidance also modifies disclosure requirements for hedging activities. The new guidance will be effective for us beginning in our first quarter of fiscal 2020, and early adoption is permitted in any interim period. We do not expect the adoption of this ASU to have a material impact on our financial statements. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount to which an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20” and collectively, the “new revenue standards”). The Company has performed an evaluation of this ASU (and related ASUs) and its impact on the financial statements. This included identifying contracts and performance obligations and reviewing the applicable revenue streams. We have completed our assessment and implemented policies, processes, and controls to support the standard's measurement and disclosure requirements. The new standard was adopted in the first quarter of fiscal 2019 using a modified retrospective approach. Based on our review of all our customer agreements for the affected periods, our revenue from sales of our products, such as equipment and spare parts, will continue to be recognized at a point in time, generally upon shipment or delivery to customers or distributors, depending upon the terms of the sales order, consistent with our current revenue recognition model. Revenue related to the sale of services will generally continue to be recognized over time as the services are performed. In certain instances, where collection of consideration is not probable, recognition of revenue may occur later under the new model after we have completed all of our obligations under the contract. However, when adopting the new standard, we did not identify any balances where collection of consideration is not probable. This ASU did not have a material impact on the amount and timing of revenue recognized in the Company’s consolidated financial statements. Collaborative Arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808). This ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. This ASU will be effective for us in the first fiscal quarter of 2021 with early adoption permitted. This ASU requires retrospective adoption to the date we adopted ASC 606 by recognizing a cumulative-effect adjustment to the opening balance of retained earnings of the earliest annual period presented. We are currently evaluating the timing and the effects of the adoption of this ASU on our financial statements. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of significant balance sheet accounts | The following tables reflect the components of significant balance sheet accounts as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Short term investments, available-for-sale (1) $ 229,000 $ 293,000 Inventories, net: Raw materials and supplies $ 52,853 $ 63,894 Work in process 32,026 37,829 Finished goods 33,742 40,357 118,621 142,080 Inventory reserves (29,313 ) (26,889 ) $ 89,308 $ 115,191 Property, plant and equipment, net: Land $ 2,182 $ 2,182 Buildings and building improvements (2) 41,961 41,616 Leasehold improvements (2) 24,441 23,561 Data processing equipment and software 36,302 35,469 Machinery, equipment, furniture and fixtures 71,465 68,666 Construction in progress 6,512 6,940 182,863 178,434 Accumulated depreciation (110,493 ) (102,367 ) $ 72,370 $ 76,067 Accrued expenses and other current liabilities: Accrued customer obligations (3) $ 26,292 $ 34,918 Wages and benefits 18,188 44,505 Commissions and professional fees 2,024 5,549 Dividends payable 7,582 8,057 Deferred rent 1,721 1,847 Severance 1,500 1,415 Other 7,226 9,687 $ 64,533 $ 105,978 (1) All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the fiscal years ended 2019 and 2018. (2) Certain balances as at September 29, 2018 relating to property, plant and equipment have been reclassified. These reclassifications have no impact to the Consolidated Balance Sheet as at September 29, 2018. (3) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the Company's recorded goodwill by reportable segments as of September 28, 2019 and September 29, 2018 : (in thousands) Capital Equipment APS Balance at September 29, 2018 $ 30,159 $ 26,391 Other (679 ) (180 ) Balance at September 28, 2019 $ 29,480 $ 26,211 |
Net intangible assets | The following table reflects net intangible assets as of September 28, 2019 and September 29, 2018 : As of Average estimated (dollar amounts in thousands) September 28, 2019 September 29, 2018 useful lives (in years) Developed technology $ 87,209 $ 90,500 7.0 to 15.0 Accumulated amortization (48,718 ) (45,229 ) Net developed technology $ 38,491 $ 45,271 Customer relationships $ 35,180 $ 36,131 5.0 to 6.0 Accumulated amortization (31,862 ) (29,820 ) Net customer relationships $ 3,318 $ 6,311 Trade and brand names $ 7,219 $ 7,377 7.0 to 8.0 Accumulated amortization (6,377 ) (6,088 ) Net trade and brand names $ 842 $ 1,289 Other intangible assets $ 2,500 $ 2,500 1.9 Accumulated amortization (2,500 ) (2,500 ) Net wedge bonder other intangible assets $ — $ — Net intangible assets $ 42,651 $ 52,871 |
Estimated annual amortization expense related to intangible assets | The following table reflects estimated annual amortization expense related to intangible assets as of September 28, 2019 : As of (in thousands) September 28, 2019 Fiscal 2020 $ 7,196 Fiscal 2021 5,212 Fiscal 2022 4,271 Fiscal 2023 4,177 Fiscal 2024 and thereafter 21,795 Total amortization expense $ 42,651 |
CASH, CASH EQUIVALENTS, RESTR_2
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents and short-term investments [Table Text Block] | Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 28, 2019 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 201,005 $ — $ — $ 201,005 Cash equivalents: Money market funds (1) 163,172 — — 163,172 Time deposits (2) 7 — — 7 Total cash and cash equivalents $ 364,184 $ — $ — $ 364,184 Restricted Cash (2) $ — $ — $ — $ — Total restricted cash $ — $ — $ — $ — Short-term investments (2) : Time deposits $ 130,000 $ — $ — $ 130,000 Deposits (3) 99,000 — — 99,000 Total short-term investments $ 229,000 $ — $ — $ 229,000 Total cash, cash equivalents, restricted cash and short-term investments $ 593,184 $ — $ — $ 593,184 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) Fair value approximates cost basis. (3) Represents deposits that require a notice period of three months for withdrawal. Cash, cash equivalents, restricted cash and short-term investments consisted of the following as of September 29, 2018 : (dollar amounts in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 42,446 $ — $ — $ 42,446 Cash equivalents: Money market funds (1) 209,172 — (5 ) 209,167 Time deposits (2) 69,017 — — 69,017 Total cash and cash equivalents $ 320,635 $ — $ (5 ) $ 320,630 Restricted Cash (2) $ 518 $ — $ — $ 518 Total restricted cash $ 518 $ — $ — $ 518 Short-term investments (2) : Time deposits $ 197,000 $ — $ — $ 197,000 Deposits (3) 96,000 — — 96,000 Total short-term investments $ 293,000 $ — $ — $ 293,000 Total cash, cash equivalents, restricted cash and short-term investments $ 614,153 $ — $ (5 ) $ 614,148 (1) The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. (2) Fair value approximates cost basis. (3) Represents deposits that require a notice period of three months for withdrawal. |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Equity Investments [Abstract] | |
Equity Method Investments [Table Text Block] | Equity investments consisted of the following as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Non-marketable equity securities (1) $ 5,000 $ — Equity method investments 1,250 1,373 Total $ 6,250 $ 1,373 (1) On January 30, 2019, the Company made a $5.0 million investment in one of our collaborative partners, over which the Company does not have significant influence. During the fiscal year ended September 28, 2019 , there was no impairment or adjustment to the observable price. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENT (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Derivative financial Instruments [Abstract] | |
Schedule of Fair Value of Derivative Instruments on Balance Sheet | The fair value of derivative instruments on our Consolidated Balance Sheet as of September 28, 2019 and September 29, 2018 is as follows: As of (in thousands) September 28, 2019 September 29, 2018 Notional Amount Fair Value Liability Derivatives (1) Notional Amount Fair Value Liability Derivatives (1) Derivatives designated as hedging instruments: Foreign exchange forward contracts (2) $ 33,834 $ 597 $ 43,095 $ 1,071 Total derivatives $ 33,834 $ 597 $ 43,095 $ 1,071 (1) The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet. (2) Hedged amounts expected to be recognized into earnings within the next twelve months . |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Operations for the fiscal year ended September 28, 2019 and September 29, 2018 was as follows: (in thousands) Fiscal 2019 2018 Foreign exchange forward contract in cash flow hedging relationships: Net loss recognized in OCI, net of tax (1) $ (741 ) $ (669 ) Net (loss) / gain reclassified from accumulated OCI into earnings, net of tax (2) $ (1,215 ) $ 1,755 (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion classified as selling, general and administrative expense. |
SHAREHOLDERS' EQUITY AND EMPL_2
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Company’s matching contributions to the Plan | The following table reflects the Company’s contributions to the Plan during fiscal 2019 and 2018: Fiscal (in thousands) 2019 2018 Cash $ 1,648 $ 1,610 |
Accumulated other comprehensive income reflected on the Consolidated Balance Sheets | The following table reflects accumulated other comprehensive income / (loss) reflected on the Consolidated Balance Sheets as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Loss from foreign currency translation adjustments $ (7,745 ) $ (1,211 ) Unrecognized actuarial loss on pension plan, net of tax (1,598 ) (1,620 ) Unrealized loss on hedging (597 ) (1,071 ) Accumulated other comprehensive loss $ (9,940 ) $ (3,902 ) |
Equity-based compensation expense | The following table reflects total equity-based compensation expense, which includes Relative TSR PSUs, Time-based RSUs, Special/Growth PSUs, Performance-based Restricted Stock and common stock, included in the Consolidated Statements of Operations for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Cost of sales $ 632 $ 515 $ 463 Selling, general and administrative 10,503 8,548 9,015 Research and development 3,197 2,622 2,244 Total equity-based compensation expense $ 14,332 $ 11,685 $ 11,722 The following table reflects equity-based compensation expense, by type of award, for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Relative TSR PSUs $ 4,220 $ 3,583 $ 3,480 Time-based RSUs 8,603 7,027 7,492 Special/Growth PSUs 675 295 — Common stock 834 780 750 Total equity-based compensation expense $ 14,332 $ 11,685 $ 11,722 |
Employee market-based restricted stock activity | The following table reflects Relative TSR PSUs activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Relative TSR PSUs outstanding as of October 1, 2016 484 $ 2,924 1.0 Granted 388 $ 13.47 Forfeited or expired (3 ) Vested (196 ) Relative TSR PSUs outstanding as of September 30, 2017 673 $ 6,204 1.4 Granted 180 $ 29.60 Forfeited or expired (146 ) Vested (168 ) Relative TSR PSUs outstanding as of September 29, 2018 539 $ 4,629 1.1 Granted 166 $ 23.15 Forfeited or expired (27 ) Vested (117 ) Relative TSR PSUs outstanding as of September 28, 2019 561 $ 4,136 0.9 |
Schedule of Assumptions Used to Calculate Compensation Expense | The following table reflects the assumptions used to calculate compensation expense related to the Company’s Relative TSR PSUs issued during fiscal 2019, 2018, and 2017 : Fiscal 2019 2018 2017 Grant Price $ 20.87 $ 19.65 $ 12.51 Expected dividend yield (1) 2.30 % 0.12 % N/A Expected stock price volatility 34.20 % 31.71 % 30.39 % Risk-free interest rate 2.92 % 1.68 % 0.96 % (1) The expected dividend yield for fiscal 2018 includes the effect of 10,511 grants which were issued in the quarter ended September 29, 2018 with an assumed dividend yield of 1.91% |
Employee time-based restricted stock activity | The following table reflects Time-based RSUs activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Time-based RSUs outstanding as of October 1, 2016 1,015 $ 6,440 1.5 Granted 715 $ 13.32 Forfeited or expired (50 ) Vested (600 ) Time-based RSUs outstanding as of September 30, 2017 1,080 $ 7,770 1.5 Granted 459 $ 22.32 Forfeited or expired (87 ) Vested (542 ) Time-based RSUs outstanding as of September 29, 2018 910 $ 9,038 1.4 Granted 521 $ 20.95 Forfeited or expired (42 ) Vested (442 ) Time-based RSUs outstanding as of September 28, 2019 947 $ 10,555 1.4 |
Schedule of Performance Based Restricted Stock Activity | Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Time-based RSUs outstanding as of October 1, 2016 1,015 $ 6,440 1.5 Granted 715 $ 13.32 Forfeited or expired (50 ) Vested (600 ) Time-based RSUs outstanding as of September 30, 2017 1,080 $ 7,770 1.5 Granted 459 $ 22.32 Forfeited or expired (87 ) Vested (542 ) Time-based RSUs outstanding as of September 29, 2018 910 $ 9,038 1.4 Granted 521 $ 20.95 Forfeited or expired (42 ) Vested (442 ) Time-based RSUs outstanding as of September 28, 2019 947 $ 10,555 1.4 |
Schedule of Special/Growth Based Restricted Stock Activity | The following table reflects Special/Growth PSUs activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Unrecognized compensation expense (in thousands) Average remaining service period (in years) Weighted average grant date fair value per share Special/Growth PSUs outstanding as of September 30, 2017 — Granted 60 $ 22.57 Forfeited or expired (14 ) Vested — Special/Growth PSUs outstanding as of September 29, 2018 46 $ 702 2.1 Granted $ 55 $ 21.07 Forfeited or expired $ (4 ) Vested $ — Special/Growth PSUs outstanding as of September 28, 2019 $ 97 $ 1,128 1.6 |
Employee stock option activity | The following table reflects employee stock option activity for fiscal 2019, 2018, and 2017 : Number of shares (in thousands) Weighted average exercise price Average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Options outstanding as of October 1, 2016 90 $ 8.41 Exercised (61 ) $ 8.31 $ 531 Forfeited or expired (13 ) $ 8.50 Options outstanding as of September 30, 2017 16 $ 8.73 Exercised (6 ) $ 8.74 $ 73 Forfeited or expired (8 ) $ 8.74 Options outstanding as of September 29, 2018 2 $ 8.64 Exercised (2 ) $ 8.64 $ 24 Forfeited or expired — $ — Options outstanding as of September 28, 2019 — $ — — $ — Options vested and expected to vest as of September 28, 2019 — $ — — $ — Options exercisable as of September 28, 2019 — $ — — In the money exercisable options as of September 28, 2019 — $ — |
Common stock issued to non-employee directors | The following table reflects shares of common stock issued to non-employee directors and the corresponding fair value for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Number of common shares issued 37 33 45 Fair value based upon market price at time of issue $ 834 $ 780 $ 750 |
Non-employee director stock option activity | Fiscal (in thousands) 2019 2018 2017 Number of common shares issued 37 33 45 Fair value based upon market price at time of issue $ 834 $ 780 $ 750 |
Defined benefits pension obligations and pension expenses | The following table reflects the Company's defined benefits pension obligations, mainly in Switzerland and Taiwan, as of September 28, 2019 and September 29, 2018 : As of (in thousands) September 28, 2019 September 29, 2018 Switzerland pension obligation $ 1,962 $ 1,980 Taiwan pension obligation 1,191 1,256 |
REVENUE AND CONTRACT LIABILIT_2
REVENUE AND CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Changes in contract liability balances | The following table shows the changes in contract liability balances during the fiscal year ended September 28, 2019 : Fiscal (in thousands) 2019 Contract liabilities, beginning of period $ 997 Revenue recognized (7,935 ) Additions 8,834 Contract liabilities, end of period $ 1,896 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of shares used in the basic and diluted net income per share computation | The following tables reflect a reconciliation of the shares used in the basic and diluted net income per share computation for fiscal 2019, 2018, and 2017 : Fiscal (in thousands, except per share) 2019 2018 2017 Basic Diluted Basic Diluted Basic Diluted NUMERATOR: Net income $ 11,653 $ 11,653 $ 56,676 $ 56,676 $ 126,099 $ 126,099 DENOMINATOR: Weighted average shares outstanding - Basic 65,286 65,286 69,380 69,380 70,906 70,906 Dilutive effect of Equity Plans 662 1,039 1,157 Weighted average shares outstanding - Diluted 65,948 70,419 72,063 EPS: Net income per share - Basic $ 0.18 $ 0.18 $ 0.82 $ 0.82 $ 1.78 $ 1.78 Effect of dilutive shares $ — $ (0.02 ) $ (0.03 ) Net income per share - Diluted $ 0.18 $ 0.80 $ 1.75 |
OTHER FINANCIAL DATA (Tables)
OTHER FINANCIAL DATA (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information Disclosure [Table Text Block] | The following table reflects other financial data for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Incentive compensation expense $ 423 $ 25,607 $ 29,612 Rent expense 4,889 4,914 5,071 Warranty and retrofit expense 13,030 13,110 13,740 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations by location, the provision (benefit) for income taxes and the effective tax rate | The following table reflects U.S and foreign income before income taxes for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 United States $ (14,125 ) $ 25,211 $ (4,114 ) Foreign 48,812 152,338 122,629 Income before tax $ 34,687 $ 177,549 $ 118,515 |
Provision (benefit) for income taxes from continuing operations | The following table reflects the current and deferred components of provision for (benefit from) income taxes for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Current: Federal $ 6,580 $ 83,159 $ (3,975 ) State 214 58 64 Foreign 6,384 16,980 13,290 Deferred: Federal 2,959 23,346 (15,374 ) State — (2 ) 40 Foreign 6,773 (2,797 ) (1,439 ) Provision for (benefit from) income taxes $ 22,910 $ 120,744 $ (7,394 ) |
Effective income tax rate reconciliation | fiscal 2019, 2018, and 2017 : Fiscal (dollar amounts in thousands) 2019 2018 2017 Expected income provision based on the U.S. federal statutory tax rate $ 7,284 $ 43,568 $ 41,358 Effect of earnings of foreign subsidiaries subject to different tax rates (4,335 ) (12,947 ) (22,832 ) Benefit from tax incentives (5,084 ) (20,429 ) (23,294 ) Benefit from research and development tax credits (3,041 ) (2,785 ) (1,859 ) Benefit from foreign tax credits (22,744 ) (3,939 ) (26,119 ) U.S. one-time transition tax 9,369 101,854 — Remeasurement of deferred taxes 5,480 2,760 — Non-deductible goodwill impairment — — 8,805 Valuation allowance 25,289 7,366 6,458 Foreign operations (withholding taxes, taxes on unrepatriated foreign earnings, and deemed dividends) 8,578 5,746 6,039 Unrecognized tax benefit 156 530 2,936 Non-deductible items 2,248 (758 ) 778 Other, net (290 ) (222 ) 336 Provision for (benefit from) income taxes $ 22,910 $ 120,744 $ (7,394 ) Effective tax rate 66.0 % 68.0 % (6.2 )% |
Net deferred tax balance | The following table reflects deferred tax balances based on the tax effects of cumulative temporary differences for fiscal 2019 and 2018 : Fiscal (in thousands) 2019 2018 Accruals and reserves $ 5,514 $ 6,652 Tax credit carryforwards 23,448 4,532 Net operating loss carryforwards 36,050 39,856 Gross deferred tax assets $ 65,012 $ 51,040 Valuation allowance $ (58,411 ) $ (37,249 ) Deferred tax assets, net of valuation allowance $ 6,601 $ 13,791 Taxes on undistributed foreign earnings $ (24,542 ) $ (21,988 ) Fixed and intangible assets (7,704 ) (8,377 ) Deferred tax liabilities $ (32,246 ) $ (30,365 ) Net deferred tax liabilities $ (25,645 ) $ (16,574 ) Reported as Deferred tax assets $ 6,409 $ 9,017 Deferred tax liabilities (32,054 ) (25,591 ) Net deferred tax liabilities $ (25,645 ) $ (16,574 ) |
Unrecognized tax benefits | The following table reconciles the beginning and ending balances of the Company's unrecognized tax benefit, excluding related accrued interest and penalties, for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Unrecognized tax benefit, beginning of year $ 13,038 $ 12,062 $ 7,453 Additions for tax positions, current year 410 1,482 3,657 Additions for tax positions, prior year — — 1,834 Reductions for tax positions, prior year (523 ) (506 ) (882 ) Unrecognized tax benefit, end of year $ 12,925 $ 13,038 $ 12,062 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Operating information by segment | The following table reflects operating information by segment for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Net revenue: Capital Equipment $ 386,820 $ 719,390 $ 651,934 APS 153,232 169,731 157,107 Net revenue 540,052 889,121 809,041 Income from operations: Capital Equipment (12,577 ) 132,563 107,115 APS 34,187 34,069 5,968 Income from operations $ 21,610 $ 166,632 $ 113,083 |
Capital expenditures and depreciation expense | The following tables reflect capital expenditures, depreciation and amortization expense by segment for fiscal 2019, 2018, and 2017 . Fiscal (in thousands) 2019 2018 2017 Capital expenditures: Capital Equipment $ 5,380 $ 7,029 $ 14,415 APS 6,449 13,412 11,273 Capital expenditures $ 11,829 $ 20,441 $ 25,688 Fiscal (in thousands) 2019 2018 2017 Depreciation expense: Capital Equipment $ 7,584 $ 7,435 $ 6,306 APS 5,308 3,754 3,397 Depreciation expense $ 12,892 $ 11,189 $ 9,703 Fiscal (in thousands) 2019 2018 2017 Amortization expense: Capital Equipment $ 3,977 $ 4,203 $ 2,841 APS 3,435 3,623 3,713 Amortization expense $ 7,412 $ 7,826 $ 6,554 |
SEGMENT INFORMATION Revenue by
SEGMENT INFORMATION Revenue by country (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following tables reflect destination sales to unaffiliated customers by country and long-lived assets by country for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 China $ 252,179 $ 408,567 $ 323,803 Taiwan 63,440 126,676 100,738 Malaysia 41,568 65,354 72,329 United States 36,393 68,774 57,728 Singapore 25,680 19,648 7,119 Korea 15,236 38,551 73,410 Germany 13,594 19,018 18,754 Hong Kong 12,096 14,194 14,314 Philippines 12,057 26,372 25,165 Vietnam 10,978 20,864 29,330 All other 56,831 81,103 86,351 Total destination sales to unaffiliated customers $ 540,052 $ 889,121 $ 809,041 Fiscal (in thousands) 2019 2018 2017 Long-lived assets: Singapore $ 25,620 $ 30,240 $ 31,553 United States 27,665 23,696 43,440 China 18,969 18,333 11,148 Israel 8,288 8,460 4,549 All other 6,981 6,944 6,899 Total long-lived assets $ 87,523 $ 87,673 $ 97,589 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reserve for product warranty activity | The following table reflects the reserve for product warranty activity for fiscal 2019, 2018, and 2017 : Fiscal (in thousands) 2019 2018 2017 Reserve for warranty, beginning of period $ 14,474 $ 13,796 $ 12,544 Provision for warranty 12,140 12,603 11,743 Utilization of reserve (12,429 ) (11,925 ) (10,491 ) Reserve for warranty, end of period $ 14,185 $ 14,474 $ 13,796 |
Obligations not reflected on the Consolidated Balance Sheet | The following table reflects obligations not reflected on the Consolidated Balance Sheet as of September 28, 2019 : Payments due by fiscal year (in thousands) Total 2020 2021 2022 2023 thereafter Inventory purchase obligation (1) $ 83,278 $ 83,278 $ — $ — $ — $ — Operating lease obligations (2) 16,273 4,089 2,576 2,182 1,967 5,459 Total $ 99,551 $ 87,367 $ 2,576 $ 2,182 $ 1,967 $ 5,459 (1) The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. (2) The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2019 (not including lease extension options, if applicable). Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company was considered the owner of the Building during the construction phase. The Building was completed on December 1, 2013 and Pte signed an agreement with the Landlord to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of the Building. Following the completion of construction, we performed a sale-leaseback analysis pursuant to ASC 840 and determined that because of our continuing involvement, ASC 840 precluded us from derecognizing the asset and associated financing obligation. As such, we reclassified the asset from construction in progress to Property, Plant and Equipment and began to depreciate the building over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. As of September 28, 2019 , we recorded a financing obligation related to the Building of $15.0 million (see Note 8 above). The financing obligation is not reflected in the table above. |
Significant customer concentrations as a percentage of net revenue | The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2019, 2018, and 2017 : Fiscal 2019 2018 2017 Haoseng Industrial Co., Ltd (1) * 12.8 % 10.1 % * Represents less than 10% of total net revenue (1) Distributor of the Company's products |
Significant customer concentrations as a percentage of total accounts receivable | The following table reflects significant customer concentrations as a percentage of total accounts receivable as of September 28, 2019 and September 29, 2018 : As of September 28, 2019 September 29, 2018 Xinye (HK) Electronics Co. (1) 16.0 % * Forehope Electronic (Ningbo) Co., Ltd 15.3 % * Super Power International Ltd. (1) 13.5 % 13.6 % Haoseng Industrial Co., Ltd (1) * 32.9 % * Represents less than 10% of total accounts receivable (1) Distributor of the Company's products |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL RESULTS (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2019 for the Quarter Ended (in thousands, except per share amounts) December 29 March 30 June 29 September 28 Fiscal 2019 Net revenue $ 157,208 $ 115,908 $ 127,109 $ 139,827 $ 540,052 Gross profit 74,799 55,573 58,780 65,438 254,590 Income / (loss) from operations 14,555 (2,465 ) 1,827 7,693 21,610 Provision for income taxes 10,570 4,672 3,864 3,804 22,910 Net income / (loss) $ 7,517 $ (3,555 ) $ 1,287 $ 6,404 $ 11,653 Net income / (loss) per share (1) : Basic $ 0.11 $ (0.05 ) $ 0.02 $ 0.10 $ 0.18 Diluted $ 0.11 $ (0.05 ) $ 0.02 $ 0.10 $ 0.18 Weighted average shares outstanding: Basic 67,176 65,930 64,683 63,401 65,286 Diluted 67,851 65,930 65,431 64,251 65,948 Fiscal 2018 for the Quarter Ended (in thousands, except per share amounts) December 30 March 30 June 30 September 29 Fiscal 2018 Net revenue $ 213,691 $ 221,772 $ 268,834 $ 184,824 $ 889,121 Gross profit 97,202 99,447 126,969 85,823 409,441 Income from operations 39,159 38,436 64,463 24,574 166,632 Provision for (benefit from) income taxes 110,412 4,800 7,282 (1,750 ) 120,744 Net (loss) / income $ (69,528 ) $ 36,313 $ 60,256 $ 29,635 $ 56,676 Net (loss) / income per share (1) : Basic $ (0.99 ) $ 0.52 $ 0.87 $ 0.44 $ 0.82 Diluted $ (0.99 ) $ 0.51 $ 0.86 $ 0.43 $ 0.80 Weighted average shares outstanding: Basic 70,577 70,361 69,125 67,462 69,380 Diluted 70,577 71,425 70,302 68,675 70,419 (1) EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
BASIS OF PRESENTATION (Inventor
BASIS OF PRESENTATION (Inventories) (Narrative) (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Equipment [Member] | |
Inventory [Line Items] | |
Reserves For Inventory In Excess Of Demand Inventory Future Consumption Period | 18 months |
Spare Parts [Member] | |
Inventory [Line Items] | |
Reserves For Inventory In Excess Of Demand Inventory Future Consumption Period | 24 months |
Expendable Tools [Member] | |
Inventory [Line Items] | |
Reserves For Inventory In Excess Of Demand Inventory Future Consumption Period | 12 months |
BASIS OF PRESENTATION (Property
BASIS OF PRESENTATION (Property, Plant and Equipment) (Narrative) (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Toolings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Leaseholds and Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | based on the shorter of the life of lease or life of asset |
Software and Software Development Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
BASIS OF PRESENTATION (Recent A
BASIS OF PRESENTATION (Recent Accounting Pronouncements) (Narrative) (Details) - USD ($) | 3 Months Ended | |||||
Dec. 28, 2019 | Sep. 29, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 01, 2013 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting changes | $ 534,000 | |||||
Decrease financing obligation | $ (14,207,000) | (15,187,000) | $ (20,000,000) | |||
Retained earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting changes | 534,000 | $ 4,006,000 | ||||
Accounting Standards Update 2016-16 [Member] | Retained earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting changes | $ 500,000 | |||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease liability | $ 23,800,000 | |||||
Operating lease right-of-use asset | 22,200,000 | |||||
Decrease financing obligation | 14,500,000 | |||||
Decrease property, plant and equipment | $ 15,300,000 | |||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | Retained earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting changes | $ 800,000 |
BALANCE SHEET COMPONENTS (Compo
BALANCE SHEET COMPONENTS (Components of significant balance sheet accounts) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Short-term investments | [1] | $ 229,000 | $ 293,000 | |
Inventories, net: | ||||
Raw materials and supplies | 52,853 | 63,894 | ||
Work in process | 32,026 | 37,829 | ||
Finished goods | 33,742 | 40,357 | ||
Inventory, gross | 118,621 | 142,080 | ||
Inventory reserves | (29,313) | (26,889) | ||
Inventories, net | 89,308 | 115,191 | ||
Property, plant and equipment, net: | ||||
Land | 2,182 | 2,182 | ||
Buildings and building improvements (2) | 41,961 | 41,616 | [2] | |
Leasehold improvements (2) | 24,441 | 23,561 | [2] | |
Data processing equipment and software | 36,302 | 35,469 | ||
Machinery, equipment, furniture and fixtures | 71,465 | 68,666 | ||
Construction in Progress, Gross | 6,512 | 6,940 | ||
Property, plant and equipment, gross | 182,863 | 178,434 | ||
Accumulated depreciation | (110,493) | (102,367) | ||
Property, plant and equipment, net | 72,370 | 76,067 | ||
Accrued expenses and other current liabilities: | ||||
Accrued customer obligations (3) | [3] | 26,292 | 34,918 | |
Wages and benefits | 18,188 | 44,505 | ||
Commissions and professional fees | 2,024 | 5,549 | ||
Dividends Payable, Current | 7,582 | 8,057 | ||
Deferred rent | 1,721 | 1,847 | ||
Severance | 1,500 | 1,415 | ||
Other | 7,226 | 9,687 | ||
Accrued expenses and other current liabilities | $ 64,533 | $ 105,978 | ||
[1] | All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the fiscal years ended 2019 and 2018. | |||
[2] | Certain balances as at September 29, 2018 relating to property, plant and equipment have been reclassified. These reclassifications have no impact to the Consolidated Balance Sheet as at September 29, 2018. | |||
[3] | Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations. |
BALANCE SHEET COMPONENTS (Narra
BALANCE SHEET COMPONENTS (Narrative) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Restructuring Cost and Reserve [Line Items] | ||
Severance | $ 1,500 | $ 1,415 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 35,207 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Recorded Goodwill) (Details) $ in Thousands | 12 Months Ended |
Sep. 28, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill beginning balance | $ 56,550 |
Goodwill ending balance | 55,691 |
Capital Equipment [Member] | |
Goodwill [Line Items] | |
Goodwill beginning balance | 30,159 |
Other | (679) |
Goodwill ending balance | 29,480 |
Aftermarket Products and Services [Member] | |
Goodwill [Line Items] | |
Goodwill beginning balance | 26,391 |
Other | (180) |
Goodwill ending balance | $ 26,211 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Net intangible assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 42,651 | $ 52,871 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 87,209 | 90,500 |
Accumulated amortization | (48,718) | (45,229) |
Net intangible assets | 38,491 | 45,271 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 35,180 | 36,131 |
Accumulated amortization | (31,862) | (29,820) |
Net intangible assets | 3,318 | 6,311 |
Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 7,219 | 7,377 |
Accumulated amortization | (6,377) | (6,088) |
Net intangible assets | 842 | 1,289 |
Other intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 2,500 | 2,500 |
Accumulated amortization | (2,500) | (2,500) |
Net intangible assets | $ 0 | $ 0 |
Average estimated useful lives (in years) | 1 year 10 months 24 days | |
Minimum [Member] | Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Minimum [Member] | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 5 years | |
Minimum [Member] | Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 7 years | |
Maximum [Member] | Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 15 years | |
Maximum [Member] | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 6 years | |
Maximum [Member] | Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average estimated useful lives (in years) | 8 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Estimated annual amortization expense) (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2020 | $ 7,196 |
Fiscal 2021 | 5,212 |
Fiscal 2022 | 4,271 |
Fiscal 2023 | 4,177 |
Fiscal 2024 and thereafter | 21,795 |
Total amortization expense | $ 42,651 |
CASH, CASH EQUIVALENTS, RESTR_3
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 01, 2016 | |
Cash and Cash Equivalents [Line Items] | |||||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Gain | $ 0 | $ 0 | |||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Loss | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Fair Value Disclosure | 229,000 | 293,000 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 364,184 | 321,148 | $ 392,940 | $ 423,907 | |
Short-term investments | [1] | 229,000 | 293,000 | ||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments | 593,184 | 614,153 | |||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments, Gross Unrealized Gain | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments, Gross Unrealized Loss | 0 | (5) | |||
Cash and cash equivalents, Amortized Cost | 364,184 | 320,630 | |||
Cash | 201,005 | 42,446 | |||
Cash and Cash Equivalents, Amortized Cost | 364,184 | 320,635 | |||
Cash and Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash and Cash Equivalents, Gross Unrealized Loss | 0 | (5) | |||
Cash and Cash Equivalents | 364,184 | 320,630 | |||
Restricted cash | [2] | 0 | 518 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Amortized Cost | 0 | 518 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Gross Unrealized Loss | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Fair Value Disclosure | 0 | 518 | |||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, and Short-Term Investments, Fair Value Disclosure | 593,184 | 614,148 | |||
Demand Deposits [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Gain | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Loss | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Fair Value Disclosure | [2],[3] | 99,000 | 96,000 | ||
Short-term investments | 99,000 | 96,000 | |||
Cash [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents, Amortized Cost | 201,005 | 42,446 | |||
Cash equivalents, Money market funds [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents, Amortized Cost | 163,172 | 209,172 | |||
Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash Equivalents, Gross Unrealized Loss | 0 | (5) | |||
Cash Equivalents, Fair Value Disclosure | [4] | 163,172 | 209,167 | ||
Cash equivalents, Time deposits [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Gain | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Gross Unrealized Loss | 0 | 0 | |||
Available-for-sale Securities, Short-term Investments, Fair Value Disclosure | [2] | 130,000 | 197,000 | ||
Short-term investments | 130,000 | 197,000 | |||
Cash and cash equivalents, Amortized Cost | 7 | 69,017 | |||
Cash Equivalents, Gross Unrealized Gain | 0 | 0 | |||
Cash Equivalents, Gross Unrealized Loss | 0 | 0 | |||
Cash Equivalents, Fair Value Disclosure | [2] | $ 7 | $ 69,017 | ||
[1] | All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. The Company did not recognize any realized gains or losses on the sale of investments during the fiscal years ended 2019 and 2018. | ||||
[2] | Fair value approximates cost basis. | ||||
[3] | Represents deposits that require a notice period of three months for withdrawal. | ||||
[4] | The fair value was determined using unadjusted prices in active, accessible markets for identical assets, and as such they were classified as Level 1 assets in the fair value hierarchy. |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Jan. 30, 2019 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 5,000 | [1] | $ 0 | [1] | $ 5,000 | |
Income (Loss) from Equity Method Investments | (124) | (129) | $ 190 | |||
Equity investments | 6,250 | 1,373 | ||||
Equity investments | $ 1,250 | $ 1,373 | ||||
[1] | On January 30, 2019, the Company made a $5.0 million investment in one of our collaborative partners, over which the Company does not have significant influence. During the fiscal year ended September 28, 2019 , there was no impairment or adjustment to the observable price. |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||
Derivative, Notional Amount | $ 33,834 | $ 43,095 | |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | $ 33,834 | 43,095 | |
Derivative, Term of Contract | 12 months | ||
Fair Value Liability Derivatives | [1],[2] | $ 597 | 1,071 |
Other Comprehensive Income (Loss) [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | [3] | (741) | (669) |
Selling, General and Administrative Expenses [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [4] | (1,215) | 1,755 |
Prepaid Expenses and Other Current Assets [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair Value Liability Derivatives | [1],[2] | $ 597 | $ 1,071 |
[1] | Hedged amounts expected to be recognized into earnings within the next twelve months . | ||
[2] | The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet. | ||
[3] | Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). | ||
[4] | Effective portion classified as selling, general and administrative expense. |
DEBT AND OTHER OBLIGATIONS (Nar
DEBT AND OTHER OBLIGATIONS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Sep. 28, 2019USD ($)renewal_option | Feb. 15, 2019USD ($) | Sep. 29, 2018USD ($) | Dec. 01, 2013USD ($)ft² | Nov. 22, 2013USD ($) | |
Debt Instrument [Line Items] | |||||
Area of Land | ft² | 198,000 | ||||
Percentage Of Building Area Agreed To Lease From Landlord | 70.00% | ||||
Short term debt | $ 60,904 | $ 0 | |||
Financing obligation | $ 14,207 | 15,187 | $ 20,000 | ||
K&S Corporate Headquarters [Member] | |||||
Debt Instrument [Line Items] | |||||
Lessee Leasing Arrangements, Capital Leases, Renewal Term | 10 years | ||||
Annual Rent and Service Charge Minimum Range | $ 4,000 | ||||
Annual Rent and Service Charge Maximum Range | $ 5,000 | ||||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 10 years | ||||
Lessee Leasing Arrangements, Capital Leases, Number of Renewal Options | renewal_option | 2 | ||||
Capital Lease Obligations, Interest Rate, Effective Percentage | 6.30% | ||||
Building [Member] | |||||
Debt Instrument [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 25 years | ||||
Citibank [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||||
Long-term Line of Credit | $ 3,100 | $ 4,000 | |||
MUFG Bank, Ltd., Singapore Branch [Member] | Facility Agreements [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 | ||||
Current and Noncurrent Portion [Member] | |||||
Debt Instrument [Line Items] | |||||
Financing obligation | $ 15,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | MUFG Bank, Ltd., Singapore Branch [Member] | Facility Agreements [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
SHAREHOLDERS' EQUITY AND EMPL_3
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Matching contributions to the Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Cash | $ 1,648 | $ 1,610 |
SHAREHOLDERS' EQUITY AND EMPL_4
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Accumulated other comprehensive income) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Loss from foreign currency translation adjustments | $ (7,745) | $ (1,211) |
Unrecognized actuarial loss on pension plan, net of tax | (1,598) | (1,620) |
Accumulated other comprehensive loss | (9,940) | (3,902) |
Accumulated other comprehensive loss | $ (597) | $ (1,071) |
SHAREHOLDERS' EQUITY AND EMPL_5
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Total equity-based compensation expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | $ 14,332 | $ 11,685 | [1] | $ 11,722 |
Market-based restricted stock [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | 4,220 | 3,583 | 3,480 | |
Time-based restricted stock [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | 8,603 | 7,027 | 7,492 | |
Stock options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | 675 | 295 | 0 | |
Common Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | 834 | 780 | 750 | |
Cost of sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | 632 | 515 | 463 | |
Selling, general and administrative (1) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | 10,503 | 8,548 | 9,015 | |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation expense (reversal) | $ 3,197 | $ 2,622 | $ 2,244 | |
[1] |
SHAREHOLDERS' EQUITY AND EMPL_6
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee market-based restricted stock activity) (Details) - Market-based restricted stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of shares, Restricted stock outstanding, beginning balance (in shares) | 539 | 673 | 484 | |
Number of shares, Granted (in shares) | 166 | 180 | 388 | |
Number of shares, Forfeited or expired (in shares) | (27) | (146) | (3) | |
Number of shares, Vested (in shares) | (117) | (168) | (196) | |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 561 | 539 | 673 | |
Unrecognized compensation expense | $ 4,136 | $ 4,629 | $ 6,204 | $ 2,924 |
Average remaining service period (in years) | 10 months 24 days | 1 year 1 month 6 days | 1 year 4 months 24 days | 1 year |
Weighted average grant date fair value per share | $ 23.15 | $ 29.60 | $ 13.47 |
SHAREHOLDERS' EQUITY AND EMPL_7
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee time-based restricted stock activity) (Details) - Time-based restricted stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Number of shares, Restricted stock outstanding, beginning balance (in shares) | 910,000 | 1,080,000 | 1,015,000 | ||
Number of shares, Granted (in shares) | 10,511 | 521,000 | 459,000 | 715,000 | |
Number of shares, Forfeited or expired (in shares) | (42,000) | (87,000) | (50,000) | ||
Number of shares, Vested (in shares) | (442,000) | (542,000) | (600,000) | ||
Number of shares, Restricted stock outstanding, ending balance (in shares) | 910,000 | 947,000 | 910,000 | 1,080,000 | |
Unrecognized compensation expense | $ 10,555 | $ 9,038 | $ 7,770 | $ 6,440 | |
Average remaining service period (in years) | 1 year 4 months 24 days | 1 year 4 months 24 days | 1 year 6 months | 1 year 6 months | |
Weighted average grant date fair value per share | $ 20.95 | $ 22.32 | $ 13.32 |
SHAREHOLDERS' EQUITY AND EMPL_8
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee performance-based and special growth restricted stock activity) (Details) - Special/Growth PSU's - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, Restricted stock outstanding, beginning balance (in shares) | 46 | 0 |
Number of shares, Granted (in shares) | 55 | 60 |
Weighted average grant date fair value per share | $ 21.07 | $ 22.57 |
Number of shares, Forfeited or expired (in shares) | (4) | (14) |
Number of shares, Restricted stock outstanding, ending balance (in shares) | 97 | 46 |
Unrecognized compensation expense | $ 1,128 | $ 702 |
Average remaining service period (in years) | 1 year 7 months 6 days | 2 years 1 month 6 days |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | 0 |
SHAREHOLDERS' EQUITY AND EMPL_9
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Employee stock option activity) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares, Options outstanding, beginning balance (in shares) | 2 | 16 | 90 |
Number of shares, Exercised (in shares) | (2) | (6) | (61) |
Number of shares, Forfeited or expired (in shares) | 0 | (8) | (13) |
Number of shares, Options outstanding, ending balance (in shares) | 0 | 2 | 16 |
Number of shares, Options vested and expected to vest (in shares) | 0 | ||
Number of shares, Options exercisable (in shares) | 0 | ||
Number of shares, In the money exercisable options (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, Options outstanding, beginning balance (in dollars per share) | $ 8.64 | $ 8.73 | $ 8.41 |
Weighted average exercise price, Exercised (in dollars per share) | 8.64 | 8.74 | 8.31 |
Weighted average exercise price, Forfeited or expired (in dollars per share) | 0 | 8.74 | 8.50 |
Weighted average exercise price, Options outstanding, ending balance (in dollars per share) | 0 | $ 8.64 | $ 8.73 |
Weighted average exercise price, Options vested and expected to vest (in dollars per share) | 0 | ||
Weighted average exercise price, Options exercisable (in dollars per share) | $ 0 | ||
Average remaining contractual life, Options outstanding (in years) | 0 years | ||
Average remaining contractual life, Options vested and expected to vest (in years) | 0 years | ||
Average remaining contractual life, Options exercisable (in years) | 0 years | ||
Aggregate intrinsic value, Exercised | $ 24 | $ 73 | $ 531 |
Aggregate intrinsic value, Options outstanding | 0 | ||
Aggregate intrinsic value, Options vested and expected to vest | 0 | ||
Aggregate intrinsic value, In the money exercisable options | $ 0 |
SHAREHOLDERS' EQUITY AND EMP_10
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Outstanding and exercisable employee stock options) (Details) - Stock Options One [Member] | 12 Months Ended |
Sep. 28, 2019$ / shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $ 8.64 |
Range of exercise prices, upper limit | $ 8.74 |
SHAREHOLDERS' EQUITY AND EMP_11
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Common stock issued to non-employee directors) (Details) - Non Employee Director [Member] - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of common shares issued | 37 | 33 | 45 |
Fair value based upon market price at time of issue | $ 834 | $ 780 | $ 750 |
SHAREHOLDERS' EQUITY AND EMP_12
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Non-employee director stock option activity) (Details) - Non Employee Director [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 28, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares, Options outstanding, ending balance (in shares) | shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted average exercise price, Options outstanding, ending balance (in dollars per share) | $ / shares | $ 0 |
Average remaining contractual life, Options outstanding (in years) | 0 years |
Average remaining contractual life, Options vested and expected to vest (in years) | 0 years |
Average remaining contractual life, Options exercisable (in years) | 0 years |
Aggregate intrinsic value, Options outstanding | $ | $ 0 |
SHAREHOLDERS' EQUITY AND EMP_13
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Defined benefits pension obligations and pension expenses) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Switzerland [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 1,962 | $ 1,980 |
Taiwan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligation | $ 1,191 | $ 1,256 |
SHAREHOLDERS' EQUITY AND EMP_14
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Aug. 07, 2019 | May 20, 2019 | Feb. 28, 2019 | Dec. 12, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends declared (in usd per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.48 | $ 0.24 | $ 0 |
Description Of Maximum Percentage Of Employee Contributions and Matching Contributions Based Upon Years Of Service | employee contributions and matching Company contributions from 4% to 6% | ||||||
Relative Total Shareholder Return Average Stock Price Calculation Period | 90 days | ||||||
Total Shareholder Return Award Performance Measurement Period | 3 years | ||||||
Proceeds from Stock Options Exercised | $ 14 | $ 55 | $ 509 | ||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 4.00% | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 0.00% | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Vesting Percentage | 200.00% | ||||||
Equity Incentive Plan 2009 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4 | ||||||
Non Employee Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant of common shares, upon initial election to board, value | $ 120 | ||||||
Grant of common shares, upon initial election to board, quarterly, value | $ 37 |
SHAREHOLDERS' EQUITY AND EMP_15
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS (Assumptions Used to Calculate Compensation Expense) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Time-based restricted stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 19.65 | $ 20.87 | $ 19.65 | $ 12.51 | |
Expected dividend yield | [1] | 1.91% | 2.30% | 0.12% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 34.20% | 31.71% | 30.39% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.92% | 1.68% | 0.96% | ||
Number of shares, Granted (in shares) | 10,511 | 521,000 | 459,000 | 715,000 | |
Performance-based restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares, Granted (in shares) | 55,000 | 60,000 | |||
[1] | The expected dividend yield for fiscal 2018 includes the effect of 10,511 grants which were issued in the quarter ended September 29, 2018 with an assumed dividend yield of 1.91% |
SHAREHOLDERS' EQUITY AND EMP_16
SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS Share Repurchase Program (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Jan. 31, 2019 | Jul. 10, 2018 | Aug. 15, 2017 | |
Share Repurchases [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 300,000 | $ 200,000 | ||||
Treasury Stock, Shares, Acquired | (4,700,000) | |||||
Stock Repurchased During Period, Value | $ 100,500 | |||||
Payments for Repurchase of Common Stock | 99,897 | $ 90,310 | $ 18,197 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 97,100 | |||||
August 2017 Share Repurchase Program [Member] | ||||||
Share Repurchases [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 |
REVENUE AND CONTRACT LIABILIT_3
REVENUE AND CONTRACT LIABILITIES (Details) $ in Thousands | 12 Months Ended |
Sep. 28, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract liabilities, beginning of period | $ 997 |
Revenue recognized | (7,935) |
Additions | 8,834 |
Contract liabilities, end of period | $ 1,896 |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of the shares used in the basic and diluted net income per share computation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
NUMERATOR: | ||||||||||||
Net income | $ 6,404 | $ 1,287 | $ (3,555) | $ 7,517 | $ 29,635 | $ 60,256 | $ 36,313 | $ (69,528) | $ 11,653 | $ 56,676 | $ 126,099 | |
DENOMINATOR: | ||||||||||||
Weighted average shares outstanding - Basic (in shares) | 63,401 | 64,683 | 65,930 | 67,176 | 67,462 | 69,125 | 70,361 | 70,577 | 65,286 | 69,380 | 70,906 | |
Market-based restricted stock (in shares) | 662 | 1,039 | 1,157 | |||||||||
Weighted average shares outstanding - Diluted (1) | 64,251 | 65,431 | 65,930 | 67,851 | 68,675 | 70,302 | 71,425 | 70,577 | 65,948 | 70,419 | 72,063 | |
EPS: | ||||||||||||
Net income per share - Basic (in dollars per share) | $ 0.10 | $ 0.02 | $ (0.05) | $ 0.11 | $ 0.44 | $ 0.87 | $ 0.52 | $ (0.99) | $ 0.18 | [1] | $ 0.82 | $ 1.78 |
Effect of dilutive shares (in dollars per share) | 0 | (0.02) | (0.03) | |||||||||
Net income per share - Diluted (in dollars per share) | $ 0.10 | $ 0.02 | $ (0.05) | $ 0.11 | $ 0.43 | $ 0.86 | $ 0.51 | $ (0.99) | $ 0.18 | [1] | $ 0.80 | $ 1.75 |
[1] | EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
OTHER FINANCIAL DATA Other Fina
OTHER FINANCIAL DATA Other Financial Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Incentive Compensation Expense | $ 423 | $ 25,607 | $ 29,612 |
Rent Expense | 4,889 | 4,914 | 5,071 |
Warranty and Retrofit Expense | $ 13,030 | $ 13,110 | $ 13,740 |
INCOME TAXES (Income from conti
INCOME TAXES (Income from continuing operations by location, the provision (benefit) for income taxes and the effective tax rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (14,125) | $ 25,211 | $ (4,114) | ||||||||
Foreign | 48,812 | 152,338 | 122,629 | ||||||||
Income before income taxes | 34,687 | 177,549 | 118,515 | ||||||||
Income tax expenses / (benefit) | $ 3,804 | $ 3,864 | $ 4,672 | $ 10,570 | $ (1,750) | $ 7,282 | $ 4,800 | $ 110,412 | $ 22,910 | $ 120,744 | $ (7,394) |
Effective tax rate | 66.00% | 68.00% | (6.20%) |
INCOME TAXES (Provision (benefi
INCOME TAXES (Provision (benefit) for income taxes from continuing operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Current: | |||||||||||
Federal | $ 6,580 | $ 83,159 | $ (3,975) | ||||||||
State | 214 | 58 | 64 | ||||||||
Foreign | 6,384 | 16,980 | 13,290 | ||||||||
Deferred: | |||||||||||
Federal | 2,959 | 23,346 | (15,374) | ||||||||
State | 0 | (2) | 40 | ||||||||
Foreign | 6,773 | (2,797) | (1,439) | ||||||||
Provision for (benefit from) income taxes | $ 3,804 | $ 3,864 | $ 4,672 | $ 10,570 | $ (1,750) | $ 7,282 | $ 4,800 | $ 110,412 | $ 22,910 | $ 120,744 | $ (7,394) |
INCOME TAXES (Effective income
INCOME TAXES (Effective income tax rate reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Expected income provision based on the U.S. federal statutory tax rate | $ 7,284 | $ 43,568 | $ 41,358 | ||||||||
Effect of earnings of foreign subsidiaries subject to different tax rates | (4,335) | (12,947) | (22,832) | ||||||||
Benefit from tax incentives | (5,084) | (20,429) | (23,294) | ||||||||
Benefit from research and development tax credits | (3,041) | (2,785) | (1,859) | ||||||||
Benefit from foreign tax credits | (22,744) | (3,939) | (26,119) | ||||||||
U.S. one-time transition tax | 9,369 | 101,854 | 0 | ||||||||
Remeasurement of deferred taxes | 5,480 | 2,760 | 0 | ||||||||
Non-deductible goodwill impairment | 0 | 0 | 8,805 | ||||||||
Valuation allowance | 25,289 | 7,366 | 6,458 | ||||||||
Foreign operations (withholding taxes, taxes on unrepatriated foreign earnings, and deemed dividends) | 8,578 | 5,746 | 6,039 | ||||||||
Unrecognized tax benefit | 156 | 530 | 2,936 | ||||||||
Non-deductible items | 2,248 | (758) | 778 | ||||||||
Other, net | (290) | (222) | 336 | ||||||||
Provision for (benefit from) income taxes | $ 3,804 | $ 3,864 | $ 4,672 | $ 10,570 | $ (1,750) | $ 7,282 | $ 4,800 | $ 110,412 | $ 22,910 | $ 120,744 | $ (7,394) |
Effective Income Tax Rate Reconciliation, Percent | 66.00% | 68.00% | (6.20%) |
INCOME TAXES (Net deferred tax
INCOME TAXES (Net deferred tax balance) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Income Tax Disclosure [Abstract] | ||
Accruals and reserves | $ 5,514 | $ 6,652 |
Tax credit carryforwards | 23,448 | 4,532 |
Net operating loss carryforwards | 36,050 | 39,856 |
Deferred Tax Assets, Gross | 65,012 | 51,040 |
Valuation allowance | (58,411) | (37,249) |
Deferred tax assets, net of valuation allowance | 6,601 | 13,791 |
Taxes on undistributed foreign earnings | (24,542) | (21,988) |
Fixed and intangible assets | (7,704) | (8,377) |
Deferred tax liabilities | (32,246) | (30,365) |
Net deferred tax liabilities | (25,645) | (16,574) |
Deferred tax assets | 6,409 | 9,017 |
Deferred tax liabilities | $ (32,054) | $ (25,591) |
INCOME TAXES (Unrecognized tax
INCOME TAXES (Unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning of year | $ 13,038 | $ 12,062 | $ 7,453 |
Additions for tax positions, current year | 410 | 1,482 | 3,657 |
Additions for tax positions, prior year | 0 | 0 | 1,834 |
Reductions for tax positions, prior year | (523) | (506) | (882) |
Unrecognized tax benefit, end of year | $ 12,925 | $ 13,038 | $ 12,062 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 30, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 28, 2019 | Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 110,600 | $ 110,600 | |||||
Excess tax benefits from stock based compensation | $ (4,392) | ||||||
Operating Loss Carryforwards [Line Items] | |||||||
Statutory tax rate | 35.00% | 21.00% | |||||
Tax Cuts And Jobs Act, income tax expense (benefit) | $ 9,400 | 114,000 | |||||
Tax Cuts And Jobs Act, re-measurement of deferred taxes and liabilities, income tax expense | 5,500 | $ 2,800 | |||||
Tax Cuts And Jobs Act, reassessment of undistributed foreign earnings no longer deemed to be to be indefinitely reinvested outside of U.S. | $ 700 | 1,800 | |||||
Tax Cuts And Jobs Act, tax for accumulated foreign earnings | 111,200 | ||||||
Tax incentive arrangement, benefit to income tax provision | $ 5,000 | $ 20,400 | $ 23,300 | ||||
Tax incentive arrangement, benefit to income tax provision, earnings per share impact (in dollars per share) | $ 0.08 | $ 0.29 | $ 0.33 | ||||
Remeasurement of deferred taxes | $ 5,480 | $ 2,760 | $ 0 | ||||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | 523 | 506 | 882 | ||||
Unrecognized Tax Benefits | $ 13,038 | 12,925 | 13,038 | 12,062 | 12,925 | $ 7,453 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 146,500 | 146,500 | |||||
U.S. one-time transition tax | 9,369 | 101,854 | $ 0 | ||||
Unrecognized tax benefit that if recognized would impact effective tax rate | 13,100 | 13,100 | |||||
Unrecognized tax benefits, accrued interest and penalties | 1,400 | 1,400 | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 7,800 | $ 7,800 | |||||
Minimum [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Operating Loss Carryforward, Foreign, Statute Of Limitions | 4 years | ||||||
Minimum [Member] | Operations In Singapore And Malaysia [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 0.00% | ||||||
Maximum [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Operating Loss Carryforward, Foreign, Statute Of Limitions | 6 years | ||||||
Pennsylvania Tax Law [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 0 | $ 0 | $ 4,000 | $ 4,000 |
SEGMENT INFORMATION (Operating
SEGMENT INFORMATION (Operating information by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Net revenue: | ||||||||||||
Net revenue | $ 139,827 | $ 127,109 | $ 115,908 | $ 157,208 | $ 184,824 | $ 268,834 | $ 221,772 | $ 213,691 | $ 540,052 | $ 889,121 | $ 809,041 | |
Cost of sales : | ||||||||||||
Cost of sales | 285,462 | 479,680 | 426,947 | |||||||||
Gross profit : | ||||||||||||
Gross profit | 65,438 | 58,780 | 55,573 | 74,799 | 85,823 | 126,969 | 99,447 | 97,202 | 254,590 | 409,441 | 382,094 | |
Operating expenses: | ||||||||||||
Operating expenses | 232,980 | 242,809 | 269,011 | |||||||||
Income from operations: | ||||||||||||
Income from operations | $ 7,693 | $ 1,827 | $ (2,465) | $ 14,555 | $ 24,574 | $ 64,463 | $ 38,436 | $ 39,159 | 21,610 | 166,632 | 113,083 | |
Capital Equipment | ||||||||||||
Net revenue: | ||||||||||||
Net revenue | 386,820 | 719,390 | 651,934 | |||||||||
Income from operations: | ||||||||||||
Income from operations | [1] | (12,577) | 132,563 | 107,115 | ||||||||
APS [Member] | ||||||||||||
Net revenue: | ||||||||||||
Net revenue | 153,232 | 169,731 | 157,107 | |||||||||
Income from operations: | ||||||||||||
Income from operations | [2] | $ 34,187 | $ 34,069 | $ 5,968 | ||||||||
[1] | Fiscal (in thousands) 2019 2018 2017 Net revenue: Capital Equipment $ 386,820 $ 719,390 $ 651,934 APS 153,232 169,731 157,107 Net revenue 540,052 889,121 809,041 Income from operations: Capital Equipment (12,577 ) 132,563 107,115 APS 34,187 34,069 5,968 Income from operations $ 21,610 $ 166,632 $ 113,083 | |||||||||||
[2] | Fiscal (in thousands) 2019 2018 2017 Net revenue: Capital Equipment $ 386,820 $ 719,390 $ 651,934 APS 153,232 169,731 157,107 Net revenue 540,052 889,121 809,041 Income from operations: Capital Equipment (12,577 ) 132,563 107,115 APS 34,187 34,069 5,968 Income from operations $ 21,610 $ 166,632 $ 113,083 |
SEGMENT INFORMATION (Capital ex
SEGMENT INFORMATION (Capital expenditures, depreciation, and amortization expense by segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Capital expenditures: | |||
Capital expenditures | $ 11,829 | $ 20,441 | $ 25,688 |
Depreciation expense: | |||
Depreciation expense | 12,892 | 11,189 | 9,703 |
Amortization expense: | |||
Amortization expense | 7,412 | 7,826 | 6,554 |
Capital Equipment | |||
Capital expenditures: | |||
Capital expenditures | 5,380 | 7,029 | 14,415 |
Depreciation expense: | |||
Depreciation expense | 7,584 | 7,435 | 6,306 |
Amortization expense: | |||
Amortization expense | 3,977 | 4,203 | 2,841 |
APS [Member] | |||
Capital expenditures: | |||
Capital expenditures | 6,449 | 13,412 | 11,273 |
Depreciation expense: | |||
Depreciation expense | 5,308 | 3,754 | 3,397 |
Amortization expense: | |||
Amortization expense | $ 3,435 | $ 3,623 | $ 3,713 |
SEGMENT INFORMATION Sales by co
SEGMENT INFORMATION Sales by country (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | $ 139,827 | $ 127,109 | $ 115,908 | $ 157,208 | $ 184,824 | $ 268,834 | $ 221,772 | $ 213,691 | $ 540,052 | $ 889,121 | $ 809,041 |
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 252,179 | 408,567 | 323,803 | ||||||||
Taiwan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 63,440 | 126,676 | 100,738 | ||||||||
Malaysia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 41,568 | 65,354 | 72,329 | ||||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 36,393 | 68,774 | 57,728 | ||||||||
Singapore [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 25,680 | 19,648 | 7,119 | ||||||||
KOREA, REPUBLIC OF | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 15,236 | 38,551 | 73,410 | ||||||||
GERMANY | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 13,594 | 19,018 | 18,754 | ||||||||
HONG KONG | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 12,096 | 14,194 | 14,314 | ||||||||
Philippines [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 12,057 | 26,372 | 25,165 | ||||||||
VIETNAM | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | 10,978 | 20,864 | 29,330 | ||||||||
All Other Segments [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue, Net (Deprecated 2018-01-31) | $ 56,831 | $ 81,103 | $ 86,351 |
SEGMENT INFORMATION Long-lived
SEGMENT INFORMATION Long-lived assets by countries (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 87,523 | $ 87,673 | $ 97,589 |
Singapore [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 25,620 | 30,240 | 31,553 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 27,665 | 23,696 | 43,440 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 18,969 | 18,333 | 11,148 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 8,288 | 8,460 | 4,549 |
All Other Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 6,981 | $ 6,944 | $ 6,899 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Reserve for product warranty activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Reserve for warranty, beginning of period | $ 14,474 | $ 13,796 | $ 12,544 |
Provision for warranty | 12,140 | 12,603 | 11,743 |
Utilization of reserve | (12,429) | (11,925) | (10,491) |
Reserve for warranty, end of period | $ 14,185 | $ 14,474 | $ 13,796 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Obligations not reflected on the Consolidated Balance Sheet) (Details) $ in Thousands | Sep. 28, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Inventory purchase obligation | $ 83,278 | [1] |
Inventory purchase obligation, payments due by fiscal year 2020 | 83,278 | [1] |
Inventory purchase obligation, Payments due by fiscal year 2021 | 0 | [1] |
Inventory purchase obligation, Payments due by fiscal year 2022 | 0 | [1] |
Inventory purchase obligation, Payments due by fiscal year 2023 | 0 | [1] |
Inventory purchase obligation, Payments due by fiscal year thereafter | 0 | [1] |
Operating lease obligations | 16,273 | [2] |
Operating lease obligations, Payments due by fiscal year 2020 | 4,089 | [2] |
Operating lease obligations, Payments due by fiscal year 2021 | 2,576 | [2] |
Operating lease obligations, Payments due by fiscal year 2022 | 2,182 | [2] |
Operating lease obligations, Payments due by fiscal year 2023 | 1,967 | [2] |
Operating lease obligations, Payments due by fiscal year thereafter | 5,459 | [2] |
Total | 99,551 | |
Total, Payments due by fiscal year 2020 | 87,367 | |
Total, Payments due by fiscal year 2021 | 2,576 | |
Total, Payments due by fiscal year 2022 | 2,182 | |
Total, Payments due by fiscal year 2023 | 1,967 | |
Total, Payments due by fiscal year thereafter | $ 5,459 | |
[1] | The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation. | |
[2] | The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2019 (not including lease extension options, if applicable). Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company was considered the owner of the Building during the construction phase. The Building was completed on December 1, 2013 and Pte signed an agreement with the Landlord to lease from the Landlord approximately 198,000 square feet, representing approximately 70% of the Building. Following the completion of construction, we performed a sale-leaseback analysis pursuant to ASC 840 and determined that because of our continuing involvement, ASC 840 precluded us from derecognizing the asset and associated financing obligation. As such, we reclassified the asset from construction in progress to Property, Plant and Equipment and began to depreciate the building over its estimated useful life of 25 years. We concluded that the term of the financing obligation is 10 years. This is equal to the non-cancellable term of our lease agreement with the Landlord. As of September 28, 2019 , we recorded a financing obligation related to the Building of $15.0 million (see Note 8 above). The financing obligation is not reflected in the table above. |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of net revenue) (Details) | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | ||
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Haoseng Industrial Co., Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | [1] | 12.80% | 10.10% |
[1] | Distributor of the Company's products |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Significant customer concentrations as a percentage of total accounts receivable) (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | ||
Xinye (HK) Electronics Co. [Member] [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | [1] | 16.00% | |
Forehope Electronic (Ningbo) Co Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | 15.30% | ||
Super Power International Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | [1] | 13.50% | 13.60% |
Haoseng Industrial Co., Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentrations risk percentage | [1] | 32.90% | |
[1] | Distributor of the Company's products |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019USD ($)renewal_option | Sep. 29, 2018USD ($) | Dec. 01, 2013USD ($)ft² | |
Other Commitments [Line Items] | |||
Area of Land | ft² | 198,000 | ||
Percentage Of Building Area Agreed To Lease From Landlord | 70.00% | ||
Period Of Warranty For Manufacturing Defects | 1 year | ||
Lease Expiration Year | 2018 | ||
Financing obligation | $ 14,207 | $ 15,187 | $ 20,000 |
Building [Member] | |||
Other Commitments [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years | ||
Current and Noncurrent Portion [Member] | |||
Other Commitments [Line Items] | |||
Financing obligation | $ 15,000 | ||
K&S Corporate Headquarters [Member] | |||
Other Commitments [Line Items] | |||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 10 years | ||
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Options | renewal_option | 2 | ||
Annual Rent And Service Charge Minimum Range | $ 4,000 | ||
Annual Rent And Service Charge Maximum Range | $ 5,000 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL RESULTS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Revenue, Net (Deprecated 2018-01-31) | $ 139,827 | $ 127,109 | $ 115,908 | $ 157,208 | $ 184,824 | $ 268,834 | $ 221,772 | $ 213,691 | $ 540,052 | $ 889,121 | $ 809,041 | |
Gross profit | 65,438 | 58,780 | 55,573 | 74,799 | 85,823 | 126,969 | 99,447 | 97,202 | 254,590 | 409,441 | 382,094 | |
Income from operations | 7,693 | 1,827 | (2,465) | 14,555 | 24,574 | 64,463 | 38,436 | 39,159 | 21,610 | 166,632 | 113,083 | |
Provision for (benefit from) income tax | 3,804 | 3,864 | 4,672 | 10,570 | (1,750) | 7,282 | 4,800 | 110,412 | 22,910 | 120,744 | (7,394) | |
Net income | $ 6,404 | $ 1,287 | $ (3,555) | $ 7,517 | $ 29,635 | $ 60,256 | $ 36,313 | $ (69,528) | $ 11,653 | $ 56,676 | $ 126,099 | |
Basic (in dollars per share) | $ 0.10 | $ 0.02 | $ (0.05) | $ 0.11 | $ 0.44 | $ 0.87 | $ 0.52 | $ (0.99) | $ 0.18 | [1] | $ 0.82 | $ 1.78 |
Earnings Per Share, Diluted | $ 0.10 | $ 0.02 | $ (0.05) | $ 0.11 | $ 0.43 | $ 0.86 | $ 0.51 | $ (0.99) | $ 0.18 | [1] | $ 0.80 | $ 1.75 |
Weighted average shares outstanding - Basic (in shares) | 63,401 | 64,683 | 65,930 | 67,176 | 67,462 | 69,125 | 70,361 | 70,577 | 65,286 | 69,380 | 70,906 | |
Weighted Average Number of Shares Outstanding, Diluted | 64,251 | 65,431 | 65,930 | 67,851 | 68,675 | 70,302 | 71,425 | 70,577 | 65,948 | 70,419 | 72,063 | |
[1] | EPS for the year may not equal the sum of quarterly EPS due to changes in weighted share calculations. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Oct. 24, 2019 | Sep. 28, 2019 | Sep. 29, 2018 |
Subsequent Event [Line Items] | |||
Derivative, Notional Amount | $ 33,834 | $ 43,095 | |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Notional Amount | $ 33,834 | $ 43,095 | |
Derivative, Term of Contract | 12 months | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Notional Amount | $ 10,000 | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Derivative, Term of Contract | 12 months |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | $ 37,249 | |||
End of period | 58,411 | $ 37,249 | ||
Allowance for doubtful accounts [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | 385 | 79 | $ 506 | |
Charged to Costs and Expenses | 212 | 383 | (136) | |
Other Additions | 0 | 0 | 0 | |
Other Deductions | [1] | 0 | (77) | (291) |
End of period | 597 | 385 | 79 | |
Inventory reserve [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | 26,889 | 24,639 | 21,080 | |
Charged to Costs and Expenses | 2,657 | 4,897 | 10,925 | |
Other Additions | 0 | 0 | 0 | |
Other Deductions | [2] | (233) | (2,647) | (7,366) |
End of period | 29,313 | 26,889 | 24,639 | |
Valuation allowance for deferred taxes [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning of period | 37,249 | 29,614 | 27,381 | |
Charged to Costs and Expenses | [3] | 0 | 0 | 0 |
Other Additions | 21,162 | 7,635 | 2,233 | |
Other Deductions | 0 | 0 | 0 | |
End of period | $ 58,411 | $ 37,249 | $ 29,614 | |
[1] | Represents write-offs of specific accounts receivable. | |||
[2] | Sale or scrap of previously reserved inventory. | |||
[3] | Reflects increase/decrease in the valuation allowance primarily associated with the Company's U.S. and foreign net operating losses and other deferred tax assets. |