Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 28, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 28, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-20388 | |
Entity Registrant Name | LITTELFUSE INC /DE | |
Entity Central Index Key | 0000889331 | |
Current Fiscal Year End Date | --12-26 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3795742 | |
Entity Address, Address Line One | 8755 West Higgins Road | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60631 | |
City Area Code | 773 | |
Local Phone Number | 628-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | LFUS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,276,841 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 620,575 | $ 531,139 |
Short-term investments | 43 | 44 |
Trade receivables, less allowances of $37,482 and $42,043 at March 28, 2020 and December 28, 2019, respectively | 207,912 | 202,309 |
Inventories | 227,282 | 237,507 |
Prepaid income taxes and income taxes receivable | 4,253 | 4,831 |
Prepaid expenses and other current assets | 32,418 | 28,564 |
Total current assets | 1,092,483 | 1,004,394 |
Net property, plant, and equipment | 334,829 | 344,617 |
Intangible assets, net of amortization | 308,393 | 321,247 |
Goodwill | 812,763 | 820,589 |
Investments | 21,248 | 24,099 |
Deferred income taxes | 7,608 | 8,069 |
Right of use lease assets, net | 20,611 | 21,918 |
Other assets | 14,694 | 14,965 |
Total assets | 2,612,629 | 2,559,898 |
Current liabilities: | ||
Accounts payable | 106,796 | 117,320 |
Accrued liabilities | 73,512 | 84,120 |
Accrued income taxes | 17,907 | 14,122 |
Current portion of long-term debt | 10,000 | 10,000 |
Total current liabilities | 208,215 | 225,562 |
Long-term debt, less current portion | 764,195 | 669,158 |
Deferred income taxes | 49,698 | 49,763 |
Accrued post-retirement benefits | 35,904 | 38,198 |
Non-current operating lease liabilities | 15,960 | 17,166 |
Other long-term liabilities | 61,709 | 64,037 |
Shareholders’ equity: | ||
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, March 28, 2020–25,902,213; December 28, 2019–25,855,203 | 256 | 256 |
Treasury stock, at cost: 1,626,357 and 1,473,901 shares, respectively | (239,817) | (216,447) |
Additional paid-in capital | 874,360 | 867,996 |
Accumulated other comprehensive loss | (121,802) | (106,823) |
Retained earnings | 963,820 | 950,901 |
Littelfuse, Inc. shareholders’ equity | 1,476,817 | 1,495,883 |
Non-controlling interest | 131 | 131 |
Total equity | 1,476,948 | 1,496,014 |
Total liabilities and equity | $ 2,612,629 | $ 2,559,898 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 37,482 | $ 42,043 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 34,000,000 | 34,000,000 |
Common stock issued (in shares) | 25,902,213 | 25,855,203 |
Treasury stock (in shares) | 1,626,357 | 1,473,901 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 346,096 | $ 405,500 |
Cost of sales | 222,384 | 250,272 |
Gross profit | 123,712 | 155,228 |
Selling, general, and administrative expenses | 54,386 | 62,955 |
Research and development expenses | 14,595 | 21,409 |
Amortization of intangibles | 9,981 | 10,191 |
Total operating expenses | 78,962 | 94,555 |
Operating income | 44,750 | 60,673 |
Interest expense | 5,418 | 5,686 |
Foreign exchange loss | 2,584 | 4,243 |
Other expense, net | 1,249 | 4,305 |
Income before income taxes | 35,499 | 46,439 |
Income taxes | 10,855 | 9,450 |
Net income | $ 24,644 | $ 36,989 |
Income per share: | ||
Basic (in dollars per share) | $ 1.01 | $ 1.50 |
Diluted (in dollars per share) | $ 1 | $ 1.48 |
Weighted-average shares and equivalent shares outstanding: | ||
Basic (in shares) | 24,393 | 24,717 |
Diluted (in shares) | 24,578 | 25,009 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 24,644 | $ 36,989 |
Other comprehensive income (loss): | ||
Pension and postemployment adjustment, net of tax | 561 | (49) |
Foreign currency translation adjustments | (15,540) | 8,122 |
Comprehensive income | $ 9,665 | $ 45,062 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income | $ 24,644 | $ 36,989 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 13,821 | 13,088 |
Amortization of intangibles | 9,981 | 10,191 |
Deferred revenue | (145) | 0 |
Impairment charges | 2,237 | |
Stock-based compensation | 2,965 | 3,966 |
Loss on investments and other assets | 2,604 | 2,810 |
Deferred income taxes | 616 | (72) |
Other | 3,547 | 5,393 |
Changes in operating assets and liabilities: | ||
Trade receivables | (9,457) | (5,800) |
Inventories | 6,667 | (3,250) |
Accounts payable | (3,964) | (8,499) |
Accrued liabilities and income taxes | (7,012) | (27,170) |
Prepaid expenses and other assets | (1,225) | 3,273 |
Net cash provided by operating activities | 45,279 | 30,919 |
INVESTING ACTIVITIES | ||
Acquisitions of businesses, net of cash acquired | 0 | (775) |
Purchases of property, plant, and equipment | (16,586) | (14,076) |
Net proceeds from sale of property, plant and equipment | 50 | 607 |
Net cash used in investing activities | (16,536) | (14,244) |
FINANCING ACTIVITIES | ||
Proceeds of revolving credit facility | 100,000 | 0 |
Payments of term loan | (2,500) | (5,000) |
Net proceeds related to stock-based award activities | 2,956 | 2,198 |
Purchases of common stock | (22,927) | (17,906) |
Cash dividends paid | (11,725) | (10,625) |
Net cash provided by (used in) financing activities | 65,804 | (31,333) |
Effect of exchange rate changes on cash and cash equivalents | (5,111) | 1,539 |
Increase (decrease) in cash and cash equivalents | 89,436 | (13,119) |
Cash and cash equivalents at beginning of period | 531,139 | 489,733 |
Cash and cash equivalents at end of period | 620,575 | 476,614 |
Supplementary Cash Flow Information | ||
Cash paid during the period for interest | 7,354 | 8,011 |
Capital expenditures, not yet paid | $ 5,832 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Addl. Paid in Capital | Treasury Stock | Accum. Other Comp. Inc. (Loss) | Retained Earnings | Non- controlling Interest |
Balance at Dec. 29, 2018 | $ 1,478,342 | $ 254 | $ 835,828 | $ (116,454) | $ (97,924) | $ 856,507 | $ 131 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 36,989 | 36,989 | |||||
Activity in the period | 8,073 | 8,073 | |||||
Stock-based compensation | 3,966 | 3,966 | |||||
Withheld shares on restricted share units for withholding taxes | (94) | (94) | |||||
Stock options exercised | 2,292 | 2,292 | |||||
Repurchases of common stock | (13,555) | (13,555) | |||||
Cash dividends paid | (10,625) | (10,625) | |||||
Balance at Mar. 30, 2019 | 1,505,388 | 254 | 842,086 | (130,103) | (89,851) | 882,871 | 131 |
Balance at Dec. 28, 2019 | 1,496,014 | 256 | 867,996 | (216,447) | (106,823) | 950,901 | 131 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 24,644 | 24,644 | |||||
Activity in the period | (14,979) | (14,979) | |||||
Stock-based compensation | 2,965 | 2,965 | |||||
Withheld shares on restricted share units for withholding taxes | (443) | (443) | |||||
Stock options exercised | 3,399 | 3,399 | |||||
Repurchases of common stock | (22,927) | (22,927) | |||||
Cash dividends paid | (11,725) | (11,725) | |||||
Balance at Mar. 28, 2020 | $ 1,476,948 | $ 256 | $ 874,360 | $ (239,817) | $ (121,802) | $ 963,820 | $ 131 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid, per share (in dollars per share) | $ 0.48 | $ 0.43 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Other Information | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Other Information | Summary of Significant Accounting Policies and Other Information Nature of Operations Littelfuse, Inc. and subsidiaries (the “Company”) is a global manufacturer of leading technologies in circuit protection, power control and sensing. Serving over 100,000 end customers, the Company’s products are found in automotive and commercial vehicles, industrial applications, data and telecommunications, medical devices, consumer electronics and appliances. With its broad product portfolio of fuses, semiconductors, polymers, ceramics, relays and sensors, and extensive global infrastructure, the Company’s worldwide associates partner with its customers to design, manufacture and deliver innovative, high-quality solutions for a safer, greener and increasingly connected world. Basis of Presentation The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statement of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results. Revenue Recognition Revenue Disaggregation The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 28, 2020 and March 30, 2019 : Three Months Ended March 28, 2020 (in thousands) Electronics Segment Automotive Segment Industrial Segment Total Electronics – Passive Products and Sensors $ 84,598 $ — $ — $ 84,598 Electronics – Semiconductor 129,591 — — 129,591 Passenger Car Products — 52,645 — 52,645 Automotive Sensors — 24,174 — 24,174 Commercial Vehicle Products — 27,951 — 27,951 Industrial Products — — 27,137 27,137 Total $ 214,189 $ 104,770 $ 27,137 $ 346,096 Three Months Ended March 30, 2019 (in thousands) Electronics Segment Automotive Segment Industrial Segment Total Electronics – Passive Products and Sensors $ 108,377 $ — $ — $ 108,377 Electronics – Semiconductor 157,017 — — 157,017 Passenger Car Products — 56,543 — 56,543 Automotive Sensors — 26,057 — 26,057 Commercial Vehicle Products — 30,883 — 30,883 Industrial Products — — 26,623 26,623 Total $ 265,394 $ 113,483 $ 26,623 $ 405,500 See Note 16, Segment Information for net sales by segment and countries. Revenue Recognition The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors. The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Revenue and Billing The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. Ship and Debit Program Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity, electronic distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue. Return to Stock The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns. Volume Rebates The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method ("CECL"). The standard requires the measurement of expected credit losses to be based on relevant information, including historical experiences, current conditions and a forecast that is supportable. The Company adopted the new standard on December 29, 2019. The adoption of the standard did not have a material effect on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurement." ASU 2018-13 modifies the disclosure requirements in Topic 820: "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The new standard removes certain disclosures, modifies certain disclosures and adds additional disclosures related to fair value measurement. The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018- 13 did not have a material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic: 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The objective of this is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not expect a material effect from the adoption of this guidance on its Condensed Consolidated Financial Statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, 2020 December 28, 2019 Raw materials $ 75,202 $ 76,732 Work in process 84,030 84,561 Finished goods 100,415 110,388 Inventory Reserves (32,365 ) (34,174 ) Total $ 227,282 $ 237,507 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Mar. 28, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment The components of net property, plant, and equipment at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, 2020 December 28, 2019 Land $ 22,781 $ 24,758 Building 105,067 108,501 Equipment 633,899 631,273 Accumulated depreciation and amortization (426,918 ) (419,915 ) Total $ 334,829 $ 344,617 The Company recorded depreciation expense of $13.8 million and $13.1 million for the three months ended March 28, 2020 and March 30, 2019 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The amounts for goodwill and changes in the carrying value by segment for the three months ended March 28, 2020 are as follows: (in thousands) Electronics Automotive Industrial Total As of December 28, 2019 $ 650,796 $ 131,321 $ 38,472 $ 820,589 Currency translation (5,873 ) (1,693 ) (260 ) (7,826 ) As of March 28, 2020 $ 644,923 $ 129,628 $ 38,212 $ 812,763 The components of other intangible assets at March 28, 2020 and December 28, 2019 are as follows: As of March 28, 2020 (in thousands) Gross Carrying Value Accumulated Amortization Net Book Value Land use rights $ 9,545 $ 1,755 $ 7,790 Patents, licenses and software 129,380 $ 80,506 $ 48,874 Distribution network 43,076 36,560 6,516 Customer relationships, trademarks, and tradenames 357,188 111,975 245,213 Total $ 539,189 $ 230,796 $ 308,393 As of December 28, 2019 (in thousands) Gross Carrying Value Accumulated Amortization Net Book Value Land use rights $ 9,649 $ 1,730 $ 7,919 Patents, licenses and software 131,164 78,828 52,336 Distribution network 43,239 36,163 7,076 Customer relationships, trademarks, and tradenames 360,534 106,618 253,916 Total $ 544,586 $ 223,339 $ 321,247 During the three months ended March 28, 2020 and March 30, 2019 , the Company recorded amortization expense of $10.0 million and $10.2 million , respectively. During the three months ended March 28, 2020, the Company recognized a $0.3 million non-cash impairment charge on a certain patent triggered by the Company’s announcement to consolidate a manufacturing facility within the Industrial segment. Estimated annual amortization expense related to intangible assets with definite lives as of March 28, 2020 is as follows: (in thousands) Amount 2020 $ 38,291 2021 37,487 2022 36,561 2023 32,195 2024 29,135 2025 and thereafter 144,705 Total $ 318,374 |
Lease Commitments
Lease Commitments | 3 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases office and production space under various non-cancelable operating leases that expire no later than 2028. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The Company also has production equipment, office equipment and vehicles under operating leases. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants. The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate (IBR), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations. All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Condensed Consolidated Balance Sheet. Short-term lease expenses are recognized on a straight-line basis over the lease term. The following table presents the classification of ROU assets and lease liabilities at March 28, 2020 and December 28, 2019 : Leases (in thousands) Condensed Consolidated Balance Sheet Classification March 28, 2020 December 28, 2019 Assets Operating ROU assets Right of use lease assets, net $ 20,611 $ 21,918 Liabilities Current operating lease liabilities Accrued liabilities $ 7,073 $ 7,259 Non-current operating lease liabilities Non-current operating lease liabilities $ 15,960 $ 17,166 Total lease liabilities $ 23,033 $ 24,425 The following table represents the lease costs for the three months ended March 28, 2020 and March 30, 2019 : Leases cost (in thousands) Condensed Consolidated Statements of Net Income Classification Three Months Ended March 28, 2020 Three Months Ended Short-term lease expenses Cost of sales, SG&A expenses $ 117 $ 153 Variable lease expenses Cost of sales, SG&A expenses 318 194 Operating lease rent expenses Cost of sales, SG&A expenses 2,173 2,193 Total operating lease costs Cost of sales, SG&A expenses $ 2,608 $ 2,540 Maturity of Lease Liabilities as of March 28, 2020 (in thousands) Operating leases 2020 (excluding the three months ended March 28, 2020) $ 6,156 2021 6,620 2022 5,341 2023 3,590 2024 3,177 2025 and thereafter 498 Total lease payments $ 25,382 Present value of lease liabilities $ 23,033 Operating Lease Term and Discount Rate March 28, 2020 Weighted-average remaining lease term (years) 3.90 Weighted-average discount rate 5.04 % Other Information (in thousands) Three Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flow payments for operating leases $ (2,242 ) Leased assets obtained in exchange for operating lease liabilities 848 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 28, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, 2020 December 28, 2019 Employee-related liabilities $ 32,381 $ 40,774 Operating lease liability 7,073 7,259 Interest 3,159 5,058 Professional services 3,359 3,986 Restructuring liability 3,336 2,679 Other non-income taxes 2,058 1,940 Other 22,146 22,424 Total $ 73,512 $ 84,120 Employee-related liabilities consist primarily of payroll, sales commissions, bonus, employee benefit accruals and workers’ compensation. Bonus accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals and other client-related liabilities. |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges | 3 Months Ended |
Mar. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment and Other Charges | Restructuring, Impairment and Other Charges The Company recorded restructuring, impairment and other charges for the three months ended March 28, 2020 and March 30, 2019 as follows: Three months ended March 28, 2020 (in thousands) Electronics Automotive Industrial Total Employee terminations $ 881 $ 399 $ 321 $ 1,601 Other restructuring charges 1 120 3 124 Total restructuring charges 882 519 324 1,725 Impairment — — 2,237 2,237 Total $ 882 $ 519 $ 2,561 $ 3,962 Three months ended March 30, 2019 (in thousands) Electronics Automotive Industrial Total Employee terminations $ 1,800 $ 605 $ 47 $ 2,452 Other restructuring charges 13 20 250 283 Total restructuring charges 1,813 625 297 2,735 Impairment — — — — Total $ 1,813 $ 625 $ 297 $ 2,735 2020 For the three months ended March 28, 2020 , the Company recorded total restructuring charges of $1.7 million , for employee termination costs and other restructuring charges. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions across all segments and the announced consolidation of a manufacturing facility within the Industrial segment. The Company also recognized $2.2 million of impairment charges related to the land and building associated with the Company’s announcement to consolidate a manufacturing facility within the Industrial segment. The impairment charges were included in selling, general and administrative expenses. 2019 For three months ended March 30, 2019 , the Company recorded total restructuring charges of $2.7 million , of which $2.5 million , was for employee termination costs and $0.3 million for other restructuring charges. These charges primarily related to reorganization of operations and selling, general and administrative functions as well as integration of IXYS within the Electronics segment and the reorganization of operations in the commercial vehicle products and automotive sensors businesses within the Automotive segment. The restructuring reserves as of March 28, 2020 and December 28, 2019 are $3.3 million and $2.7 million , respectively. The restructuring reserves are included within accrued liabilities in the Condensed Consolidated Balance Sheets. The Company anticipates the remaining payments associated with employee terminations will primarily be completed by March 2021. |
Debt
Debt | 3 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying amounts of debt at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, December 28, Revolving Credit Facility $ 100,000 $ — Term Loan 142,500 145,000 Euro Senior Notes, Series A due 2023 128,316 129,808 Euro Senior Notes, Series B due 2028 104,189 105,400 U.S. Senior Notes, Series A due 2022 25,000 25,000 U.S. Senior Notes, Series B due 2027 100,000 100,000 U.S. Senior Notes, Series A due 2025 50,000 50,000 U.S. Senior Notes, Series B due 2030 125,000 125,000 Other 2,619 2,619 Unamortized debt issuance costs (3,429 ) (3,669 ) Total debt 774,195 679,158 Less: Current maturities (10,000 ) (10,000 ) Total long-term debt $ 764,195 $ 669,158 Revolving Credit Facility / Term Loan On March 4, 2016, the Company entered into a five -year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million . The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million . In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million , in the aggregate, in each case in minimum increments of $25.0 million , subject to certain conditions and the agreement of participating lenders. On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022. The Credit Agreement also included the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million , in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans could be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company was required to make quarterly principal payments of 1.25% of the original term loan ( $2.5 million quarterly) through maturity, with the remaining balance due on October 13, 2022. The Company paid $2.5 million of principal payments on the term loan during the three months ended March 28, 2020 . Outstanding borrowings under the Credit Agreement bore interest, at the Company’s option, at either LIBOR, fixed for interest periods of one , two , three or six -month periods, plus 1.00% to 2.00% , or at the bank’s Base Rate, as defined, plus 0.00% to 1.00% , based upon the Company’s Consolidated Leverage Ratio, as defined. The Company was also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25% , based on the Consolidated Leverage Ratio, as defined in the agreement. The Credit Agreement included representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 2.47% at March 28, 2020 . On March 25, 2020, the company borrowed $100.0 million from the revolving credit facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to coronavirus disease 2019 ("COVID-19"). As of March 28, 2020 , the Company had no amount outstanding in letters of credit and had available $219.8 million of borrowing capacity under the Revolving Credit Facility based on financial covenants. At March 28, 2020 , the Company was in compliance with all covenants under the Credit Agreement. On April 3, 2020, the Company amended the Credit Agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance of which was repaid in full on April 3, 2020 through the revolving credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company; (iii) modifying performance-based interest rate margins and undrawn fees; and (iv) extending the maturity date to April 3, 2025. The amended Credit Agreement also allows the Company to increase the size of the revolving credit facility or enter into one or more tranches of term loans if there is no event of default and the Company is in compliance with certain financial covenants. The balance under the facility is $240.0 million as of April 3, 2020. Senior Notes On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017. On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) (together, the “U.S. Senior Notes due 2022 and 2027”) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017. On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes due 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 is payable semiannually on February 15 and August 15, commencing on August 15, 2018. The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company. The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At March 28, 2020 , the Company was in compliance with all covenants under the Senior Notes. The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control. Interest paid on all Company debt was $7.4 million and $8.0 million for the three months ended March 28, 2020 and March 30, 2019 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows: Level 1 —Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 —Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and Level 3 —Valuations based upon one or more significant unobservable inputs. Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy. Cash Equivalents Cash equivalents primarily consist of money market funds, which are held with an institution with sound credit rating and are highly liquid. The Company classified cash equivalents as Level 1 and are valued at cost which approximates fair value. Investments in Equity Securities Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy and recorded in investments and other assets. The Company has certain convertible debt and convertible preferred stock investments that are accounted for under the cost method reflected in other assets in the Condensed Consolidated Balance Sheets. During the three months ended March 30, 2019 , the Company recorded impairment charges of $2.8 million in Other expense (income), net in the Condensed Consolidated Statements of Net Income to adjust these certain investments to their estimated fair value. As of March 28, 2020 and December 28, 2019 , the balances of these investments were $0.4 million . The fair value of these investments are measured on a nonrecurring basis and determined to be Level 3 under the fair value hierarchy. The Company's accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs. Mutual Funds The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value and recorded in other assets. There were no changes during the quarter ended March 28, 2020 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. On October 30, 2019, the Company entered a foreign currency exchange forward contract to mitigate the currency fluctuation risk between the Chinese renminbi and U.S. dollar. The foreign currency contract was not designated as a hedge instrument and was marked to market on a monthly basis. The notional value of the forward contracts at December 28, 2019 was $16.0 million and expires on May 5, 2020. On March 23, 2020, the Company unwound the foreign currency exchange forward contract entered on October 30, 2019 and recognized a gain of $0.2 million within Other expenses, net during the three months ended March 28, 2020 . The fair values of the foreign currency forward contract was determined to be Level 2 under the fair value hierarchy and is valued using market exchange rates. As of March 28, 2020 and December 28, 2019, the Company did not hold any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis. The following table presents assets measured at fair value by classification within the fair value hierarchy as of March 28, 2020 : Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash Equivalents $ 198,221 $ — $ — $ 198,221 Investments in equity securities 10,529 — — 10,529 Mutual funds 8,769 — — 8,769 The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 28, 2019 : Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash Equivalents $ 118,999 $ — $ — $ 118,999 Investments in equity securities 12,969 — — 12,969 Mutual funds 10,464 — — 10,464 In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, accounts receivable and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and accounts receivable approximate their fair values. The Company’s revolving and term loan debt facilities’ fair values approximate book value at March 28, 2020 and December 28, 2019 , as the rates on these borrowings are variable in nature. The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of March 28, 2020 and December 28, 2019 were as follows: March 28, 2020 December 28, 2019 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro Senior Notes, Series A due 2023 $ 128,316 $ 121,124 $ 129,808 $ 131,710 Euro Senior Notes, Series B due 2028 104,189 94,743 105,400 110,336 USD Senior Notes, Series A due 2022 25,000 24,681 25,000 25,054 USD Senior Notes, Series B due 2027 100,000 97,097 100,000 102,548 USD Senior Notes, Series A due 2025 50,000 48,921 50,000 50,775 USD Senior Notes, Series B due 2030 125,000 118,648 125,000 127,701 The Company recognized impairment charges of $1.9 million for the land and building and $0.3 million for a certain patent as a result of the Company’s announcement to consolidate a manufacturing facility within the Industrial segment. See Note 7, Restructuring, Impairment and Other Charges, for further discussion. The fair value of the land and building was determined to be Level 3 under the fair value hierarchy and was valued using a real estate appraisal. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 28, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has company-sponsored defined benefit pension plans covering employees in the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay. The Company recognizes interest cost, expected return on plan assets, and amortization of prior service, net within Other expense (income), net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three months ended March 28, 2020 and March 30, 2019 were as follows: For the Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Components of net periodic benefit cost: Service cost $ 618 $ 500 Interest cost 658 784 Expected return on plan assets (727 ) (790 ) Amortization of prior service and net actuarial loss 145 62 Net periodic benefit cost $ 694 $ 556 The Company expects to make approximately $2.3 million of cash contributions to its pension plans in 2020. The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. For the three months ended March 28, 2020 and March 30, 2019, the Company recorded $0.5 million and $0.2 million expense, respectively, in Cost of Sales and Other expense (income), net within the Condensed Consolidated Statements of Net Income. For three months ended March 28, 2020, the pre-tax amounts recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were $0.2 million . On April 7, 2020, the Company entered into a definitive agreement to purchase a group annuity contract, under which an insurance company will be required to pay and administer pension payments to certain of the Company’s UK pension plan participants, or their designated beneficiaries, who have been receiving pension payments. The purchase of this group annuity contract will reduce the Company’s outstanding pension benefit obligation by approximately $36 million , representing approximately 30% of the total obligations of the Company’s qualified pension plans, and will be funded with pension plan assets and additional cash on hand. In connection with this transaction, the Company will record a one-time non-cash settlement charge in the second half of 2021 currently estimated between $18 million and $22 million , reflecting the accelerated recognition of a portion of unamortized actuarial losses in the plan. The actual settlement charge could differ from this estimate due to final data and plan wind-up expenses. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 28, 2020 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Changes in other comprehensive (loss) income by component were as follows: (in thousands) Three Months Ended Three Months Ended Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Defined benefit pension plan adjustments $ 555 $ (6 ) $ 561 $ (78 ) $ (29 ) $ (49 ) Foreign currency translation adjustments (15,540 ) — (15,540 ) 8,122 — 8,122 Total change in other comprehensive income (loss) $ (14,985 ) $ (6 ) $ (14,979 ) $ 8,044 $ (29 ) $ 8,073 The following tables set forth the changes in accumulated other comprehensive (loss) income by component for the three months ended March 28, 2020 and March 30, 2019 : (in thousands) Pension and postretirement liability and reclassification adjustments Foreign currency translation adjustment Accumulated other comprehensive income (loss) Balance at December 28, 2019 $ (18,046 ) $ (88,777 ) $ (106,823 ) Activity in the period 561 (15,540 ) (14,979 ) Balance at March 28, 2020 $ (17,485 ) $ (104,317 ) $ (121,802 ) (in thousands) Pension and postretirement liability and reclassification adjustments Foreign currency translation adjustment Accumulated other comprehensive income (loss) Balance at December 29, 2018 $ (9,959 ) $ (87,965 ) $ (97,924 ) Activity in the period (49 ) 8,122 8,073 Balance at March 30, 2019 $ (10,008 ) $ (79,843 ) $ (89,851 ) Amounts reclassified from accumulated other comprehensive (loss) income to earnings for the three months ended March 28, 2020 and March 30, 2019 were as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Pension and Postemployment plans: Amortization of prior service and net actuarial loss $ 345 $ 62 The Company recognizes the amortization of prior service costs in Other (expense) income, net within the Condensed Consolidated Statements of Net Income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended March 28, 2020 was 30.6% compared to the effective tax rate for the three months ended March 30, 2019 of 20.3% . The effective tax rate for the 2020 period is higher than the effective tax rate for the 2019 comparable period primarily due to a reduction in the forecasted income earned in lower tax jurisdictions in 2020 driven by the uncertainty resulting from the impact of COVID-19. The effective tax rate for the 2020 period is higher than the applicable U.S. statutory tax rate primarily due to the forecasted impact of non-U.S. losses and expenses with no tax benefit and the U.S. GILTI tax provisions (in the 2019 period the impact of these items was more than offset by the impact of income earned in lower tax jurisdictions). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) March 28, 2020 March 30, 2019 Numerator: Net income as reported $ 24,644 $ 36,989 Denominator: Weighted average shares outstanding Basic 24,393 24,717 Effect of dilutive securities 185 292 Diluted 24,578 25,009 Earnings Per Share: Basic earnings per share $ 1.01 $ 1.50 Diluted earnings per share $ 1.00 $ 1.48 Potential shares of common stock relating to stock options excluded from the earnings per share calculation because their effect would be anti-dilutive were 153,836 and 77,047 for the three months ended March 28, 2020 and March 30, 2019 , respectively. Share Repurchase Program The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019 ("2018 program"). On April 26, 2019, the Company's Board of Directors authorized to a program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2019 to April 30, 2020 ("2019 program") to replace its previous expired 2018 program. On April 23, 2020, the Company's Board of Directors authorized a new program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2020 to April 30, 2021 (the "2020 program") to replace its previous expired 2019 program. The Company does not expect to repurchase shares in the near future due to the uncertainty of the impact and duration of COVID-19. For the three months ended March 28, 2020 and March 30, 2019 , the Company repurchased 175,110 and 79,916 shares of its common stock totaling $22.9 million and $13.6 million , respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 28, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As a result of the Company’s acquisition of IXYS, the Company has equity ownership in various investments that are accounted for under the equity method. The following is a description of the investments and related party transactions. Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (“Powersem”), a module manufacturer based in Germany. EB-Tech Co., Ltd.: The Company owns approximately 19% of the outstanding equity of EB Tech Co., Ltd. (“EB Tech”), a company with expertise in radiation technology based in South Korea. Automated Technology (Phil), Inc. : The Company owns approximately 24% of the outstanding common shares of Automated Technology (Phil), Inc. (“ATEC”), a supplier located in the Philippines that provides assembly and test services. One member of the Company's Board of Directors serves on the Board of Directors of ATEC. For the Three Months Ended March 28, 2020 For the Three Months Ended March 30, 2019 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.4 $ — $ — $ 0.1 $ — $ — Purchase material/ service from related party 0.2 — 1.8 0.8 0.1 1.5 March 28, 2020 December 28, 2019 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Accounts Receivable balance $ 0.1 $ — $ — $ — $ — $ — Accounts Payable balance 0.1 — — 0.2 — 0.1 Additionally, the Company has certain cost method investments in VTOOL Ltd. and Securepush Ltd. with a total book value of $0.4 million as of March 28, 2020 and one member of the Company’s Board of Directors is currently an investor and a director of VTOOL Ltd. and Securepush Ltd. On April 26, 2019, the Company sold its subsidiary Microwave Technology, LLC. (“MWT”) resulting in a loss on disposal of $2.6 million reflected in Other income (expense), net in the Condensed Consolidated Statements of Net Income. The operations of MWT were included in the Electronics segment. One member of the Company’s Board of Directors is an owner of a company that purchased MWT. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information. Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments' current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole. • Electronics Segment : Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field effect transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial and automotive electronics, electric vehicle and related infrastructure, data and telecommunications, medical devices, alternative energy, consumer electronics and white goods. • Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain. • Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy, electric vehicle infrastructure, non-residential construction, HVAC systems, elevators and other industrial equipment. Segment information is summarized as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Net sales Electronics $ 214,189 $ 265,394 Automotive 104,770 113,483 Industrial 27,137 26,623 Total net sales $ 346,096 $ 405,500 Depreciation and amortization Electronics $ 15,531 $ 15,342 Automotive 7,187 6,877 Industrial 1,084 1,060 Total depreciation and amortization $ 23,802 $ 23,279 Operating income (loss) Electronics $ 32,272 $ 49,037 Automotive 14,116 13,200 Industrial 3,534 3,505 Other (a) (5,172 ) (5,069 ) Total operating income 44,750 60,673 Interest expense 5,418 5,686 Foreign exchange loss 2,584 4,243 Other expense, net 1,249 4,305 Income before income taxes $ 35,499 $ 46,439 (a) Included in “Other” Operating income (loss) for the 2020 first quarter is $1.2 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $4.0 million of restructuring, impairment and other charges, primarily related to impairment charges of $2.2 million associated with the announced consolidation of a manufacturing facility within the Industrial segment and $1.7 million of employee termination costs and other restructuring charges. See Note 7, Restructuring, Impairment and Other Charges, for further discussion. Included in "Other" Operating income (loss) for the first quarter of 2019 is $2.4 million of acquisition integration charges primarily related to the IXYS acquisition. In addition, there were $2.7 million of restructuring charges primarily related to employee termination costs. The Company’s net sales by country were as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Net sales United States $ 102,910 $ 119,528 China 86,015 106,866 Other countries (a) 157,171 179,106 Total net sales $ 346,096 $ 405,500 The Company’s long-lived assets by country were as follows: (in thousands) March 28, December 28, Long-lived assets United States $ 54,870 $ 58,081 China 83,830 88,306 Mexico 69,664 73,096 Germany 35,483 36,025 Philippines 55,347 51,738 Other countries (a) 35,635 37,371 Total long-lived assets $ 334,829 $ 344,617 The Company’s additions to long-lived assets by country were as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Additions to long-lived assets United States $ 580 $ 905 China 1,657 1,225 Mexico 2,592 5,484 Germany 753 598 Philippines 3,218 5,229 Other countries (a) 2,508 635 Total additions to long-lived assets $ 11,308 $ 14,076 (a) Each country included in other countries is less than 10% of net sales. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Other Information (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statement of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019 which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results. |
Revenue Recognition | Revenue Recognition Revenue Disaggregation The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 28, 2020 and March 30, 2019 : Three Months Ended March 28, 2020 (in thousands) Electronics Segment Automotive Segment Industrial Segment Total Electronics – Passive Products and Sensors $ 84,598 $ — $ — $ 84,598 Electronics – Semiconductor 129,591 — — 129,591 Passenger Car Products — 52,645 — 52,645 Automotive Sensors — 24,174 — 24,174 Commercial Vehicle Products — 27,951 — 27,951 Industrial Products — — 27,137 27,137 Total $ 214,189 $ 104,770 $ 27,137 $ 346,096 Three Months Ended March 30, 2019 (in thousands) Electronics Segment Automotive Segment Industrial Segment Total Electronics – Passive Products and Sensors $ 108,377 $ — $ — $ 108,377 Electronics – Semiconductor 157,017 — — 157,017 Passenger Car Products — 56,543 — 56,543 Automotive Sensors — 26,057 — 26,057 Commercial Vehicle Products — 30,883 — 30,883 Industrial Products — — 26,623 26,623 Total $ 265,394 $ 113,483 $ 26,623 $ 405,500 See Note 16, Segment Information for net sales by segment and countries. Revenue Recognition The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors. The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Revenue and Billing The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. Ship and Debit Program Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity, electronic distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue. Return to Stock The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns. Volume Rebates The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method ("CECL"). The standard requires the measurement of expected credit losses to be based on relevant information, including historical experiences, current conditions and a forecast that is supportable. The Company adopted the new standard on December 29, 2019. The adoption of the standard did not have a material effect on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurement." ASU 2018-13 modifies the disclosure requirements in Topic 820: "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The new standard removes certain disclosures, modifies certain disclosures and adds additional disclosures related to fair value measurement. The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018- 13 did not have a material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic: 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)." ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the new standard on December 29, 2019. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The objective of this is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not expect a material effect from the adoption of this guidance on its Condensed Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Other Information (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Revenue Disaggregation | The following tables disaggregate the Company’s revenue by primary business units for the three months ended March 28, 2020 and March 30, 2019 : Three Months Ended March 28, 2020 (in thousands) Electronics Segment Automotive Segment Industrial Segment Total Electronics – Passive Products and Sensors $ 84,598 $ — $ — $ 84,598 Electronics – Semiconductor 129,591 — — 129,591 Passenger Car Products — 52,645 — 52,645 Automotive Sensors — 24,174 — 24,174 Commercial Vehicle Products — 27,951 — 27,951 Industrial Products — — 27,137 27,137 Total $ 214,189 $ 104,770 $ 27,137 $ 346,096 Three Months Ended March 30, 2019 (in thousands) Electronics Segment Automotive Segment Industrial Segment Total Electronics – Passive Products and Sensors $ 108,377 $ — $ — $ 108,377 Electronics – Semiconductor 157,017 — — 157,017 Passenger Car Products — 56,543 — 56,543 Automotive Sensors — 26,057 — 26,057 Commercial Vehicle Products — 30,883 — 30,883 Industrial Products — — 26,623 26,623 Total $ 265,394 $ 113,483 $ 26,623 $ 405,500 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, 2020 December 28, 2019 Raw materials $ 75,202 $ 76,732 Work in process 84,030 84,561 Finished goods 100,415 110,388 Inventory Reserves (32,365 ) (34,174 ) Total $ 227,282 $ 237,507 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of net property, plant, and equipment | The components of net property, plant, and equipment at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, 2020 December 28, 2019 Land $ 22,781 $ 24,758 Building 105,067 108,501 Equipment 633,899 631,273 Accumulated depreciation and amortization (426,918 ) (419,915 ) Total $ 334,829 $ 344,617 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The amounts for goodwill and changes in the carrying value by segment for the three months ended March 28, 2020 are as follows: (in thousands) Electronics Automotive Industrial Total As of December 28, 2019 $ 650,796 $ 131,321 $ 38,472 $ 820,589 Currency translation (5,873 ) (1,693 ) (260 ) (7,826 ) As of March 28, 2020 $ 644,923 $ 129,628 $ 38,212 $ 812,763 |
Schedule of Finite-Lived Intangible Assets | The components of other intangible assets at March 28, 2020 and December 28, 2019 are as follows: As of March 28, 2020 (in thousands) Gross Carrying Value Accumulated Amortization Net Book Value Land use rights $ 9,545 $ 1,755 $ 7,790 Patents, licenses and software 129,380 $ 80,506 $ 48,874 Distribution network 43,076 36,560 6,516 Customer relationships, trademarks, and tradenames 357,188 111,975 245,213 Total $ 539,189 $ 230,796 $ 308,393 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated annual amortization expense related to intangible assets with definite lives as of March 28, 2020 is as follows: (in thousands) Amount 2020 $ 38,291 2021 37,487 2022 36,561 2023 32,195 2024 29,135 2025 and thereafter 144,705 Total $ 318,374 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Supplemental balance sheet information related to leases | The following table presents the classification of ROU assets and lease liabilities at March 28, 2020 and December 28, 2019 : Leases (in thousands) Condensed Consolidated Balance Sheet Classification March 28, 2020 December 28, 2019 Assets Operating ROU assets Right of use lease assets, net $ 20,611 $ 21,918 Liabilities Current operating lease liabilities Accrued liabilities $ 7,073 $ 7,259 Non-current operating lease liabilities Non-current operating lease liabilities $ 15,960 $ 17,166 Total lease liabilities $ 23,033 $ 24,425 |
Components of lease expense and supplemental cash flow information | Other Information (in thousands) Three Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flow payments for operating leases $ (2,242 ) Leased assets obtained in exchange for operating lease liabilities 848 The following table represents the lease costs for the three months ended March 28, 2020 and March 30, 2019 : Leases cost (in thousands) Condensed Consolidated Statements of Net Income Classification Three Months Ended March 28, 2020 Three Months Ended Short-term lease expenses Cost of sales, SG&A expenses $ 117 $ 153 Variable lease expenses Cost of sales, SG&A expenses 318 194 Operating lease rent expenses Cost of sales, SG&A expenses 2,173 2,193 Total operating lease costs Cost of sales, SG&A expenses $ 2,608 $ 2,540 |
Maturities of lease liabilities | Maturity of Lease Liabilities as of March 28, 2020 (in thousands) Operating leases 2020 (excluding the three months ended March 28, 2020) $ 6,156 2021 6,620 2022 5,341 2023 3,590 2024 3,177 2025 and thereafter 498 Total lease payments $ 25,382 Present value of lease liabilities $ 23,033 |
Operating lease term and discount rate | Operating Lease Term and Discount Rate March 28, 2020 Weighted-average remaining lease term (years) 3.90 Weighted-average discount rate 5.04 % |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Payables and Accruals [Abstract] | |
Components of accrued liabilities | The components of accrued liabilities at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, 2020 December 28, 2019 Employee-related liabilities $ 32,381 $ 40,774 Operating lease liability 7,073 7,259 Interest 3,159 5,058 Professional services 3,359 3,986 Restructuring liability 3,336 2,679 Other non-income taxes 2,058 1,940 Other 22,146 22,424 Total $ 73,512 $ 84,120 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other Charges (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, impairment and other charges | The Company recorded restructuring, impairment and other charges for the three months ended March 28, 2020 and March 30, 2019 as follows: Three months ended March 28, 2020 (in thousands) Electronics Automotive Industrial Total Employee terminations $ 881 $ 399 $ 321 $ 1,601 Other restructuring charges 1 120 3 124 Total restructuring charges 882 519 324 1,725 Impairment — — 2,237 2,237 Total $ 882 $ 519 $ 2,561 $ 3,962 Three months ended March 30, 2019 (in thousands) Electronics Automotive Industrial Total Employee terminations $ 1,800 $ 605 $ 47 $ 2,452 Other restructuring charges 13 20 250 283 Total restructuring charges 1,813 625 297 2,735 Impairment — — — — Total $ 1,813 $ 625 $ 297 $ 2,735 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying amounts of debt at March 28, 2020 and December 28, 2019 are as follows: (in thousands) March 28, December 28, Revolving Credit Facility $ 100,000 $ — Term Loan 142,500 145,000 Euro Senior Notes, Series A due 2023 128,316 129,808 Euro Senior Notes, Series B due 2028 104,189 105,400 U.S. Senior Notes, Series A due 2022 25,000 25,000 U.S. Senior Notes, Series B due 2027 100,000 100,000 U.S. Senior Notes, Series A due 2025 50,000 50,000 U.S. Senior Notes, Series B due 2030 125,000 125,000 Other 2,619 2,619 Unamortized debt issuance costs (3,429 ) (3,669 ) Total debt 774,195 679,158 Less: Current maturities (10,000 ) (10,000 ) Total long-term debt $ 764,195 $ 669,158 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 28, 2019 : Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash Equivalents $ 118,999 $ — $ — $ 118,999 Investments in equity securities 12,969 — — 12,969 Mutual funds 10,464 — — 10,464 The following table presents assets measured at fair value by classification within the fair value hierarchy as of March 28, 2020 : Fair Value Measurements Using (in thousands) Quoted Prices in Significant Significant Total Cash Equivalents $ 198,221 $ — $ — $ 198,221 Investments in equity securities 10,529 — — 10,529 Mutual funds 8,769 — — 8,769 |
Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of March 28, 2020 and December 28, 2019 were as follows: March 28, 2020 December 28, 2019 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Euro Senior Notes, Series A due 2023 $ 128,316 $ 121,124 $ 129,808 $ 131,710 Euro Senior Notes, Series B due 2028 104,189 94,743 105,400 110,336 USD Senior Notes, Series A due 2022 25,000 24,681 25,000 25,054 USD Senior Notes, Series B due 2027 100,000 97,097 100,000 102,548 USD Senior Notes, Series A due 2025 50,000 48,921 50,000 50,775 USD Senior Notes, Series B due 2030 125,000 118,648 125,000 127,701 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost for the three months ended March 28, 2020 and March 30, 2019 were as follows: For the Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Components of net periodic benefit cost: Service cost $ 618 $ 500 Interest cost 658 784 Expected return on plan assets (727 ) (790 ) Amortization of prior service and net actuarial loss 145 62 Net periodic benefit cost $ 694 $ 556 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Equity [Abstract] | |
Schedule of Components of Comprehensive Income (Loss) | Changes in other comprehensive (loss) income by component were as follows: (in thousands) Three Months Ended Three Months Ended Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Defined benefit pension plan adjustments $ 555 $ (6 ) $ 561 $ (78 ) $ (29 ) $ (49 ) Foreign currency translation adjustments (15,540 ) — (15,540 ) 8,122 — 8,122 Total change in other comprehensive income (loss) $ (14,985 ) $ (6 ) $ (14,979 ) $ 8,044 $ (29 ) $ 8,073 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive (loss) income by component for the three months ended March 28, 2020 and March 30, 2019 : (in thousands) Pension and postretirement liability and reclassification adjustments Foreign currency translation adjustment Accumulated other comprehensive income (loss) Balance at December 28, 2019 $ (18,046 ) $ (88,777 ) $ (106,823 ) Activity in the period 561 (15,540 ) (14,979 ) Balance at March 28, 2020 $ (17,485 ) $ (104,317 ) $ (121,802 ) (in thousands) Pension and postretirement liability and reclassification adjustments Foreign currency translation adjustment Accumulated other comprehensive income (loss) Balance at December 29, 2018 $ (9,959 ) $ (87,965 ) $ (97,924 ) Activity in the period (49 ) 8,122 8,073 Balance at March 30, 2019 $ (10,008 ) $ (79,843 ) $ (89,851 ) |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive (loss) income to earnings for the three months ended March 28, 2020 and March 30, 2019 were as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Pension and Postemployment plans: Amortization of prior service and net actuarial loss $ 345 $ 62 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) March 28, 2020 March 30, 2019 Numerator: Net income as reported $ 24,644 $ 36,989 Denominator: Weighted average shares outstanding Basic 24,393 24,717 Effect of dilutive securities 185 292 Diluted 24,578 25,009 Earnings Per Share: Basic earnings per share $ 1.01 $ 1.50 Diluted earnings per share $ 1.00 $ 1.48 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the Three Months Ended March 28, 2020 For the Three Months Ended March 30, 2019 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.4 $ — $ — $ 0.1 $ — $ — Purchase material/ service from related party 0.2 — 1.8 0.8 0.1 1.5 March 28, 2020 December 28, 2019 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Accounts Receivable balance $ 0.1 $ — $ — $ — $ — $ — Accounts Payable balance 0.1 — — 0.2 — 0.1 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information is summarized as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Net sales Electronics $ 214,189 $ 265,394 Automotive 104,770 113,483 Industrial 27,137 26,623 Total net sales $ 346,096 $ 405,500 Depreciation and amortization Electronics $ 15,531 $ 15,342 Automotive 7,187 6,877 Industrial 1,084 1,060 Total depreciation and amortization $ 23,802 $ 23,279 Operating income (loss) Electronics $ 32,272 $ 49,037 Automotive 14,116 13,200 Industrial 3,534 3,505 Other (a) (5,172 ) (5,069 ) Total operating income 44,750 60,673 Interest expense 5,418 5,686 Foreign exchange loss 2,584 4,243 Other expense, net 1,249 4,305 Income before income taxes $ 35,499 $ 46,439 (a) Included in “Other” Operating income (loss) for the 2020 first quarter is $1.2 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $4.0 million of restructuring, impairment and other charges, primarily related to impairment charges of $2.2 million associated with the announced consolidation of a manufacturing facility within the Industrial segment and $1.7 million of employee termination costs and other restructuring charges. See Note 7, Restructuring, Impairment and Other Charges, for further discussion. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The Company’s net sales by country were as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Net sales United States $ 102,910 $ 119,528 China 86,015 106,866 Other countries (a) 157,171 179,106 Total net sales $ 346,096 $ 405,500 The Company’s long-lived assets by country were as follows: (in thousands) March 28, December 28, Long-lived assets United States $ 54,870 $ 58,081 China 83,830 88,306 Mexico 69,664 73,096 Germany 35,483 36,025 Philippines 55,347 51,738 Other countries (a) 35,635 37,371 Total long-lived assets $ 334,829 $ 344,617 The Company’s additions to long-lived assets by country were as follows: Three Months Ended (in thousands) March 28, 2020 March 30, 2019 Additions to long-lived assets United States $ 580 $ 905 China 1,657 1,225 Mexico 2,592 5,484 Germany 753 598 Philippines 3,218 5,229 Other countries (a) 2,508 635 Total additions to long-lived assets $ 11,308 $ 14,076 (a) Each country included in other countries is less than 10% of net sales. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Other Information (Details Textual) customer in Thousands | 3 Months Ended |
Mar. 28, 2020customer | |
Accounting Policies [Abstract] | |
Number of customers (over) | 100 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Other Information - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 346,096 | $ 405,500 |
Electronics – Passive Products and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 84,598 | 108,377 |
Electronics – Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 129,591 | 157,017 |
Passenger Car Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 52,645 | 56,543 |
Automotive Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 24,174 | 26,057 |
Commercial Vehicle Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 27,951 | 30,883 |
Industrial Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 27,137 | 26,623 |
Electronics Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 214,189 | 265,394 |
Electronics Segment | Electronics – Passive Products and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 84,598 | 108,377 |
Electronics Segment | Electronics – Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 129,591 | 157,017 |
Electronics Segment | Passenger Car Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Electronics Segment | Automotive Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Electronics Segment | Commercial Vehicle Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Electronics Segment | Industrial Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Automotive Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 104,770 | 113,483 |
Automotive Segment | Electronics – Passive Products and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Automotive Segment | Electronics – Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Automotive Segment | Passenger Car Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 52,645 | 56,543 |
Automotive Segment | Automotive Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 24,174 | 26,057 |
Automotive Segment | Commercial Vehicle Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 27,951 | 30,883 |
Automotive Segment | Industrial Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Industrial Segment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 27,137 | 26,623 |
Industrial Segment | Electronics – Passive Products and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Industrial Segment | Electronics – Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Industrial Segment | Passenger Car Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Industrial Segment | Automotive Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Industrial Segment | Commercial Vehicle Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Industrial Segment | Industrial Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 27,137 | $ 26,623 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 75,202 | $ 76,732 |
Work in process | 84,030 | 84,561 |
Finished goods | 100,415 | 110,388 |
Inventory Reserves | (32,365) | (34,174) |
Total | $ 227,282 | $ 237,507 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | $ (426,918) | $ (419,915) | |
Total | 334,829 | 344,617 | |
Depreciation | 13,821 | $ 13,088 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 22,781 | 24,758 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 105,067 | 108,501 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 633,899 | $ 631,273 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Amounts for Goodwill and Changes in Carrying Value by Operating Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance | $ 820,589 |
Currency translation | (7,826) |
Balance | 812,763 |
Electronics | |
Goodwill [Roll Forward] | |
Balance | 650,796 |
Currency translation | (5,873) |
Balance | 644,923 |
Automotive | |
Goodwill [Roll Forward] | |
Balance | 131,321 |
Currency translation | (1,693) |
Balance | 129,628 |
Industrial | |
Goodwill [Roll Forward] | |
Balance | 38,472 |
Currency translation | (260) |
Balance | $ 38,212 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangibles | $ 9,981 | $ 10,191 |
Impairment of intangibles | $ 300 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Details of Other Intangible Assets and Related Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 539,189 | $ 544,586 |
Accumulated Amortization | 230,796 | 223,339 |
Net Book Value | 308,393 | 321,247 |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 9,545 | 9,649 |
Accumulated Amortization | 1,755 | 1,730 |
Net Book Value | 7,790 | 7,919 |
Patents, licenses and software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 129,380 | 131,164 |
Accumulated Amortization | 80,506 | 78,828 |
Net Book Value | 48,874 | 52,336 |
Distribution network | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 43,076 | 43,239 |
Accumulated Amortization | 36,560 | 36,163 |
Net Book Value | 6,516 | 7,076 |
Customer relationships, trademarks, and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 357,188 | 360,534 |
Accumulated Amortization | 111,975 | 106,618 |
Net Book Value | $ 245,213 | $ 253,916 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets with Definite Lives (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 38,291 |
2021 | 37,487 |
2022 | 36,561 |
2023 | 32,195 |
2024 | 29,135 |
2025 and thereafter | 144,705 |
Total | $ 318,374 |
Lease Commitments - Balance She
Lease Commitments - Balance Sheet, Operating Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Assets | ||
Operating ROU assets | $ 20,611 | $ 21,918 |
Liabilities | ||
Current operating lease liabilities | 7,073 | 7,259 |
Non-current operating lease liabilities | 15,960 | 17,166 |
Total lease liabilities | $ 23,033 | $ 24,425 |
Weighted-average remaining lease term (years) | 3 years 10 months 24 days | |
Weighted-average discount rate | 5.04% |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Leases [Abstract] | ||
Short-term lease expenses | $ 117 | $ 153 |
Variable lease expenses | 318 | 194 |
Operating lease rent expenses | 2,173 | 2,193 |
Total operating lease costs | $ 2,608 | $ 2,540 |
Lease Commitments - Maturities
Lease Commitments - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Operating Leases | ||
2020 (excluding the three months ended March 28, 2020) | $ 6,156 | |
2021 | 6,620 | |
2022 | 5,341 | |
2023 | 3,590 | |
2024 | 3,177 | |
2025 and thereafter | 498 | |
Total lease payments | 25,382 | |
Present value of lease liabilities | $ 23,033 | $ 24,425 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flow payments for operating leases | $ (2,242) |
Leased assets obtained in exchange for operating lease liabilities | $ 848 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Payables and Accruals [Abstract] | ||
Employee-related liabilities | $ 32,381 | $ 40,774 |
Interest | 7,073 | 7,259 |
Interest | 3,159 | 5,058 |
Restructuring liability | 3,359 | 3,986 |
Restructuring liability | 3,336 | 2,679 |
Other non-income taxes | 2,058 | 1,940 |
Other | 22,146 | 22,424 |
Total | $ 73,512 | $ 84,120 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other Charges (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 1,725 | $ 2,735 | ||
Impairment charges | 2,237 | 0 | ||
Restructuring costs | 3,962 | 2,735 | ||
Restructuring reserves | 3,300 | $ 2,700 | ||
Employee terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 2,500 | 1,601 | 2,452 | |
Other restructuring charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 300 | 124 | 283 | |
Electronics | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 882 | 1,813 | ||
Impairment charges | 0 | 0 | ||
Restructuring costs | 882 | 1,813 | ||
Electronics | Employee terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 881 | 1,800 | ||
Electronics | Other restructuring charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 1 | 13 | ||
Automotive | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 519 | 625 | ||
Impairment charges | 0 | 0 | ||
Restructuring costs | 519 | 625 | ||
Automotive | Employee terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 399 | 605 | ||
Automotive | Other restructuring charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 120 | 20 | ||
Industrial | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 324 | 297 | ||
Impairment charges | 0 | |||
Restructuring costs | 2,561 | 297 | ||
Industrial | Employee terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 321 | 47 | ||
Industrial | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 2,237 | |||
Industrial | Other restructuring charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 3 | $ 250 |
Debt - Carrying Amounts of Long
Debt - Carrying Amounts of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (3,429) | $ (3,669) |
Total debt | 774,195 | 679,158 |
Less: Current maturities | (10,000) | (10,000) |
Total long-term debt | 764,195 | 669,158 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 100,000 | 0 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 142,500 | 145,000 |
Euro Senior Notes, Series A due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 128,316 | 129,808 |
Euro Senior Notes, Series B due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 104,189 | 105,400 |
U.S. Senior Notes, Series A due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 25,000 | 25,000 |
U.S. Senior Notes, Series B due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 100,000 | 100,000 |
U.S. Senior Notes, Series A due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
U.S. Senior Notes, Series B due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 125,000 | 125,000 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,619 | $ 2,619 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Apr. 03, 2020USD ($) | Jan. 16, 2018USD ($) | Oct. 13, 2017USD ($)advance | Mar. 04, 2016USD ($) | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Dec. 28, 2019USD ($) | Nov. 15, 2017USD ($)series | Oct. 12, 2017USD ($) | Feb. 15, 2017USD ($) | Dec. 08, 2016EUR (€)series | Dec. 08, 2016USD ($)series |
Debt Instrument [Line Items] | ||||||||||||
Cash paid during the period for interest | $ 7,400,000 | $ 8,000,000 | ||||||||||
Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt term | 5 years | |||||||||||
Maximum borrowing capacity | $ 700,000,000 | |||||||||||
Additional uncommitted borrowing capacity | $ 300,000,000 | 150,000,000 | ||||||||||
Additional uncommitted borrowing capacity, minimum increments | $ 25,000,000 | |||||||||||
Number of advances | advance | 2 | |||||||||||
Effective interest rate | 2.47% | |||||||||||
Letter of credit outstanding (less than) | $ 0 | |||||||||||
Credit Agreement | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Commitment fee | 0.15% | |||||||||||
Credit Agreement | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Commitment fee | 0.25% | |||||||||||
Credit Agreement | LIBOR | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||
Credit Agreement | LIBOR | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.00% | |||||||||||
Credit Agreement | Base Rate | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.00% | |||||||||||
Credit Agreement | Base Rate | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||
Credit Agreement | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 700,000,000 | $ 575,000,000 | $ 575,000,000 | |||||||||
Remaining borrowing capacity | 219,800,000 | |||||||||||
Credit Agreement | Term Loan Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity, credit facility | 200,000,000 | $ 125,000,000 | ||||||||||
Proceeds from issuance of debt | $ 75,000,000 | $ 125,000,000 | ||||||||||
Quarterly payments, percentage of loan | 1.25% | |||||||||||
Periodic payment | $ 2,500,000 | |||||||||||
Repayments of debt | 2,500,000 | |||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | 100,000,000 | $ 0 | ||||||||||
Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | 142,500,000 | 145,000,000 | ||||||||||
Euro Senior Notes, Series A and B | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | € | € 212,000,000 | |||||||||||
Number of series | series | 2 | 2 | 2 | |||||||||
Euro Senior Notes, Series A due 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | 128,316,000 | 129,808,000 | ||||||||||
Face amount of debt | € | € 117,000,000 | |||||||||||
Stated interest rate | 1.14% | 1.14% | ||||||||||
Euro Senior Notes, Series B due 2028 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | 104,189,000 | 105,400,000 | ||||||||||
Face amount of debt | € | € 95,000,000 | |||||||||||
Stated interest rate | 1.83% | 1.83% | ||||||||||
U.S. Senior Notes, Series A and B | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 125,000,000 | |||||||||||
U.S. Senior Notes, Series A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 25,000,000 | |||||||||||
Stated interest rate | 3.03% | |||||||||||
U.S. Senior Notes, Series B | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 100,000,000 | |||||||||||
Stated interest rate | 3.74% | |||||||||||
US Senior Notes A and B Due 2025 and 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 175,000,000 | |||||||||||
U.S. Senior Notes, Series A due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | 50,000,000 | 50,000,000 | ||||||||||
Face amount of debt | $ 50,000,000 | |||||||||||
Stated interest rate | 3.48% | |||||||||||
U.S. Senior Notes, Series B due 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt, gross | $ 125,000,000 | $ 125,000,000 | ||||||||||
Face amount of debt | $ 125,000,000 | |||||||||||
Stated interest rate | 3.78% | |||||||||||
Subsequent Event | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity, credit facility | $ 240,000,000 | |||||||||||
Subsequent Event | Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Elimination of unsecured team loan facility | $ 200,000,000 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash Equivalents | $ 198,221 | $ 118,999 | |
Impairment charges | 2,237 | ||
Investments in equity securities | 10,529 | 12,969 | |
Mutual funds | 8,769 | 10,464 | |
Impairment charges | 2,237 | $ 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash Equivalents | 198,221 | ||
Investments in equity securities | 10,529 | 12,969 | |
Mutual funds | 8,769 | 10,464 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash Equivalents | 0 | 0 | |
Investments in equity securities | 0 | 0 | |
Mutual funds | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash Equivalents | 0 | 0 | |
Investments in equity securities | 0 | 0 | |
Mutual funds | 0 | 0 | |
Other Expense (Income) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charges | $ 2,800 | ||
Investments in equity securities | 400 | $ 400 | |
Land and Building | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charges | 1,900 | ||
Patents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charges | $ 300 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Senior Notes (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Carrying Value | Euro Senior Notes, Series A due 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | $ 128,316 | $ 129,808 |
Carrying Value | Euro Senior Notes, Series B due 2028 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 104,189 | 105,400 |
Carrying Value | U.S. Senior Notes, Series A due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 25,000 | 25,000 |
Carrying Value | U.S. Senior Notes, Series B due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 100,000 | 100,000 |
Carrying Value | U.S. Senior Notes, Series A due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 50,000 | 50,000 |
Carrying Value | U.S. Senior Notes, Series B due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 125,000 | 125,000 |
Estimated Fair Value | Euro Senior Notes, Series A due 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 121,124 | 131,710 |
Estimated Fair Value | Euro Senior Notes, Series B due 2028 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 94,743 | 110,336 |
Estimated Fair Value | U.S. Senior Notes, Series A due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 24,681 | 25,054 |
Estimated Fair Value | U.S. Senior Notes, Series B due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 97,097 | 102,548 |
Estimated Fair Value | U.S. Senior Notes, Series A due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 48,921 | 50,775 |
Estimated Fair Value | U.S. Senior Notes, Series B due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | $ 118,648 | $ 127,701 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) | Mar. 23, 2020 | Dec. 28, 2019 |
Fair Value Disclosures [Abstract] | ||
Notional amount of derivatives | $ 16,000,000 | |
Gain on derivatives | $ 200,000 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2021 | Apr. 07, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions expected | $ 2,300 | |||
Defined benefit plan expense | 694 | $ 556 | ||
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan expense | 500 | $ 200 | ||
Other comprehensive income as component of net period benefit cost, before tax | $ 200 | |||
Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated decrease in pension cost | $ 36,000 | |||
Estimated percent reduction in pension costs | 30.00% | |||
Minimum | Subsequent Event | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated settlement charge | $ 18,000 | |||
Maximum | Subsequent Event | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated settlement charge | $ 22,000 |
Benefit Plans - Benefit Plan Ex
Benefit Plans - Benefit Plan Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 618 | $ 500 |
Interest cost | 658 | 784 |
Expected return on plan assets | (727) | (790) |
Amortization of prior service and net actuarial loss | 145 | 62 |
Net periodic benefit cost | $ 694 | $ 556 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | $ (14,985) | $ 8,044 |
Tax | (6) | (29) |
Total change in other comprehensive income (loss) | (14,979) | 8,073 |
Pension and postretirement liability and reclassification adjustments | ||
Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 555 | (78) |
Tax | (6) | (29) |
Total change in other comprehensive income (loss) | 561 | (49) |
Foreign currency translation adjustment | ||
Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | (15,540) | 8,122 |
Tax | 0 | 0 |
Total change in other comprehensive income (loss) | $ (15,540) | $ 8,122 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | $ 1,496,014 | $ 1,478,342 |
Activity in the period | (14,979) | 8,073 |
Balance | 1,476,948 | 1,505,388 |
Pension and postretirement liability and reclassification adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (18,046) | (9,959) |
Activity in the period | 561 | (49) |
Balance | (17,485) | (10,008) |
Foreign currency translation adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (88,777) | (87,965) |
Activity in the period | (15,540) | 8,122 |
Balance | (104,317) | (79,843) |
Accumulated other comprehensive income (loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (106,823) | (97,924) |
Activity in the period | (14,979) | 8,073 |
Balance | $ (121,802) | $ (89,851) |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of prior service and net actuarial loss | $ 222,384 | $ 250,272 |
Amortization of prior service and net actuarial loss | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of prior service and net actuarial loss | $ 345 | $ 62 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 30.60% | 20.30% |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Apr. 23, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares repurchased (in shares) | 79,916 | ||
Repurchases of common stock | $ 22,927 | $ 13,555 | |
Share Repurchase Program | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Repurchase authorized (in shares) | 1,000,000 | ||
Shares repurchased (in shares) | 175,110 | ||
Repurchases of common stock | $ 22,900 | ||
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded (in shares) | 153,836 | 77,047 | |
Subsequent Event | Share Repurchase Program | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Repurchase authorized (in shares) | 1,000,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Numerator: | ||
Net income as reported | $ 24,644 | $ 36,989 |
Weighted average shares outstanding | ||
Basic (in shares) | 24,393 | 24,717 |
Effect of dilutive securities (in shares) | 185 | 292 |
Diluted (in shares) | 24,578 | 25,009 |
Earnings Per Share: | ||
Basic earnings per share (in dollars per share) | $ 1.01 | $ 1.50 |
Diluted earnings per share (in dollars per share) | $ 1 | $ 1.48 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Apr. 26, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 |
Related Party Transaction [Line Items] | ||||
Cost method investments | $ 0.4 | |||
MWT | ||||
Related Party Transaction [Line Items] | ||||
Loss on disposal | $ 2.6 | |||
Powersem | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 45.00% | |||
Revenue from related parties | $ 0.4 | $ 0.1 | ||
Purchase from related party | 0.2 | 0.8 | ||
Receivable from related parties | 0.1 | $ 0 | ||
Payables to related parties | $ 0.1 | 0.2 | ||
EB Tech | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 19.00% | |||
Revenue from related parties | $ 0 | 0 | ||
Purchase from related party | 0 | 0.1 | ||
Receivable from related parties | 0 | 0 | ||
Payables to related parties | $ 0 | 0 | ||
ATEC | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 24.00% | |||
Revenue from related parties | $ 0 | 0 | ||
Purchase from related party | 1.8 | $ 1.5 | ||
Receivable from related parties | 0 | 0 | ||
Payables to related parties | $ 0 | $ 0.1 |
Segment Information - Segment I
Segment Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 346,096 | $ 405,500 |
Depreciation and amortization | 23,802 | 23,279 |
Operating income (loss) | 44,750 | 60,673 |
Interest expense | 5,418 | 5,686 |
Foreign exchange loss | 2,584 | 4,243 |
Other expense, net | 1,249 | 4,305 |
Income before income taxes | 35,499 | 46,439 |
Electronics | ||
Segment Reporting Information [Line Items] | ||
Net sales | 214,189 | 265,394 |
Automotive | ||
Segment Reporting Information [Line Items] | ||
Net sales | 104,770 | 113,483 |
Industrial | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,137 | 26,623 |
Operating Segments | Electronics | ||
Segment Reporting Information [Line Items] | ||
Net sales | 214,189 | 265,394 |
Depreciation and amortization | 15,531 | 15,342 |
Operating income (loss) | 32,272 | 49,037 |
Operating Segments | Automotive | ||
Segment Reporting Information [Line Items] | ||
Net sales | 104,770 | 113,483 |
Depreciation and amortization | 7,187 | 6,877 |
Operating income (loss) | 14,116 | 13,200 |
Operating Segments | Industrial | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,137 | 26,623 |
Depreciation and amortization | 1,084 | 1,060 |
Operating income (loss) | 3,534 | 3,505 |
Corporate, Non-Segment | Other | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (5,172) | $ (5,069) |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2019USD ($) | Mar. 28, 2020USD ($)segment | Mar. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 3 | ||
Restructuring charges | $ 1,725 | $ 2,735 | |
Impairment charges | $ 2,237 | 0 | |
Net sales | Geographic Concentration Risk | Other countries | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Operating Income (Loss) | |||
Segment Reporting Information [Line Items] | |||
Acquisition related costs | 2,400 | ||
Other | Operating Income (Loss) | |||
Segment Reporting Information [Line Items] | |||
Legal, accounting and other expenses | $ 1,200 | ||
Restructuring charges | 4,000 | ||
Industrial | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | 324 | 297 | |
Impairment charges | 0 | ||
Facility Closing | Industrial | |||
Segment Reporting Information [Line Items] | |||
Impairment charges | 2,237 | ||
Employee terminations | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | $ 2,500 | 1,601 | 2,452 |
Employee terminations | Industrial | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | $ 321 | $ 47 |
Segment Information - Revenues
Segment Information - Revenues and Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 346,096 | $ 405,500 | |
Long-lived assets | 334,829 | $ 344,617 | |
Additions to long-lived assets | 11,308 | 14,076 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 102,910 | 119,528 | |
Long-lived assets | 54,870 | 58,081 | |
Additions to long-lived assets | 580 | 905 | |
China | |||
Segment Reporting Information [Line Items] | |||
Net sales | 86,015 | 106,866 | |
Long-lived assets | 83,830 | 88,306 | |
Additions to long-lived assets | 1,657 | 1,225 | |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 69,664 | 73,096 | |
Additions to long-lived assets | 2,592 | 5,484 | |
Germany | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 35,483 | 36,025 | |
Additions to long-lived assets | 753 | 598 | |
Philippines | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 55,347 | 51,738 | |
Additions to long-lived assets | 3,218 | 5,229 | |
Other countries | |||
Segment Reporting Information [Line Items] | |||
Net sales | 157,171 | 179,106 | |
Long-lived assets | 35,635 | $ 37,371 | |
Additions to long-lived assets | $ 2,508 | $ 635 |