Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Feb. 11, 2022 | Jun. 26, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 1, 2022 | ||
Current Fiscal Year End Date | --01-01 | ||
Document Transition Report | false | ||
Entity File Number | 0-20388 | ||
Entity Registrant Name | LITTELFUSE INC /DE | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-3795742 | ||
Entity Address, Street | 8755 West Higgins Road | ||
Entity Address, Suite | Suite 500 | ||
Entity Address, City | Chicago | ||
Entity Address, State | IL | ||
Entity Address, Postal Zip Code | 60631 | ||
City Area Code | 773 | ||
Local Phone Number | 628-1000 | ||
Title of Each Class | Common Stock, $0.01 par value | ||
Trading Symbol | LFUS | ||
Name of Each Exchange On Which Registered | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,125,123,061 | ||
Entity Common Stock, Shares Outstanding | 24,689,579 | ||
Documents Incorporated by Reference | Portions of the Littelfuse, Inc. Proxy Statement for the 2022 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0000889331 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 01, 2022 | |
Audit Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Firm ID | 248 |
Auditor Location | Southfield, Michigan |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 478,473 | $ 687,525 |
Short-term investments | 28 | 54 |
Trade receivables, less allowances of $59,232 and $45,237, respectively | 275,192 | 232,760 |
Inventories | 445,671 | 258,002 |
Prepaid income taxes and income taxes receivable | 2,035 | 3,029 |
Prepaid expenses and other current assets | 68,812 | 35,939 |
Total current assets | 1,270,211 | 1,217,309 |
Net property, plant, and equipment | 437,889 | 344,178 |
Intangible assets, net of amortization | 407,126 | 291,887 |
Goodwill | 929,790 | 816,812 |
Investments | 39,211 | 30,547 |
Deferred income taxes | 13,127 | 11,224 |
Right of use assets, net | 29,616 | 17,615 |
Other assets | 24,734 | 18,021 |
Total assets | 3,151,704 | 2,747,593 |
Current liabilities: | ||
Accounts payable | 222,039 | 145,984 |
Accrued liabilities | 159,689 | 110,478 |
Accrued income taxes | 27,905 | 19,186 |
Current portion of long-term debt | 25,000 | 0 |
Total current liabilities | 434,633 | 275,648 |
Long-term debt, less current portion | 611,897 | 687,034 |
Deferred income taxes | 81,289 | 50,134 |
Accrued post-retirement benefits | 37,037 | 45,802 |
Non-current operating lease liabilities | 22,305 | 12,950 |
Other long-term liabilities | 71,023 | 67,252 |
Shareholders’ equity: | ||
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, 26,350,763 and 26,131,544, respectively | 260 | 259 |
Additional paid-in capital | 946,588 | 907,858 |
Treasury stock, at cost: 1,664,711 and 1,644,283 shares, respectively | (248,120) | (242,366) |
Accumulated other comprehensive loss | (73,463) | (91,157) |
Retained earnings | 1,268,124 | 1,034,048 |
Littelfuse, Inc. shareholders’ equity | 1,893,389 | 1,608,642 |
Non-controlling interest | 131 | 131 |
Total equity | 1,893,520 | 1,608,773 |
Total liabilities and equity | $ 3,151,704 | $ 2,747,593 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 59,232 | $ 45,237 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 34,000,000 | 34,000,000 |
Common stock, shares issued (in shares) | 26,350,763 | 26,131,544 |
Treasury stock, shares (in shares) | 1,664,711 | 1,644,283 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 2,079,928 | $ 1,445,695 | $ 1,503,873 |
Cost of sales | 1,308,002 | 944,523 | 957,578 |
Gross profit | 771,926 | 501,172 | 546,295 |
Selling, general, and administrative expenses | 275,457 | 204,507 | 220,448 |
Research and development expenses | 65,940 | 52,538 | 79,997 |
Amortization of intangibles | 42,729 | 40,039 | 40,026 |
Restructuring, impairment, and other charges | 2,158 | 41,716 | 13,033 |
Total operating expenses | 386,284 | 338,800 | 353,504 |
Operating income (loss) | 385,642 | 162,372 | 192,791 |
Interest expense | 18,527 | 21,077 | 22,266 |
Foreign exchange loss (gain) | 17,158 | (14,875) | 5,224 |
Other expense (income), net | 8,932 | (5,083) | (583) |
Income before income taxes | 341,025 | 161,253 | 165,884 |
Income taxes | 57,219 | 31,267 | 26,802 |
Net income | $ 283,806 | $ 129,986 | $ 139,082 |
Income per share: | |||
Basic (in dollars per share) | $ 11.54 | $ 5.33 | $ 5.66 |
Diluted (in dollars per share) | $ 11.38 | $ 5.29 | $ 5.60 |
Weighted average shares and equivalent shares outstanding: | |||
Basic (in shares) | 24,603 | 24,371 | 24,576 |
Diluted (in shares) | 24,932 | 24,592 | 24,818 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 283,806 | $ 129,986 | $ 139,082 |
Other comprehensive income (loss): | |||
Pension and postemployment adjustments, net of tax | 22,213 | (16,095) | (8,087) |
Foreign currency translation adjustments | (4,519) | 31,761 | (812) |
Comprehensive income | $ 301,500 | $ 145,652 | $ 130,183 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022USD ($) | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | |
OPERATING ACTIVITIES | |||
Net income | $ 283,806 | $ 129,986 | $ 139,082 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 55,906 | 56,139 | 52,477 |
Amortization of intangibles | 42,729 | 40,039 | 40,026 |
Non-cash pension settlement charges | 19,855 | 0 | 0 |
Impairment charges | 0 | 36,078 | 322 |
Deferred revenue | (2,570) | (593) | (318) |
Non-cash inventory charges | 8,397 | 0 | 0 |
Stock-based compensation | 19,611 | 18,129 | 19,046 |
(Gain) loss on investments and other assets | (8,907) | (4,663) | 4,854 |
Deferred income taxes | (8,020) | (3,214) | (1,147) |
Other | 20,275 | (18,230) | 6,638 |
Changes in operating assets and liabilities: | |||
Trade receivables | (10,234) | (25,588) | 28,497 |
Inventories | (104,555) | (12,425) | 22,094 |
Accounts payable | 40,481 | 28,820 | (22,574) |
Accrued liabilities and income taxes | 30,793 | 6,765 | (54,242) |
Prepaid expenses and other assets | (14,223) | 6,788 | 10,573 |
Net cash provided by operating activities | 373,344 | 258,031 | 245,328 |
INVESTING ACTIVITIES | |||
Acquisitions of businesses, net of cash acquired | (423,633) | 0 | (775) |
Purchases of property, plant, and equipment | (90,562) | (56,191) | (61,895) |
Proceeds from sale of property, plant, and equipment | 15,425 | 4,758 | 6,213 |
Other | (390) | 0 | 0 |
Net cash used in investing activities | (499,160) | (51,433) | (56,457) |
FINANCING ACTIVITIES | |||
Proceeds of revolving credit facility | 0 | 240,000 | 0 |
Payments of revolving credit facility | (30,000) | (110,000) | 0 |
Payments of term loan and other loans | (2,619) | (145,000) | (10,000) |
Net proceeds related to stock-based award activities | 13,365 | 18,744 | 7,800 |
Cash dividends paid | (49,730) | (46,839) | (44,689) |
Purchases of common stock | 0 | (22,927) | (99,387) |
Debt issuance costs | 0 | (1,786) | 0 |
Net cash used in financing activities | (68,984) | (67,808) | (146,276) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (9,889) | 17,596 | (1,189) |
(Decrease) increase in cash, cash equivalents, and restricted cash | (204,689) | 156,386 | 41,406 |
Cash, cash equivalents, and restricted cash at beginning of period | 687,525 | 531,139 | 489,733 |
Cash, cash equivalents, and restricted cash at end of period | 482,836 | 687,525 | 531,139 |
Reconciliation of cash and cash equivalents: | |||
Cash and cash equivalents | 478,473 | 687,525 | 531,139 |
Restricted cash included in prepaid expenses and other current assets | 2,718 | 0 | 0 |
Restricted cash included in other assets | 1,645 | 0 | 0 |
Cash paid during the period for interest | 17,420 | 20,095 | 21,240 |
Cash paid during the period for income taxes, net of refunds | 55,561 | 27,619 | 40,518 |
Capital expenditures, not yet paid | $ 11,872 | $ 6,126 | $ 11,110 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Addl. Paid in Capital | Treasury Stock | Accum. Other Comp. Inc. (Loss) | Retained Earnings | Non-controlling Interest |
Beginning balance at Dec. 29, 2018 | $ 1,478,342 | $ 254 | $ 835,828 | $ (116,454) | $ (97,924) | $ 856,507 | $ 131 |
Net income | 139,082 | 139,082 | |||||
Other comprehensive income (loss), net of tax | (8,899) | (8,899) | |||||
Stock-based compensation | 19,046 | 19,046 | |||||
Withheld shares on restricted share units for withholding taxes | (4,957) | (4,957) | |||||
Stock options exercised | 13,124 | 2 | 13,122 | ||||
Repurchases of common stock | (95,036) | (95,036) | |||||
Cash dividends paid | (44,688) | (44,688) | |||||
Ending balance at Dec. 28, 2019 | 1,496,014 | 256 | 867,996 | (216,447) | (106,823) | 950,901 | 131 |
Net income | 129,986 | 129,986 | |||||
Other comprehensive income (loss), net of tax | 15,666 | 15,666 | |||||
Stock-based compensation | 18,129 | 18,129 | |||||
Withheld shares on restricted share units for withholding taxes | (2,992) | (2,992) | |||||
Stock options exercised | 21,736 | 3 | 21,733 | ||||
Repurchases of common stock | (22,927) | (22,927) | |||||
Cash dividends paid | (46,839) | (46,839) | |||||
Ending balance at Dec. 26, 2020 | 1,608,773 | 259 | 907,858 | (242,366) | (91,157) | 1,034,048 | 131 |
Net income | 283,806 | 283,806 | |||||
Other comprehensive income (loss), net of tax | 17,694 | 17,694 | |||||
Stock-based compensation | 19,611 | 19,611 | |||||
Withheld shares on restricted share units for withholding taxes | (5,754) | (5,754) | |||||
Stock options exercised | 19,120 | 1 | 19,119 | ||||
Cash dividends paid | (49,730) | (49,730) | |||||
Ending balance at Jan. 01, 2022 | $ 1,893,520 | $ 260 | $ 946,588 | $ (248,120) | $ (73,463) | $ 1,268,124 | $ 131 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares withheld on restricted stock grants for withholding taxes (in shares) | 20,428 | 20,250 | 25,940 |
Cash dividends paid, per share (in dollars per share) | $ 2.02 | $ 1.92 | $ 1.82 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Other Information | 12 Months Ended |
Jan. 01, 2022 | |
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 an industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 15 countries, and with approximately 17,000 global associates, the company partners with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, the company’s products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Fiscal Year References herein to “2021”, “fiscal 2021” or “fiscal year 2021” refer to the fiscal year ended January 1, 2022. References herein to “2020”, “fiscal 2020” or “fiscal year 2020” refer to the fiscal year ended December 26, 2020. References herein to “2019”, “fiscal 2019” or “fiscal year 2019” refer to the fiscal year ended December 28, 2019. The Company operates on a 52-53 week fiscal year (4-4-5 basis) ending on the Saturday closest to December 31. Therefore, the financial results of certain fiscal years and the associated 14 week quarters will not be exactly comparable to the prior 52 week fiscal years and the associated quarters having only 13 weeks. As a result of using this convention, the fiscal year 2021 contained 53 weeks while each of fiscal 2020 and fiscal 2019 contained 52 weeks. Basis of Presentation The Consolidated Financial Statements include the accounts of Littelfuse, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The Company’s Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles in the United States of America ("U.S.") and include the assets, liabilities, sales and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control. Use of Estimates The process of preparing financial statements in conformity with generally accepted accounting principles in the U.S. requires management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses and the accompanying notes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in its evaluation, as considered necessary. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash All highly liquid investments, with an original maturity of three months or less when purchased, are considered to be cash equivalents. The Company maintains several pools including multicurrency notional pools and physical pools internationally and a zero balance account ("ZBA") structure in the U.S. In the notional pools, actual cash balances are not physically converted and are not commingled between participating legal entities. The Company will classify any overdraft balances within accrued expenses and other current liabilities on the Consolidated Balance Sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash at January 1, 2022 and December 26, 2020 reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows. (in millions) 2021 2020 Cash and cash equivalents $ 478,473 $ 687,525 Restricted cash included in prepaid expenses and other current assets 2,718 — Restricted cash included in other assets 1,645 $ — Total cash, cash equivalents and restricted cash $ 482,836 $ 687,525 Short-Term and Long-Term Investments As of January 1, 2022, the Company has an investment in Polytronics Technology Corporation Ltd. (“Polytronics”). The Company’s Polytronics shares held at the end of fiscal 2021 and 2020 represent approximately 6.8% and 7.2% of total Polytronics shares outstanding, respectively. The Polytronics investment is carried at fair value. The fair value of the Polytronics investment was €23 million (approximately $26.1 million) at January 1, 2022 and €15.7 million (approximately $19.2 million) at December 26, 2020. As a result of the Company’s acquisition of IXYS, the Company has equity ownerships in various investments that are accounted for under the equity method. The Company owns 45% of the outstanding equity of Powersem GmbH, a module manufacturer based in Germany, approximately 19% of the outstanding equity of EB Tech Ltd., a company with expertise in radiation technology based in South Korea, and approximately 24% of the outstanding common shares of Automated Technology, Inc., a supplier located in the Philippine s that provides assemb ly and test services. All equity-level investments are less than majority owned. The Company recognized $1.3 million gains from its equity method investment for the fiscal year ended January 1, 2022. The Company recognized no gains and losses from its equity method investments for the fiscal year ended December 26, 2020. The balance of these equity method investments was $12.4 million and $11.4 million as of the fiscal years ended January 1, 2022 and December 26, 2020, respectively. See Note 18, Related Party Transactions, for further discussion. The Company does not have any remaining book value of investments accounted for under the cost method as of January 1, 2022. As of December 26, 2020, the Company had a net book value of $0.5 million. During the fiscal year ended January 1, 2022, the Company impaired the remaining book value of these investments and recorded an impairment charge of $0.5 million, and during the fiscal year ended December 26, 2020, the Company recorded $0.1 million in Other expense (income), net in the Consolidated Statements of Net Income. See Note 10, Fair Value of Assets and Liabilities, for further discussion. The Company has investments related to its non-qualified Supplemental Retirement and Savings Plan. The Company maintains accounts for participants through which participants make investment elections. The investment securities are subject to the claims of the Company’s creditors. The investment securities are all mutual funds. The investment securities are measured at net asset value. As of January 1, 2022 and December 26, 2020, the investment securities balance was $15.0 million and $13.2 million, respectively, related to the plan and are included in Other assets on the Consolidated Balance Sheets. Trade Receivables The Company performs credit evaluations of customers’ financial condition and generally does not require collateral. Credit losses are provided for in the financial statements based upon specific knowledge of a customer’s inability to meet its financial obligations to the Company. Historically, credit losses have consistently been within management’s expectations and have not been a material amount. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Write-offs are recorded at the time a customer receivable is deemed uncollectible. The Company also maintains allowances against trade receivables for the settlement of rebates and sales discounts to customers. These allowances are based upon specific customer sales and sales discounts as well as actual historical experience. Inventories Inventories are stated at the lower of cost or net realizable value, which approximates current replacement cost. Cost is principally determined using the first-in, first-out method. The Company maintains excess and obsolete reserves against inventory to reduce the carrying value to the expected net realizable value. These reserves are based upon a combination of factors including historical sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. Property, Plant, and Equipment Land, buildings, and equipment are carried at cost. Depreciation is calculated using the straight-line method with useful lives of up to 21 years for buildings, three Goodwill The Company annually tests goodwill for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. The results of the annual goodwill impairment test as of September 26, 2021 indicated that the estimated fair values for each of the seven reporting units exceeded their respective carrying values. As of the most recent annual test conducted on September 26, 2021, the Company noted that the excess of fair value over the carrying value, was 380%, 104%, 255%, 217%, 95%, 144%, and 231% for its reporting units; Electronics-Passive Products and Sensors, Electronics-Semiconductor, Passenger Car Products, Commercial Vehicle Products, Automotive Sensors, Relays, and Power Fuse, respectively. Relatively small changes in the Company’s key assumptions would not have resulted in any reporting units failing the goodwill impairment test. See Note 5, Goodwill and Other Intangible Assets, for additional information. During the second quarter of 2020, the Company recorded a non-cash charge of $33.8 million to recognize the impairment of goodwill in the automotive sensors reporting unit within the Transportation segment. The goodwill impairment charge was due to reductions in the estimated fair value for the automotive sensors reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2019 annual goodwill impairment test. These lower future expectations were driven by projected extended declines in end market demand due to the COVID-19 pandemic. In addition, during the second quarter of 2020, certain customers notified the Company of their decision to delay future programs along with a customer canceling an existing program. As of January 1, 2022, the automotive sensors reporting unit had $9.2 million of remain ing goodwill. The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test, could be impacted by changes in market conditions and economic events. Based on the interim assessments as of January 1, 2022, management concluded that no events or changes in circumstances indicated that it was more likely than not that the fair value for any reporting unit had declined below its carrying value. Long-Lived Assets Customer relationships, trademarks and tradenames are amortized using the straight-line method over estimated useful lives that have a range of 5 to 20 years. Patents, licenses and software are amortized using the straight-line method or an accelerated method over estimated useful lives that have a range of 5 to 17 years. The distribution networks are amortized on either a straight-line or accelerated basis over estimated useful lives that have a range of 4 to 10 years. Land use rights are amortized using the straight-line method over 50 years which is the term of the land use rights. The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of carrying value or the fair market value less the estimated cost to sell. Environmental Liabilities Environmental liabilities are accrued based on engineering studies estimating the cost of remediating sites. Expenses related to on-going maintenance of environmental sites are expensed as incurred. If actual or estimated probable future losses exceed the Company’s recorded liability for such claims, the Company would record additional charges during the period in which the actual loss or change in estimate occurred. Pension and Other Post-retirement Benefits The Company records annual income and expense amounts relating to its pension and post-retirement benefits plans based on calculations which include various actuarial assumptions including discount rates, expected long-term rates of return and compensation increases. The Company reviews its actuarial assumptions on an annual basis as of the fiscal year-end balance sheet date (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumption based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the Consolidated Balance Sheets, but are generally amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive income (loss). The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. Revenue Recognition Revenue Disaggregation The following table disaggregates the Company’s revenue by primary business units for the fiscal years ended January 1, 2022 and December 26, 2020: Fiscal Year Ended January 1, 2022 (in thousands) Electronics Transportation Industrial Total Electronics – Semiconductor $ 678,861 $ — $ — $ 678,861 Electronics – Passive Products and Sensors 621,883 — — 621,883 Passenger Car Products — 266,020 — 266,020 Commercial Vehicle Products — 160,300 — 160,300 Automotive Sensors — 101,738 — 101,738 Industrial Products — — 251,126 251,126 Total $ 1,300,744 $ 528,058 $ 251,126 $ 2,079,928 Fiscal Year Ended December 26, 2020 (in thousands) Electronics Transportation Industrial Total Electronics – Semiconductor $ 522,352 $ — $ — $ 522,352 Electronics – Passive Products and Sensors 415,410 — — 415,410 Passenger Car Products — 200,455 — 200,455 Commercial Vehicle Products — 101,324 — 101,324 Automotive Sensors — 93,985 — 93,985 Industrial Products — — 112,169 112,169 Total $ 937,762 $ 395,764 $ 112,169 $ 1,445,695 (1) Formerly known as Automotive segment . See Note 16, Segment Information, for net sales by segment and countries. 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 has 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 has 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 the Company's 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. Allowance for Doubtful Accounts The Company currently measures the expected credit losses based on our historical credit loss experience. The Company has not experienced significant recent or historical credit losses and is not forecasting any significant credit losses which would require adjustments to our methodology. If current conditions and supportable forecasts indicate that our historical loss experience is not reasonable and no longer supportable, the Company may adjust its historical credit loss experience and to reflect these conditions and forecasts. The Company regularly analyzes its significant customer accounts and, when the Company becomes aware of a customer’s inability to meet its financial obligations, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also analyzes all other customers based on a variety of factors including the length of time the receivables are past due, the financial health of the customer, macroeconomic considerations and historical collection and loss experience. Historically, the allowance for doubtful accounts has been adequate to cover bad debts. If circumstances related to specific customers change, the estimates of the recoverability of receivables could be further adjusted. As of January 1, 2022 and December 26, 2020, the Company’s allowance for doubtful accounts was $1.9 million and $1.4 million, respectively. Additionally, the Company had $2.1 million and $1.0 million of trade receivables greater than 90 days past due as of January 1, 2022 and December 26, 2020, respectively. Advertising Costs The Company expenses advertising costs as incurred, which amounted to $2.1 million , $2.1 million, and $2.7 million in fiscal years 2021, 2020 and 2019, respectively, and are included as a component of selling, general, and administrative expenses. Shipping and Handling Fees and Costs Amounts billed to customers related to shipping and handling are classified as revenue. Costs incurred for shipping and handling of $15.4 million, $11.1 million, and $11.0 million in f iscal years 2021, 2020, and 2019, respectively, are classified in selling, general, and administrative expenses. Foreign Currency Translation / Remeasurement The Company’s foreign subsidiaries use the local currency or the U.S. dollar as their functional currency, as appropriate. Assets and liabilities are translated using exchange rates at the balance sheet date, and revenues and expenses are translated at weighted average rates. Adjustments from the translation process are recognized in Shareholders’ equity as a component of Accumulated other comprehensive income (loss). The amount of foreign currency gain or loss from remeasurement recognized in the Consolidated Statements of Net Income was a loss of $17.2 million in fiscal year 2021, a gain of $14.9 million in fiscal year 2020, and a loss of $5.2 million in fiscal year 2019. Stock-Based Compensation The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method. Benefits of tax deductions in excess of recognized compensation expense are reported as operating cash flows. See Note 12, Stock-Based Compensation , for additional information on stock-based compensation. Coal Mining Liability Included in other long-term liabilities is an accrual related to former coal mining operations at Littelfuse GmbH (formerly known as Heinrich Industries, AG) for the amounts of €1.9 million ($2.1 million) and €2.3 million ($2.9 million) at January 1, 2022 and December 26, 2020, respectively. Management, in conjunction with an independent third-party, performs an annual evaluation of the former coal mining operations in order to develop an estimate of the probable future obligations in regard to remediating the dangers (such as a shaft collapse) of abandoned coal mine shafts in the former coal mining operations. Management accrues for costs associated with such remediation efforts based on management's best estimate when such costs are probable and reasonably able to be estimated. The ultimate determination can only be done after respective investigations because the concrete conditions are mostly unknown at this time. Other Expense (Income), Net Other expense (income), net generally consists of interest income, royalties, change in fair value of available-for-sale securities, pension non-service costs and settlements and other non-operating expense (income). Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred taxes are recognized for the future effects of temporary differences between financial and income tax reporting using enacted tax rates in effect for the years in which the differences are expected to reverse. The Company recognizes deferred taxes for temporary differences, operating loss carryforwards, and tax credit and other tax attribute carryforwards (excluding carryforwards where usage has been determined to be remote). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. U.S. state and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to the U.S. and be taxable (and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to an upper-tier non-U.S. entity). Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Deferred U.S. income taxes and non-U.S. taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. Management regularly evaluates whether non-U.S. earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its non-U.S. subsidiaries. Changes in economic and business conditions, tax laws, or the Company’s financial situation could result in changes to these judgments and the need to record additional tax liabilities. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The 2017 Tax Cuts and Jobs Act (the "Tax Act"), among other things, imposed a one-time tax (the “Toll Charge”) on accumulated earnings of certain non-U.S. subsidiaries and included base broadening provisions commonly referred to as the global intangible low-taxed income provisions ("GILTI"). The Company elected to pay the 2017 Littelfuse Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of this Toll Charge which remains payable as of January 1, 2022, totaling $17.8 million, is recorded in Other long-term liabilities, and the anticipated 2022 annual installment payment of $3.0 million is included in Accrued income taxes , on the Consolidated Balance Sheet as of January 1, 2022. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the fiscal years ended January 1, 2022 , December 26, 2020 and December 28, 2019, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expen se. Fair Value Measurements Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its available-for-sale securities and pension plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is: Level 1 – Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 – Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in the accounting standards. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The adoption of ASU 2019-12 did not have a material impact on our Consolidated Financial Statements. Recently Issued Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". The standard requires an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The guidance is effective for fiscal years beginning after December 15, 2022 with early adoption permitted. The Company does not expect a material impact from the adoption of this guidance on the Company's Consolidated Financial Statements. In November 2021, the FASB issued ASU No. 2021-10, " Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance". The standard, requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: 1) Information about the nature of the transactions and the related accounting policy used to account for the transactions; 2) The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item; 3) Significant terms and conditions of the transactions, including commitments and contingencies. The guidance is effective for fiscal years beginning after December 15, 2021 with early adoption permitted. The Company does not expect a material impact from the adoption of this guidance on the Company's Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Consolidated Financial Statements from the date of the acquisition. Carling Technologies On November 30, 2021, the Company completed the previously announced acquisition of Carling Technologies, Inc. (“Carling”), pursuant to the Stock Purchase Agreement, dated as of October 19, 2021. Founded in 1920, Carling has a leading position in switching and circuit protection technologies with a strong global presence in commercial vehicle, marine and datacom/telecom infrastructure markets. At the time of acquisition, Carling had annualized sales of approximately $170 million. The business is headquartered in Plainville, Connecticut, with offices and facilities located around the world and is reported as part of the commercial vehicle business within our Transportation segment. The purchase price for Carling Technologies was approximately $315 million subject to change for a working capital adjustment. The acquisition was funded with cash on hand. The total purchase consideration of $313.6 million, net of cash, has been allocated, on a preliminary basis, to assets acquired and liabilities assumed, as of the completion of the acquisition, based on preliminary estimated fair values. The purchase consideration is subject to change for the final working capital adjustments. The purchase price allocation is preliminary because the evaluations necessary to assess the fair values of the net assets acquired are still in process. The primary areas that are not yet finalized relate to the completion of the valuations of certain property, plant and equipment, intangible assets and acquired income tax assets and liabilities. As a result, these allocations are subject to change during the purchase price allocation period as the valuations are finalized. The following table summarizes the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the Carling acquisition: (in thousands) Purchase Price Total purchase consideration: Cash, net of cash acquired $ 313,583 Allocation of consideration to assets acquired and liabilities assumed: Trade receivables, net 25,503 Inventories 57,450 Other current assets 3,454 Property, plant, and equipment 64,301 Intangible assets 125,890 Goodwill 92,366 Other non-current assets 4,104 Current liabilities (21,723) Other non-current liabilities (37,762) $ 313,583 All Carling goodwill, other assets and liabilities were recorded in the Transportation segment and are primarily reflected in the Americas, Europe and Asia-Pacific geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Carling’s products and technology with the Company’s existing commercial vehicle products portfolio. Goodwill resulting from the Carling acquisition is not expected to be deductible for tax purposes. Included in the Company’s Consolidated Statements of Net Income for the fiscal year ended January 1, 2022 are net sales of $15.3 million, and a loss before income taxes of $1.2 million, since the November 30, 2021 acquisition of Carling. As required by purchase accounting rules, the Company recorded a $6.4 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up is being amortized as a non-cash charge to cost of goods sold during the fourth quarter of 2021 and first quarter of 2022, as the acquired inventory is sold, and reflected as other non-segment costs. The Company recognized a non-cash charge of $1.6 million to cost of goods sold during the fiscal year ended January 1, 2022. For the fiscal year ended January 1, 2022, the Company incurred approximately $4.5 million of legal and professional fees related to the Carling acquisition recognized as Selling, general, and administrative expenses . These costs were reflected as other non-segment costs. Hartland Controls On January 28, 2021, the Company acquired Hartland Controls ("Hartland"), a manufacturer and leading supplier of electrical components used primarily in heating, ventilation, air conditioning ("HVAC") and other industrial and control systems applications. At the time of acquisition, Hartland had annualized sales of approximately $70 million. The purchase price for Hartland was $111.0 million and the operations of Hartland are included in the Industrial segment. The total purchase consideration of $108.5 million, net of cash, cash equivalents, and restricted cash has been allocated to assets acquired and liabilities assumed, as of the completion of the acquisition, based on estimated fair values. As of January 1, 2022, the Company had restricted cash of $1.7 million in an escrow account for general indemnification purposes. The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Hartland acquisition: (in thousands) Purchase Price Total purchase consideration: Cash, net of cash acquired, and restricted cash $ 108,516 Allocation of consideration to assets acquired and liabilities assumed: Trade receivables, net 12,915 Inventories 35,808 Other current assets 2,224 Property, plant, and equipment 6,296 Intangible assets 39,660 Goodwill 38,502 Other non-current assets 3,782 Current liabilities (24,861) Other non-current liabilities (5,810) $ 108,516 All Hartland goodwill, other assets and liabilities were recorded in the Industrial segment and are primarily reflected in the Americas and Asia-Pacific geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Hartland’s products and technology with the Company’s existing industrial products portfolio. Goodwill resulting from the Hartland acquisition is not expected to be deductible for tax purposes. Included in the Company’s Consolidated Statements of Net Income for the fiscal year ended January 1, 2022 are net sales of $100.5 million and a loss before income taxes of $2.8 million since the January 28, 2021 acquisition of Hartland. The Company recorded a $6.8 million step-up of inventory to its fair value as of the acquisition date based on the valuation. The step-up was fully amortized as a non-cash charge to cost of goods sold during the first and second quarters of 2021, as the acquired inventory was sold, and is reflected as other non-segment costs. For the fiscal year ended January 1, 2022, the Company recognized a charge of $6.8 million for the amortization of this fair value inventory step-up. For the fiscal year ended January 1, 2022, the Company incurred approximately $0.8 million of legal and professional fees related to the Hartland acquisition recognized as Selling, general, and administrative expenses . These costs were reflected as other non-segment costs. Pro Forma Results The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company, Hartland and Carling as though the acquisition had occurred as of December 29, 2019. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Hartland and Carling acquisitions occurred as of December 29, 2019 or of future consolidated operating results. For the Fiscal Year Ended (in thousands, except per share amounts) January 1, December 26, 2020 Net sales $ 2,257,390 $ 1,662,896 Income before income taxes 357,090 141,491 Net income 296,030 115,078 Net income per share — basic 12.03 4.72 Net income per share — diluted 11.87 4.68 Pro forma results presented above primarily reflect the following adjustments: For the Fiscal Year Ended (in thousands) January 1, 2022 December 26, 2020 Amortization (a) $ (8,770) $ (12,669) Depreciation (64) 253 Transaction costs (b) 5,381 (5,381) Amortization of inventory step-up (c) 8,398 (13,156) Income tax (expense) benefit of above items (1,021) 6,706 (a) The amortization adjustment for the twelve months ended January 1, 2022 and December 26, 2020 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values. (b) The transaction cost adjustments reflect the reversal of certain legal and professional fees from the twelve months ended January 1, 2022 and recognition of those fees during the twelve months ended December 26, 2020. (c) The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the twelve months ended January 1, 2022 and the recognition of the amortization during the twelve months ended December 26, 2020. The inventory step-up is amortized over four months for both acquisitions. For the fiscal year ended January 1, 2022 and December 26, 2020, the Company recorded $6.2 million and $0.8 million of acquisition-related expenses associated with completed and contemplated acquisitions within Selling, general and administrative expenses in the Consolidated Statements of Net Income. |
Inventories
Inventories | 12 Months Ended |
Jan. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Raw materials $ 168,409 $ 85,394 Work in process 117,506 92,783 Finished goods 195,656 114,641 Inventory reserves (35,900) (34,816) Total $ 445,671 $ 258,002 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment The components of net property, plant, and equipment at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Land $ 23,470 $ 22,851 Building 151,297 123,497 Equipment 779,559 678,220 Accumulated depreciation and amortization (516,437) (480,390) Total $ 437,889 $ 344,178 The Company recorded depreciation expense of $55.9 million, $56.1 million, and $52.5 million for the fiscal years ended January 1, 2022, December 26, 2020, and December 28, 2019, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 01, 2022 | |
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 are as follows: (in thousands) Electronics Transportation Industrial Total Gross goodwill as of December 28, 2019 $ 650,796 $ 131,321 $ 47,266 $ 829,383 Accumulated impairment losses as of December 28, 2019 — — (8,794) (8,794) Net goodwill as of December 28, 2019 $ 650,796 $ 131,321 $ 38,472 $ 820,589 Changes during 2020: Impairments (33,841) (33,841) Foreign currency translation adjustments 25,529 4,451 84 30,064 Gross goodwill as of December 26, 2020 676,325 138,354 47,551 862,230 Accumulated impairment losses as of December 26, 2020 — (36,423) (8,995) (45,418) Net goodwill as of December 26, 2020 $ 676,325 $ 101,931 $ 38,556 $ 816,812 Changes during 2021: Additions (a) — 96,307 38,502 134,809 Foreign currency translation adjustments (16,080) (6,106) 179 (22,007) Gross goodwill as of January 1, 2022 660,245 228,555 86,232 975,032 Accumulated impairment losses as of January 1, 2022 — (36,177) (9,065) (45,242) Net goodwill as of January 1, 2022 $ 660,245 $ 192,378 $ 77,167 $ 929,790 (a) The additions primarily resulted from the acquisitions of Carling and Hartland. The Company tests its goodwill annually for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. During the second quarter of 2020, the Company recorded a non-cash charge of $33.8 million to recognize the impairment of goodwill in the automotive sensors reporting unit within the Transportation segment. The goodwill impairment charge was due to reductions in the estimated fair value for the automotive sensors reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2019 annual goodwill impairment test. These lower future expectations were driven by projected extended declines in end market demand due to the COVID-19 pandemic. In addition, during the second quarter of 2020, certain customers notified the Company of the ir decision to delay future programs along with a customer canceling their existing program. The goodwill impairment charge was determined using Level 3 inputs, including discounted cash flow analysis and comparable marketplace fair value data. As of January 1, 2022, the automotive sensors reporting unit had $9.2 million of remaining goodwill. The components of intangible assets at January 1, 2022 and December 26, 2020 are as follows: As of January 1, 2022 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 19,542 $ 1,906 $ 17,636 Patents, licenses and software 164,556 101,307 63,249 Distribution network 43,361 40,591 2,770 Customer relationships, trademarks, and tradenames 487,710 164,239 323,471 Total $ 715,169 $ 308,043 $ 407,126 As of December 26, 2020 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 10,280 $ 2,007 $ 8,273 Patents, licenses and software 137,210 92,868 44,342 Distribution network 43,910 38,980 4,930 Customer relationships, trademarks, and tradenames 372,064 137,722 234,342 Total $ 563,464 $ 271,577 $ 291,887 During the year ended January 1, 2022, the Company recorded additions to other intangible assets of $165.6 million, for acquisitions during 2021, the components of which were as follows: 2021 (in thousands, except weighted average useful life) Weighted Average Amount Land use rights 50 $ 9,590 Patents, developed technology 9.8 $ 31,659 Customer relationships, trademarks, and tradenames 13.0 124,301 Total $ 165,550 For intangible assets with definite lives, the Company recorded amortization expense of $42.7 million, $40.0 million, and $40.0 million in 2021, 2020, and 2019, respectively. Estimated annual amortization expense related to intangible assets with definite lives at January 1, 2022 is as follows: (in thousands) Amount 2022 $ 50,035 2023 45,569 2024 42,151 2025 41,776 2026 33,245 2027 and thereafter 194,350 Total $ 407,126 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jan. 01, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Employee-related liabilities $ 92,018 $ 50,689 Operating lease liability 9,018 6,811 Interest 4,402 4,517 Professional services 4,299 3,321 Other non-income taxes 4,280 2,126 Restructuring liability 2,944 4,195 Current benefit liability 1,248 2,751 Deferred revenue 1,105 2,959 Other customer reserves 702 3,858 Other 39,673 29,251 Total $ 159,689 $ 110,478 Employee-related liabilities consist primarily of payroll, sales commission, 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. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments Under ASC 842, a contract contains a lease if there is an identified asset and the Company has the right to control the asset. The Company determines whether a contract contains a lease at contract inception. The Company leases office and production space under various non-cancellable operating leases that expire no later than 2031. 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 has elected to use the available practical expedient to account for the lease and non-lease components of its leases as a single component. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. 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 Consolidated Balance Sheets. 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 as of January 1, 2022 and December 26, 2020: Leases Consolidated Balance Sheet Classification January 1, 2022 December 26, 2020 Assets Operating ROU assets Right of use assets, net $ 29,616 $ 17,615 Liabilities Current operating lease liabilities Accrued liabilities $ 9,018 $ 6,811 Non-current operating lease liabilities Non-current operating lease liabilities 22,305 12,950 Total lease liabilities $ 31,323 $ 19,761 The following table represents the lease costs for 2021 and 2020: Leases Consolidated Statements of Net Income Classification Fiscal Year Ended January 1, 2022 Fiscal Year Ended December 26, 2020 Short-term lease expenses Cost of sales, SG&A expenses $ 345 $ 512 Variable lease expenses Cost of sales, SG&A expenses 1,165 1,307 Operating lease rent expenses Cost of sales, SG&A expenses 9,929 8,591 Total operating lease costs Cost of sales, SG&A expenses $ 11,439 $ 10,410 The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $11.4 million, $10.4 million , and $10.1 million in 2021, 2020, and 2019, respectively. Maturity of Lease Liabilities as of January 1, 2022 Operating leases 2022 $ 10,080 2023 7,840 2024 7,323 2025 3,135 2026 1,322 2027 and thereafter 4,607 Total lease payments $ 34,307 Present value of lease liabilities $ 31,323 Operating Lease Term and Discount Rate Fiscal Year Ended January 1, 2022 Fiscal Year Ended December 26, 2020 Weighted-average remaining lease term (years) 4.79 3.41 Weighted-average discount rate 4.27 % 5.06 % Cash Flow Information related to Leases Fiscal Year Ended January 1, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow payments for operating leases $ (10,150) Leased assets obtained in exchange for operating lease liabilities 20,217 Other Information Net gain from sale and leaseback transaction (4,058) |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges | 12 Months Ended |
Jan. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Charges | Restructuring, Impairment and Other Charges The Company recorded restructuring, impairment and other charges for fiscal years 2021, 2020, and 2019 as follows: Fiscal Year Ended January 1, 2022 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 1,124 $ 404 $ 347 $ 1,875 Other restructuring charges — 283 — 283 Total restructuring charges 1,124 687 347 2,158 Total $ 1,124 $ 687 $ 347 $ 2,158 Fiscal Year Ended December 26, 2020 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 2,540 $ 682 $ 2,231 $ 5,453 Other restructuring charges — 175 10 185 Total restructuring charges 2,540 857 2,241 5,638 Impairment — 33,841 2,237 36,078 Total $ 2,540 $ 34,698 $ 4,478 $ 41,716 Fiscal Year Ended December 28, 2019 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 5,313 $ 4,251 $ 795 $ 10,359 Other restructuring charges 188 1,714 450 2,352 Total restructuring charges 5,501 5,965 1,245 12,711 Impairment — 322 — 322 Total $ 5,501 $ 6,287 $ 1,245 $ 13,033 2021 For the year ended January 1, 2022, the Company recorded total restructuring charges of $2.2 million, primarily for employee termination costs. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions within the Electronics and Transportation segments. 2020 For the year ended December 26, 2020, the Company recorded total restructuring charges of $5.6 million, primarily for employee termination costs. These charges primarily related to the reorganization of certain manufacturing, selling and administrative functions across all segments and the previously announced consolidation of a manufacturing facility within the Industrial segment. The Company also recognized $36.1 million of impairment charges, which included a $33.8 million goodwill impairment charge associated with the automotive sensors reporting unit within the Transportation segment in the second quarter of 2020 and a $2.2 million impairment charge related to the land and building associated with the Company’s previously announced consolidation of a manufacturing facility within the Industrial segment in the first quarter of 2020. See Note 5, Goodwill and Other Intangible Assets for further discussion regarding the goodwill impairment charge. 2019 For the year ended December 28, 2019, the Company recorded total restructuring charges of $12.7 million for employee termination costs and other restructuring charges. These charges primarily related to the reorganization of operations and selling, general and administrative functions as well as the integration of IXYS within the Electronics segment and the reorganization of operations in the automotive sensors and commercial vehicle products businesses within the Transportation segment. In April 2019, we announced the closure of a European manufacturing facility in the automotive sensors business within the Transportation segment. The Company recorded $1.7 million of employee termination costs and $1.4 million of other restructuring and impairment charges associated with this plant closure. The restructuring reserves as of January 1, 2022 and December 26, 2020 are $2.9 million and $4.2 million, respectively. The restructuring reserves are included within accrued liabilities. Payments associated with employee terminations reflected in the above table were substantially completed by January 1, 2022. The Company anticipates that the remaining payments associated with employee terminations will be completed in fiscal 2022. |
Debt
Debt | 12 Months Ended |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying amounts of debt at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Revolving Credit Facility $ 100,000 $ 130,000 Euro Senior Notes, Series A due 2023 132,444 142,679 Euro Senior Notes, Series B due 2028 107,540 115,850 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 Unamortized debt issuance costs (3,087) (4,114) Total debt 636,897 687,034 Less: Current maturities (25,000) — Total long-term debt $ 611,897 $ 687,034 Interest paid on all Company debt was approximatel y $17.4 million, $20.1 million, and $21.2 million in fiscal year 2021, 2020, and 2019, respectively. Revolving Credit Facility On March 25, 2020, the company borrowed $100.0 million from its existing revolving credit facility to preserve financial flexibility and enhance liquidity, given the increasing levels of uncertainty related to COVID-19. The Company paid $5.0 million of principal payments on the term loan before the Company amended the credit agreement on April 3, 2020 as discussed below. On April 3, 2020, the Company amended its existing credit agreement to effect certain changes, including, among others: (i) eliminating the $200.0 million unsecured term loan credit facility, the remaining outstanding balance ($140.0 million) 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 o ne or more tranches of term loans if there is no event of default and the Company is in compliance with certain financial covenants. The Company made payments of $30.0 million on the amended revolving credit facility during the fiscal year ended January 1, 2022. The balance under the facility was $100.0 million as of January 1, 2022. Outstanding borrowings under the amended credit agreement bear interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six-month periods, plus 1.25% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.25% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.125% to 0.20%, based on the Consolidated Leverage Ratio, as defined in the agreement. The credit agreement includes representations, covenants and events of default that are customary for financing transactions of this natu re. The effective interest rate on outstanding borrowings under the credit facility was 1.35% at January 1, 2022. As of January 1, 2022, the Company had no outstanding in letters of credit and had available $600.0 million of borrowing capacity under the revolving credit facility. At January 1, 2022, the Company was in compliance with all covenants under the credit agreement. 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 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 will be payable 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 January 1, 2022, 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. Debt Issuance Costs During fiscal year 2020, the Company paid debt issuance costs of $1.8 million in relation to the amended the Credit Agreement on April 3, 2020 which, along with the remaining balance of debt issuance costs of the previous credit facility, are being amortized over the life of the amended Credit Agreement. Debt Maturities Scheduled maturities of the Company’s long-term debt for each of the five years succeeding January 1, 2022 and thereafter are summarized as follows: (in thousands) Scheduled 2022 $ 25,000 2023 132,444 2024 — 2025 150,000 2026 — 2027 and thereafter 332,540 $ 639,984 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Jan. 01, 2022 | |
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. Such securities are further detailed in Note 1, Summary of Significant Accounting Policies and Other Information . Other Investments The Company has certain convertible debt and convertible preferred stock investments that are accounted for under the cost method reflected in Investments and Other assets in the Consolidated Balance Sheets. During the fiscal year ended January 1, 2022, the Company impaired the remaining book value of these investments and recorded an impairment charge of $0.5 million, and during the fiscal year ended December 26, 2020, the Company recorded $0.1 million in Other expense (income), net in the Consolidated Statements of Net Income. As o fJanuary 1, 2022 and December 26, 2020, the balances of these investments were zero and $0.5 million, respectively. The fair value of these investments are measured on a nonrecurring basis using Level 3 inputs 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. Defined Benefit Plan Assets / Non-qualified Supplemental Retirement and Savings Plan Investments See Note 11, Benefit Plans, for description of valuation methodologies and investment balances for defined benefit plan assets and investments related to the Company’s Non-Qualified Supplemental Retirement and Savings Plan. Foreign currency exchange forward contract There were no changes during 2021 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 expired 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 expense (income), net during the fiscal year 2020. The fair value of the foreign currency forward contract was valued using market exchange rates and classified as a Level 2 input under the fair value hierarchy. As of January 1, 2022 and December 26, 2020, the Company held no 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 January 1, 2022: Fair Value Measurements Using (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash Equivalents $ 12,475 $ — $ — $ 12,475 Investments in equity securities 26,070 — — 26,070 Mutual funds 15,021 — — 15,021 Total: $ 53,566 $ — $ — $ 53,566 The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 26, 2020: Fair Value Measurements Using (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash Equivalents $ 73,461 $ — $ — $ 73,461 Investments in equity securities 19,186 — — 19,186 Mutual funds 13,249 — — 13,249 Total: $ 105,896 $ — $ — $ 105,896 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, trade receivables and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and trade receivables approximate their fair values. The Company’s revolving and term loan debt facilities’ fair values approximate book value at January 1, 2022 and December 26, 2020, 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 January 1, 2022 and December 26, 2020 were as follows: January 1, 2022 December 26, 2020 (in thousands) Carrying Estimated Carrying Estimated Euro Senior Notes, Series A due 2023 $ 132,444 $ 134,119 $ 142,679 $ 144,323 Euro Senior Notes, Series B due 2028 107,540 110,837 115,850 123,588 USD Senior Notes, Series A due 2022 25,000 25,055 25,000 25,437 USD Senior Notes, Series B due 2027 100,000 104,828 100,000 109,552 USD Senior Notes, Series A due 2025 50,000 51,720 50,000 53,474 USD Senior Notes, Series B due 2030 125,000 131,837 125,000 138,036 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 during the first quarter of 2020. See Note 8, Restructuring, Impairment and Other Charges, for further discussion. The fair value of the land and building was valued using a real estate appraisal and classified as a Level 3 input under the fair value hierarchy. The fair value as of the measurement date, net book value as of the end of the year and related 2020 goodwill impairment for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the years ended December 26, 2020 were as follows: Fiscal Year Ended December 26, 2020 December 26, 2020 (in thousands) Impairment Charge Estimated Fair Value Measurement (Level 3) Carrying Value Goodwill $33,841 $8,953 $ 9,832 See Note 5, Goodwill and Other Intangible Assets |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jan. 01, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has Company-sponsored and mandatory defined benefit pension plans covering employees in the United Kingdom ("U.K."), Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is generally based on years of service and final average pay. On April 7, 2020, the Company entered into a definitive agreement to purchase a group annuity contract, under which an insurance company is required to directly pay and administer pension payments to certain of the Company’s U.K. pension plan participants, or their designated beneficiaries. Due to the signing of the group annuity contract being a significant change in one of the U.K. pension plans, the liabilities of the plan were remeasured as of April 6, 2020 resulting in an increase of $13.4 million (£10.9 million) to both the net pension liability to bring the pension benefit obligation to the purchase price of the group annuity contract, and unamortized actuarial loss within other comprehensive income (loss) during the second quarter of 2020. Additionally, the Company made a cash contribution of $10.4 million (£8.4 million) under this agreement during the second quarter of 2020. The Company completed the buy-out of this U.K. pension plan during the fourth quarter of 2021 and as a result recorded a non-cash pension settlement charge of $19.9 million (£14.9 million), inclusive of the accelerated recognition of prior service cost of $0.5 million (£0.4 million). The purchase of this group annuity contract reduced the Company’s outstanding pension benefit obligation by $47.1 million, representing 35% of the total obligations of the Company’s qualified pension plans. Benefit plan related information is as follows for the years 2021 and 2020: (in thousands) 2021 2020 Change in benefit obligation: Benefit obligation at beginning of year $ 148,992 $ 116,921 Service cost 2,785 2,462 Interest cost 1,761 2,173 Net actuarial (gain) loss (11,016) 25,306 Benefits paid from the plan assets (3,121) (2,808) Benefits paid directly by the Company (2,692) (2,302) (Settlements) and Curtailments (48,927) 102 Acquisitions 1,797 — Effect of exchange rate movements (3,218) 7,462 Plan amendment and other 209 (324) Benefit obligation at end of year $ 86,570 $ 148,992 Change in plan assets at fair value: Fair value of plan assets at beginning of year $ 100,478 $ 78,502 Actual (loss) return on plan assets (2,824) 7,053 Employer contributions 2,150 12,918 Benefits paid from the plan assets (3,121) (2,808) Settlements (47,111) — Effect of exchange rate movements (1,247) 4,813 Fair value of plan assets at end of year 48,325 100,478 Net amount unfunded status $ (38,245) $ (48,514) Amounts recognized in the Consolidated Balance Sheets as of January 1, 2022 and December 26, 2020 consist of the following: (in thousands) 2021 2020 Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ 40 $ 39 Current benefit liability (1,248) (2,751) Noncurrent benefit liability (37,037) (45,802) Net liability recognized $ (38,245) $ (48,514) The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net periodic benefit costs as of January 1, 2022 and December 26, 2020 were as following: (in thousands) 2021 2020 Net actuarial loss $ 9,221 $ 37,285 Prior service cost 3,340 3,937 Total $ 12,561 $ 41,222 The pre-tax amounts recognized in other comprehensive income (loss) in 2021 were as follows: (in thousands) 2021 Amortization of: Prior service cost $ 179 Net actuarial loss 1,136 Amount arising during the period: Prior service cost (209) Net actuarial loss 6,734 Net settlement loss and accelerated prior service costs 19,855 Foreign currency adjustments 966 Total $ 28,661 In the fourth quarter of 2021, the Company recorded a non-cash pension settlement charge of $19.9 million (£14.9 million), inclusive of the accelerated recognition of prior service cost of $0.5 million (£0.4 million). In addition, the net actuarial loss and change in benefit obligation arising during 2021 as compared to 2020 were also impacted by higher discount rates in 2021 as compared to 2020. The components of net periodic benefits costs for the fiscal years 2021, 2020, and 2019 are as follows: (in thousands) 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 2,785 $ 2,462 $ 2,040 Interest cost 1,761 2,173 3,169 Expected return on plan assets (1,458) (1,972) (3,187) Amortization of prior service and net actuarial loss 1,315 963 243 Net periodic benefit cost 4,403 3,626 2,265 Net settlement loss 19,855 236 260 Total expense for the year $ 24,258 $ 3,862 $ 2,525 Weighted average assumptions used to determine net periodic benefit cost for the fiscal years 2021, 2020, and 2019 are as follows: 2021 2020 2019 Discount rate 1.2 % 2.3 % 3.1 % Expected return on plan assets 1.4 % 3.7 % 4.5 % Compensation increase rate 4.9 % 4.7 % 4.6 % The accumulated benefit obligation for the plans was $75.7 million and $137.7 million as of January 1, 2022 and December 26, 2020, respectively. The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of January 1, 2022 and December 26, 2020: (in thousands) 2021 2020 Projected benefit obligation $ 86,228 $ 148,992 Fair value of plan assets 47,942 100,439 The following table provides a summary of under-funded or unfunded pension benefit plans with accumulated benefit obligations in excess of plan assets as of January 1, 2022 and December 26, 2020: (in thousands) 2021 2020 Accumulated benefit obligation $ 68,643 $ 130,453 Fair value of plan assets 39,060 92,248 Weighted average assumptions used to determine benefit obligations as of January 1, 2022, December 26, 2020 and December 28, 2019 are as follows: 2021 2020 2019 Discount rate 3.1 % 1.2 % 2.3 % Compensation increase rate 4.8 % 4.9 % 4.7 % Expected benefit payments to be paid to participants for the fiscal year ending are as follows: (in thousands) Expected Benefit Payments 2022 $ 3,514 2023 3,652 2024 3,561 2025 4,068 2026 4,320 2027-2031 and thereafter 26,449 The Company expects to make approximately $2.6 million of contributions to the plans and pay $1.8 million of benefits directly in 2022. The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. For the fiscal year ended January 1, 2022, December 26, 2020, and December 28, 2019, the Company recorded $2.1 million, $2.0 million, $1.4 million expense, respectively, in Cost of Sales and Other expense (income), net within the Consolidated Statements of Net Income. As of January 1, 2022 and December 26, 2020, the Company reported benefit liabilities of $4.1 million and $3.5 million for these plans, of which $1.5 million and $1.2 million was recorded in Accrued liabilities and $2.6 million and $2.3 million was recorded in Other long-term liabilities on the Consolidated Balance Sheets, respectively. For the fiscal year ended January 1, 2022 and December 26, 2020, the pre-tax amounts recognized in other comprehensive income (loss) for these plans were $0.3 million and $0.1 million, respectively. For the fiscal year ended January 1, 2022 and December 26, 2020, the amount reclassified from accumulated other comprehensive income (loss) were $0.7 million and $0.7 million, respectively. Defined Benefit Plan Assets Based upon analysis of the target asset allocation and historical returns by type of investment, the Company has assumed that the expected long-term rate of return will be 1.4% on plan assets. Assets are invested to maximize long-term return taking into consideration timing of settlement of the retirement liabilities and liquidity needs for benefits payments. Pension plan assets were invested as follows, and were not materially different from the target asset allocation: Asset Allocation 2021 2020 Cash and cash equivalents, and other 15 % 7 % Equity securities 19 % 9 % Fixed income securities 66 % 31 % Bulk annuity contract — % 53 % 100 % 100 % The Company segregated its plan assets by the following major categories and level for determining their fair value as of January 1, 2022 and December 26, 2020. All plan assets that are valued using the net asset value per share (“NAV”) practical expedient have not been included within the fair value hierarchy but are separately disclosed. Cash and cash equivalents – Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method. Lastly, the Company has certain pooled pension funds that have short-term investments with third party mutual funds that are valued at unit value per share at measurement date. As such, these assets were classified as Level 2. Equity – The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. The Company has certain pooled pension funds which have mutual funds with underlying investments in certain equity securities that are not quoted on active markets; therefore, they were classified as Level 2. Fixed income – Fixed income securities are typically priced based on a last trade basis and are exchange-traded. Accordingly, the Company classified fixed income securities as Level 1. The Company has certain pooled pension funds which have mutual funds with underlying investments in fixed income securities and funds priced based on a valuation model rather than a last trade basis and are not exchange-traded. As such, they were classified as Level 2. The Company also invests in certain fixed income funds which are valued at NAV. Insurance Contracts and other – This category includes pooled pension funds which have mutual funds with underlying investments in other assets and liabilities including alternatives priced based on a valuation model and are not exchange-traded. These were classified as Level 2. This category includes also insurance contracts that are valued by the re-insurer with the valuation inputs being not highly observable or traded on an open market. Accordingly, insurance contracts were categorized as Level 3. Lastly, this category includes other assets and liabilities including futures or swaps. Bulk Annuity Contract – Bulk annuity contract includes a U.K insurance policy issued by an authorized U.K. life insurer. This bulk annuity contract is valued by the re-insurer with the valuation inputs being not highly observable or traded on an open market. Accordingly, this contract was categorized as Level 3. The Company has no bulk annuity contract pension assets as of January 1, 2022. For any Level 2 and Level 3 plan assets, management reviews significant investments on a periodic basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates. The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV. The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of January 1, 2022: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 NAV Total Insurance contracts and other $ — $ 1,917 $ 343 $ — $ 2,260 Cash and cash equivalents 384 4,632 — — 5,016 Equities 2,559 6,604 — — 9,163 Fixed income 5,999 20,280 — 5,607 31,886 Total pension plan assets $ 8,942 $ 33,433 $ 343 $ 5,607 $ 48,325 The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 26, 2020: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 NAV Total Insurance contracts and other $ — $ 1,880 $ 685 $ — $ 2,565 Cash and cash equivalents 654 3,868 — — 4,522 Equities 1,719 6,904 — — 8,623 Fixed income 6,164 19,433 — 6,078 31,675 Bulk annuity contract 53,093 53,093 Total pension plan assets $ 8,537 $ 32,085 $ 53,778 $ 6,078 $ 100,478 The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2021 due to the following: (in thousands) Level 3 Balance at December 26, 2020 $ 53,778 Level 3 assets transferred in from Level 1 and 2 assets valued at NAV: Settlements (47,111) Actual loss on plan assets (4,943) Benefits paid from the plan assets (1,238) Foreign currency adjustments (143) Balance at January 1, 2022 $ 343 Defined Contribution Plan The Company also maintains a 401(k) savings plan covering substantially all U.S. employees. The Company matches 100% of the employee’s annual contributions for the first 4% of the employee’s eligible compensation. The Company may provide an additional discretionary match to participants and made discretionary matches of 2% of the employee’s eligible compensation for each of the fiscal year ended January 1, 2022, December 26, 2020 and December 28, 2019. Employees are immediately vested in their contributi ons plus actual earnings thereon, as well as the Company contributions. Company matching contributions amounted to $5.0 million, $4.6 million, and $5.6 million in 2021, 2020, and 2019, respectively. Non-qualified Supplemental Retirement and Savings Plan 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 investments are subject to the claims of the Company’s creditors and the Company is responsible for the payment of all benefits under the plan from its general assets. As of January 1, 2022, there was $15.0 million of marketable securities related to the plan included in Other assets and $15.0 million of accrued compensation benefits included in Other long-term liabilities . 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. The Company made matching contributions to the plan of $0.2 million, $0.5 million, and $0.4 million in 2021, 2020, and 2019, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Plans : The Company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, and other stock rights to employees and directors. As of January 1, 2022, there were 0.8 million shares available for issuance of future awards under the Company’s equity-based compensation plans. Stock options generally vest over a three seven three The following table provides a reconciliation of outstanding stock options for the fiscal year ended January 1, 2022. Shares Under Weighted Weighted Aggregate Outstanding December 26, 2020 666,949 $ 148.01 Granted 57,928 267.66 Exercised (151,015) 126.61 Forfeited (10,636) 151.93 Outstanding January 1, 2022 563,226 165.98 4.7 $ 83,749 Exercisable January 1, 2022 240,030 148.66 3.7 39,850 The following table provides a reconciliation of non-vested restricted share and share unit awards ("RSU") for the fiscal year ended January 1, 2022. Shares Weighted Average Nonvested December 26, 2020 172,002 $ 152.25 Granted 63,237 264.69 Vested (72,904) 162.59 Forfeited (5,676) 162.85 Nonvested January 1, 2022 156,659 192.44 The total intrinsic value of options exercised during 2021, 2020, and 2019 was $23.8 million, $20.6 million, and $12.5 million, respectively. The total fair value of the vested RSU shares was $18.9 million, $9.5 million, and $15.5 million for 2021, 2020, and 2019, respectively. The total amount of share-based liabilities paid was $1.3 million, $0.5 million and $0.9 million for 2021, 2020, and 2019, respectively. The Company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At January 1, 2022, the unrecognized compensation cost for options and restricted shares was $21.9 million before tax, and will be recognized over a weighted average period of 1.8 years. Compensation cost included as a component of cost of sales, research and development and selling, general, and administrative expenses for all equity compensation plans discussed above was $21.4 million, $19.1 million, and $19.9 million for 2021, 2020, and 2019, respectively. The total related income tax benefit recognized in the Consolidated Statements of Net Income w as $3.3 million , $3.1 million and $3.3 million for 2021, 2020, and 2019, respectively. The Company uses the Black-Scholes option valuation model to determine the fair value of stock option awards granted. The weighted average fair value of and related assumptions for options granted are as follows: 2021 2020 2019 Weighted average fair value of options granted $74.04 $38.09 $47.63 Assumptions: Risk-free interest rate 0.66% 0.30% 2.33% Expected dividend yield 0.72% 1.27% 0.86% Expected stock price volatility 35.0% 33.0% 27.0% Expected life of options (years) 4.4 4.7 4.4 Expected volatilities are based on the historical volatility of the Company’s stock price. The expected life of options is based on historical data for options granted by the Company. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption. Historical nonvested forfeiture information is the basis for the forfeiture rate assumptions. The fair value of RSU is determined based on the Company's stock price on the grant date reduced by the present value of expected dividends through the vesting period. Preferred Stock : The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board may fix by resolution. Share Repurchase Program On April 26, 2019, the Company's Board of Directors authorized 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"). On April 29, 2020, the Company announced that the 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. On April 28, 2021, the Company announced that the Board of Directors authorized a new three-year program to repurchase up to $300 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 to replace its previous 2020 program. There are $300 million in the aggregate of shares available for purchase under the new program as of January 1, 2022. During the fiscal year 2021, the Company did not repurchase any shares of its common stock. During the fiscal year 2020 and 2019 , the Company repurchased 175,110 and 579,916 shares of its common stock totaling $22.9 million and $95.0 million, respectively. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Changes in other comprehensive income (loss) by component for fiscal years 2021, 2020, and 2019 were as follows: Fiscal Year Ended January 1, 2022 December 26, 2020 December 28, 2019 (in thousands) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Pre-tax Tax Net of tax Defined benefit pension plan and other adjustments $ 27,481 $ (5,268) $ 22,213 $ (19,513) $ 3,418 $ (16,095) $ (9,149) $ 1,062 $ (8,087) Foreign currency translation adjustments (1) (6,967) 2,448 (4,519) 34,707 (2,946) 31,761 (1,476) 664 (812) Total change in other comprehensive income (loss) $ 20,514 $ (2,820) $ 17,694 $ 15,194 $ 472 $ 15,666 $ (10,625) $ 1,726 $ (8,899) (1) The tax shown above within the foreign currency translation adjustments is the U.S. tax associated with the foreign currency translation adjustments of earnings of non-U.S. subsidiaries which have been previously taxed in the U.S. and are not permanently reinvested. Accumulated Other Comprehensive Income (Loss) (“AOCI”) : The following table sets forth the changes in the components of AOCI by component for fiscal years 2021, 2020, and 2019: (in thousands) Pension and postretirement liability and reclassification adjustments Foreign currency translation adjustments Accumulated other comprehensive income (loss) Balance at December 29, 2018 $ (9,959) $ (87,965) $ (97,924) 2019 activity (8,087) (812) (8,899) Balance at December 28, 2019 (18,046) (88,777) (106,823) 2020 activity (16,095) 31,761 15,666 Balance at December 26, 2020 (34,141) (57,016) (91,157) 2021 activity 22,213 (4,519) 17,694 Balance at January 1, 2022 (11,928) (61,535) (73,463) Due to the signing of the group annuity contract being a significant change in the U.K. pension plan, the liabilities of the plan were remeasured as of April 6, 2020 resulting in an increase of $13.4 million to unamortized actuarial loss within other comprehensive income (loss). In the fourth quarter of 2021, the Company recorded a non-cash pension settlement charge of $19.9 million (£14.9 million), inclusive of the accelerated recognition of prior service cost of $0.5 million (£0.4 million). See Note 11, Benefits Plans for further discussion. Amounts reclassified from accumulated other comprehensive income (loss) to earnings for fiscal years 2021, 2020, and 2019 were as follows: Fiscal Year Ended (in thousands) January 1, 2022 December 26, 2020 December 28, 2019 Pension and postemployment and other plans: Amortization of prior service, net actuarial loss, and other $ 2,006 $ 1,694 $ 372 Net settlement loss and accelerated prior service costs 19,855 236 260 Total $ 21,861 $ 1,930 $ 632 The Company recognizes the amortization of prior service costs and net settlement loss in other expense (income), net within the Consolidated Statements of Net Income. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The 2017 Tax Cuts and Jobs Act (the "Tax Act"), among other things, imposed a one-time tax (the “Toll Charge”) on accumulated earnings of certain non-U.S. subsidiaries and included base broadening provisions commonly referred to as the global intangible low-taxed income provisions ("GILTI"). T he Company elected to pay the 2017 Littelfuse Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of this Toll Charge which remains payable as of January 1, 2022, totaling $17.8 million, is recorded in Other long-term liabilities, and the anticipated 2022 annual installment payment of $3.0 million is included in Accrued income taxes , on the Consolidated Balance Sheet as of January 1, 2022. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the fiscal years ended January 1, 2022, December 26, 2020 and December 28, 2019, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense. Domestic and foreign income (loss) before income taxes is as follows: (in thousands) 2021 2020 2019 Domestic $ 13,746 $ (16,732) $ (11,970) Foreign 327,279 177,985 177,854 Income before income taxes $ 341,025 $ 161,253 $ 165,884 Federal, state and foreign income tax expense (benefit) consists of the following: (in thousands) 2021 2020 2019 Current: Federal $ 4,832 $ 437 $ (3,495) State 1,401 203 834 Foreign 59,006 33,841 30,610 Subtotal 65,239 34,481 27,949 Deferred: Federal and State (9,658) (5,354) 1,839 Foreign 1,638 2,140 (2,986) Subtotal (8,020) (3,214) (1,147) Provision for income taxes $ 57,219 $ 31,267 $ 26,802 The current federal tax benefit for 2019 includes a benefit of $3.3 million from the recognition of previously unrecognized tax benefits (and the reversal of the related accrued interest) due to a lapse in the statute of limitations. A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below: (in thousands) 2021 2020 2019 Tax expense at statutory rate of 21% $ 71,615 $ 33,863 $ 34,836 Non-U.S. income tax rate differential (31,414) (19,730) (22,457) Non-U.S. losses and expenses with no tax benefit 7,820 2,774 6,570 Tax on unremitted earnings 7,585 3,955 2,136 Certain changes in unrecognized tax benefits and related accrued interest 4,263 2,160 (1,468) Net impact associated with the GILTI tax provisions (238) 3,731 6,469 State and local taxes, net of federal tax benefit (172) (584) 1,080 Tax impact of non-deductible goodwill impairment charge — 5,642 — Other, net (2,240) (544) (364) Provision for income taxes $ 57,219 $ 31,267 $ 26,802 Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting bases and the tax bases of the company’s assets and liabilities. Significant components of the company’s deferred tax assets and liabilities at January 1, 2022 and December 26, 2020, are as follows: (in thousands) 2021 2020 Deferred tax assets: Accrued expenses and reserves $ 36,168 $ 31,123 Domestic and non-U.S. net operating loss carryforwards 27,818 24,763 Domestic and non-U.S. interest expense carryforwards 16,089 10,352 Excess of tax basis over the book basis for intangible assets and goodwill 5,636 — Capitalized expenses 4,878 4,178 U.S. research and other general business tax credit carryforwards 1,104 3,724 U.S. foreign tax credit carryforwards 980 772 Other 183 117 Gross deferred tax assets 92,856 75,029 Less: Valuation allowance (34,869) (13,131) Total deferred tax assets 57,987 61,898 Deferred tax liabilities: Excess of book basis over the tax basis for intangible assets and goodwill 98,046 76,472 Tax on unremitted earnings 15,467 14,223 Unrealized foreign currency exchange gains 73 5,719 Excess of book basis over the tax basis for property, plant, and equipment 12,563 4,394 Total deferred tax liabilities 126,149 100,808 Net deferred tax liabilities $ 68,162 $ 38,910 The deferred tax asset valuation allowance is mainly related to certain U.S. and non-U.S. net operating loss and non-U.S. interest expense carryforwards which are not expected to be realized. The remaining U.S. and non-U.S. net operating loss and interest expense carryforwards either have no expiration date or are expected to be utilized prior to expiration. No deferred tax asset nor valuation allowance has been recorded for certain U.S. and non-U.S. net operating loss carryforwards for which the possibility of usage has been determined to be remote. The Company paid income taxes of $58.2 million, $35.2 million, and $47.6 million in 2021, 2020, and 2019, respectively, and received income tax refunds of $2.6 million, $7.6 million , and $7.1 million in 2021, 2020, and 2019, respectively. Deferred income taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. The Company believes the determination of the amount of such deferred income taxes is impractical as it would depend upon income tax laws and circumstances at the time of the hypothetical distributions or dispositions. As of January 1, 2022, unremitted earnings of the Company’s non-U.S. subsidiaries were approximately $884 million. A distribution of such earnings will generally not be subject to U.S. federal income tax. The Company recognized deferred tax liabilities of $15.5 million ($15.3 million for non-U.S. taxes net of related U.S. foreign tax credits, and $0.2 million for U.S. state taxes) as of January 1, 2022 and $14.2 million ($13.9 million for non-U.S. taxes net of related U.S. foreign tax credits, and $0.3 million for U.S. state taxes) as of December 26, 2020, related to taxes on certain non-U.S. earnings which are not considered to be permanently reinvested. The Company has two subsidiaries in China which benefit from lower tax rates due to “tax holidays” which apply for three-year periods. The tax holiday for one of the subsidiaries expires at the end of 2022, and for the other subsidiary the tax holiday will expire at the end of 2023. Together, the tax holidays contributed $7.8 million in tax benefits, or $0.31 per diluted share, during 2021. Future year tax benefits will depend upon the Company’s ability to obtain extensions, after the three-year periods expire. There can be no assurance that future extensions will be granted. A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 1, 2022, December 26, 2020, and December 28, 2019 is as follows: (in thousands) Unrecognized Tax Benefits Balance at December 28, 2019 $ 16,721 Additions for tax positions taken in the current year 700 Decreases due to a lapse in the statute of limitations (103) Other 119 Balance at December 26, 2020 17,437 Additions for tax positions related to pre-acquisition periods of acquired subsidiaries 3,260 Additions for tax positions taken in the current year 1,587 Additions for tax positions taken in the prior year 1,100 Other 61 Balance at January 1, 2022 23,445 The January 1, 2022 total in the table above represents the net amount of tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. Of this amount, only an insignificant amount may be recognized in 2022 based upon the possible lapse in the statute of limitations. None of the positions included in unrecognized tax benefits are related to tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. The company recognizes accrued interest and pe nalties associated with uncertain tax positions as part of income tax expense. The company recognized such interest expense of $1.6 million, $1.6 million (net of a $0.6 million decrease due to a lapse in the statute of limitations), and $1.3 million (net of a $0.6 million decrease due to a lapse in the statute of limitations) in 2021, 2020, and 2019, respectively. Accrued interest for such matters included in Other long-term liabilities within the Consolidated Balance Sheets was $10.4 million and $8.8 million as of January 1, 2022 and December 26, 2020, respec tively. The U.S. federal statute of limitations remains open for the Company for the 2017 tax year (with respect to the Toll Charge) and later years. Non-U.S. and U.S. state statutes of limitations generally range from three to seven years, although certain jurisdictions do not have a statute expiration. Tax examinations occur from time to time, including examinations currently in process in Korea, the Netherlands, the Philippines, and certain U.S. states. The company does not expect to recognize a significant amount of additional tax expense as a result of concluding these examinations. During 2021, the Company received a notice of assessment for approximately $3 million from the Canadian tax authorities. The Company has objected to and appealed the assessment, and does not expect to recognize a significant amount of additional tax expense upon conclusion of such appeal. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 01, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: (in thousands, except per share amounts) 2021 2020 2019 Numerator: Net income as reported $ 283,806 $ 129,986 $ 139,082 Denominator: Weighted average shares outstanding Basic 24,603 24,371 24,576 Effect of dilutive securities 329 221 242 Diluted 24,932 24,592 24,818 Earnings Per Share: Basic earnings per share $ 11.54 $ 5.33 $ 5.66 Diluted earnings per share $ 11.38 $ 5.29 $ 5.60 Potential shares of common stock attributable to stock options and restricted shares excluded from the earnings per share calculation because their effect would be anti-dilutive were 20,139, 222,526, and 129,658 shares in 2021, 2020, and 2019, respectively. During the fiscal year 2021, the Company did not repurchase any shares of its common stock. During the fiscal year 2020 and 2019, the Company repurchased 175,110, and 579,916 shares of its common stock totaling $22.9 million and $95.0 million, respectively. See Note 12 Stock-Based Compensation |
Segment Information
Segment Information | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company and its subsidiaries design, manufacture and sell component, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety. The Company reports its operations by the following segments: Electronics, Transportation, 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, silicon and silicon carbide metal-oxide-semiconductor field effect transistors (“MOSFETs”) and diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial motor drives and power conversion, automotive electronics, electric vehicle and related infrastructure, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics. • Transportation Segment: Formerly known as Automotive segment . The term “Transportation” represents a more comprehensive description of the Company’s broad range of products, and the applications and end markets it serves. Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets. Passenger vehicle products are used in internal combustion engine, hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products designed to monitor the occupant’s safety and environment as well as the vehicle’s powertrain. Commercial vehicle products include fuses, switches, circuit breakers, relays, and power distribution modules and units used in applications serving a number of end markets, including heavy-duty truck, construction, agriculture, material handling and marine. • Industrial Segment: Consists of industrial circuit protection (industrial fuse), industrial controls (protection relay, contactors, transformers) and temperature sensors for use in various applications such as renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining and industrial automation. The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows: (in thousands) 2021 2020 2019 Net sales Electronics $ 1,300,744 $ 937,762 $ 961,080 Transportation 528,058 395,764 428,533 Industrial 251,126 112,169 114,260 Total net sales $ 2,079,928 $ 1,445,695 $ 1,503,873 Depreciation and amortization Electronics $ 61,512 $ 62,702 $ 60,345 Transportation 29,015 28,995 27,922 Industrial 8,108 4,481 4,236 Other — — — Total depreciation and amortization $ 98,635 $ 96,178 $ 92,503 Operating income (loss) Electronics $ 309,633 $ 152,695 $ 145,594 Transportation 65,979 41,655 46,719 Industrial 22,621 11,996 22,407 Other (a) (12,591) (43,974) (21,929) Total operating income 385,642 162,372 192,791 Interest expense 18,527 21,077 22,266 Foreign exchange loss (gain) 17,158 (14,875) 5,224 Other expense (income), net 8,932 (5,083) (583) Income before income taxes $ 341,025 $ 161,253 $ 165,884 (a) Included in “Other” Operating income (loss) for 2021 was $8.4 million of purchase accounting inventory step-up charges, $7.0 million of legal and professional fees and other integration expenses related to Carling, Hartland and other contemplated acquisitions, and $2.2 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 8, Restructuring, Impairment and Other Charges, for further discussion. In addition, there was a gain of $5.0 million recorded for the sale of buildings within the Electronics segment. Included in “Other” Operating income (loss) for 2020 is $2.3 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $41.7 million of restructuring, impairment and other charges, primarily related to the goodwill impairment charge of $33.8 million recorded in the second quarter associated with the automotive sensors reporting unit within the Transportation segment, employee termination costs of $5.5 million, $2.2 million of impairment charges recorded in the first quarter associated with the announced consolidation of a manufacturing facility within the Industrial segment and other restructuring charges of $0.2 million. Included in “Other” Operating income (loss) for 2019 is $8.9 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $13.0 million of restructuring charges primarily related to employee termination costs. The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2021, 2020, and 2019 are as follows: (in thousands) 2021 2020 2019 Net sales U.S. $ 639,381 $ 392,544 $ 440,461 China 620,211 438,000 416,385 Other countries (a) 820,336 615,151 647,027 Total net sales $ 2,079,928 $ 1,445,695 $ 1,503,873 Long-lived assets U.S. $ 57,923 $ 46,132 $ 58,081 China 122,867 85,876 88,306 Mexico 107,283 70,125 73,096 Germany 39,055 37,976 36,025 Philippines 74,918 66,994 51,738 Other countries 35,843 37,075 37,371 Total long-lived assets $ 437,889 $ 344,178 $ 344,617 Additions to long-lived assets U.S. $ 7,690 $ 4,170 $ 5,864 China 26,396 10,074 10,400 Mexico 28,707 9,977 13,827 Germany 8,519 5,600 4,017 Philippines 19,342 19,612 22,944 Other countries 5,654 1,775 9,314 Total additions to long-lived assets $ 96,308 $ 51,208 $ 66,366 (a) Each country included in other countries are less than 10% of net sales. For the year ended January 1, 2022, approximately 69% of the Company’s net sales were to customers outside the U.S. (exports and foreign operations), including approximately 30% to China. For the year ended December 26, 2020, approximately 73% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 30% to China. For the year ended December 28, 2019, approximately 71% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 28% to China. Sales to Arrow Electronics, Inc., which were included in the Electronics, Transportation, and Industrial segments, were 10.7%, 10.4%, and 10.7% of consolidated net sales in 2021, 2020, and 2019 respectively. No other single customer accounted for more than 10% of net sales during the last three years. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 01, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The quarterly periods for 2021 are for the 14-weeks ended January 1, 2022, 13-weeks ended September 25, 2021, June 26, 2021, and March 27, 2021, respectively. The quarterly periods for 2020 are for the 13-weeks ended December 26, 2020, September 26, 2020, June 27, 2020, and March 28, 2020, respectively. (in thousands, except per share data) 2021 2020 4Q (a) 3Q (b ) 2Q (c) 1Q (d) 4Q (e) 3Q (f) 2Q (g) 1Q (h) Net sales $ 553,065 $ 539,581 $ 523,488 $ 463,794 $ 400,696 $ 391,566 $ 307,337 $ 346,096 Gross profit 199,492 214,572 197,396 160,466 138,083 138,831 99,902 124,356 Operating income (loss) 92,797 120,107 96,257 76,481 65,014 64,558 (11,950) 44,750 Net income (loss) 51,944 92,054 82,095 57,713 58,977 55,356 (8,991) 24,644 Net income (loss) per share Basic $ 2.11 $ 3.74 $ 3.34 $ 2.35 $ 2.41 $ 2.27 $ (0.37) $ 1.01 Diluted $ 2.08 $ 3.69 $ 3.30 $ 2.32 $ 2.39 $ 2.25 $ (0.37) $ 1.00 (a) In the fourth quarter of 2021, the Company recorded non-cash pension settlement charge of 19.9 million, $4.1 million gain related to a sale of building, $3.6 million in acquisition-related and integration costs, $1.6 million for purchase accounting inventory adjustments associated with the acquisition of Carling, $0.7 million charge for an asset retirement obligation related to the disposal of a business in 2019, $0.2 million in restructuring, impairment and other charges, and $0.2 million increase in coal mining reserves. (b) In the third quarter of 2021, the Company recorded $2.0 million in acquisition-related and integration costs, $0.8 million in restructuring, impairment and other charges and $0.1 million charge for an asset retirement obligation related to the disposal of a business in 2019. (c) In the second quarter of 2021, the Company recorded $3.3 million for purchase accounting inventory adjustments associated with the acquisition of Hartland, and $1.0 million loss recorded during the second quarter of 2021 for a total year-to-date gain of $0.9 million from the sale of a building within the Electronics segment, $0.8 million in employee termination costs and other restructuring charges, $0.5 million in acquisition-related and integration costs, and $0.5 million of impairment charges on certain other investments. (d) In the first quarter of 2021, the Company recorded the Company recorded $3.5 million for purchase accounting inventory adjustments associated with the acquisition of Hartland, $1.9 million gain related to a sale of building, $0.8 million in acquisition-related and integration costs, and $0.4 million in restructuring, impairment and other charges. (e) In the fourth quarter of 2020, the Company recorded $0.7 million in acquisition-related and integration costs and $0.8 million in restructuring, impairment and other costs. (f) In the third quarter of 2020, the Company recorded $1.3 million in restructuring, impairment and other charges, $0.3 million in acquisition-related and integration costs, and $0.1 million of impairment charges on certain other investments. (g) In the second quarter of 2020, the Company recorded a goodwill impairment charge of $33.8 million associated with the automotive sensors reporting unit within the Transportation segment, $1.8 million in employee termination costs and other restructuring charges, $1.8 million increase to coal mining reserve, $0.2 million charge for an asset retirement obligation related to the disposal of a business in 2019, and $0.1 million in acquisition-related and integration costs. (h) In the first quarter of 2020, the Company recorded $4.0 million in restructuring, impairment and other charges and $1.2 million in acquisition-related and integration costs. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 01, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As a result of the Company’s acquisition of IXYS, the Company has equity ownerships 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. Fiscal Year Ended January 1, 2022 December 26, 2020 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.2 $ — $ — $ 1.5 $ — $ — Purchase of material/services from related party 3.0 0.4 12.6 2.7 — 8.7 Accounts receivable balance — — — 0.1 — — Accounts payable balance $ — $ — $ 1.8 $ 0.1 $ — $ 0.2 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Jan. 01, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - valuation and qualifying accounts and reserves | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Description Balance at Charged to Deductions (b) Other (c) Balance at (in thousands) Fiscal year ended January 1, 2022 Allowance for losses on accounts receivable $ 1,400 $ 82 $ (362) $ 790 $ 1,910 Reserves for sales discounts and allowances $ 43,837 $ 152,153 $ (137,920) $ (748) $ 57,322 Fiscal year ended December 26, 2020 Allowance for losses on accounts receivable $ 1,310 $ 1,170 $ (329) $ (751) $ 1,400 Reserves for sales discounts and allowances $ 40,733 $ 113,709 $ (112,401) $ 1,796 $ 43,837 Fiscal year ended December 28, 2019 Allowance for losses on accounts receivable $ 1,062 $ 410 $ (172) $ 10 $ 1,310 Reserves for sales discounts and allowances $ 34,976 $ 133,434 $ (127,330) $ (347) $ 40,733 (a) Includes provision for doubtful accounts, sales returns and sales discounts granted to customers. (b) Represents uncollectible accounts written off, net of recoveries and credits issued to customers. (c) Represents business acquisitions and foreign currency translation adjustments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Other Information (Policies) | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of Littelfuse, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The Company’s Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles in the United States of America ("U.S.") and include the assets, liabilities, sales and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control. |
Use of Estimates | Use of Estimates The process of preparing financial statements in conformity with generally accepted accounting principles in the U.S. requires management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses and the accompanying notes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in its evaluation, as considered necessary. Actual results could differ from those estimates. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash All highly liquid investments, with an original maturity of three months or less when purchased, are considered to be cash equivalents. The Company maintains several pools including multicurrency notional pools and physical pools internationally and a zero balance account ("ZBA") structure in the U.S. In the notional pools, actual cash balances are not physically converted and are not commingled between participating legal entities. The Company will classify any overdraft balances within accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Short-Term and Long-Term Investments | Short-Term and Long-Term Investments As of January 1, 2022, the Company has an investment in Polytronics Technology Corporation Ltd. (“Polytronics”). The Company’s Polytronics shares held at the end of fiscal 2021 and 2020 represent approximately 6.8% and 7.2% of total Polytronics shares outstanding, respectively. The Polytronics investment is carried at fair value. The fair value of the Polytronics investment was €23 million (approximately $26.1 million) at January 1, 2022 and €15.7 million (approximately $19.2 million) at December 26, 2020. As a result of the Company’s acquisition of IXYS, the Company has equity ownerships in various investments that are accounted for under the equity method. The Company owns 45% of the outstanding equity of Powersem GmbH, a module manufacturer based in Germany, approximately 19% of the outstanding equity of EB Tech Ltd., a company with expertise in radiation technology based in South Korea, and approximately 24% of the outstanding common shares of Automated Technology, Inc., a supplier located in the Philippine s that provides assemb ly and test services. All equity-level investments are less than majority owned. The Company recognized $1.3 million gains from its equity method investment for the fiscal year ended January 1, 2022. The Company recognized no gains and losses from its equity method investments for the fiscal year ended December 26, 2020. The balance of these equity method investments was $12.4 million and $11.4 million as of the fiscal years ended January 1, 2022 and December 26, 2020, respectively. See Note 18, Related Party Transactions, for further discussion. The Company does not have any remaining book value of investments accounted for under the cost method as of January 1, 2022. As of December 26, 2020, the Company had a net book value of $0.5 million. During the fiscal year ended January 1, 2022, the Company impaired the remaining book value of these investments and recorded an impairment charge of $0.5 million, and during the fiscal year ended December 26, 2020, the Company recorded $0.1 million in Other expense (income), net in the Consolidated Statements of Net Income. See Note 10, Fair Value of Assets and Liabilities, for further discussion. The Company has investments related to its non-qualified Supplemental Retirement and Savings Plan. The Company maintains accounts for participants through which participants make investment elections. The investment securities are subject to the claims of the Company’s creditors. The investment securities are all mutual funds. The investment securities are measured at net asset value. As of January 1, 2022 and December 26, 2020, the investment securities balance was $15.0 million and $13.2 million, respectively, related to the plan and are included in Other assets on the Consolidated Balance Sheets. |
Trade Receivables | Trade Receivables The Company performs credit evaluations of customers’ financial condition and generally does not require collateral. Credit losses are provided for in the financial statements based upon specific knowledge of a customer’s inability to meet its financial obligations to the Company. Historically, credit losses have consistently been within management’s expectations and have not been a material amount. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Write-offs are recorded at the time a customer receivable is deemed uncollectible. The Company also maintains allowances against trade receivables for the settlement of rebates and sales discounts to customers. These allowances are based upon specific customer sales and sales discounts as well as actual historical experience. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, which approximates current replacement cost. Cost is principally determined using the first-in, first-out method. The Company maintains excess and obsolete reserves against inventory to reduce the carrying value to the expected net realizable value. These reserves are based upon a combination of factors including historical sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. |
Property, Plant and Equipment | Property, Plant, and Equipment Land, buildings, and equipment are carried at cost. Depreciation is calculated using the straight-line method with useful lives of up to 21 years for buildings, three |
Goodwill | Goodwill The Company annually tests goodwill for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. The results of the annual goodwill impairment test as of September 26, 2021 indicated that the estimated fair values for each of the seven reporting units exceeded their respective carrying values. As of the most recent annual test conducted on September 26, 2021, the Company noted that the excess of fair value over the carrying value, was 380%, 104%, 255%, 217%, 95%, 144%, and 231% for its reporting units; Electronics-Passive Products and Sensors, Electronics-Semiconductor, Passenger Car Products, Commercial Vehicle Products, Automotive Sensors, Relays, and Power Fuse, respectively. Relatively small changes in the Company’s key assumptions would not have resulted in any reporting units failing the goodwill impairment test. See Note 5, Goodwill and Other Intangible Assets, for additional information. During the second quarter of 2020, the Company recorded a non-cash charge of $33.8 million to recognize the impairment of goodwill in the automotive sensors reporting unit within the Transportation segment. The goodwill impairment charge was due to reductions in the estimated fair value for the automotive sensors reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2019 annual goodwill impairment test. These lower future expectations were driven by projected extended declines in end market demand due to the COVID-19 pandemic. In addition, during the second quarter of 2020, certain customers notified the Company of their decision to delay future programs along with a customer canceling an existing program. As of January 1, 2022, the automotive sensors reporting unit had $9.2 million of remain ing goodwill. |
Long-Lived Assets | Long-Lived Assets Customer relationships, trademarks and tradenames are amortized using the straight-line method over estimated useful lives that have a range of 5 to 20 years. Patents, licenses and software are amortized using the straight-line method or an accelerated method over estimated useful lives that have a range of 5 to 17 years. The distribution networks are amortized on either a straight-line or accelerated basis over estimated useful lives that have a range of 4 to 10 years. Land use rights are amortized using the straight-line method over 50 years which is the term of the land use rights. The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of carrying value or the fair market value less the estimated cost to sell. |
Environmental Liabilities | Environmental Liabilities Environmental liabilities are accrued based on engineering studies estimating the cost of remediating sites. Expenses related to on-going maintenance of environmental sites are expensed as incurred. If actual or estimated probable future losses exceed the Company’s recorded liability for such claims, the Company would record additional charges during the period in which the actual loss or change in estimate occurred. |
Pension and Other Post-retirement Benefits | Pension and Other Post-retirement Benefits The Company records annual income and expense amounts relating to its pension and post-retirement benefits plans based on calculations which include various actuarial assumptions including discount rates, expected long-term rates of return and compensation increases. The Company reviews its actuarial assumptions on an annual basis as of the fiscal year-end balance sheet date (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumption based on |
Revenue Recognition, Revenue and Billing, Ship and Debit Program, Return to Stock, Volume Rebates | 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 has 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 the Company's 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. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company currently measures the expected credit losses based on our historical credit loss experience. The Company has not experienced significant recent or historical credit losses and is not forecasting any significant credit losses which would require adjustments to our methodology. If current conditions and supportable forecasts indicate that our historical loss experience is not reasonable and no longer supportable, the Company may adjust its historical credit loss experience and to reflect these conditions and forecasts. The Company regularly analyzes its significant customer accounts and, when the Company becomes aware of a customer’s inability to meet its financial obligations, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also analyzes all other customers based on a variety of factors including the length of time the receivables are past due, the financial health of the customer, macroeconomic considerations and historical collection and loss experience. Historically, the allowance for doubtful accounts has been adequate to cover bad debts. If circumstances related to specific customers change, the estimates of the recoverability of receivables could be further adjusted. |
Advertising Costs | Advertising Costs |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs Amounts billed to customers related to shipping and handling are classified as revenue. Costs incurred for shipping and handling of $15.4 million, $11.1 million, and $11.0 million in f iscal years 2021, 2020, and 2019, respectively, are classified in selling, general, and administrative expenses. |
Foreign Currency Translation / Remeasurement | Foreign Currency Translation / Remeasurement |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method. Benefits of tax deductions in excess of recognized compensation expense are reported as operating cash flows. See Note 12, Stock-Based Compensation , for additional information on stock-based compensation. |
Coal Mining Liability | Coal Mining Liability Included in other long-term liabilities is an accrual related to former coal mining operations at Littelfuse GmbH (formerly known as Heinrich Industries, AG) for the amounts of €1.9 million ($2.1 million) and €2.3 million ($2.9 million) at January 1, 2022 and December 26, 2020, respectively. Management, in conjunction with an independent third-party, performs an annual evaluation of the former coal mining operations in order to develop an estimate of the probable future obligations in regard to remediating the dangers (such as a shaft collapse) of abandoned coal mine shafts in the former coal mining operations. Management accrues for costs associated with such remediation efforts based on management's best estimate when such costs are probable and reasonably able to be estimated. The ultimate determination can only be done after respective investigations because the concrete conditions are mostly unknown at this time. |
Other Expense (Income), Net | Other Expense (Income), Net Other expense (income), net generally consists of interest income, royalties, change in fair value of available-for-sale securities, pension non-service costs and settlements and other non-operating expense (income). |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred taxes are recognized for the future effects of temporary differences between financial and income tax reporting using enacted tax rates in effect for the years in which the differences are expected to reverse. The Company recognizes deferred taxes for temporary differences, operating loss carryforwards, and tax credit and other tax attribute carryforwards (excluding carryforwards where usage has been determined to be remote). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. U.S. state and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to the U.S. and be taxable (and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to an upper-tier non-U.S. entity). Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Deferred U.S. income taxes and non-U.S. taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. Management regularly evaluates whether non-U.S. earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its non-U.S. subsidiaries. Changes in economic and business conditions, tax laws, or the Company’s financial situation could result in changes to these judgments and the need to record additional tax liabilities. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The 2017 Tax Cuts and Jobs Act (the "Tax Act"), among other things, imposed a one-time tax (the “Toll Charge”) on accumulated earnings of certain non-U.S. subsidiaries and included base broadening provisions commonly referred to as the global intangible low-taxed income provisions ("GILTI"). The Company elected to pay the 2017 Littelfuse Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of this Toll Charge which remains payable as of January 1, 2022, totaling $17.8 million, is recorded in Other long-term liabilities, and the anticipated 2022 annual installment payment of $3.0 million is included in Accrued income taxes , on the Consolidated Balance Sheet as of January 1, 2022. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the fiscal years ended January 1, 2022 , December 26, 2020 and December 28, 2019, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expen se. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its available-for-sale securities and pension plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is: Level 1 – Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 – Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes" as part of its initiative to reduce complexity in the accounting standards. The guidance is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The adoption of ASU 2019-12 did not have a material impact on our Consolidated Financial Statements. Recently Issued Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". The standard requires an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The guidance is effective for fiscal years beginning after December 15, 2022 with early adoption permitted. The Company does not expect a material impact from the adoption of this guidance on the Company's Consolidated Financial Statements. In November 2021, the FASB issued ASU No. 2021-10, " Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance". The standard, requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: 1) Information about the nature of the transactions and the related accounting policy used to account for the transactions; 2) The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item; 3) Significant terms and conditions of the transactions, including commitments and contingencies. The guidance is effective for fiscal years beginning after December 15, 2021 with early adoption permitted. The Company does not expect a material impact from the adoption of this guidance on the Company's Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Other Information (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Policies [Abstract] | |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash at January 1, 2022 and December 26, 2020 reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows. (in millions) 2021 2020 Cash and cash equivalents $ 478,473 $ 687,525 Restricted cash included in prepaid expenses and other current assets 2,718 — Restricted cash included in other assets 1,645 $ — Total cash, cash equivalents and restricted cash $ 482,836 $ 687,525 |
Summary of revenue disaggregation | The following table disaggregates the Company’s revenue by primary business units for the fiscal years ended January 1, 2022 and December 26, 2020: Fiscal Year Ended January 1, 2022 (in thousands) Electronics Transportation Industrial Total Electronics – Semiconductor $ 678,861 $ — $ — $ 678,861 Electronics – Passive Products and Sensors 621,883 — — 621,883 Passenger Car Products — 266,020 — 266,020 Commercial Vehicle Products — 160,300 — 160,300 Automotive Sensors — 101,738 — 101,738 Industrial Products — — 251,126 251,126 Total $ 1,300,744 $ 528,058 $ 251,126 $ 2,079,928 Fiscal Year Ended December 26, 2020 (in thousands) Electronics Transportation Industrial Total Electronics – Semiconductor $ 522,352 $ — $ — $ 522,352 Electronics – Passive Products and Sensors 415,410 — — 415,410 Passenger Car Products — 200,455 — 200,455 Commercial Vehicle Products — 101,324 — 101,324 Automotive Sensors — 93,985 — 93,985 Industrial Products — — 112,169 112,169 Total $ 937,762 $ 395,764 $ 112,169 $ 1,445,695 (1) Formerly known as Automotive segment . |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the Carling acquisition: (in thousands) Purchase Price Total purchase consideration: Cash, net of cash acquired $ 313,583 Allocation of consideration to assets acquired and liabilities assumed: Trade receivables, net 25,503 Inventories 57,450 Other current assets 3,454 Property, plant, and equipment 64,301 Intangible assets 125,890 Goodwill 92,366 Other non-current assets 4,104 Current liabilities (21,723) Other non-current liabilities (37,762) $ 313,583 The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Hartland acquisition: (in thousands) Purchase Price Total purchase consideration: Cash, net of cash acquired, and restricted cash $ 108,516 Allocation of consideration to assets acquired and liabilities assumed: Trade receivables, net 12,915 Inventories 35,808 Other current assets 2,224 Property, plant, and equipment 6,296 Intangible assets 39,660 Goodwill 38,502 Other non-current assets 3,782 Current liabilities (24,861) Other non-current liabilities (5,810) $ 108,516 |
Summary of business acquisition, pro forma information | The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company, Hartland and Carling as though the acquisition had occurred as of December 29, 2019. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Hartland and Carling acquisitions occurred as of December 29, 2019 or of future consolidated operating results. For the Fiscal Year Ended (in thousands, except per share amounts) January 1, December 26, 2020 Net sales $ 2,257,390 $ 1,662,896 Income before income taxes 357,090 141,491 Net income 296,030 115,078 Net income per share — basic 12.03 4.72 Net income per share — diluted 11.87 4.68 |
Summary of business acquisition, pro forma information, nonrecurring adjustments | Pro forma results presented above primarily reflect the following adjustments: For the Fiscal Year Ended (in thousands) January 1, 2022 December 26, 2020 Amortization (a) $ (8,770) $ (12,669) Depreciation (64) 253 Transaction costs (b) 5,381 (5,381) Amortization of inventory step-up (c) 8,398 (13,156) Income tax (expense) benefit of above items (1,021) 6,706 (a) The amortization adjustment for the twelve months ended January 1, 2022 and December 26, 2020 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values. (b) The transaction cost adjustments reflect the reversal of certain legal and professional fees from the twelve months ended January 1, 2022 and recognition of those fees during the twelve months ended December 26, 2020. (c) The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the twelve months ended January 1, 2022 and the recognition of the amortization during the twelve months ended December 26, 2020. The inventory step-up is amortized over four months for both acquisitions. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | The components of inventories at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Raw materials $ 168,409 $ 85,394 Work in process 117,506 92,783 Finished goods 195,656 114,641 Inventory reserves (35,900) (34,816) Total $ 445,671 $ 258,002 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of net property, plant, and equipment | The components of net property, plant, and equipment at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Land $ 23,470 $ 22,851 Building 151,297 123,497 Equipment 779,559 678,220 Accumulated depreciation and amortization (516,437) (480,390) Total $ 437,889 $ 344,178 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The amounts for goodwill and changes in the carrying value by segment are as follows: (in thousands) Electronics Transportation Industrial Total Gross goodwill as of December 28, 2019 $ 650,796 $ 131,321 $ 47,266 $ 829,383 Accumulated impairment losses as of December 28, 2019 — — (8,794) (8,794) Net goodwill as of December 28, 2019 $ 650,796 $ 131,321 $ 38,472 $ 820,589 Changes during 2020: Impairments (33,841) (33,841) Foreign currency translation adjustments 25,529 4,451 84 30,064 Gross goodwill as of December 26, 2020 676,325 138,354 47,551 862,230 Accumulated impairment losses as of December 26, 2020 — (36,423) (8,995) (45,418) Net goodwill as of December 26, 2020 $ 676,325 $ 101,931 $ 38,556 $ 816,812 Changes during 2021: Additions (a) — 96,307 38,502 134,809 Foreign currency translation adjustments (16,080) (6,106) 179 (22,007) Gross goodwill as of January 1, 2022 660,245 228,555 86,232 975,032 Accumulated impairment losses as of January 1, 2022 — (36,177) (9,065) (45,242) Net goodwill as of January 1, 2022 $ 660,245 $ 192,378 $ 77,167 $ 929,790 (a) The additions primarily resulted from the acquisitions of Carling and Hartland. |
Schedule of finite-lived intangible assets | The components of intangible assets at January 1, 2022 and December 26, 2020 are as follows: As of January 1, 2022 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 19,542 $ 1,906 $ 17,636 Patents, licenses and software 164,556 101,307 63,249 Distribution network 43,361 40,591 2,770 Customer relationships, trademarks, and tradenames 487,710 164,239 323,471 Total $ 715,169 $ 308,043 $ 407,126 As of December 26, 2020 (in thousands) Gross Accumulated Amortization Net Book Value Land use rights $ 10,280 $ 2,007 $ 8,273 Patents, licenses and software 137,210 92,868 44,342 Distribution network 43,910 38,980 4,930 Customer relationships, trademarks, and tradenames 372,064 137,722 234,342 Total $ 563,464 $ 271,577 $ 291,887 During the year ended January 1, 2022, the Company recorded additions to other intangible assets of $165.6 million, for acquisitions during 2021, the components of which were as follows: 2021 (in thousands, except weighted average useful life) Weighted Average Amount Land use rights 50 $ 9,590 Patents, developed technology 9.8 $ 31,659 Customer relationships, trademarks, and tradenames 13.0 124,301 Total $ 165,550 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated annual amortization expense related to intangible assets with definite lives at January 1, 2022 is as follows: (in thousands) Amount 2022 $ 50,035 2023 45,569 2024 42,151 2025 41,776 2026 33,245 2027 and thereafter 194,350 Total $ 407,126 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Payables and Accruals [Abstract] | |
Summary of components of accrued liabilities | The components of accrued liabilities at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Employee-related liabilities $ 92,018 $ 50,689 Operating lease liability 9,018 6,811 Interest 4,402 4,517 Professional services 4,299 3,321 Other non-income taxes 4,280 2,126 Restructuring liability 2,944 4,195 Current benefit liability 1,248 2,751 Deferred revenue 1,105 2,959 Other customer reserves 702 3,858 Other 39,673 29,251 Total $ 159,689 $ 110,478 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Supplemental balance sheet information related to leases | The following table presents the classification of ROU assets and lease liabilities as of January 1, 2022 and December 26, 2020: Leases Consolidated Balance Sheet Classification January 1, 2022 December 26, 2020 Assets Operating ROU assets Right of use assets, net $ 29,616 $ 17,615 Liabilities Current operating lease liabilities Accrued liabilities $ 9,018 $ 6,811 Non-current operating lease liabilities Non-current operating lease liabilities 22,305 12,950 Total lease liabilities $ 31,323 $ 19,761 |
Components of lease expense and supplemental cash flow information | The following table represents the lease costs for 2021 and 2020: Leases Consolidated Statements of Net Income Classification Fiscal Year Ended January 1, 2022 Fiscal Year Ended December 26, 2020 Short-term lease expenses Cost of sales, SG&A expenses $ 345 $ 512 Variable lease expenses Cost of sales, SG&A expenses 1,165 1,307 Operating lease rent expenses Cost of sales, SG&A expenses 9,929 8,591 Total operating lease costs Cost of sales, SG&A expenses $ 11,439 $ 10,410 Operating Lease Term and Discount Rate Fiscal Year Ended January 1, 2022 Fiscal Year Ended December 26, 2020 Weighted-average remaining lease term (years) 4.79 3.41 Weighted-average discount rate 4.27 % 5.06 % Cash Flow Information related to Leases Fiscal Year Ended January 1, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow payments for operating leases $ (10,150) Leased assets obtained in exchange for operating lease liabilities 20,217 Other Information Net gain from sale and leaseback transaction (4,058) |
Maturities of lease liabilities | Maturity of Lease Liabilities as of January 1, 2022 Operating leases 2022 $ 10,080 2023 7,840 2024 7,323 2025 3,135 2026 1,322 2027 and thereafter 4,607 Total lease payments $ 34,307 Present value of lease liabilities $ 31,323 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other Charges (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring, impairment and other charges | The Company recorded restructuring, impairment and other charges for fiscal years 2021, 2020, and 2019 as follows: Fiscal Year Ended January 1, 2022 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 1,124 $ 404 $ 347 $ 1,875 Other restructuring charges — 283 — 283 Total restructuring charges 1,124 687 347 2,158 Total $ 1,124 $ 687 $ 347 $ 2,158 Fiscal Year Ended December 26, 2020 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 2,540 $ 682 $ 2,231 $ 5,453 Other restructuring charges — 175 10 185 Total restructuring charges 2,540 857 2,241 5,638 Impairment — 33,841 2,237 36,078 Total $ 2,540 $ 34,698 $ 4,478 $ 41,716 Fiscal Year Ended December 28, 2019 (in thousands) Electronics Transportation Industrial Total Employee terminations $ 5,313 $ 4,251 $ 795 $ 10,359 Other restructuring charges 188 1,714 450 2,352 Total restructuring charges 5,501 5,965 1,245 12,711 Impairment — 322 — 322 Total $ 5,501 $ 6,287 $ 1,245 $ 13,033 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The carrying amounts of debt at January 1, 2022 and December 26, 2020 are as follows: (in thousands) 2021 2020 Revolving Credit Facility $ 100,000 $ 130,000 Euro Senior Notes, Series A due 2023 132,444 142,679 Euro Senior Notes, Series B due 2028 107,540 115,850 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 Unamortized debt issuance costs (3,087) (4,114) Total debt 636,897 687,034 Less: Current maturities (25,000) — Total long-term debt $ 611,897 $ 687,034 |
Schedule of maturities of long-term debt | Scheduled maturities of the Company’s long-term debt for each of the five years succeeding January 1, 2022 and thereafter are summarized as follows: (in thousands) Scheduled 2022 $ 25,000 2023 132,444 2024 — 2025 150,000 2026 — 2027 and thereafter 332,540 $ 639,984 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 January 1, 2022: Fair Value Measurements Using (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash Equivalents $ 12,475 $ — $ — $ 12,475 Investments in equity securities 26,070 — — 26,070 Mutual funds 15,021 — — 15,021 Total: $ 53,566 $ — $ — $ 53,566 The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 26, 2020: Fair Value Measurements Using (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash Equivalents $ 73,461 $ — $ — $ 73,461 Investments in equity securities 19,186 — — 19,186 Mutual funds 13,249 — — 13,249 Total: $ 105,896 $ — $ — $ 105,896 |
Schedule of 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 January 1, 2022 and December 26, 2020 were as follows: January 1, 2022 December 26, 2020 (in thousands) Carrying Estimated Carrying Estimated Euro Senior Notes, Series A due 2023 $ 132,444 $ 134,119 $ 142,679 $ 144,323 Euro Senior Notes, Series B due 2028 107,540 110,837 115,850 123,588 USD Senior Notes, Series A due 2022 25,000 25,055 25,000 25,437 USD Senior Notes, Series B due 2027 100,000 104,828 100,000 109,552 USD Senior Notes, Series A due 2025 50,000 51,720 50,000 53,474 USD Senior Notes, Series B due 2030 125,000 131,837 125,000 138,036 |
Summary of impairment of long-lived assets held and used by asset | The fair value as of the measurement date, net book value as of the end of the year and related 2020 goodwill impairment for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the years ended December 26, 2020 were as follows: Fiscal Year Ended December 26, 2020 December 26, 2020 (in thousands) Impairment Charge Estimated Fair Value Measurement (Level 3) Carrying Value Goodwill $33,841 $8,953 $ 9,832 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans disclosures | Benefit plan related information is as follows for the years 2021 and 2020: (in thousands) 2021 2020 Change in benefit obligation: Benefit obligation at beginning of year $ 148,992 $ 116,921 Service cost 2,785 2,462 Interest cost 1,761 2,173 Net actuarial (gain) loss (11,016) 25,306 Benefits paid from the plan assets (3,121) (2,808) Benefits paid directly by the Company (2,692) (2,302) (Settlements) and Curtailments (48,927) 102 Acquisitions 1,797 — Effect of exchange rate movements (3,218) 7,462 Plan amendment and other 209 (324) Benefit obligation at end of year $ 86,570 $ 148,992 Change in plan assets at fair value: Fair value of plan assets at beginning of year $ 100,478 $ 78,502 Actual (loss) return on plan assets (2,824) 7,053 Employer contributions 2,150 12,918 Benefits paid from the plan assets (3,121) (2,808) Settlements (47,111) — Effect of exchange rate movements (1,247) 4,813 Fair value of plan assets at end of year 48,325 100,478 Net amount unfunded status $ (38,245) $ (48,514) |
Schedule of amounts recognized in balance sheet | Amounts recognized in the Consolidated Balance Sheets as of January 1, 2022 and December 26, 2020 consist of the following: (in thousands) 2021 2020 Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent assets $ 40 $ 39 Current benefit liability (1,248) (2,751) Noncurrent benefit liability (37,037) (45,802) Net liability recognized $ (38,245) $ (48,514) The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net periodic benefit costs as of January 1, 2022 and December 26, 2020 were as following: (in thousands) 2021 2020 Net actuarial loss $ 9,221 $ 37,285 Prior service cost 3,340 3,937 Total $ 12,561 $ 41,222 |
Schedule of defined benefit plan amounts recognized in other comprehensive income (loss) | The pre-tax amounts recognized in other comprehensive income (loss) in 2021 were as follows: (in thousands) 2021 Amortization of: Prior service cost $ 179 Net actuarial loss 1,136 Amount arising during the period: Prior service cost (209) Net actuarial loss 6,734 Net settlement loss and accelerated prior service costs 19,855 Foreign currency adjustments 966 Total $ 28,661 |
Schedule of net benefit costs | The components of net periodic benefits costs for the fiscal years 2021, 2020, and 2019 are as follows: (in thousands) 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 2,785 $ 2,462 $ 2,040 Interest cost 1,761 2,173 3,169 Expected return on plan assets (1,458) (1,972) (3,187) Amortization of prior service and net actuarial loss 1,315 963 243 Net periodic benefit cost 4,403 3,626 2,265 Net settlement loss 19,855 236 260 Total expense for the year $ 24,258 $ 3,862 $ 2,525 |
Schedule of assumptions used | Weighted average assumptions used to determine net periodic benefit cost for the fiscal years 2021, 2020, and 2019 are as follows: 2021 2020 2019 Discount rate 1.2 % 2.3 % 3.1 % Expected return on plan assets 1.4 % 3.7 % 4.5 % Compensation increase rate 4.9 % 4.7 % 4.6 % Weighted average assumptions used to determine benefit obligations as of January 1, 2022, December 26, 2020 and December 28, 2019 are as follows: 2021 2020 2019 Discount rate 3.1 % 1.2 % 2.3 % Compensation increase rate 4.8 % 4.9 % 4.7 % |
Schedule of net funded status | The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of January 1, 2022 and December 26, 2020: (in thousands) 2021 2020 Projected benefit obligation $ 86,228 $ 148,992 Fair value of plan assets 47,942 100,439 |
Schedule of expected benefit payments | The following table provides a summary of under-funded or unfunded pension benefit plans with accumulated benefit obligations in excess of plan assets as of January 1, 2022 and December 26, 2020: (in thousands) 2021 2020 Accumulated benefit obligation $ 68,643 $ 130,453 Fair value of plan assets 39,060 92,248 Expected benefit payments to be paid to participants for the fiscal year ending are as follows: (in thousands) Expected Benefit Payments 2022 $ 3,514 2023 3,652 2024 3,561 2025 4,068 2026 4,320 2027-2031 and thereafter 26,449 |
Schedule of allocation of plan assets | Pension plan assets were invested as follows, and were not materially different from the target asset allocation: Asset Allocation 2021 2020 Cash and cash equivalents, and other 15 % 7 % Equity securities 19 % 9 % Fixed income securities 66 % 31 % Bulk annuity contract — % 53 % 100 % 100 % |
Schedule of pension plan assets measured at fair value | The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of January 1, 2022: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 NAV Total Insurance contracts and other $ — $ 1,917 $ 343 $ — $ 2,260 Cash and cash equivalents 384 4,632 — — 5,016 Equities 2,559 6,604 — — 9,163 Fixed income 5,999 20,280 — 5,607 31,886 Total pension plan assets $ 8,942 $ 33,433 $ 343 $ 5,607 $ 48,325 The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 26, 2020: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 NAV Total Insurance contracts and other $ — $ 1,880 $ 685 $ — $ 2,565 Cash and cash equivalents 654 3,868 — — 4,522 Equities 1,719 6,904 — — 8,623 Fixed income 6,164 19,433 — 6,078 31,675 Bulk annuity contract 53,093 53,093 Total pension plan assets $ 8,537 $ 32,085 $ 53,778 $ 6,078 $ 100,478 |
Schedule of effect of significant unobservable inputs, changes in plan assets | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2021 due to the following: (in thousands) Level 3 Balance at December 26, 2020 $ 53,778 Level 3 assets transferred in from Level 1 and 2 assets valued at NAV: Settlements (47,111) Actual loss on plan assets (4,943) Benefits paid from the plan assets (1,238) Foreign currency adjustments (143) Balance at January 1, 2022 $ 343 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation, stock options, activity | The following table provides a reconciliation of outstanding stock options for the fiscal year ended January 1, 2022. Shares Under Weighted Weighted Aggregate Outstanding December 26, 2020 666,949 $ 148.01 Granted 57,928 267.66 Exercised (151,015) 126.61 Forfeited (10,636) 151.93 Outstanding January 1, 2022 563,226 165.98 4.7 $ 83,749 Exercisable January 1, 2022 240,030 148.66 3.7 39,850 |
Schedule of nonvested restricted stock units activity | The following table provides a reconciliation of non-vested restricted share and share unit awards ("RSU") for the fiscal year ended January 1, 2022. Shares Weighted Average Nonvested December 26, 2020 172,002 $ 152.25 Granted 63,237 264.69 Vested (72,904) 162.59 Forfeited (5,676) 162.85 Nonvested January 1, 2022 156,659 192.44 |
Schedule of share-based payment award, stock options, valuation assumptions | The Company uses the Black-Scholes option valuation model to determine the fair value of stock option awards granted. The weighted average fair value of and related assumptions for options granted are as follows: 2021 2020 2019 Weighted average fair value of options granted $74.04 $38.09 $47.63 Assumptions: Risk-free interest rate 0.66% 0.30% 2.33% Expected dividend yield 0.72% 1.27% 0.86% Expected stock price volatility 35.0% 33.0% 27.0% Expected life of options (years) 4.4 4.7 4.4 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Schedule of components of comprehensive income (loss) | Changes in other comprehensive income (loss) by component for fiscal years 2021, 2020, and 2019 were as follows: Fiscal Year Ended January 1, 2022 December 26, 2020 December 28, 2019 (in thousands) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Pre-tax Tax Net of tax Defined benefit pension plan and other adjustments $ 27,481 $ (5,268) $ 22,213 $ (19,513) $ 3,418 $ (16,095) $ (9,149) $ 1,062 $ (8,087) Foreign currency translation adjustments (1) (6,967) 2,448 (4,519) 34,707 (2,946) 31,761 (1,476) 664 (812) Total change in other comprehensive income (loss) $ 20,514 $ (2,820) $ 17,694 $ 15,194 $ 472 $ 15,666 $ (10,625) $ 1,726 $ (8,899) (1) The tax shown above within the foreign currency translation adjustments is the U.S. tax associated with the foreign currency translation adjustments of earnings of non-U.S. subsidiaries which have been previously taxed in the U.S. and are not permanently reinvested. |
Schedule of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) (“AOCI”) : The following table sets forth the changes in the components of AOCI by component for fiscal years 2021, 2020, and 2019: (in thousands) Pension and postretirement liability and reclassification adjustments Foreign currency translation adjustments Accumulated other comprehensive income (loss) Balance at December 29, 2018 $ (9,959) $ (87,965) $ (97,924) 2019 activity (8,087) (812) (8,899) Balance at December 28, 2019 (18,046) (88,777) (106,823) 2020 activity (16,095) 31,761 15,666 Balance at December 26, 2020 (34,141) (57,016) (91,157) 2021 activity 22,213 (4,519) 17,694 Balance at January 1, 2022 (11,928) (61,535) (73,463) |
Reclassification out of accumulated other comprehensive income | Amounts reclassified from accumulated other comprehensive income (loss) to earnings for fiscal years 2021, 2020, and 2019 were as follows: Fiscal Year Ended (in thousands) January 1, 2022 December 26, 2020 December 28, 2019 Pension and postemployment and other plans: Amortization of prior service, net actuarial loss, and other $ 2,006 $ 1,694 $ 372 Net settlement loss and accelerated prior service costs 19,855 236 260 Total $ 21,861 $ 1,930 $ 632 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | Domestic and foreign income (loss) before income taxes is as follows: (in thousands) 2021 2020 2019 Domestic $ 13,746 $ (16,732) $ (11,970) Foreign 327,279 177,985 177,854 Income before income taxes $ 341,025 $ 161,253 $ 165,884 Federal, state and foreign income tax expense (benefit) consists of the following: (in thousands) 2021 2020 2019 Current: Federal $ 4,832 $ 437 $ (3,495) State 1,401 203 834 Foreign 59,006 33,841 30,610 Subtotal 65,239 34,481 27,949 Deferred: Federal and State (9,658) (5,354) 1,839 Foreign 1,638 2,140 (2,986) Subtotal (8,020) (3,214) (1,147) Provision for income taxes $ 57,219 $ 31,267 $ 26,802 |
Schedule of effective income tax rate reconciliation | A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below: (in thousands) 2021 2020 2019 Tax expense at statutory rate of 21% $ 71,615 $ 33,863 $ 34,836 Non-U.S. income tax rate differential (31,414) (19,730) (22,457) Non-U.S. losses and expenses with no tax benefit 7,820 2,774 6,570 Tax on unremitted earnings 7,585 3,955 2,136 Certain changes in unrecognized tax benefits and related accrued interest 4,263 2,160 (1,468) Net impact associated with the GILTI tax provisions (238) 3,731 6,469 State and local taxes, net of federal tax benefit (172) (584) 1,080 Tax impact of non-deductible goodwill impairment charge — 5,642 — Other, net (2,240) (544) (364) Provision for income taxes $ 57,219 $ 31,267 $ 26,802 |
Schedule of deferred tax assets and liabilities | Significant components of the company’s deferred tax assets and liabilities at January 1, 2022 and December 26, 2020, are as follows: (in thousands) 2021 2020 Deferred tax assets: Accrued expenses and reserves $ 36,168 $ 31,123 Domestic and non-U.S. net operating loss carryforwards 27,818 24,763 Domestic and non-U.S. interest expense carryforwards 16,089 10,352 Excess of tax basis over the book basis for intangible assets and goodwill 5,636 — Capitalized expenses 4,878 4,178 U.S. research and other general business tax credit carryforwards 1,104 3,724 U.S. foreign tax credit carryforwards 980 772 Other 183 117 Gross deferred tax assets 92,856 75,029 Less: Valuation allowance (34,869) (13,131) Total deferred tax assets 57,987 61,898 Deferred tax liabilities: Excess of book basis over the tax basis for intangible assets and goodwill 98,046 76,472 Tax on unremitted earnings 15,467 14,223 Unrealized foreign currency exchange gains 73 5,719 Excess of book basis over the tax basis for property, plant, and equipment 12,563 4,394 Total deferred tax liabilities 126,149 100,808 Net deferred tax liabilities $ 68,162 $ 38,910 |
Schedule of unrecognized tax benefits roll forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits as of January 1, 2022, December 26, 2020, and December 28, 2019 is as follows: (in thousands) Unrecognized Tax Benefits Balance at December 28, 2019 $ 16,721 Additions for tax positions taken in the current year 700 Decreases due to a lapse in the statute of limitations (103) Other 119 Balance at December 26, 2020 17,437 Additions for tax positions related to pre-acquisition periods of acquired subsidiaries 3,260 Additions for tax positions taken in the current year 1,587 Additions for tax positions taken in the prior year 1,100 Other 61 Balance at January 1, 2022 23,445 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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: (in thousands, except per share amounts) 2021 2020 2019 Numerator: Net income as reported $ 283,806 $ 129,986 $ 139,082 Denominator: Weighted average shares outstanding Basic 24,603 24,371 24,576 Effect of dilutive securities 329 221 242 Diluted 24,932 24,592 24,818 Earnings Per Share: Basic earnings per share $ 11.54 $ 5.33 $ 5.66 Diluted earnings per share $ 11.38 $ 5.29 $ 5.60 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows: (in thousands) 2021 2020 2019 Net sales Electronics $ 1,300,744 $ 937,762 $ 961,080 Transportation 528,058 395,764 428,533 Industrial 251,126 112,169 114,260 Total net sales $ 2,079,928 $ 1,445,695 $ 1,503,873 Depreciation and amortization Electronics $ 61,512 $ 62,702 $ 60,345 Transportation 29,015 28,995 27,922 Industrial 8,108 4,481 4,236 Other — — — Total depreciation and amortization $ 98,635 $ 96,178 $ 92,503 Operating income (loss) Electronics $ 309,633 $ 152,695 $ 145,594 Transportation 65,979 41,655 46,719 Industrial 22,621 11,996 22,407 Other (a) (12,591) (43,974) (21,929) Total operating income 385,642 162,372 192,791 Interest expense 18,527 21,077 22,266 Foreign exchange loss (gain) 17,158 (14,875) 5,224 Other expense (income), net 8,932 (5,083) (583) Income before income taxes $ 341,025 $ 161,253 $ 165,884 (a) Included in “Other” Operating income (loss) for 2021 was $8.4 million of purchase accounting inventory step-up charges, $7.0 million of legal and professional fees and other integration expenses related to Carling, Hartland and other contemplated acquisitions, and $2.2 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 8, Restructuring, Impairment and Other Charges, for further discussion. In addition, there was a gain of $5.0 million recorded for the sale of buildings within the Electronics segment. |
Schedule of disclosure on geographic areas, long-lived assets in individual foreign countries by country | The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2021, 2020, and 2019 are as follows: (in thousands) 2021 2020 2019 Net sales U.S. $ 639,381 $ 392,544 $ 440,461 China 620,211 438,000 416,385 Other countries (a) 820,336 615,151 647,027 Total net sales $ 2,079,928 $ 1,445,695 $ 1,503,873 Long-lived assets U.S. $ 57,923 $ 46,132 $ 58,081 China 122,867 85,876 88,306 Mexico 107,283 70,125 73,096 Germany 39,055 37,976 36,025 Philippines 74,918 66,994 51,738 Other countries 35,843 37,075 37,371 Total long-lived assets $ 437,889 $ 344,178 $ 344,617 Additions to long-lived assets U.S. $ 7,690 $ 4,170 $ 5,864 China 26,396 10,074 10,400 Mexico 28,707 9,977 13,827 Germany 8,519 5,600 4,017 Philippines 19,342 19,612 22,944 Other countries 5,654 1,775 9,314 Total additions to long-lived assets $ 96,308 $ 51,208 $ 66,366 (a) Each country included in other countries are less than 10% of net sales. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data (Unaudited) | (in thousands, except per share data) 2021 2020 4Q (a) 3Q (b ) 2Q (c) 1Q (d) 4Q (e) 3Q (f) 2Q (g) 1Q (h) Net sales $ 553,065 $ 539,581 $ 523,488 $ 463,794 $ 400,696 $ 391,566 $ 307,337 $ 346,096 Gross profit 199,492 214,572 197,396 160,466 138,083 138,831 99,902 124,356 Operating income (loss) 92,797 120,107 96,257 76,481 65,014 64,558 (11,950) 44,750 Net income (loss) 51,944 92,054 82,095 57,713 58,977 55,356 (8,991) 24,644 Net income (loss) per share Basic $ 2.11 $ 3.74 $ 3.34 $ 2.35 $ 2.41 $ 2.27 $ (0.37) $ 1.01 Diluted $ 2.08 $ 3.69 $ 3.30 $ 2.32 $ 2.39 $ 2.25 $ (0.37) $ 1.00 (a) In the fourth quarter of 2021, the Company recorded non-cash pension settlement charge of 19.9 million, $4.1 million gain related to a sale of building, $3.6 million in acquisition-related and integration costs, $1.6 million for purchase accounting inventory adjustments associated with the acquisition of Carling, $0.7 million charge for an asset retirement obligation related to the disposal of a business in 2019, $0.2 million in restructuring, impairment and other charges, and $0.2 million increase in coal mining reserves. (b) In the third quarter of 2021, the Company recorded $2.0 million in acquisition-related and integration costs, $0.8 million in restructuring, impairment and other charges and $0.1 million charge for an asset retirement obligation related to the disposal of a business in 2019. (c) In the second quarter of 2021, the Company recorded $3.3 million for purchase accounting inventory adjustments associated with the acquisition of Hartland, and $1.0 million loss recorded during the second quarter of 2021 for a total year-to-date gain of $0.9 million from the sale of a building within the Electronics segment, $0.8 million in employee termination costs and other restructuring charges, $0.5 million in acquisition-related and integration costs, and $0.5 million of impairment charges on certain other investments. (d) In the first quarter of 2021, the Company recorded the Company recorded $3.5 million for purchase accounting inventory adjustments associated with the acquisition of Hartland, $1.9 million gain related to a sale of building, $0.8 million in acquisition-related and integration costs, and $0.4 million in restructuring, impairment and other charges. (e) In the fourth quarter of 2020, the Company recorded $0.7 million in acquisition-related and integration costs and $0.8 million in restructuring, impairment and other costs. (f) In the third quarter of 2020, the Company recorded $1.3 million in restructuring, impairment and other charges, $0.3 million in acquisition-related and integration costs, and $0.1 million of impairment charges on certain other investments. (g) In the second quarter of 2020, the Company recorded a goodwill impairment charge of $33.8 million associated with the automotive sensors reporting unit within the Transportation segment, $1.8 million in employee termination costs and other restructuring charges, $1.8 million increase to coal mining reserve, $0.2 million charge for an asset retirement obligation related to the disposal of a business in 2019, and $0.1 million in acquisition-related and integration costs. (h) In the first quarter of 2020, the Company recorded $4.0 million in restructuring, impairment and other charges and $1.2 million in acquisition-related and integration costs. |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Fiscal Year Ended January 1, 2022 December 26, 2020 (in millions) Powersem EB Tech ATEC Powersem EB Tech ATEC Sales to related party $ 0.2 $ — $ — $ 1.5 $ — $ — Purchase of material/services from related party 3.0 0.4 12.6 2.7 — 8.7 Accounts receivable balance — — — 0.1 — — Accounts payable balance $ — $ — $ 1.8 $ 0.1 $ — $ 0.2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Other Information - Narrative (Details) customer in Thousands, associate in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 27, 2020USD ($) | Jan. 01, 2022USD ($)countrycustomerassociate | Dec. 26, 2020USD ($)reporting_unit | Dec. 28, 2019USD ($) | Jan. 01, 2022EUR (€)countryassociate | Sep. 25, 2021 | Dec. 26, 2020EUR (€) | |
Summary of Significant Accounting Policies and Other Information | |||||||
Countries where product is used (country) | country | 15 | 15 | |||||
Number of customers (over) | customer | 100 | ||||||
Global associates (associate) | associate | 17 | 17 | |||||
Cost of sales | $ 1,308,002,000 | $ 944,523,000 | $ 957,578,000 | ||||
Equity investment | 26,070,000 | 19,186,000 | |||||
Gain (loss) from equity method investments | 1,300,000 | 0 | |||||
Equity method investments | 12,400,000 | 11,400,000 | |||||
Equity method investment, cost | 0 | 500,000 | |||||
Impairment of equity method investments | 500,000 | 100,000 | |||||
Goodwill impairment | 33,841,000 | ||||||
Goodwill | 929,790,000 | $ 816,812,000 | 820,589,000 | ||||
Number of reporting units | reporting_unit | 7 | ||||||
Trade receivables, allowances | 1,900,000 | $ 1,400,000 | |||||
Foreign exchange loss (gain) | 17,158,000 | (14,875,000) | 5,224,000 | ||||
Loss contingency accrual | 2,100,000 | 2,900,000 | € 1.9 | € 2.3 | |||
Toll charge, noncurrent | 17,800,000 | ||||||
Toll charge, current | (3,000,000) | ||||||
Transportation Segment | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Goodwill impairment | $ 33,800,000 | 33,841,000 | |||||
Goodwill | 192,378,000 | 101,931,000 | 131,321,000 | ||||
90 days past due | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Trade receivables, allowances | $ 2,100,000 | 1,000,000 | |||||
Land use rights | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 50 years | ||||||
Electronics – Passive Products and Sensors | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Percentage of fair value in excess of carrying value | 380.00% | ||||||
Electronics – Semiconductor | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Percentage of fair value in excess of carrying value | 104.00% | ||||||
Passenger Car Products | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Percentage of fair value in excess of carrying value | 255.00% | ||||||
Commercial Vehicle Products | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Percentage of fair value in excess of carrying value | 217.00% | ||||||
Automotive Sensors | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Goodwill impairment | $ 33,800,000 | ||||||
Goodwill | $ 9,200,000 | ||||||
Percentage of fair value in excess of carrying value | 95.00% | ||||||
Relay Unit | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Percentage of fair value in excess of carrying value | 144.00% | ||||||
Fuse Unit | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Percentage of fair value in excess of carrying value | 231.00% | ||||||
Minimum | Customer relationships | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 5 years | ||||||
Minimum | Trademarks and tradenames | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 5 years | ||||||
Minimum | Patents, licenses and software | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 5 years | ||||||
Minimum | Distribution network | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 4 years | ||||||
Maximum | Customer relationships | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 20 years | ||||||
Maximum | Trademarks and tradenames | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 20 years | ||||||
Maximum | Patents, licenses and software | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 17 years | ||||||
Maximum | Distribution network | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Finite lived intangible asset weighted average useful life (years) | 10 years | ||||||
Building | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Useful life (in years) | 21 years | ||||||
Equipment | Minimum | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Useful life (in years) | 3 years | ||||||
Equipment | Maximum | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Useful life (in years) | 10 years | ||||||
Furniture and Fixtures | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Useful life (in years) | 7 years | ||||||
Tools, Dies and Molds | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Useful life (in years) | 5 years | ||||||
Computer Equipment | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Useful life (in years) | 3 years | ||||||
Selling, General and Administrative Expenses | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Advertising expense | $ 2,100,000 | 2,100,000 | 2,700,000 | ||||
Selling, General and Administrative Expenses | Shipping and handling cost and expenses | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Cost of sales | 15,400,000 | 11,100,000 | $ 11,000,000 | ||||
Other Assets | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Equity method investment, cost | 500,000 | ||||||
Other Noncurrent Assets | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Marketable securities | $ 15,000,000 | $ 13,200,000 | |||||
Polytronics | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Ownership percentage | 6.80% | 7.20% | 6.80% | 7.20% | |||
Equity investment | $ 26,100,000 | $ 19,200,000 | € 23 | € 15.7 | |||
Powersem | Equity Method | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Ownership percentage | 45.00% | 45.00% | |||||
EB Tech | Equity Method | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Ownership percentage | 19.00% | 19.00% | |||||
ATEC | Equity Method | |||||||
Summary of Significant Accounting Policies and Other Information | |||||||
Ownership percentage | 24.00% | 24.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Other Information - Cash and cash equivalents (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 478,473 | $ 687,525 | $ 531,139 | |
Restricted cash included in prepaid expenses and other current assets | 2,718 | 0 | 0 | |
Restricted cash included in other assets | 1,645 | 0 | 0 | |
Total cash, cash equivalents and restricted cash | $ 482,836 | $ 687,525 | $ 531,139 | $ 489,733 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Other Information - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Disaggregation of Revenue | |||||||||||
Net sales | $ 553,065 | $ 539,581 | $ 523,488 | $ 463,794 | $ 400,696 | $ 391,566 | $ 307,337 | $ 346,096 | $ 2,079,928 | $ 1,445,695 | $ 1,503,873 |
Electronics – Semiconductor | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 678,861 | 522,352 | |||||||||
Electronics – Passive Products and Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 621,883 | 415,410 | |||||||||
Passenger Car Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 266,020 | 200,455 | |||||||||
Commercial Vehicle Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 160,300 | 101,324 | |||||||||
Automotive Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 101,738 | 93,985 | |||||||||
Industrial Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 251,126 | 112,169 | |||||||||
Electronics Segment | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 1,300,744 | 937,762 | 961,080 | ||||||||
Electronics Segment | Electronics – Semiconductor | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 678,861 | 522,352 | |||||||||
Electronics Segment | Electronics – Passive Products and Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 621,883 | 415,410 | |||||||||
Electronics Segment | Passenger Car Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Electronics Segment | Commercial Vehicle Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Electronics Segment | Automotive Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Electronics Segment | Industrial Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Transportation Segment | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 528,058 | 395,764 | 428,533 | ||||||||
Transportation Segment | Electronics – Semiconductor | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Transportation Segment | Electronics – Passive Products and Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Transportation Segment | Passenger Car Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 266,020 | 200,455 | |||||||||
Transportation Segment | Commercial Vehicle Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 160,300 | 101,324 | |||||||||
Transportation Segment | Automotive Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 101,738 | 93,985 | |||||||||
Transportation Segment | Industrial Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Industrial Segment | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 251,126 | 112,169 | $ 114,260 | ||||||||
Industrial Segment | Electronics – Semiconductor | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Industrial Segment | Electronics – Passive Products and Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Industrial Segment | Passenger Car Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Industrial Segment | Commercial Vehicle Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Industrial Segment | Automotive Sensors | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | 0 | 0 | |||||||||
Industrial Segment | Industrial Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Net sales | $ 251,126 | $ 112,169 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Jan. 28, 2021 | Mar. 28, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 |
Business Acquisition | ||||||
Cash, net of cash acquired | $ 423,633 | $ 0 | $ 775 | |||
Acquisition related costs | $ 1,200 | 4,500 | ||||
Restricted cash | $ 1,700 | |||||
Inventory amortization period (in years) | 4 months | |||||
Selling, General and Administrative Expenses | ||||||
Business Acquisition | ||||||
Acquisition related costs | $ 6,200 | $ 800 | ||||
Operating Income (Loss) | ||||||
Business Acquisition | ||||||
Acquisition related costs | $ 8,900 | |||||
Carling Technologies | ||||||
Business Acquisition | ||||||
Cash | $ 315,000 | |||||
Cash, net of cash acquired | 313,583 | |||||
Revenue of acquiree since acquisition | 15,300 | |||||
Loss from acquiree since acquisition | 1,200 | |||||
Carling Technologies | Cost of Sales | ||||||
Business Acquisition | ||||||
Other noncash charges | 1,600 | |||||
Hartland Controls | ||||||
Business Acquisition | ||||||
Cash, net of cash acquired | $ 108,516 | |||||
Revenue of acquiree since acquisition | 100,500 | |||||
Loss from acquiree since acquisition | 2,800 | |||||
Acquisition related costs | 800 | |||||
Cash acquired from acquisition | 111,000 | |||||
Hartland Controls | Operating Income (Loss) | Other | ||||||
Business Acquisition | ||||||
Inventory amortization adjustment | $ 6,800 | |||||
Carling Technologies | ||||||
Business Acquisition | ||||||
Annualized sales | $ 170,000 | |||||
Hartland Controls | ||||||
Business Acquisition | ||||||
Annualized sales | $ 70,000 |
Acquisitions - Preliminary Pric
Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Jan. 28, 2021 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 |
Total purchase consideration: | |||||
Cash, net of cash acquired | $ 423,633 | $ 0 | $ 775 | ||
Allocation of consideration to assets acquired and liabilities assumed: | |||||
Goodwill | $ 929,790 | $ 816,812 | $ 820,589 | ||
Carling Technologies | |||||
Total purchase consideration: | |||||
Cash, net of cash acquired | $ 313,583 | ||||
Allocation of consideration to assets acquired and liabilities assumed: | |||||
Trade receivables, net | 25,503 | ||||
Inventories | 57,450 | ||||
Other current assets | 3,454 | ||||
Property, plant, and equipment | 64,301 | ||||
Intangible assets | 125,890 | ||||
Goodwill | 92,366 | ||||
Other non-current assets | 4,104 | ||||
Current liabilities | (21,723) | ||||
Other non-current liabilities | (37,762) | ||||
Assets acquired and liabilities assumed | $ 313,583 | ||||
Hartland Controls | |||||
Total purchase consideration: | |||||
Cash, net of cash acquired | $ 108,516 | ||||
Allocation of consideration to assets acquired and liabilities assumed: | |||||
Trade receivables, net | 12,915 | ||||
Inventories | 35,808 | ||||
Other current assets | 2,224 | ||||
Property, plant, and equipment | 6,296 | ||||
Intangible assets | 39,660 | ||||
Goodwill | 38,502 | ||||
Other non-current assets | 3,782 | ||||
Current liabilities | (24,861) | ||||
Other non-current liabilities | (5,810) | ||||
Assets acquired and liabilities assumed | $ 108,516 |
Acquisitions - Business Acquisi
Acquisitions - Business Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Dec. 26, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
Net sales | $ 2,257,390 | $ 1,662,896 |
Income before income taxes | 357,090 | 141,491 |
Net income | $ 296,030 | $ 115,078 |
Net income per share — basic (in dollars per share) | $ 12.03 | $ 4.72 |
Net income per share — diluted (in dollars per share) | $ 11.87 | $ 4.68 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Dec. 26, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||
Net income | $ 296,030 | $ 115,078 |
Amortization | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||
Net income | (8,770) | (12,669) |
Depreciation | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||
Net income | (64) | 253 |
Transaction costs | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||
Net income | 5,381 | (5,381) |
Amortization of inventory step-up | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||
Net income | 8,398 | (13,156) |
Income tax (expense) benefit of above items | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||
Net income | $ (1,021) | $ 6,706 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Inventory, Net | ||
Raw materials | $ 168,409 | $ 85,394 |
Work in process | 117,506 | 92,783 |
Finished goods | 195,656 | 114,641 |
Inventory reserves | (35,900) | (34,816) |
Inventories | $ 445,671 | $ 258,002 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Property, Plant and Equipment | ||
Accumulated depreciation and amortization | $ (516,437) | $ (480,390) |
Total | 437,889 | 344,178 |
Land | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 23,470 | 22,851 |
Building | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 151,297 | 123,497 |
Equipment | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | $ 779,559 | $ 678,220 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 55,906 | $ 56,139 | $ 52,477 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Amounts for Goodwill and Changes in Carrying Value by Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 27, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Goodwill | ||||
Gross goodwill | $ 975,032 | $ 862,230 | $ 829,383 | |
Accumulated impairment loss | (45,242) | (45,418) | (8,794) | |
Net goodwill | 929,790 | 816,812 | 820,589 | |
Additions | 134,809 | |||
Impairments | (33,841) | |||
Foreign currency translation adjustments | (22,007) | 30,064 | ||
Electronics | ||||
Goodwill | ||||
Gross goodwill | 660,245 | 676,325 | 650,796 | |
Accumulated impairment loss | 0 | 0 | 0 | |
Net goodwill | 660,245 | 676,325 | 650,796 | |
Additions | 0 | |||
Impairments | ||||
Foreign currency translation adjustments | (16,080) | 25,529 | ||
Transportation | ||||
Goodwill | ||||
Gross goodwill | 228,555 | 138,354 | 131,321 | |
Accumulated impairment loss | (36,177) | (36,423) | 0 | |
Net goodwill | 192,378 | 101,931 | 131,321 | |
Additions | 96,307 | |||
Impairments | $ (33,800) | (33,841) | ||
Foreign currency translation adjustments | (6,106) | 4,451 | ||
Industrial | ||||
Goodwill | ||||
Gross goodwill | 86,232 | 47,551 | 47,266 | |
Accumulated impairment loss | (9,065) | (8,995) | (8,794) | |
Net goodwill | 77,167 | 38,556 | $ 38,472 | |
Additions | 38,502 | |||
Impairments | ||||
Foreign currency translation adjustments | $ 179 | $ 84 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | Jan. 28, 2021 | |
Goodwill | |||||
Goodwill impairment | $ 33,841 | ||||
Goodwill | $ 929,790 | 816,812 | $ 820,589 | ||
Acquired finite lived intangibles | 165,550 | ||||
Amortization of intangibles | 42,729 | $ 40,039 | $ 40,026 | ||
Hartland Controls | |||||
Goodwill | |||||
Goodwill | $ 38,502 | ||||
Acquired finite lived intangibles | 165,600 | ||||
Automotive Sensors | |||||
Goodwill | |||||
Goodwill impairment | $ 33,800 | ||||
Goodwill | $ 9,200 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Details of Other Intangible Assets and Related Future Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Dec. 26, 2020 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Value | $ 715,169 | $ 563,464 |
Accumulated Amortization | 308,043 | 271,577 |
Total | 407,126 | 291,887 |
Amount | 165,550 | |
Land use rights | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 19,542 | 10,280 |
Accumulated Amortization | 1,906 | 2,007 |
Total | $ 17,636 | 8,273 |
Weighted Average Useful Life (Years) | 50 years | |
Amount | $ 9,590 | |
Patents, licenses and software | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 164,556 | 137,210 |
Accumulated Amortization | 101,307 | 92,868 |
Total | $ 63,249 | 44,342 |
Weighted Average Useful Life (Years) | 9 years 9 months 18 days | |
Amount | $ 31,659 | |
Distribution network | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 43,361 | 43,910 |
Accumulated Amortization | 40,591 | 38,980 |
Total | 2,770 | 4,930 |
Customer relationships, trademarks, and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 487,710 | 372,064 |
Accumulated Amortization | 164,239 | 137,722 |
Total | $ 323,471 | $ 234,342 |
Weighted Average Useful Life (Years) | 13 years | |
Amount | $ 124,301 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Amount | ||
2022 | $ 50,035 | |
2023 | 45,569 | |
2024 | 42,151 | |
2025 | 41,776 | |
2026 | 33,245 | |
2027 and thereafter | 194,350 | |
Total | $ 407,126 | $ 291,887 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Payables and Accruals [Abstract] | ||
Employee-related liabilities | $ 92,018 | $ 50,689 |
Operating lease liability | 9,018 | 6,811 |
Interest | 4,402 | 4,517 |
Professional services | 4,299 | 3,321 |
Other non-income taxes | 4,280 | 2,126 |
Restructuring liability | 2,944 | 4,195 |
Current benefit liability | 1,248 | 2,751 |
Deferred revenue | 1,105 | 2,959 |
Other customer reserves | 702 | 3,858 |
Other | 39,673 | 29,251 |
Accrued liabilities | $ 159,689 | $ 110,478 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022USD ($)renewal | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | |
Leases [Abstract] | |||
Number of renewal options | renewal | 1 | ||
Operating lease, rent expense | $ | $ 11,439 | $ 10,410 | $ 10,100 |
Lease Commitments - Balance She
Lease Commitments - Balance Sheet, Operating Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Assets | ||
Operating ROU assets | $ 29,616 | $ 17,615 |
Liabilities | ||
Current operating lease liabilities | $ 9,018 | $ 6,811 |
Operating Lease, Liability, Current, Statement of Financial Position | Accrued liabilities | Accrued liabilities |
Non-current operating lease liabilities | $ 22,305 | $ 12,950 |
Total lease liabilities | $ 31,323 | $ 19,761 |
Weighted-average remaining lease term (years) | 4 years 9 months 14 days | 3 years 4 months 28 days |
Weighted-average discount rate | 4.27% | 5.06% |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Leases [Abstract] | |||
Short-term lease expenses | $ 345 | $ 512 | |
Variable lease expenses | 1,165 | 1,307 | |
Operating lease rent expenses | 9,929 | 8,591 | |
Total operating lease costs | $ 11,439 | $ 10,410 | $ 10,100 |
Lease Commitments - Maturities
Lease Commitments - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Operating Leases | ||
2022 | $ 10,080 | |
2023 | 7,840 | |
2024 | 7,323 | |
2025 | 3,135 | |
2026 | 1,322 | |
2027 and thereafter | 4,607 | |
Total lease payments | 34,307 | |
Present value of lease liabilities | $ 31,323 | $ 19,761 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow Information (Details) (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2022USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flow payments for operating leases | $ (10,150) |
Leased assets obtained in exchange for operating lease liabilities | 20,217 |
Other Information (in thousands) | |
Net gain from sale and leaseback transaction | $ (4,058) |
Restructuring, Impairment and_3
Restructuring, Impairment and Other Charges - Schedule of Restructuring, Impairment (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2019 | Sep. 25, 2021 | Jun. 26, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 2,158 | $ 5,638 | $ 12,711 | ||||||
Impairment | $ 100 | $ 500 | $ 100 | 0 | 36,078 | 322 | |||
Total | $ 800 | $ 800 | $ 1,300 | $ 1,800 | 2,158 | 41,716 | 13,033 | ||
Employee terminations | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 1,700 | 1,875 | 5,453 | 10,359 | |||||
Other restructuring charges | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 1,400 | 283 | 185 | 2,352 | |||||
Electronics | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 1,124 | 2,540 | 5,501 | ||||||
Impairment | 0 | 0 | |||||||
Total | $ 800 | 1,124 | 2,540 | 5,501 | |||||
Electronics | Employee terminations | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 1,124 | 2,540 | 5,313 | ||||||
Electronics | Other restructuring charges | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 0 | 0 | 188 | ||||||
Transportation | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 687 | 857 | 5,965 | ||||||
Impairment | 33,841 | 322 | |||||||
Total | 687 | 34,698 | 6,287 | ||||||
Transportation | Employee terminations | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 404 | 682 | 4,251 | ||||||
Transportation | Other restructuring charges | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 283 | 175 | 1,714 | ||||||
Industrial | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 347 | 2,241 | 1,245 | ||||||
Impairment | $ 2,200 | 2,237 | 0 | ||||||
Total | 347 | 4,478 | 1,245 | ||||||
Industrial | Employee terminations | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 347 | 2,231 | 795 | ||||||
Industrial | Other restructuring charges | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 0 | $ 10 | $ 450 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2019 | Sep. 25, 2021 | Jun. 26, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Restructuring Cost and Reserve | ||||||||
Restructuring charges | $ 2,158 | $ 5,638 | $ 12,711 | |||||
Impairment charges | $ 100 | $ 500 | $ 100 | 0 | 36,078 | 322 | ||
Impairments | 33,841 | |||||||
Restructuring reserves | 2,900 | 4,200 | ||||||
Employee terminations | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | $ 1,700 | 1,875 | 5,453 | 10,359 | ||||
Other restructuring charges | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | $ 1,400 | 283 | 185 | 2,352 | ||||
Transportation | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 687 | 857 | 5,965 | |||||
Impairment charges | 33,841 | 322 | ||||||
Impairments | $ 33,800 | 33,841 | ||||||
Transportation | Employee terminations | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 404 | 682 | 4,251 | |||||
Transportation | Other restructuring charges | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 283 | 175 | 1,714 | |||||
Industrial | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 347 | 2,241 | 1,245 | |||||
Impairment charges | 2,200 | 2,237 | 0 | |||||
Impairments | ||||||||
Industrial | Employee terminations | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 347 | 2,231 | 795 | |||||
Industrial | Other restructuring charges | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | $ 0 | $ 10 | $ 450 | |||||
Transportation | Senor Reporting Unit | ||||||||
Restructuring Cost and Reserve | ||||||||
Impairments | $ 33,800 |
Debt - Carrying Amounts of Long
Debt - Carrying Amounts of Long-term Debt (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Debt Instrument | ||
Long-term debt, gross | $ 639,984 | |
Unamortized debt issuance costs | (3,087) | $ (4,114) |
Total debt | 636,897 | 687,034 |
Less: Current maturities | (25,000) | 0 |
Total long-term debt | 611,897 | 687,034 |
Revolving Credit Facility | ||
Debt Instrument | ||
Long-term debt, gross | 100,000 | 130,000 |
Senior Notes | Euro Senior Notes, Series A due 2023 | ||
Debt Instrument | ||
Long-term debt, gross | 132,444 | 142,679 |
Senior Notes | Euro Senior Notes, Series B due 2028 | ||
Debt Instrument | ||
Long-term debt, gross | 107,540 | 115,850 |
Senior Notes | USD Senior Notes, Series A due 2022 | ||
Debt Instrument | ||
Long-term debt, gross | 25,000 | 25,000 |
Senior Notes | USD Senior Notes, Series B due 2027 | ||
Debt Instrument | ||
Long-term debt, gross | 100,000 | 100,000 |
Senior Notes | USD Senior Notes, Series A due 2025 | ||
Debt Instrument | ||
Long-term debt, gross | 50,000 | 50,000 |
Senior Notes | USD Senior Notes, Series B due 2030 | ||
Debt Instrument | ||
Long-term debt, gross | 125,000 | 125,000 |
Other | ||
Debt Instrument | ||
Long-term debt, gross | $ 0 | $ 2,619 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Apr. 03, 2020USD ($) | Mar. 25, 2020USD ($) | Jan. 01, 2022USD ($) | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | Jan. 16, 2018USD ($) | Nov. 15, 2017USD ($)series | Feb. 15, 2017USD ($) | Dec. 08, 2016USD ($)series | Dec. 08, 2016EUR (€)series |
Debt Instrument | ||||||||||
Cash paid during the period for interest | $ 17,420,000 | $ 20,095,000 | $ 21,240,000 | |||||||
Proceeds of revolving credit facility | $ 100,000,000 | 0 | 240,000,000 | 0 | ||||||
Long-term debt, gross | 639,984,000 | |||||||||
Repayments of long-term lines of credit | 30,000,000 | 110,000,000 | $ 0 | |||||||
Debt issuance cost | 3,087,000 | 4,114,000 | ||||||||
Term Loan | ||||||||||
Debt Instrument | ||||||||||
Line of credit facility borrowing capacity eliminated | $ 200,000,000 | |||||||||
Long-term debt, gross | 140,000,000 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument | ||||||||||
Long-term debt, gross | 100,000,000 | 130,000,000 | ||||||||
Repayments of long-term lines of credit | $ 30,000,000 | |||||||||
Credit Agreement | ||||||||||
Debt Instrument | ||||||||||
Effective interest rate (in percent) | 1.35% | |||||||||
Letter of credit outstanding | $ 0 | |||||||||
Credit Agreement | Minimum | ||||||||||
Debt Instrument | ||||||||||
Commitment fee (in percent) | 0.125% | |||||||||
Credit Agreement | Maximum | ||||||||||
Debt Instrument | ||||||||||
Commitment fee (in percent) | 0.20% | |||||||||
Credit Agreement | LIBOR | Minimum | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable rate (in percent) | 1.25% | |||||||||
Credit Agreement | LIBOR | Maximum | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable rate (in percent) | 2.00% | |||||||||
Credit Agreement | Base Rate | Minimum | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable rate (in percent) | 0.25% | |||||||||
Credit Agreement | Base Rate | Maximum | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable rate (in percent) | 1.00% | |||||||||
Credit Agreement | Revolving Credit Facility | ||||||||||
Debt Instrument | ||||||||||
Remaining borrowing capacity | $ 600,000,000 | |||||||||
Credit Agreement | Term Loan Credit Facility | ||||||||||
Debt Instrument | ||||||||||
Repayments of debt | $ 5,000,000 | |||||||||
Euro Senior Notes, Series A and B | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Face amount of debt | € | € 212,000,000 | |||||||||
Number of series | series | 2 | 2 | ||||||||
Euro Senior Notes, Series A due 2023 | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Long-term debt, gross | 132,444,000 | 142,679,000 | ||||||||
Face amount of debt | € | € 117,000,000 | |||||||||
Stated interest rate (in percent) | 1.14% | 1.14% | ||||||||
Euro Senior Notes, Series B due 2028 | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Long-term debt, gross | 107,540,000 | 115,850,000 | ||||||||
Face amount of debt | € | € 95,000,000 | |||||||||
Stated interest rate (in percent) | 1.83% | 1.83% | ||||||||
U.S. Senior Notes, Series A and B | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Face amount of debt | $ 125,000,000 | |||||||||
Number of series | series | 2 | 2 | ||||||||
USD Senior Notes, Series A due 2022 | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Long-term debt, gross | 25,000,000 | 25,000,000 | ||||||||
Face amount of debt | $ 25,000,000 | |||||||||
Stated interest rate (in percent) | 3.03% | |||||||||
USD Senior Notes, Series B due 2027 | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Long-term debt, gross | 100,000,000 | 100,000,000 | ||||||||
Face amount of debt | $ 100,000,000 | |||||||||
Stated interest rate (in percent) | 3.74% | |||||||||
US Senior Notes A and B Due 2025 and 2030 | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Face amount of debt | $ 175,000,000 | |||||||||
Number of series | series | 2 | |||||||||
Debt issuance cost | 1,800,000 | |||||||||
USD Senior Notes, Series A due 2025 | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Long-term debt, gross | 50,000,000 | 50,000,000 | ||||||||
Face amount of debt | $ 50,000,000 | |||||||||
Stated interest rate (in percent) | 3.48% | |||||||||
USD Senior Notes, Series B due 2030 | Senior Notes | ||||||||||
Debt Instrument | ||||||||||
Long-term debt, gross | $ 125,000,000 | $ 125,000,000 | ||||||||
Face amount of debt | $ 125,000,000 | |||||||||
Stated interest rate (in percent) | 3.78% |
Debt - Scheduled Maturities of
Debt - Scheduled Maturities of the Company's Long Term Debt (Details) $ in Thousands | Jan. 01, 2022USD ($) |
Scheduled Maturities | |
2022 | $ 25,000 |
2023 | 132,444 |
2024 | 0 |
2025 | 150,000 |
2026 | 0 |
2027 and thereafter | 332,540 |
Total | $ 639,984 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Narratives (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 27, 2021 | Jun. 27, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Impairment of equity method investments | $ 500,000 | $ 100,000 | |||
Equity method investment, cost | $ 0 | 500,000 | |||
Gain (loss) on sale of derivatives | $ 200,000 | ||||
Other asset impairment charges | $ 33,800,000 | ||||
Land and Building | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Other asset impairment charges | $ 1,900,000 | ||||
Patents | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Other asset impairment charges | $ 300,000 | ||||
Foreign Exchange Forward | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Notional value | $ 16,000,000 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents | $ 12,475 | $ 73,461 |
Investments in equity securities | 26,070 | 19,186 |
Mutual funds | 15,021 | 13,249 |
Total | 53,566 | 105,896 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents | 12,475 | 73,461 |
Investments in equity securities | 26,070 | 19,186 |
Mutual funds | 15,021 | 13,249 |
Total | 53,566 | 105,896 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents | 0 | 0 |
Investments in equity securities | 0 | 0 |
Mutual funds | 0 | 0 |
Total | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents | 0 | 0 |
Investments in equity securities | 0 | 0 |
Mutual funds | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Senior Notes (Details) - Senior Notes - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Carrying Value | Euro Senior Notes, Series A due 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | $ 132,444 | $ 142,679 |
Carrying Value | Euro Senior Notes, Series B due 2028 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 107,540 | 115,850 |
Carrying Value | USD Senior Notes, Series A due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 25,000 | 25,000 |
Carrying Value | USD Senior Notes, Series B due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 100,000 | 100,000 |
Carrying Value | USD Senior Notes, Series A due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 50,000 | 50,000 |
Carrying Value | USD Senior Notes, Series B due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
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 | ||
Long-term debt fair value | 134,119 | 144,323 |
Estimated Fair Value | Euro Senior Notes, Series B due 2028 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 110,837 | 123,588 |
Estimated Fair Value | USD Senior Notes, Series A due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 25,055 | 25,437 |
Estimated Fair Value | USD Senior Notes, Series B due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 104,828 | 109,552 |
Estimated Fair Value | USD Senior Notes, Series A due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | 51,720 | 53,474 |
Estimated Fair Value | USD Senior Notes, Series B due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt fair value | $ 131,837 | $ 138,036 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Details of impairment of long-lived assets held and used by asset (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Goodwill | |||
Goodwill | $ 929,790 | $ 816,812 | $ 820,589 |
Fair Value, Nonrecurring | |||
Goodwill | |||
Impairment charge | 33,841 | ||
Fair Value, Nonrecurring | Estimated Fair Value | Level 3 | |||
Goodwill | |||
Goodwill | 8,953 | ||
Fair Value, Nonrecurring | Carrying Value | Level 3 | |||
Goodwill | |||
Goodwill | $ 9,832 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Thousands, £ in Millions | Apr. 06, 2020USD ($) | Apr. 06, 2020GBP (£) | Jan. 01, 2022USD ($) | Jan. 01, 2022GBP (£) | Jun. 27, 2020USD ($) | Jun. 27, 2020GBP (£) | Dec. 29, 2022USD ($) | Jan. 01, 2022USD ($) | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | Apr. 07, 2020USD ($) |
Defined Benefit Plan Disclosure | |||||||||||
One-time non cash settlement charge | $ (19,855) | $ (236) | $ (260) | ||||||||
Prior service cost | 179 | ||||||||||
Expected contributions | $ 2,600 | 2,600 | |||||||||
Post-employment plan expense | 2,100 | 2,000 | $ 1,400 | ||||||||
Benefit obligation | 4,100 | 4,100 | 3,500 | ||||||||
Amount recognized in other comprehensive income loss as a component of net periodic benefit cost | 300 | 100 | |||||||||
Defined benefit plan reclassification adjustments before tax | 700 | 700 | |||||||||
Forecast | Subsequent Event | |||||||||||
Defined Benefit Plan Disclosure | |||||||||||
Benefits paid | $ 1,800 | ||||||||||
Accrued Liabilities | |||||||||||
Defined Benefit Plan Disclosure | |||||||||||
Benefit obligation | 1,500 | 1,500 | 1,200 | ||||||||
Other Long-Term Liabilities | |||||||||||
Defined Benefit Plan Disclosure | |||||||||||
Benefit obligation | 2,600 | 2,600 | 2,300 | ||||||||
Foreign Plan | |||||||||||
Defined Benefit Plan Disclosure | |||||||||||
Increase to defined benefit obligation | $ 13,400 | £ 10.9 | |||||||||
Benefits paid | $ 10,400 | £ 8.4 | |||||||||
One-time non cash settlement charge | 19,900 | £ 14.9 | |||||||||
Prior service cost | 500 | £ 0.4 | |||||||||
Estimated reduction in benefit obligation | $ 47,100 | ||||||||||
Pension benefit obligation (in percent) | 35.00% | ||||||||||
Accumulated benefit obligation | $ 75,700 | $ 75,700 | $ 137,700 |
Benefit Plans - Benefit Plan Re
Benefit Plans - Benefit Plan Related Information (Details) - USD ($) $ in Thousands | Apr. 06, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 |
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | $ 3,500 | |||
Service cost | 2,785 | $ 2,462 | $ 2,040 | |
Interest cost | 1,761 | 2,173 | 3,169 | |
Net actuarial (gain) loss | $ (13,400) | |||
Benefit obligation at end of year | 4,100 | 3,500 | ||
Change in plan assets at fair value: | ||||
Fair value of plan assets at beginning of year | 100,478 | |||
Fair value of plan assets at end of year | 48,325 | 100,478 | ||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||
Noncurrent assets | 40 | 39 | ||
Current benefit liability | (1,248) | (2,751) | ||
Noncurrent benefit liability | (37,037) | (45,802) | ||
Net liability recognized | (38,245) | (48,514) | ||
Pension Plan | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 148,992 | 116,921 | ||
Service cost | 2,785 | 2,462 | ||
Interest cost | 1,761 | 2,173 | ||
Net actuarial (gain) loss | (11,016) | 25,306 | ||
Benefits paid from the plan assets | (3,121) | (2,808) | ||
Benefits paid directly by the Company | (2,692) | (2,302) | ||
(Settlements) and Curtailments | (48,927) | 102 | ||
Acquisitions | 1,797 | 0 | ||
Effect of exchange rate movements | (3,218) | 7,462 | ||
Plan amendment and other | 209 | (324) | ||
Benefit obligation at end of year | 86,570 | 148,992 | 116,921 | |
Change in plan assets at fair value: | ||||
Fair value of plan assets at beginning of year | 100,478 | 78,502 | ||
Actual (loss) return on plan assets | (2,824) | 7,053 | ||
Employer contributions | 2,150 | 12,918 | ||
Benefits paid from the plan assets | (3,121) | (2,808) | ||
Settlements | (47,111) | 0 | ||
Effect of exchange rate movements | (1,247) | 4,813 | ||
Fair value of plan assets at end of year | 48,325 | 100,478 | $ 78,502 | |
Net amount unfunded status | $ (38,245) | $ (48,514) |
Benefit Plans - Amounts Recogni
Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Pre-tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |||
Net actuarial loss | $ 9,221 | $ 37,285 | |
Prior service cost | 3,340 | 3,937 | |
Total | 12,561 | 41,222 | |
Prior service cost | 179 | ||
Net actuarial loss | 1,136 | ||
Prior service cost | (209) | ||
Net actuarial loss | 6,734 | ||
Net settlement loss and accelerated prior service costs | 19,855 | $ 236 | $ 260 |
Foreign currency adjustments | 966 | ||
Total | $ 28,661 |
Benefit Plans - Benefit Plan Ex
Benefit Plans - Benefit Plan Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Components of net periodic benefit cost: | |||
Service cost | $ 2,785 | $ 2,462 | $ 2,040 |
Interest cost | 1,761 | 2,173 | 3,169 |
Expected return on plan assets | (1,458) | (1,972) | (3,187) |
Amortization of prior service and net actuarial loss | 1,315 | 963 | 243 |
Net periodic benefit cost | 4,403 | 3,626 | 2,265 |
Net settlement loss | 19,855 | 236 | 260 |
Total expense for the year | $ 24,258 | $ 3,862 | $ 2,525 |
Benefit Plans - Weighted Averag
Benefit Plans - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |||
Discount rate | 1.20% | 2.30% | 3.10% |
Expected return on plan assets | 1.40% | 3.70% | 4.50% |
Compensation increase rate | 4.90% | 4.70% | 4.60% |
Discount rate | 3.10% | 1.20% | 2.30% |
Compensation increase rate | 4.80% | 4.90% | 4.70% |
Benefit Plans - Funded Status o
Benefit Plans - Funded Status of Plans (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 86,228 | $ 148,992 |
Fair value of plan assets | 47,942 | 100,439 |
Accumulated benefit obligation | 68,643 | 130,453 |
Fair value of plan assets | $ 39,060 | $ 92,248 |
Benefit Plans - Expected Benefi
Benefit Plans - Expected Benefit Payments to Be Paid to Participants (Details) $ in Thousands | Jan. 01, 2022USD ($) |
Expected Benefit Payments | |
2022 | $ 3,514 |
2023 | 3,652 |
2024 | 3,561 |
2025 | 4,068 |
2026 | 4,320 |
2027-2031 and thereafter | $ 26,449 |
Benefit Plans - Allocation of P
Benefit Plans - Allocation of Plan Assets (Details) | Jan. 01, 2022 | Dec. 26, 2020 |
Defined Benefit Plan Disclosure | ||
Asset Allocation | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Asset Allocation | 15.00% | 7.00% |
Equity securities | ||
Defined Benefit Plan Disclosure | ||
Asset Allocation | 19.00% | 9.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure | ||
Asset Allocation | 66.00% | 31.00% |
Bulk annuity contract | ||
Defined Benefit Plan Disclosure | ||
Asset Allocation | 0.00% | 53.00% |
Benefit Plans - The Company's P
Benefit Plans - The Company's Pension Plan Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Defined Benefit Plan Disclosure | ||
Total pension plan assets | $ 48,325 | $ 100,478 |
Insurance contracts and other | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 2,260 | 2,565 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 5,016 | 4,522 |
Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 9,163 | 8,623 |
Fixed income | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 31,886 | 31,675 |
Bulk annuity contract | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 53,093 | |
Level 1 | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 8,942 | 8,537 |
Level 1 | Insurance contracts and other | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 0 | 0 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 384 | 654 |
Level 1 | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 2,559 | 1,719 |
Level 1 | Fixed income | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 5,999 | 6,164 |
Level 1 | Bulk annuity contract | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | ||
Level 2 | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 33,433 | 32,085 |
Level 2 | Insurance contracts and other | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 1,917 | 1,880 |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 4,632 | 3,868 |
Level 2 | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 6,604 | 6,904 |
Level 2 | Fixed income | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 20,280 | 19,433 |
Level 2 | Bulk annuity contract | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | ||
Level 3 | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 343 | 53,778 |
Level 3 | Insurance contracts and other | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 343 | 685 |
Level 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 0 | 0 |
Level 3 | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 0 | 0 |
Level 3 | Fixed income | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 0 | 0 |
Level 3 | Bulk annuity contract | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 53,093 | |
NAV | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 5,607 | 6,078 |
NAV | Insurance contracts and other | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 0 | 0 |
NAV | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 0 | 0 |
NAV | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | 0 | 0 |
NAV | Fixed income | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets | $ 5,607 | 6,078 |
NAV | Bulk annuity contract | ||
Defined Benefit Plan Disclosure | ||
Total pension plan assets |
Benefit Plans - Fair Value Meas
Benefit Plans - Fair Value Measurement of Plan Assets (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2022USD ($) | |
Change in benefit obligation: | |
Fair value of plan assets at beginning of year | $ 100,478 |
Fair value of plan assets at end of year | 48,325 |
Level 3 | |
Change in benefit obligation: | |
Fair value of plan assets at beginning of year | 53,778 |
Settlements | (47,111) |
Actual loss on plan assets | (4,943) |
Benefits paid from the plan assets | (1,238) |
Effect of exchange rate movements | (143) |
Fair value of plan assets at end of year | $ 343 |
Benefit Plans - Defined Contrib
Benefit Plans - Defined Contribution and Other Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Supplemental Employee Retirement Plan | |||
Defined Contribution Plan Disclosure | |||
Discretionary contribution amount | $ 0.2 | $ 0.5 | $ 0.4 |
Other Assets | |||
Defined Contribution Plan Disclosure | |||
Recorded liability | 15 | ||
Other Long-term Liabilities | |||
Defined Contribution Plan Disclosure | |||
Plan assets | $ 15 | ||
401(K) Savings Plan | |||
Defined Contribution Plan Disclosure | |||
Employer matching contribution | 100.00% | ||
Discretionary matching contribution | 4.00% | ||
Discretionary matching contribution | 2.00% | ||
Discretionary contribution amount | $ 5 | $ 4.6 | $ 5.6 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | Apr. 28, 2021 | Apr. 29, 2020 | Apr. 26, 2019 | |
Defined Benefit Plan Disclosure | ||||||
Authorized (in shares) | 800,000 | |||||
Allocated share based compensation | $ 21,400 | $ 19,100 | $ 19,900 | |||
Options intrinsic value | 23,800 | 20,600 | 12,500 | |||
Fair value of shares other than options vested | 18,900 | 9,500 | 15,500 | |||
Share-based liabilities paid | 1,300 | 500 | 900 | |||
Unrecognized compensation cost | $ 21,900 | |||||
Unrecognized compensation cost, period for recognition (years) | 1 year 9 months 18 days | |||||
Income tax benefit | $ 3,300 | $ 3,100 | $ 3,300 | |||
Purchase of common stock (in shares) | 0 | 175,110 | 579,916 | |||
Repurchases of common stock | $ 22,927 | $ 95,036 | ||||
2019 Share Repurchase Program | ||||||
Defined Benefit Plan Disclosure | ||||||
Share repurchase program authorized (in shares) | 1,000,000 | |||||
2020 Share Repurchase Program | ||||||
Defined Benefit Plan Disclosure | ||||||
Share repurchase program authorized (in shares) | 300,000,000 | 1,000,000 | ||||
Options | ||||||
Defined Benefit Plan Disclosure | ||||||
Award vesting period | 3 years | |||||
Options | Minimum | ||||||
Defined Benefit Plan Disclosure | ||||||
Award expiration period | 7 years | |||||
Options | Maximum | ||||||
Defined Benefit Plan Disclosure | ||||||
Award expiration period | 10 years | |||||
Non-vested restricted share and share unit awards | ||||||
Defined Benefit Plan Disclosure | ||||||
Award vesting period | 3 years |
Stock-Based Compensation - Reco
Stock-Based Compensation - Reconciliation of Outstanding Stock Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 01, 2022USD ($)$ / sharesshares | |
Shares Under Option | |
Outstanding (in shares) | shares | 666,949 |
Granted (in shares) | shares | 57,928 |
Exercised (in shares) | shares | (151,015) |
Forfeited (in shares) | shares | (10,636) |
Outstanding (in shares) | shares | 563,226 |
Exercisable (in shares) | shares | 240,030 |
Weighted Average Price | |
Outstanding (in dollars per share) | $ / shares | $ 148.01 |
Granted (in dollars per share) | $ / shares | 267.66 |
Exercised (in dollars per share) | $ / shares | 126.61 |
Forfeited (in dollars per share) | $ / shares | 151.93 |
Outstanding (in dollars per share) | $ / shares | 165.98 |
Exercisable (in dollars per share) | $ / shares | $ 148.66 |
Weighted Average Remaining Contract Life and Aggregate Intrinsic Value | |
Outstanding (Years) | 4 years 8 months 12 days |
Exercisable (Years) | 3 years 8 months 12 days |
Outstanding | $ | $ 83,749 |
Exercisable | $ | $ 39,850 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Reconciliation of Nonvested Restricted Share and Share Unit Awards (Details) - Non-vested restricted share and share unit awards | 12 Months Ended |
Jan. 01, 2022$ / sharesshares | |
Shares | |
Nonvested (in shares) | shares | 172,002 |
Granted (in shares) | shares | 63,237 |
Vested (in shares) | shares | (72,904) |
Forfeited (in shares) | shares | (5,676) |
Nonvested (in shares) | shares | 156,659 |
Weighted Average Grant-Date Fair Value | |
Nonvested (in dollars per share) | $ / shares | $ 152.25 |
Granted (in dollars per share) | $ / shares | 264.69 |
Vested (in dollars per share) | $ / shares | 162.59 |
Forfeited (in dollars per share) | $ / shares | 162.85 |
Nonvested (in dollars per share) | $ / shares | $ 192.44 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Fair Value of Options Granted and Black-Scholes Option Valuation Model Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average fair value of options granted (in dollars per share) | $ 74.04 | $ 38.09 | $ 47.63 |
Assumptions: | |||
Risk-free interest rate | 0.66% | 0.30% | 2.33% |
Expected dividend yield | 0.72% | 1.27% | 0.86% |
Expected stock price volatility | 35.00% | 33.00% | 27.00% |
Expected life of options (years) | 4 years 4 months 24 days | 4 years 8 months 12 days | 4 years 4 months 24 days |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Net of tax | |||
Pre-tax | $ 20,514 | $ 15,194 | $ (10,625) |
Tax | (2,820) | 472 | 1,726 |
Other comprehensive income (loss), net of tax | 17,694 | 15,666 | (8,899) |
Pension and postretirement liability and reclassification adjustments | |||
Net of tax | |||
Pre-tax | 27,481 | (19,513) | (9,149) |
Tax | (5,268) | 3,418 | 1,062 |
Other comprehensive income (loss), net of tax | 22,213 | (16,095) | (8,087) |
Foreign currency translation adjustments | |||
Net of tax | |||
Pre-tax | (6,967) | 34,707 | (1,476) |
Tax | 2,448 | (2,946) | 664 |
Other comprehensive income (loss), net of tax | $ (4,519) | $ 31,761 | $ (812) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | $ 1,608,773 | $ 1,496,014 | $ 1,478,342 |
Activity in the period | 17,694 | 15,666 | (8,899) |
Ending balance | 1,893,520 | 1,608,773 | 1,496,014 |
Accum. Other Comp. Inc. (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (91,157) | (106,823) | (97,924) |
Activity in the period | 17,694 | 15,666 | (8,899) |
Ending balance | (73,463) | (91,157) | (106,823) |
Pension and postretirement liability and reclassification adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (34,141) | (18,046) | (9,959) |
Activity in the period | 22,213 | (16,095) | (8,087) |
Ending balance | (11,928) | (34,141) | (18,046) |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (57,016) | (88,777) | (87,965) |
Activity in the period | (4,519) | 31,761 | (812) |
Ending balance | $ (61,535) | $ (57,016) | $ (88,777) |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) - Narratives (Details) $ in Thousands, £ in Millions | Apr. 06, 2020USD ($) | Jan. 01, 2022USD ($) | Jan. 01, 2022GBP (£) | Jan. 01, 2022USD ($) | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) |
Other Comprehensive Income (Loss) | ||||||
Benefit obligation, unamortized actuarial loss | $ 13,400 | |||||
One-time non cash settlement charge | $ (19,855) | $ (236) | $ (260) | |||
Prior service cost | $ 179 | |||||
Foreign Plan | ||||||
Other Comprehensive Income (Loss) | ||||||
One-time non cash settlement charge | $ 19,900 | £ 14.9 | ||||
Prior service cost | $ 500 | £ 0.4 |
Other Comprehensive Income (L_6
Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Total | $ 21,861 | $ 1,930 | $ 632 |
Amortization of prior service, net actuarial loss, and other | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Total | 2,006 | 1,694 | 372 |
Net settlement loss and accelerated prior service costs | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Total | $ 19,855 | $ 236 | $ 260 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax Contingency | |||
Toll charge, noncurrent | $ 17,800 | ||
Toll charge, current | 3,000 | ||
Change in unrecognized tax benefits | $ 3,300 | ||
Income taxes paid | 58,200 | $ 35,200 | 47,600 |
Income tax refunds | 2,600 | 7,600 | 7,100 |
Unremitted earnings of the Company’s non-U.S. subsidiaries | 884,000 | ||
Deferred tax liabilities recognized on foreign earnings | $ 15,500 | 14,200 | |
Income tax holiday per diluted share (in dollars per share) | $ 0.31 | ||
Interest expense | $ 1,600 | 1,600 | 1,300 |
Decrease due to a lapse in the statute of limitations | 600 | 600 | |
Interest accrued | 10,400 | 8,800 | |
Unrecognized tax benefits | 23,445 | 17,437 | $ 16,721 |
Canada Revenue Agency | |||
Income Tax Contingency | |||
Potential tax charges | 3,000 | ||
China | |||
Income Tax Contingency | |||
Tax holidays | 7,800 | ||
Foreign Tax Authority | |||
Income Tax Contingency | |||
Deferred tax liabilities recognized on foreign earnings | 15,300 | 13,900 | |
Domestic Tax Authority | |||
Income Tax Contingency | |||
Deferred tax liabilities recognized on foreign earnings | $ 200 | $ 300 |
Income Taxes - Federal, State,
Income Taxes - Federal, State, and Foreign Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 13,746 | $ (16,732) | $ (11,970) |
Foreign | 327,279 | 177,985 | 177,854 |
Income before income taxes | 341,025 | 161,253 | 165,884 |
Current: | |||
Federal | 4,832 | 437 | (3,495) |
State | 1,401 | 203 | 834 |
Foreign | 59,006 | 33,841 | 30,610 |
Subtotal | 65,239 | 34,481 | 27,949 |
Deferred: | |||
Federal and State | (9,658) | (5,354) | 1,839 |
Foreign | 1,638 | 2,140 | (2,986) |
Subtotal | (8,020) | (3,214) | (1,147) |
Provision for income taxes | $ 57,219 | $ 31,267 | $ 26,802 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation and Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate of 21% | $ 71,615 | $ 33,863 | $ 34,836 |
Non-U.S. income tax rate differential | (31,414) | (19,730) | (22,457) |
Non-U.S. losses and expenses with no tax benefit | 7,820 | 2,774 | 6,570 |
Tax on unremitted earnings | 7,585 | 3,955 | 2,136 |
Certain changes in unrecognized tax benefits and related accrued interest | 4,263 | 2,160 | (1,468) |
Net impact associated with the GILTI tax provisions | (238) | 3,731 | 6,469 |
State and local taxes, net of federal tax benefit | (172) | (584) | 1,080 |
Tax impact of non-deductible goodwill impairment charge | 0 | 5,642 | 0 |
Other, net | (2,240) | (544) | (364) |
Provision for income taxes | $ 57,219 | $ 31,267 | $ 26,802 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 26, 2020 |
Deferred tax assets: | ||
Accrued expenses and reserves | $ 36,168 | $ 31,123 |
Domestic and non-U.S. net operating loss carryforwards | 27,818 | 24,763 |
Domestic and non-U.S. interest expense carryforwards | 16,089 | 10,352 |
Excess of tax basis over the book basis for intangible assets and goodwill | 5,636 | 0 |
Capitalized expenses | 4,878 | 4,178 |
U.S. research and other general business tax credit carryforwards | 1,104 | 3,724 |
U.S. foreign tax credit carryforwards | 980 | 772 |
Other | 183 | 117 |
Gross deferred tax assets | 92,856 | 75,029 |
Less: Valuation allowance | (34,869) | (13,131) |
Total deferred tax assets | 57,987 | 61,898 |
Deferred tax liabilities: | ||
Excess of book basis over the tax basis for intangible assets and goodwill | 98,046 | 76,472 |
Tax on unremitted earnings | 15,467 | 14,223 |
Unrealized foreign currency exchange gains | 73 | 5,719 |
Excess of book basis over the tax basis for property, plant, and equipment | 12,563 | 4,394 |
Total deferred tax liabilities | 126,149 | 100,808 |
Net deferred tax liabilities | $ 68,162 | $ 38,910 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Dec. 26, 2020 | |
Unrecognized Tax Benefits | ||
Beginning balance | $ 17,437 | $ 16,721 |
Additions for tax positions related to pre-acquisition periods of acquired subsidiaries | 3,260 | |
Additions for tax positions taken in the current year | 1,587 | 700 |
Additions for tax positions taken in the prior year | 1,100 | |
Decreases due to a lapse in the statute of limitations | (103) | |
Other | 61 | 119 |
Ending balance | $ 23,445 | $ 17,437 |
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 | 12 Months Ended | |||||||||
Jan. 01, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Numerator: | |||||||||||
Net income as reported | $ 51,944 | $ 92,054 | $ 82,095 | $ 57,713 | $ 58,977 | $ 55,356 | $ (8,991) | $ 24,644 | $ 283,806 | $ 129,986 | $ 139,082 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 24,603 | 24,371 | 24,576 | ||||||||
Effect of dilutive securities (in shares) | 329 | 221 | 242 | ||||||||
Diluted (in shares) | 24,932 | 24,592 | 24,818 | ||||||||
Earnings Per Share: | |||||||||||
Basic earnings per share (in dollars per share) | $ 2.11 | $ 3.74 | $ 3.34 | $ 2.35 | $ 2.41 | $ 2.27 | $ (0.37) | $ 1.01 | $ 11.54 | $ 5.33 | $ 5.66 |
Diluted earnings per share (in dollars per share) | $ 2.08 | $ 3.69 | $ 3.30 | $ 2.32 | $ 2.39 | $ 2.25 | $ (0.37) | $ 1 | $ 11.38 | $ 5.29 | $ 5.60 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded (in shares) | 20,139 | 222,526 | 129,658 |
Purchase of common stock (in shares) | 0 | 175,110 | 579,916 |
Repurchases of common stock | $ 22,927 | $ 95,036 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | Jan. 28, 2021USD ($) | Apr. 30, 2019USD ($) | Jan. 01, 2022USD ($) | Sep. 25, 2021USD ($) | Jun. 26, 2021USD ($) | Mar. 27, 2021USD ($) | Dec. 26, 2020USD ($) | Sep. 26, 2020USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Jun. 26, 2021USD ($) | Jan. 01, 2022USD ($)segment | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) |
Segment Reporting Information | ||||||||||||||
Number of operating segments | segment | 3 | |||||||||||||
Integration cost | $ 3,600 | $ 2,000 | $ 500 | $ 800 | $ 700 | $ 300 | $ 100 | |||||||
Restructuring, impairment and other costs | $ 800 | $ 800 | $ 1,300 | 1,800 | $ 2,158 | $ 41,716 | $ 13,033 | |||||||
Restructuring charges | $ 2,158 | 5,638 | $ 12,711 | |||||||||||
Impairments | $ 33,841 | |||||||||||||
Other asset impairment charges | 33,800 | |||||||||||||
Net sales | Geographic Concentration Risk | Outside the United States | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Concentration risk (less than) | 69.00% | 73.00% | 71.00% | |||||||||||
Net sales | Geographic Concentration Risk | China | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Concentration risk (less than) | 30.00% | 30.00% | 28.00% | |||||||||||
Net sales | Customer Concentration Risk | Arrow Electronics Inc. | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Concentration risk (less than) | 10.70% | 10.40% | 10.70% | |||||||||||
Electronics | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring, impairment and other costs | 800 | $ 1,124 | $ 2,540 | $ 5,501 | ||||||||||
Restructuring charges | 1,124 | 2,540 | 5,501 | |||||||||||
Impairments | ||||||||||||||
Transportation | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring, impairment and other costs | 687 | 34,698 | 6,287 | |||||||||||
Restructuring charges | 687 | 857 | 5,965 | |||||||||||
Impairments | 33,800 | 33,841 | ||||||||||||
Transportation | Senor Reporting Unit | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Impairments | $ 33,800 | |||||||||||||
Other restructuring charges | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | $ 1,400 | 283 | 185 | 2,352 | ||||||||||
Other restructuring charges | Electronics | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | 0 | 0 | 188 | |||||||||||
Other restructuring charges | Transportation | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | 283 | 175 | 1,714 | |||||||||||
Employee terminations | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | $ 1,700 | 1,875 | 5,453 | 10,359 | ||||||||||
Employee terminations | Electronics | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | 1,124 | 2,540 | 5,313 | |||||||||||
Employee terminations | Transportation | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | 404 | 682 | 4,251 | |||||||||||
Hartland Controls | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Inventory adjustment | $ 6,800 | 3,300 | $ 3,500 | |||||||||||
Hartland Controls | Electronics | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Gain (loss) on sale of properties | $ (1,000) | $ 900 | 5,000 | |||||||||||
IXYS Corporation | Employee terminations | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | 41,700 | $ 13,000 | ||||||||||||
IXYS | Transportation | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Other asset impairment charges | $ 2,200 | |||||||||||||
Operating Income (Loss) | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Restructuring charges | 5,500 | |||||||||||||
Operating Income (Loss) | Hartland Controls | Other | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Integration cost | 7,000 | |||||||||||||
Restructuring, impairment and other costs | 2,200 | |||||||||||||
Operating Income (Loss) | IXYS Corporation | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Legal, accounting and other expenses | $ 2,300 | |||||||||||||
Other | Operating Income (Loss) | Hartland Controls | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Inventory adjustment | $ 8,400 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Segment Reporting Information | |||||||||||
Net sales | $ 553,065 | $ 539,581 | $ 523,488 | $ 463,794 | $ 400,696 | $ 391,566 | $ 307,337 | $ 346,096 | $ 2,079,928 | $ 1,445,695 | $ 1,503,873 |
Depreciation and amortization | 98,635 | 96,178 | 92,503 | ||||||||
Operating income (loss) | $ 92,797 | $ 120,107 | $ 96,257 | $ 76,481 | $ 65,014 | $ 64,558 | $ (11,950) | $ 44,750 | 385,642 | 162,372 | 192,791 |
Interest expense | 18,527 | 21,077 | 22,266 | ||||||||
Foreign exchange loss (gain) | 17,158 | (14,875) | 5,224 | ||||||||
Other expense (income), net | 8,932 | (5,083) | (583) | ||||||||
Income before income taxes | 341,025 | 161,253 | 165,884 | ||||||||
Electronics | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 1,300,744 | 937,762 | 961,080 | ||||||||
Transportation | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 528,058 | 395,764 | 428,533 | ||||||||
Industrial | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 251,126 | 112,169 | 114,260 | ||||||||
Operating Segments | Electronics | |||||||||||
Segment Reporting Information | |||||||||||
Depreciation and amortization | 61,512 | 62,702 | 60,345 | ||||||||
Operating income (loss) | 309,633 | 152,695 | 145,594 | ||||||||
Operating Segments | Transportation | |||||||||||
Segment Reporting Information | |||||||||||
Depreciation and amortization | 29,015 | 28,995 | 27,922 | ||||||||
Operating income (loss) | 65,979 | 41,655 | 46,719 | ||||||||
Operating Segments | Industrial | |||||||||||
Segment Reporting Information | |||||||||||
Depreciation and amortization | 8,108 | 4,481 | 4,236 | ||||||||
Operating income (loss) | 22,621 | 11,996 | 22,407 | ||||||||
Other | |||||||||||
Segment Reporting Information | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Operating income (loss) | $ (12,591) | $ (43,974) | $ (21,929) |
Segment Information - Revenues
Segment Information - Revenues and Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Segment Reporting Information | |||||||||||
Net sales | $ 553,065 | $ 539,581 | $ 523,488 | $ 463,794 | $ 400,696 | $ 391,566 | $ 307,337 | $ 346,096 | $ 2,079,928 | $ 1,445,695 | $ 1,503,873 |
Long-lived assets | 437,889 | 344,178 | 437,889 | 344,178 | 344,617 | ||||||
Additions to long-lived assets | 96,308 | 51,208 | 66,366 | ||||||||
U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 639,381 | 392,544 | 440,461 | ||||||||
Long-lived assets | 57,923 | 46,132 | 57,923 | 46,132 | 58,081 | ||||||
Additions to long-lived assets | 7,690 | 4,170 | 5,864 | ||||||||
China | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 620,211 | 438,000 | 416,385 | ||||||||
Long-lived assets | 122,867 | 85,876 | 122,867 | 85,876 | 88,306 | ||||||
Additions to long-lived assets | 26,396 | 10,074 | 10,400 | ||||||||
Mexico | |||||||||||
Segment Reporting Information | |||||||||||
Long-lived assets | 107,283 | 70,125 | 107,283 | 70,125 | 73,096 | ||||||
Additions to long-lived assets | 28,707 | 9,977 | 13,827 | ||||||||
Germany | |||||||||||
Segment Reporting Information | |||||||||||
Long-lived assets | 39,055 | 37,976 | 39,055 | 37,976 | 36,025 | ||||||
Additions to long-lived assets | 8,519 | 5,600 | 4,017 | ||||||||
Philippines | |||||||||||
Segment Reporting Information | |||||||||||
Long-lived assets | 74,918 | 66,994 | 74,918 | 66,994 | 51,738 | ||||||
Additions to long-lived assets | 19,342 | 19,612 | 22,944 | ||||||||
Other countries | |||||||||||
Segment Reporting Information | |||||||||||
Net sales | 820,336 | 615,151 | 647,027 | ||||||||
Long-lived assets | $ 35,843 | $ 37,075 | 35,843 | 37,075 | 37,371 | ||||||
Additions to long-lived assets | $ 5,654 | $ 1,775 | $ 9,314 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 553,065 | $ 539,581 | $ 523,488 | $ 463,794 | $ 400,696 | $ 391,566 | $ 307,337 | $ 346,096 | $ 2,079,928 | $ 1,445,695 | $ 1,503,873 |
Gross profit | 199,492 | 214,572 | 197,396 | 160,466 | 138,083 | 138,831 | 99,902 | 124,356 | 771,926 | 501,172 | 546,295 |
Operating income (loss) | 92,797 | 120,107 | 96,257 | 76,481 | 65,014 | 64,558 | (11,950) | 44,750 | 385,642 | 162,372 | 192,791 |
Net income | $ 51,944 | $ 92,054 | $ 82,095 | $ 57,713 | $ 58,977 | $ 55,356 | $ (8,991) | $ 24,644 | $ 283,806 | $ 129,986 | $ 139,082 |
Basic (in dollars per share) | $ 2.11 | $ 3.74 | $ 3.34 | $ 2.35 | $ 2.41 | $ 2.27 | $ (0.37) | $ 1.01 | $ 11.54 | $ 5.33 | $ 5.66 |
Diluted (in dollars per share) | $ 2.08 | $ 3.69 | $ 3.30 | $ 2.32 | $ 2.39 | $ 2.25 | $ (0.37) | $ 1 | $ 11.38 | $ 5.29 | $ 5.60 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data - Narrative (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Jan. 28, 2021 | Jan. 01, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jun. 26, 2021 | Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||||||||||||||
Non-cash pension settlement charges | $ 19,900 | $ 19,855 | $ 0 | $ 0 | ||||||||||
Gain on sale of building | 4,100 | $ 1,900 | ||||||||||||
Integration cost | 3,600 | $ 2,000 | $ 500 | 800 | $ 700 | $ 300 | $ 100 | |||||||
Asset retirement expense | 700 | 200 | ||||||||||||
Restructuring costs | 200 | 400 | $ 4,000 | |||||||||||
Increase to coal mining reserve | 200 | 1,800 | ||||||||||||
Restructuring, impairment and other costs | 800 | $ 800 | 1,300 | 1,800 | 2,158 | 41,716 | 13,033 | |||||||
Impairment charges | $ 100 | 500 | $ 100 | 0 | 36,078 | 322 | ||||||||
Other asset impairment charges | $ 33,800 | |||||||||||||
Electronics | ||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||||||||||||||
Restructuring, impairment and other costs | 800 | 1,124 | 2,540 | 5,501 | ||||||||||
Impairment charges | $ 0 | $ 0 | ||||||||||||
Carling Technologies | ||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||||||||||||||
Inventory adjustment | $ 6,400 | $ 1,600 | ||||||||||||
Hartland Controls | ||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||||||||||||||
Inventory adjustment | $ 6,800 | 3,300 | $ 3,500 | |||||||||||
Hartland Controls | Electronics | ||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ||||||||||||||
Gain (loss) on sale of properties | $ (1,000) | $ 900 | $ 5,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - Equity Method - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Dec. 26, 2020 | |
Powersem | ||
Related Party Transaction | ||
Sales to related party | $ 0.2 | $ 1.5 |
Purchase of material/services from related party | 3 | 2.7 |
Accounts receivable balance | 0 | 0.1 |
Accounts payable balance | 0 | 0.1 |
EB Tech | ||
Related Party Transaction | ||
Sales to related party | 0 | 0 |
Purchase of material/services from related party | 0.4 | 0 |
Accounts receivable balance | 0 | 0 |
Accounts payable balance | 0 | 0 |
ATEC | ||
Related Party Transaction | ||
Sales to related party | 0 | 0 |
Purchase of material/services from related party | 12.6 | 8.7 |
Accounts receivable balance | 0 | 0 |
Accounts payable balance | $ 1.8 | $ 0.2 |
Powersem | ||
Related Party Transaction | ||
Ownership percentage | 45.00% | |
EB Tech | ||
Related Party Transaction | ||
Ownership percentage | 19.00% | |
ATEC | ||
Related Party Transaction | ||
Ownership percentage | 24.00% |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Dec. 26, 2020 | Dec. 28, 2019 | |
Allowance for losses on accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Year | $ 1,400 | $ 1,310 | $ 1,062 |
Charged to Costs and Expenses | 82 | 1,170 | 410 |
Deductions | (362) | (329) | (172) |
Other | 790 | (751) | 10 |
Balance at End of Year | 1,910 | 1,400 | 1,310 |
Reserves for sales discounts and allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Year | 43,837 | 40,733 | 34,976 |
Charged to Costs and Expenses | 152,153 | 113,709 | 133,434 |
Deductions | (137,920) | (112,401) | (127,330) |
Other | (748) | 1,796 | (347) |
Balance at End of Year | $ 57,322 | $ 43,837 | $ 40,733 |