Selling, general and administrative

^[1]

$ 150,011

$ 99,817

$ 297,820

$ 194,967

Cost and expenses:

Cost of sales (1)

^[2]

87,605

57,677

180,999

112,600

Research and development

22,108

11,051

44,841

22,826

36,428

19,303

74,714

35,089

Amortization of purchased intangible assets

9,987

1,019

20,006

2,093

Restructuring charges

8,545

9,906

164,673

89,050

330,466

172,608

Income (loss) from operations

(14,662)

10,767

(32,646)

22,359

Other (expense) income:

Interest expense

(5,282)

(11)

(10,789)

(22)

Interest income

191

329

413

576

Foreign transaction gain (loss) and other

(546)

3,031

(328)

1,452

Income (loss) from continuing operations before taxes

(20,299)

14,116

(43,350)

24,365

Income tax provision (benefit)

(916)

2,468

(1,116)

4,595

Income (loss) from continuing operations

(19,383)

11,648

(42,234)

19,770

Income from discontinued operations, net of tax

188

Net loss attributable to noncontrolling interest

(19,359)

11,648

(42,046)

19,770

(36)

(80)

Net income (loss) attributable to Cohu

$ (19,323)

$ 11,648

$ (41,966)

$ 19,770

Weighted average shares used in computing income (loss) per share:

Basic (in shares)

41,125

28,893

40,999

28,747

Diluted (in shares)

41,125

29,651

40,999

29,591

Cash dividends declared per share (in dollars per share)

$ 0.06

$ 0.12

Basic:

Income (loss) from continuing operations before noncontrolling interest (in dollars per share)

(0.47)

0.40

(1.03)

0.69

Income from discontinued operations (in dollars per share)

0.01

Net loss attributable to noncontrolling interest (in dollars per share)

Net income (loss) attributable to Cohu (in dollars per share)

(0.47)

0.40

(1.02)

0.69

Diluted:

Income (loss) from continuing operations before noncontrolling interest (in dollars per share)

(0.47)

0.39

(1.03)

0.67

Income from discontinued operations (in dollars per share)

0.01

Net loss attributable to noncontrolling interest (in dollars per share)

Net income (loss) attributable to Cohu (in dollars per share)

$ (0.47)

$ 0.39

$ (1.02)

$ 0.67

[1]	After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.
[2]	Excludes amortization of $7,625 and $639 for the three months ended June 29, 2019, and June 30, 2018, respectively, and $15,266 and $1,315 for the six months ended June 29, 2019, and June 30, 2018, respectively.

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Net income (loss)	$ (19,359)	$ 11,648	$ (42,046)	$ 19,770
Net loss attributable to noncontrolling interest	(36)		(80)
Net income (loss) attributable to Cohu	(19,323)	11,648	(41,966)	19,770
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	3,684	(6,814)	(1,578)	(2,960)
Adjustments related to postretirement benefits	(39)	114	435	41
Change in unrealized gain/loss on investments		8		(2)
Other comprehensive income (loss), net of tax	3,645	(6,692)	(1,143)	(2,921)
Other comprehensive loss attributable to noncontrolling interest			(4)
Other comprehensive income (loss) attributable to Cohu	3,645	(6,692)	(1,139)	(2,921)
Comprehensive income (loss)	(15,714)	4,956	(43,189)	16,849
Comprehensive loss attributable to noncontrolling interest	(36)		(84)
Comprehensive income (loss) attributable to Cohu	$ (15,678)	$ 4,956	$ (43,105)	$ 16,849

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

Noncontrolling Interest [Member]

Total

Balance at Dec. 30, 2017

$ 28,489

$ 127,663

$ 150,726

$ (17,787)

$ 289,091

19,770

(2,960)

(3,513)

464

514

721

762

468

(468)

(165)

(3,749)

(3,914)

Cumulative effect of accounting change at Dec. 30, 2017

3,617

^[1]

1,057

Changes in unrealized gains and losses on investments, net of tax

(2)

Balance at Jun. 30, 2018

28,883

128,248

168,040

(20,708)

304,463

Balance at Mar. 31, 2018

28,796

125,448

158,124

(14,016)

298,352

11,648

(6,814)

114

(1,732)

280

311

721

762

(20)

(5)

(129)

(134)

Changes in unrealized gains and losses on investments, net of tax

1,948

Balance at Jun. 30, 2018

28,883

128,248

168,040

(20,708)

304,463

Balance at Dec. 29, 2018

40,763

419,690

111,670

(25,880)

(299)

545,944

^[2]

(42,046)

(1,574)

(4)

(1,578)

435

(4,914)

107

122

743

807

394

(394)

(136)

(1,892)

(2,028)

Cumulative effect of accounting change at Dec. 29, 2018

7,355

^[1]

10,352

Noncontrolling interest

(53)

Changes in unrealized gains and losses on investments, net of tax

Balance at Jun. 29, 2019

41,100

425,609

75,115

(27,019)

(356)

514,449

Balance at Mar. 30, 2019

41,015

421,381

96,938

(30,664)

(356)

528,314

(19,359)

3,684

(39)

(2,464)

743

807

(29)

(13)

(187)

(200)

Changes in unrealized gains and losses on investments, net of tax

3,662

Balance at Jun. 29, 2019

$ 41,100

$ 425,609

$ 75,115

$ (27,019)

$ (356)

$ 514,449

[1]	Cumulative effect of accounting change relates to our adoption of ASU 2014-09.
[2]	Derived from December 29, 2018 audited financial statements

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss) attributable to Cohu	$ (41,966,000)	$ 19,770,000
Net loss attributable to noncontrolling interest	(80,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Loss on disposal of assets	237,000	40,000
Depreciation and amortization	30,143,000	4,874,000
Share-based compensation expense	7,355,000	3,617,000
Amortization of inventory step-up and inventory related charges	5,245,000
Deferred income taxes	(7,460,000)	486,000
Increase in accrued retiree medical benefits	443,000
Changes in other accrued liabilities	2,693,000	(294,000)
Changes in other assets	(971,000)	(322,000)
Amortization of debt discounts and issuance costs	546,000	0
Adjustment to contingent consideration liability		428,000
Changes in current assets and liabilities, excluding effects from acquisitions:
Accounts receivable	14,746,000	(21,289,000)
Other current assets	(8,609,000)	(2,432,000)
Inventories	(2,499,000)	(1,396,000)
Deferred profit	1,266,000	(3,653,000)
Accounts payable	4,019,000	3,853,000
Income taxes payable	(4,097,000)	1,728,000
Accrued compensation, warranty and other liabilities	(5,784,000)	505,000
Net cash provided by (used in) operating activities	(4,773,000)	5,915,000
Cash flows from investing activities, excluding effects from acquisitions:
Purchases of property, plant and equipment	(8,397,000)	(1,860,000)
Purchases of short-term investments		(27,374,000)
Sales and maturities of short-term investments		24,838,000
Cash received from sale of fixed assets	811,000	4,000
Net cash used in investing activities	(7,586,000)	(4,392,000)
Cash flows from financing activities:
Cash dividends paid	(4,893,000)	(3,484,000)
Repurchases of common stock, net	(1,099,000)	(2,638,000)
Payment of contingent consideration for Kita		(823,000)
Repayments of long-term debt	(2,611,000)	(686,000)
Net cash used in financing activities	(8,603,000)	(7,631,000)
Effect of exchange rate changes on cash and cash equivalents	(195,000)	(1,170,000)
Net decrease in cash and cash equivalents	(21,157,000)	(7,278,000)
Cash and cash equivalents including discontinued operations at beginning of period	164,921,000	134,286,000
Cash and cash equivalents including discontinued operations at end of period	143,764,000	127,008,000
Cash held by discontinued operations at end of period (Note 10)	(750,000)
Cash and cash equivalents from continuing operations at end of the period	143,014,000	127,008,000
Supplemental disclosure of cash flow information:
Cash paid for interest	10,088,000
Cash paid for income taxes	10,690,000	2,608,000
Inventory capitalized as property, plant and equipment	195,000	149,000
Dividends declared but not yet paid	2,466,000	1,733,000
Property, plant and equipment purchases included in accounts payable	938,000	166,000
Capitalized cloud computing service costs included in accounts payable	$ 1,477,000

Note 1 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 29, 2019

Significant Accounting Policies [Text Block]

1.	Summary of Significant Accounting Policies

Basis of Presentation

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

The condensed consolidated balance sheet at

December 29, 2018,

has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of

June 29, 2019, (

also referred to as “the

second

quarter of fiscal

2019”

and “the

first

six

months of fiscal

2019”

) and

June 30, 2018, (

also referred to as “the

second

quarter of fiscal

2018”

and “the

first

six

months of fiscal

2018”

) are unaudited. However, in management’s opinion, these financial statements reflect all adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. The

three

- and

six

-month periods ended

June 29, 2019,

were comprised of

and

weeks, respectively. The

three

- and

six

-month periods ended

June 30, 2018,

were comprised of

and

weeks, respectively.

Our interim results are

not

necessarily indicative of the results that should be expected for the full year. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended

December 29, 2018,

which are included in our

2018

Annual Report on Form

-K, filed with the U. S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”.

The condensed consolidated financial statements include the accounts of Cohu and a variable interest entity (“VIE”) that was acquired as part of our acquisition of Xcerra Corporation (“Xcerra”) and in which we have determined we are the primary beneficiary. The non-controlling interest in ALBS Solutions Sdn Bhd (“ALBS”) represents the

80%

equity interest that is

not

held by Cohu. ALBS is a privately held corporation which provides high-tech semiconductor automation systems to different industrial users. All significant consolidated transactions and balances have been eliminated in consolidation.

Principles of Consolidation for Variable Interest Entities

We follow ASC Topic

810

guidance with respect to accounting for VIEs. These entities do

not

have sufficient equity at risk to finance their activities without additional subordinated financial support from other parties or whose equity investors lack any of the characteristics of a controlling financial interest. A variable interest is an investment or other interest that will absorb portions of a VIE’s expected losses or receive portions of its expected residual returns and are contractual, ownership, or pecuniary in nature and that change with changes in the fair value of the entity’s net assets. A reporting entity is the primary beneficiary of a VIE and must consolidate it when that party has a variable interest, or combination of variable interests, that provides it with a controlling financial interest. A party is deemed to have a controlling financial interest if it meets both of the power and losses/benefits criteria. The power criterion is the ability to direct the activities of the VIE that most significantly impact its economic performance. The losses/benefits criterion is the obligation to absorb losses from, or right to receive benefits from, the VIE that could potentially be significant to the VIE. The VIE model requires an ongoing reconsideration of whether a reporting entity is the primary beneficiary of a VIE due to changes in facts and circumstances.

As of

June 29, 2019

and

December 29, 2018,

we consolidated

one

VIE. Cohu is the primary beneficiary of ALBS which qualifies as a VIE that meets the definition of a business. As such, the assets, liabilities, and noncontrolling interest of ALBS were measured at fair value upon acquisition in accordance with ASC

805,

Business Combinations

("ASC

805"

). The assets and liabilities and revenues and expenses of this VIE are included in our condensed consolidated financial statements. As of

June 29, 2019

and

December 29, 2018,

the assets and liabilities of ALBS set are immaterial to Cohu and, therefore,

not

shown separately on our condensed consolidated balance sheets. The

third

-party equity interest of ALBS is referred to as noncontrolling interest. The portion of net income (loss) attributable to the noncontrolling interest of ALBS is presented as net income (loss) allocated to noncontrolling interests in the condensed consolidated statements of operations and comprehensive loss, and the portion of stockholders' equity of ALBS is presented as noncontrolling interest in the condensed consolidated statements of stockholders' equity.

Reclassifications

In conjunction with the acquisition of Xcerra, we assessed the need to realign its financial statement presentation and certain income statement classifications were adjusted with prior periods reclassified to conform with current period presentation. The changes made were as follows:

●

Amortization of intangibles previously were presented in cost of sales and SG&A. These amounts are now presented as a separate line item “Amortization of purchased intangibles” within operating expenses.

●

Gains and losses associated with foreign currency translation and remeasurement were included within SG&A. These amounts are now presented as “Foreign transaction gain (loss) and other”.

A summary of the reclassifications described above and the impact on our condensed consolidated statements of operations is as follows:

Three Months Ended June 30, 2018	As Presented		Amortization of Purchased Intangibles			Foreign Transaction Gains and Losses		As Adjusted
Cost of sales	$	58,316		(639	)		-	$	57,677
SG&A expense	$	16,652		(380	)		3,031	$	19,303

Six Months Ended June 30, 2018	As Presented		Amortization of Purchased Intangibles			Foreign Transaction Gains and Losses		As Adjusted
Cost of sales	$	113,915		(1,315	)		-	$	112,600
SG&A expense	$	34,415		(778	)		1,452	$	35,089

Concentration of Credit Risk

Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any

one

issuer.

Trade accounts receivable are presented net of allowance for doubtful accounts of

$0.3

million at both

June 29, 2019

and

December 29, 2018.

Our customers include semiconductor manufacturers and semiconductor test subcontractors throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at

June 29, 2019,

we will continue to monitor customer liquidity and other economic conditions, which

may

result in changes to our estimates regarding collectability.

Inventories

Inventories are stated at the lower of cost, determined on a

first

-in,

first

-out basis, or net realizable value. Cost includes labor, material and overhead costs. Determining net realizable value of inventories involves numerous estimates and judgments including projecting average selling prices and sales volumes for future periods and costs to complete and dispose of inventory. As a result of these analyses, we record a charge to cost of sales in advance of the period when the inventory is sold when estimated net realizable values are below our costs.

Inventories by category were as follows (

in thousands

	June 29,		December 29,
	2019		2018
Raw materials and purchased parts	$	68,125	$	60,112
Work in process		52,769		57,953
Finished goods		16,335		21,249
Total inventories	$	137,229	$	139,314

Property, Plant and Equipment

Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of

thirty

forty

years for buildings,

five

fifteen

years for building improvements and

three

ten

years for machinery, equipment and software. Land is

not

depreciated.

Property, plant and equipment, at cost, consisted of the following

(in thousands)

	June 29,			December 29,
	2019			2018
Land and land improvements	$	12,182		$	11,905
Buildings and building improvements		39,243			37,265
Machinery and equipment		65,370			64,791
		116,795			113,961
Less accumulated depreciation and amortization		(45,019	)		(39,629	)
Property, plant and equipment, net	$	71,776		$	74,332

Segment Information

We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”

), which sets forth a management approach to segment reporting and establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker and for which discrete financial information is available. Subsequent to the acquisition of Xcerra on

October 1, 2018,

we have determined that our

four

identified operating segments are: Test Handler Group (THG), Semiconductor Tester Group (STG), Interface Solutions Group (ISG) and PCB Test Group (PTG). Our THG, STG and ISG operating segments qualify for aggregation under ASC

280

due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in

two

segments, Semiconductor Test and Inspection Equipment (“Semiconductor Test & Inspection”) and PCB Test Equipment (“PCB Test”).

Goodwill, Other Intangible Assets and

Long-lived Assets

We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value

may

not

be recoverable. We test goodwill for impairment by

first

comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a

second

step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimated the fair values of our reporting units primarily using the income approach valuation methodology that includes the discounted cash flow method, taking into consideration the market approach and certain market multiples as a validation of the values derived using the discounted cash flow methodology. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on customer forecasts, industry trade organization data and general economic conditions.

We conduct our annual impairment test as of

October

1st

of each year, and have determined there was

impairment as of

October

2018

as we determined that the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances

may

also require goodwill to be tested for impairment between annual measurement dates. As of

June 29, 2019,

we do

not

believe that circumstances have occurred that indicate impairment of our goodwill is more-likely-than-

not.

In the event we determine that an interim goodwill impairment review is required in a future period, the review

may

result in an impairment charge, which would have a negative impact on our results of operations.

We evaluate our indefinite-lived intangible assets associated with in-process research and development by comparing the fair value of each project with its carrying value.

Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might

not

be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets

may

not

be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is

not

recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value.

Product Warranty

Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from

- to

-months. Parts and labor are typically covered under the terms of the warranty agreement. Our warranty expense accruals are based on historical and estimated costs by product and configuration. From time-to-time we offer customers extended warranties beyond the standard warranty period. In those situations the revenue relating to the extended warranty is deferred at its estimated relative standalone selling price and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred.

Restructuring Costs

We record restructuring activities including costs for

one

-time termination benefits in accordance with ASC Topic

420

(“ASC

420”

Exit or Disposal Cost Obligations.

The timing of recognition for severance costs accounted for under ASC

420

depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefits covered by existing benefit arrangements are recorded in accordance with ASC Topic

712,

Nonretirement Postemployment Benefits.

These costs are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable.

Debt Issuance Costs

We capitalize costs related to the issuance of debt. Debt issuance costs directly related to our Term Loam B are presented as a reduction of current installments of long-term debt and long-term debt in our consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was

$0.3

million and

$0.5

million for the

three

and

six

months ended

June 29, 2019.

We obtained the Term B Loan on

October 1, 2018,

so there were

debt issuance costs amortized during the

three

and

six

months ended

June 30, 2018.

Foreign Remeasurement and Currency Translation

Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During the

three

and

six

months ended

June 29, 2019,

we recognized foreign exchange losses of

$0.5

million and

$0.3

million, respectively, in our condensed consolidated statements of operations. During the

three

and

six

months ended

June 30, 2018,

we recognized foreign exchange gains of

$3.0

million and

$1.5

million in our condensed consolidated statements of operations, respectively. Certain of our foreign subsidiaries have designated the local currency as their functional currency and, as a result, their assets and liabilities are translated at the rate of exchange at the balance sheet date, while revenue and expenses are translated using the average exchange rate for the period. Cumulative translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity.

Share-Based Compensation

We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results.

Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows

(in thousands)

	Three Months Ended						Six Months Ended
	June 29,			June 30,			June 29,			June 30,
	2019			2018			2019			2018
Cost of sales	$	208		$	162		$	333		$	283
Research and development		776			395			1,414			744
Selling, general and administrative		2,678			1,391			5,608			2,590
Total share-based compensation		3,662			1,948			7,355			3,617
Income tax benefit		(79	)		(126	)		(359	)		(440	)
Total share-based compensation, net	$	3,583		$	1,822		$	6,996		$	3,177

Income (Loss) Per Share

Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock and performance stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the

three

and

six

months ended

June 29, 2019,

stock options and awards to issue approximately

610,000

and

502,000

shares of common stock were excluded from the computation, respectively. For the

three

and

six

months ended

June 30, 2018,

stock options and awards to issue approximately

3,000

and

19,000

shares of common stock were excluded from the computation, respectively.

The following table reconciles the denominators used in computing basic and diluted income (loss) per share (

in thousands)

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
Weighted average common shares		41,125		28,893		40,999		28,747
Effect of dilutive securities		-		758		-		844
		41,125		29,651		40,999		29,591

Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories.

Leases

We adopted

ASU

2016

02,

Leases (Topic

842

)

, as of

December 30, 2018.

We determine if a contract contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other accrued liabilities, and long-term lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and long-term lease liabilities on our consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do

not

provide an implicit rate, we use our incremental borrowing rates for the remaining lease terms based on the information available at the adoption date or commencement date in determining the present value of future payments.

The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms

may

include renewal options to extend the lease when it is reasonably certain that we will exercise those options. In addition, we include purchase option amounts in our calculations when it is reasonably certain that we will exercise those options. Rent expense for minimum payments under operating leases is recognized on a straight-line basis over the term.

Leases with an initial term of

months or less are

not

recorded on the balance sheet, but recognized in the consolidated statements of operations on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component and include both in our calculation of the ROU assets and liabilities.

We sublease certain leased assets to

third

parties, mainly as a result of unused space in our facilities.

None

of our subleases contain extension options. Variable lease payments in our subleases include tax payments that are based on prevailing rates. We account for lease and non-lease components as a single lease component.

Revenue Recognition

Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is

not

transferred until destination or acceptance, we defer revenue recognition until such events occur.

Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are

not

determinable and in the case of new products, revenue and cost of sales are deferred until customer acceptance has been received. Our post-shipment obligations typically include installation and standard warranties. The estimated fair value of installation related revenue is recognized in the period the installation is performed. Service revenue is recognized over time as we transfer control to our customer for the related contract or upon completion of the services if they are short-term in nature. Spares, contactor and kit revenue is generally recognized upon shipment.

Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations

may

occur at different points in time or over different periods of time. For arrangements containing multiple performance obligations, the revenue relating to the undelivered performance obligation is deferred using the relative standalone selling price method utilizing estimated sales prices until satisfaction of the deferred performance obligation.

Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At

June 29, 2019,

we have

$13.5

million of revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) for contracts with original expected durations of over

one

year. As allowed under ASC

606,

we have opted to

not

disclose unsatisfied performance obligations for contracts with original expected durations of less than

one

year.

We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC

460,

Guarantees

(ASC

460

), and

not

as a separate performance obligation.

The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and

may

include fixed or variable amounts. Fixed consideration primarily includes sales to customers that are known as of the end of the reporting period. Variable consideration includes sales in which the amount of consideration that we will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to certain customers with cumulative tier volume discounts offered. Variable consideration arrangements are rare; however, when they occur, we estimate variable consideration as the expected value to which we expect to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will

not

occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration that does

not

meet revenue recognition criteria is deferred.

Our contracts are typically less than

one

year in duration and we have elected to use the practical expedient available in ASC

606

to expense cost to obtain contracts as they are incurred because they would be amortized over less than

one

year.

Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do

not

exceed

one

year from the invoice date and therefore do

not

include a significant financing component. To date, there have been

material impairment losses on accounts receivable. There were

material contract assets or contract liabilities recorded on the condensed consolidated balance sheet in any of the periods presented.

On shipments where sales are

not

recognized, gross profit is generally recorded as deferred profit in our condensed consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. At

June 29, 2019,

we had deferred revenue totaling approximately

$16.7

million, current deferred profit of

$8.2

million and deferred profit expected to be recognized after

one

year included in noncurrent other accrued liabilities of

$4.3

million. At

December 29, 2018,

we had deferred revenue totaling approximately

$10.8

million, current deferred profit of

$6.9

million and deferred profit expected to be recognized after

one

year included in noncurrent other accrued liabilities of

$2.0

million.

Net sales of our reportable segments, by type, are as follows

(in thousands):

	Three Months Ended				Six Months Ended
Net Sales (1)	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
Systems:
Semiconductor Test & Inspection	$	76,155	$	55,663	$	156,095	$	110,568
PCB Test		8,407		N/A		15,379		N/A
Non-systems:
Semiconductor Test & Inspection		61,424		44,154		118,177		84,399
PCB Test		4,025		N/A		8,169		N/A
Total net sales	$	150,011	$	99,817	$	297,820	$	194,967

(

)

After the acquisition of Xcerra on

October 1, 2018

we report in

two

segments, Semiconductor Test & Inspection and PCB Test. Cohu’s historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.

Revenue by geographic area based upon product shipment destination

(

in thousands

	Three Months Ended				Six Months Ended
Net Sales	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
China	$	32,738	$	19,140	$	56,289	$	39,383
United States		19,408		15,662		36,509		30,140
Malaysia		16,993		13,048		34,707		24,857
Taiwan		17,202		2,905		32,172		5,846
Philippines		11,395		9,916		25,936		20,462
Rest of the World		52,275		39,146		112,207		74,279
Total net sales	$	150,011	$	99,817	$	297,820	$	194,967

A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows:

Three Months Ended

Six Months Ended

June 29,

June 30,

June 29,

June 30,

2019

2018

2019

2018

Semiconductor Test & Inspection

(1)

Customers individually accounting for more than 10% of net sales

one

Percentage of net sales

PCB Test

Customers individually accounting for more than 10% of net sales

N/A

Percentage of net sales

N/A

single customer represented more than

10%

of consolidated net sales.

(

)

After the acquisition of Xcerra on

October 1, 2018

we report in

two

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately

$27.0

million and

$25.9

million at

June 29, 2019

and

December 29, 2018,

respectively, and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain of our subsidiary accounts where the functional currency is

not

the U.S. Dollar and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss during the

first

six

months of fiscal

2019

and

2018

were

not

significant.

Retiree Medical Benefits

We provide post-retirement health benefits to certain retired executives,

one

director (who is a former executive) and their eligible dependents under a noncontributory plan. These benefits are

longer offered to any other retired Cohu employees. The net periodic benefit cost incurred during the

first

six

months of fiscal

2019

and

2018

was

not

significant.

Discontinued Operations

Management has determined that the fixtures services business, that was acquired as part of Xcerra, does

not

align with Cohu’s long-term strategic plan and management is in the process of divesting this portion of the business. As a result, the assets of our fixtures business are considered “held for sale” and the operations of our fixtures business are considered “discontinued operations” as of

December 29, 2018.

See Note

10,

“Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

We adopted

ASU

2016

02,

Leases (Topic

842

)

, as of

December 30, 2018,

using the optional transition method which allowed us to record existing leases at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward the historical lease classification.

We made an accounting policy election to

not

record ROU assets and lease liabilities for leases with an initial term of

months or less. We recognized those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We also made an accounting policy election to use the practical expedient allowed in the standard to

not

separate lease and non-lease components when calculating the ROU asset and lease liability. Related to adoption of the new standard, we have implemented internal controls and a lease accounting technology system to track the ROU asset and lease liability balances and prepare the related footnote disclosures.

Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately

$30.7

million and

$29.9

million, respectively, as of

December 30, 2018.

We had previously recorded a sale and operating leaseback transaction in accordance with Topic

840

and as a result of the adoption of the new standard, recognized

$10.2

million of deferred gain as an adjustment to retained earnings. In addition, we had previously recognized assets and liabilities related to a build-to-suit designation under Topic

840

and as a result of the adoption of the new standard, derecognized assets and liabilities of

$0.5

million and

$0.6

million, respectively, with the difference recorded as an adjustment to retained earnings. The standard did

not

materially impact our consolidated net earnings and had

impact on cash flows.

Recently Issued Accounting Pronouncements

August 2018,

the FASB issued ASU

2018

14,

Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans

, which improves defined benefit disclosure requirements by removing disclosures that are

not

cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years ending after

December 15, 2020

and early adoption is permitted. The amendments in this ASU are required to be applied on a retrospective basis to all periods presented. We are currently assessing and have

not

yet determined the impact that the adoption of ASU

2018

will have on the consolidated financial statements.

August 2018,

the FASB issued ASU

2018

13,

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

, which improves fair value disclosure requirements by removing disclosures that are

not

cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level

fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted and an entity can choose to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. We are currently assessing and have

not

yet determined the impact that the adoption of ASU

2018

will have on the consolidated financial statements.

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets

6 Months Ended

Jun. 29, 2019

Business Combination Disclosure [Text Block]

2.	Business Acquisitions, Goodwill and Purchased Intangible Assets

Xcerra

Pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated as of

May 7, 2018,

among Cohu, Xcerra, and Xavier Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of Cohu (“Merger Sub”), Merger Sub merged with and into Xcerra (the “Merger”), with Xcerra surviving such merger as a wholly owned subsidiary of Cohu. The Merger was effective on

October 1, 2018 (

“the Effective Time”). At the Effective Time, each share of Xcerra Common Stock issued and outstanding immediately prior to the Effective Time (other than dissenting shares and shares held by Cohu, Merger Sub, Xcerra or any direct or indirect wholly owned subsidiary of Cohu or Xcerra) was converted into the right to receive, in the aggregate for all shares of Xcerra Common Stock, consideration, which totaled approximately

$794.4

million as of the Effective Time.

Cohu financed the Merger, including all related fees and expenses, with the following:

●

$160.5

million cash from our combined balance sheets;

●

The incurrence of

$350.0

million from the Credit Facility, as described below;

●

The issuance of

11,776,149

shares of Cohu common stock; and

●

The issuance of

529,995

converted RSUs to Xcerra employees, of which

$0.8

million of the fair value of the converted RSUs was attributed to pre-merger services.

October 1, 2018,

Cohu entered into a Credit Agreement with Cohu, as borrower, certain of its subsidiaries as guarantor subsidiaries, the financial institutions party(ies) thereto as

may

from time to time be lenders, and Deutsche Bank AG New York Branch, as administrative agent and collateral agent, providing for a

$350.0

million Credit Facility (the “Credit Facility”), and borrowed the full amount. Loans under the Credit Facility amortize in equal quarterly installments of

0.25%

of the original principal amount thereof, with the balance payable at maturity. Subject to certain exceptions and thresholds, the Credit Facility will also require mandatory prepayments in connection with (i) excess cash flow, (ii) non-ordinary course asset sales and other dispositions and (iii) the issuance of certain debt obligations, among other things. Cohu has the right to prepay loans under the Credit Agreement in whole or in part at any time, without premium or penalty. Amounts repaid in respect of loans under the Credit Facility

may

not

be reborrowed. All outstanding principal and interest in respect of the Credit Facility must be repaid on or before

October 1, 2025.

The loans under the Term Loan Facility bear interest, at Cohu’s option, at a floating annual rate equal to LIBOR plus a margin of

3.00%.

The lender(s)

may

accelerate the payment terms of the Credit Agreement upon the occurrence of certain events of default as set forth therein, which include: the failure of Cohu to make timely payments of amounts due under the Credit Agreement, the failure of Cohu to adhere to the representations and covenants set forth in the Credit Agreement, the failure to provide notice of any event that causes a material adverse effect or to provide other required notices, upon the event that related collateral agreements become ineffective, upon the event that certain legal judgments are entered against Cohu, the insolvency of Cohu, or upon the change of control of Cohu. Any event that could require us to repay debt prior to its due date could have a material adverse impact on our financial condition and results of operations.

Immediately prior to the Effective Time, each Xcerra RSU that was vested was cancelled and the holder received cash and share consideration for the outstanding shares. Each unvested RSU held by employees of Xcerra were assumed by Cohu and converted into an RSU representing the number of whole shares of Cohu common stock based on a conversion formula resulting in the number of assumed RSUs described above.

The acquisition method of accounting is based on ASC

805,

and uses the fair value concepts defined in ASC

820,

Fair Value Measurement

(“ASC

820”

). The purchase price allocation described herein is preliminary and is based on the information that was available to make estimates of the fair value and

may

change as further information becomes available and additional analyses are completed. While we believe such information provides a reasonable basis for estimating the fair values, we

may

obtain more information and evidence during the measurement period that result in changes to the estimated fair value amounts. The measurement period ends on the earlier of

one

year after the acquisition date or the date we receive the information about the facts and circumstances that existed at the acquisition date. Subsequent adjustments, if necessary, will be recognized during the period in which the amounts are determined. These refinements include: (

) changes in the estimated fair value of certain intangible assets acquired; and (

) changes in deferred tax assets and liabilities related to the fair value estimates.

The acquisition was nontaxable to Cohu and certain of the assets acquired, including goodwill and intangibles, will

not

be deductible for tax purposes. The acquired assets and liabilities of Xcerra were recorded at their respective fair values including an amount for goodwill which represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired, and is attributable primarily to expected synergies, economies of scale and the assembled workforce of Xcerra. Goodwill has been allocated to our THG, STG, ISG and PTG operating segments.

ASC

805

requires, among other things, that most assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. In addition, ASC

805

requires that the consideration transferred be measured at the date the merger is completed at the then-current market price. The market price of the shares of Cohu Common Stock at the Effective Time was

$25.10

which was based upon the closing price of shares of Cohu Common Stock on the NASDAQ Global Select Market on Friday,

September 28, 2018,

the last day of trading prior to the Effective Time.

ASC

820

defines the term “fair value” and sets forth the valuation requirements for any asset or liability measured at fair value, expands related disclosure requirements and specifies a hierarchy of valuation techniques based on the nature of the inputs used to develop the fair value measurements. Fair value is defined in ASC

820

as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” This is an exit price concept for the valuation of the asset or liability. In addition, market participants are assumed to be buyers and sellers in the principal (or the most advantageous) market for the asset or liability. Fair value measurements for an asset assume the highest and best use by these market participants. As a result of these standards, Cohu

may

be required to record the fair value of assets which are

not

intended to be used or sold and/or to value assets at fair values that do

not

reflect Cohu’s intended use of those assets. Many of these fair value measurements can be highly subjective, and it is possible that other professionals, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts.

Under ASC

805,

acquisition-related transaction costs (e.g., advisory, legal, investment banking and other professional fees) are

not

included as a component of consideration transferred but are accounted for as expenses in the periods in which such costs are incurred. Total Merger-related transaction costs, that exclude other costs related to employee termination and restructuring, incurred by Cohu were

$0.4

million and

$4.1

million in the

first

six

months ended

June 29, 2019

and

June 30, 2018,

respectively.

The table below summarizes the preliminary assets acquired and liabilities assumed as of

October 1, 2018 (

in thousands

Current assets, including cash received	$	375,990
Property, plant and equipment		40,729
Other assets *		1,051
Intangible assets		321,160
Goodwill *		179,961
Total assets acquired		918,891
Liabilities assumed *		(124,461	)
Net assets acquired	$	794,430

Includes a measurement period adjustment recorded during the

three

months ended

June 29, 2019,

as a result of obtaining new facts and circumstances related to certain assets acquired (

$1.1

million) and liabilities assumed (

$0.4

million) as of the date of acquisition. The net impact of this measurement period adjustment, totaling

$0.7

million, was offset against goodwill.

We recorded a

$19.6

million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation.

The preliminary allocation of the intangible assets subject to amortization is as follows

(in thousands)

	Estimated Fair Value		Weighted Average Useful Life (years)
Developed technology	$	194,600	7.8
Customer relationships		65,890	10.6
In-process technology		36,360	indefinite
Product backlog		6,410	0.8
Trade names		16,800	11.0
Favorable leases		1,100	5.5
Total intangible assets	$	321,160

Acquired intangible assets reported above are being amortized using the straight-line method over their estimated useful lives which approximates the pattern of how the economic benefit is expected to be used. This includes amounts allocated to customer relationships because of anticipated high customer retention rates that are common in the semiconductor capital equipment industry.

The value assigned to developed technology was determined by using the multi-period excess earnings method under the income approach. Developed technology, which comprises products that have reached technological feasibility, includes the products in Xcerra’s product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by Xcerra and competitors. The estimated cash flows were based on revenues for the developed technology net of operating expenses and net of contributory asset charges. The discount rate utilized to discount the net cash flows of the developed technology to present value was based on the risk associated with the respective cash flows taking into consideration the perceived risk of the technology relative to the other acquired assets, the weighted average cost of capital, the internal rate of return, and the weighted average return on assets.

The value assigned to customer relationships was determined by using the with and without method under the income approach, which analyzes the difference in discounted cash flows generated with the customer relationships in place compared to the discounted cash flows generated without the customer relationships in place.

In-process research and development (“IPR&D”) represents the estimated fair value assigned to research and development projects acquired in a business combination that have

not

been completed at the date of acquisition and which have

alternative future use. IPR&D is initially accounted for as an indefinite-lived intangible asset. Once a project reaches technological feasibility amounts capitalized related to the project are reclassified to developed technology and the intangible asset begins to be amortized over its estimated useful life. For the IPR&D, additional research and development will be required to assess technological feasibility.

The value assigned to backlog acquired was estimated based upon the contractual nature of the backlog as of

October 1, 2018,

using the income approach to discount back to present value the cash flows attributable to the backlog.

The value assigned to trademarks and trade names was estimated using the relief-from-royalty method of the income approach. This approach is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty in order to exploit the related benefits of this intangible asset.

In our preliminary estimate of the fair value of Xcerra’s net assets, Cohu identified leases that appear to be at both favorable and unfavorable rates compared to current market rates. As a result, Cohu has recorded both favorable and unfavorable lease assets, which are being recognized within rent expense over the terms of the related lease.

Goodwill and Intangible Assets

Changes in the carrying value of goodwill during the year ended

December 29, 2018,

and the

six

-month period ended

June 29, 2019,

by segment, were as follows (

in thousands

	Semiconductor Test
	& Inspection (1)			PCB Test			Total
Balance, December 30, 2017	$	65,613		$	-		$	65,613
Additions, net		157,661			21,602			179,263
Impact of currency exchange		(2,466	)		(283	)		(2,749	)
Balance, December 29, 2018		220,808			21,319			242,127
Adjustments (2)		1,681			(983	)		698
Impact of currency exchange		(1,377	)		18			(1,359	)
Balance, June 29, 2019	$	221,112		$	20,354		$	241,466

	( 1 )	After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Prior year amounts would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.
	( 2 )	Amounts represent adjustments to the preliminary goodwill from the Xcerra acquisition.

Purchased intangible assets, subject to amortization are as follows (

in thousands

	June 29, 2019					December 29, 2018
					Remaining
					Weighted
	Gross				Average	Gross
	Carrying		Accum.		Amort.	Carrying		Accum.
	Amount		Amort.		Period (years)	Amount		Amort.
Developed technology	$	216,620	$	35,347	6.9	$	214,266	$	21,197
Customer relationships		73,226		11,202	9.7		73,104		7,378
Trade names		22,775		2,872	10.0		22,701		1,807
Backlog		6,371		6,142	0.1		6,372		4,696
Favorable leases		-		-	4.9		1,100		62
Covenant not-to-compete		327		82	7.5		314		63
Total intangible assets	$	319,319	$	55,645		$	317,857	$	35,203

The table above excludes

$33.5

million and

$36.3

million of in-process technology, at

June 29, 2019

and

December 29, 2018,

respectively, which has an indefinite life and is subject to impairment or future amortization as developed technology when the projects are completed. During the

six

months ended

June 29, 2019,

we completed certain projects previously included in in-process technology and transferred

$2.7

million to developed technology. Changes in the carrying values of purchased intangible assets presented above are a result of the impact of fluctuation in currency exchange rates.

Amortization expense related to intangible assets was approximately

$10.0

million in the

second

quarter of fiscal

2019

and

$20.0

million in the

first

six

months of fiscal

2019.

Amortization expense related to intangible assets was approximately

$1.0

million in the

second

quarter of fiscal

2018

and

$2.1

million in the

first

six

months of fiscal

2018.

The increase in amortization expense in the current year is the result of amortization of assets acquired in the Xcerra transaction.

Note 3 - Borrowings and Credit Agreements

6 Months Ended

Jun. 29, 2019

Debt Disclosure [Text Block]

3.	Borrowings and Credit Agreements

The following table is a summary of our borrowings as of

June 29, 2019

and

December 29, 2018 (

in thousands)

	June 29,			December 29,
	2019			2018
Bank Term Loan under Credit Agreement	$	347,375		$	349,125
Bank Term Loans-Kita		4,180			4,576
Bank Term Loan-Xcerra		1,670			1,839
Lines of Credit		3,244			3,115
Total debt		356,469			358,655
Less: financing fees and discount		(8,004	)		(8,551	)
Less: current portion		(6,487	)		(6,676	)
Total long-term debt	$	341,978		$	343,428

Credit Agreement

October 1, 2018,

we entered into a Credit Agreement providing for a

$350.0

million Credit Facility and borrowed the full amount. Loans under the Credit Facility amortize in equal quarterly installments of

0.25%

of the original principal amount, with the balance payable at maturity. All outstanding principal and interest in respect of the Credit Facility must be repaid on or before

October 1, 2025.

The loans under the Term Loan Facility bear interest, at Cohu’s option, at a floating annual rate equal to LIBOR plus a margin of

3.00%.

June 29, 2019,

the outstanding loan balance, net of discount and deferred financing costs, was

$339.4

million and

$2.4

million of the outstanding balance is presented as current installments of long-term debt in our consolidated balance sheets. As of

June 29, 2019,

the fair value of the debt was

$336.1

million. The measurement of the fair value of debt is based on the average of the bid and ask trading quotes as of

June 29, 2019

and is considered a Level

fair value measurement. See Note

“Business Acquisitions, Goodwill and Purchased Intangible Assets” for additional information on the Credit Facility.

Kita Term Loans

As a result of our acquisition of Kita, we assumed term loans from a series of Japanese financial institutions primarily related to the expansion of Kita’s facility in Osaka, Japan. The loans are collateralized by the facility and land, carry interest rates ranging from

0.05%

0.45%,

and expire at various dates through

2034.

June 29, 2019,

the outstanding loan balance was

$4.2

million and

$0.5

million of the outstanding balance is presented as current installments of long-term debt in our consolidated balance sheets. The fair value of the debt approximates the carrying value at

June 29, 2019.

The term loans are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates.

Xcerra Term Loan

As a result of our acquisition of Xcerra, we assumed a term loan related to the purchase of Xcerra’s facility in Rosenheim, Germany. The loan is payable over

years at an annual interest rate of

2.35%.

Principal plus accrued interest is due quarterly over the duration of the term loan ending in

March 2024.

June 29, 2019,

the outstanding loan balance was

$1.7

million and

$0.3

million of the outstanding balance is presented as current installments of long-term debt in our consolidated balance sheets. The fair value of the debt approximates the carrying value at

June 29, 2019.

The term loan is denominated in Euros and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates.

Lines of Credit

As a result of our acquisition of Kita, we assumed a series of revolving credit facilities with various financial institutions in Japan. The credit facilities renew monthly and provide Kita with access to working capital totaling up to

$6.5

million. At

June 29, 2019,

total borrowings outstanding under the revolving lines of credit were

$3.2

million. As these credit facility agreements renew monthly, they have been included in short-term borrowings in our consolidated balance sheet.

The revolving lines of credit are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates.

Our wholly owned Ismeca subsidiary has

one

available line of credit which provides it with borrowings of up to a total of

2.0

million Swiss Francs. At

June 29, 2019,

and

December 29, 2018.,

amounts were outstanding under this line of credit.

Note 4 - Restructuring Charges

6 Months Ended

Jun. 29, 2019

Restructuring and Related Activities Disclosure [Text Block]

4.	Restructuring Charges

Subsequent to the acquisition of Xcerra on

October 1

, during the

fourth

quarter of

2018,

we began a strategic restructuring program designed to reposition our organization and improve our cost structure as part of our targeted integration plan regarding the recently acquired Xcerra (“Integration Program”). See Note

“Business Acquisitions, Goodwill and Purchased Intangible Assets” for additional information regarding the acquisition of Xcerra. As part of the Integration Program we will consolidate our global handler and contactor manufacturing operations and expect to close our manufacturing operations in Penang, Malaysia and Fontana, California by the end of calendar year

2019.

Relating to the facility consolidation actions, we notified certain impacted employees of a reduction in force program. In the

second

quarter of

2019

we entered into a social plan (“Plan”) with the German labor organization representing certain of the employees of our wholly owned subsidiary, Multitest elektronische Systeme GmbH, as part of our Integration Program. The Plan will reduce headcount, enable us to consolidate the facilities of our multiple operations located near Rosenheim, Germany, as well as transition certain manufacturing to other lower cost regions. The facility consolidation and reduction in force programs are being implemented as part of a comprehensive review of our operations and are intended to streamline and reduce our operating cost structure and capitalize on acquisition synergies.

As a result of the activities described above, we recognized total pretax charges of

$9.9

million for the

first

six

months ended

June 29, 2019,

that are within the scope of ASC

420,

Exit or Disposal Cost Obligations

(“ASC

420”

). All costs of the Integration Program were, and are expected to be, incurred by our Semiconductor Test & Inspection segment.

Costs associated with restructuring activities are presented in our consolidated statements of operations as restructuring charges, except for certain costs associated with inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products, which are classified within cost of sales. Other restructuring costs include expenses for professional fees associated with employee severance and impairments of fixed assets.

The following table summarizes the activity within the restructuring related accounts for the Integration Program during the

six

months ended

June 29, 2019

(in thousands)

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 29, 2018	$	4,026		$	-		$	4,026
Costs accrued		9,412			494			9,906
Amounts paid or charged		(5,290	)		(494	)		(5,784	)
Impact of currency exchange		26			-			26
Balance, June 29, 2019	$	8,174		$	-		$	8,174

June 29, 2019,

our total accrual for restructuring related items is reflected within current liabilities of our consolidated balance sheets as these amounts are expected to be paid out in

2019.

The estimated costs associated with the employee severance and facility consolidation actions will be paid predominantly in cash, with the exception of the amortization of leasehold improvements which is non-cash.

Cohu, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

June 29, 2019

Note 5 - Financial Instruments Measured at Fair Value

6 Months Ended

Jun. 29, 2019

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

5.	Financial Instruments Measured at Fair Value

Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. We do

not

hold investment securities for trading purposes. All short-term investments are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk and we monitor credit risk and attempt to mitigate exposure by making high-quality investments and through investment diversification.

Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are

not

limited to: earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. Gross realized gains and losses on sales of short-term investments are included in interest income. Realized gains and losses for the periods presented were

not

significant.

Investments that we have classified as short-term, by security type, are as follows

(

in thousands

)

June 29, 2019

Gross

Estimated

Amortized

Unrealized

Fair

Cost

Gains

Losses

(1)

Value

Foreign government security

581

December 29, 2018

Gross

Estimated

Amortized

Unrealized

Fair

Cost

Gains

Losses

(1)

Value

Foreign government security

560

(

)

As of

June 29, 2019

and

December 29, 2018,

there were

investments in our portfolio in a loss position.

Effective maturities of short-term investments are as follows

(in thousands)

	June 29, 2019				December 29, 2018
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due after one year through three years	$	581	$	581	$	560	$	560

Accounting standards pertaining to fair value measurements establish a

three

-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level

defined as observable inputs such as quoted prices in active markets; Level

defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level

defined as unobservable inputs in which little or

market data exists, therefore requiring an entity to develop its own assumptions. When available, we use quoted market prices to determine the fair value of our investments, and they are included in Level

When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information, and they are included in Level

The following table summarizes, by major security type, our financial instruments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy

(in thousands)

	Fair value measurements at June 29, 2019 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	130,051	$	-	$	-	$	130,051
Money market funds		-		12,963		-		12,963
Foreign government security		-		581		-		581
	$	130,051	$	13,544	$	-	$	143,595

	Fair value measurements at December 29, 2018 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	144,696	$	-	$	-	$	144,696
Money market funds		-		19,764		-		19,764
Foreign government security		-		560		-		560
	$	144,696	$	20,324	$	-	$	165,020

Note 6 - Employee Stock Benefit Plans

6 Months Ended

Jun. 29, 2019

Share-based Payment Arrangement [Text Block]

6.	Employee Stock Benefit Plans

Our

2005

Equity Incentive Plan (the

“2005

Plan”) is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. Awards that

may

be granted under the program include, but are

not

limited to, non-qualified and incentive stock options, restricted stock units, and performance stock units. We settle employee stock option exercises, employee stock purchase plan purchases, and the vesting of restricted stock units, and performance stock units with newly issued common shares. At

June 29, 2019,

there were

2,500,306

shares available for future equity grants under the

2005

Plan. On

May 8, 2019,

our stockholders approved amendments to the

2005

Plan which increased the shares of stock available for issuance by

2,000,000

and eliminated a sublimit on the aggregate number of shares that

may

be issued pursuant to restricted stock, restricted stock units, performance shares or performance unit awards.

Stock Options

Stock options

may

be granted to employees, consultants and non-employee directors to purchase a fixed number of shares of our common stock. The exercise prices of options granted are at least equal to the fair market value of our common stock on the dates of grant and options vest and become exercisable in annual increments that range from

one

four

years from the date of grant. Stock options granted under the

2005

Plan have a maximum contractual term of

ten

years. In the

first

six

months of fiscal

2019

we did

not

grant any stock options and we issued

14,650

shares of our common stock on the exercise of options that were granted previously.

June 29, 2019,

we had

390,276

stock options exercisable and outstanding. These options had a weighted-average exercise price of

$10.29

per share, an aggregate intrinsic value of approximately

$2.0

million and the weighted average remaining contractual term was approximately

3.2

years.

Restricted Stock Units

We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from

one

four

years from the date of grant. Prior to vesting, RSUs do

not

have dividend equivalent rights, do

not

have voting rights and the shares underlying the RSUs are

not

considered issued and outstanding. New shares of our common stock will be issued on the date the RSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding at

June 29, 2019.

In the

first

six

months of fiscal

2019

we awarded

661,621

RSUs and we issued

359,367

shares of our common stock on vesting of previously granted awards. At

June 29, 2019,

we had

1,539,067

RSUs outstanding with an aggregate intrinsic value of approximately

$23.9

million and the weighted average remaining vesting period was approximately

1.5

years.

Performance Stock Units

We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted in

2019,

2018

and

2017

ranges from

25%

200%

of the number granted and is determined based on certain performance criteria over a

three

-year measurement period. The performance criteria for the PSUs are based on a combination of our annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of our TSR compared with the annualized TSR of certain peer companies for the performance period. PSUs granted in

2019,

2018

and

2017

vest

100%

on the

third

anniversary of their grant.

We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number outstanding at

June 29, 2019.

In the

first

six

months of fiscal

2019,

we awarded

167,226

PSUs and we issued

34,292

shares of our common stock on vesting of previously granted awards. At

June 29, 2019,

we had

369,811

PSUs outstanding with an aggregate intrinsic value of approximately

$5.7

million and the weighted average remaining vesting period was approximately

1.9

years.

Employee Stock Purchase Plan

The Cohu, Inc.

1997

Employee Stock Purchase Plan (“the ESPP”) provides for the issuance of shares of our common stock. Under the ESPP, eligible employees

may

purchase shares of Cohu common stock through payroll deductions at a price equal to

percent of the lower of the fair market value of Cohu common stock at the beginning or end of each

-month purchase period, subject to certain limits. During the

first

six

months of fiscal

2019,

63,998

shares of our common stock were sold to our employees under the ESPP leaving

1,034,612

shares available for future issuance. On

May 8, 2019,

our stockholders approved an amendment to the ESPP which increased the number of ESPP shares that

may

be issued by

500,000.

Note 7 - Income Taxes

6 Months Ended

Jun. 29, 2019

Income Tax Disclosure [Text Block]

7.	Income Taxes

Ordinarily, interim tax provisions are calculated using the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year. However, when a reliable estimate of the annual ETR cannot be made, the actual ETR for the year-to-date period

may

be the best estimate of the annual ETR. For the

three

and

six

months ended

June 29, 2019,

we used the actual year-to-date ETR in computing our tax provision, as a reliable estimate of the

2019

annual ETR cannot be made, since relatively small changes in our projected income produce a significant variation in our ETR. In computing the tax provision for the

three

and

six

months ended

June 30, 2018,

we used the ETR expected to be applicable for the full fiscal year. The ETR on income or loss from continuing operations for the

three

months ended

June 29, 2019

and

June 30, 2018

was

4.5%

and

17.5%,

respectively, and

2.6%

and

18.9%

for the

six

months ended

June 29, 2019

and

June 30, 2018,

respectively. The tax provision on income or loss from continuing operations in

2019

and

2018

differs from the U.S. federal statutory rate primarily due to the lack of a tax benefit on our domestic losses as a result of our valuation allowance on deferred tax assets, foreign income taxed at different rates, changes in our deferred tax asset valuation allowance, state taxes and interest related to unrecognized tax benefits.

Our German subsidiary's income tax returns for

2012

2016

are currently under routine examination by tax authorities in Germany. We believe our financial statement accruals for income taxes are appropriate.

There was

material change to our unrecognized tax benefits and related accrued interest and penalties during the

three

and

six

-month periods ended

June 29, 2019

and

June 30, 2018.

Note 8 - Segment and Geographic Information

6 Months Ended

Jun. 29, 2019

Segment Reporting Disclosure [Text Block]

8.	Segment and Geographic Information

We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”

October 1, 2018,

we have determined that our

four

identified operating segments are: Test Handler Group (THG), Semiconductor Test Group (STG), Interface Solutions Group (ISG) and PCB Test Group (PTG). Our THG, STG and ISG operating segments qualify for aggregation under ASC

280

due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in

two

segments, Semiconductor Test & Inspection and PCB Test. The summary below presents our current segments, Semiconductor Test & Inspection and PCB Test, for the

three

months ended

June 29, 2019

and

June 30, 2018.

Prior to the acquisition of Xcerra on

October 1, 2018,

historical amounts of Cohu’s semiconductor equipment segment would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.

Financial information by reportable segment is as follows

(in thousands)

	Three Months Ended						Six Months Ended
	June 29,			June 30,			June 29,			June 30,
Net sales by segment:	2019			2018			2019			2018
Semiconductor Test & Inspection	$	137,578		$	99,817		$	274,272		$	194,967
PCB Test		12,433			-			23,548			-
Total consolidated net sales for reportable segments	$	150,011		$	99,817		$	297,820		$	194,967

Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	(14,400	)	$	18,997		$	(29,444	)	$	31,132
PCB Test		740			-			1,759			-
Profit (loss) for reportable segments		(13,660	)		18,997			(27,685	)		31,132

Other unallocated amounts:
Corporate expenses		(1,548	)		(5,199	)		(5,289	)		(7,321	)
Interest expense		(5,282	)		(11	)		(10,789	)		(22	)
Interest income		191			329			413			576
Income (loss) from continuing operations before taxes	$	(20,299	)	$	14,116		$	(43,350	)	$	24,365

The following table summarizes our total assets by reportable business segment

(in thousands)

	June 29,		December 29,
	2019		2018
Semiconductor Test & Inspection	$	1,021,348	$	1,038,053
PCB Test		62,031		57,762
Total assets for reportable segments		1,083,379		1,095,815
Corporate, principally cash and investments		15,960		34,367
Discontinued operations		4,165		3,820
Total consolidated assets	$	1,103,504	$	1,134,002

For revenues by geography and information on customer concentration, see Note

“Summary of Significant Accounting Policies”.

Note 9 - Leases

6 Months Ended

Jun. 29, 2019

Lessee, Leases [Text Block]

Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms with

months or less are

not

recorded on the condensed consolidated balance sheet, but we recognized those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. Lease and non-lease components are included in the calculation of the ROU asset and lease liabilities.

Our leases have remaining lease terms of

year to

years, some of which include

one

or more options to extend the leases for up to

years. Our lease term includes renewal terms when we are reasonably certain we will exercise the renewal options.

We sublease certain leased assets to

third

parties, mainly as a result of unused space in our facilities. Supplemental balance sheet information related to leases was as follows:

(in thousands)	Classification	June 29, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	35,224
Finance lease assets	Property, plant and equipment, net (1)		2,604
Total lease assets		$	37,828
Liabilities
Current
Operating	Other accrued liabilities	$	4,958
Finance	Other accrued liabilities		35
Noncurrent
Operating	Long-term lease liabilities		30,168
Finance	Long-term lease liabilities		2,605
Total lease liabilities		$	37,766

Weighted-average remaining lease term (years)
Operating leases			8.2
Finance leases			1.0

Weighted-average discount rate
Operating leases			6.1	%
Finance leases			4.5	%

(

)

Finance lease assets are recorded net of accumulated amortization of

$0.1

million.

The components of lease expense were as follows:

	Three Months Ended			Six Months Ended
(in thousands)	June 29, 2019			June 29, 2019
Operating leases	$	2,139		$	4,261
Variable leases		635			1,201
Short-term operating leases		66			144
Finance leases
Amortization of leased assets		21			62
Interest on lease liabilities		29			88
Sublease income		(34	)		(70	)
Net lease cost	$	2,856		$	5,686

Future minimum lease payments at

June 29, 2019,

are as follows:

	Operating			Finance
(in thousands)	leases (1)			leases			Total
2019	$	3,079		$	76		$	3,155
2020		6,825			2,682			9,507
2021		5,631			-			5,631
2022		5,374			-			5,374
2023		4,940			-			4,940
Thereafter		21,037			-			21,037
Total lease payments		46,886			2,758			49,644
Less: Interest		(11,760	)		(118	)		(11,878	)
Present value of lease liabilities	$	35,126		$	2,640		$	37,766

(

)

Excludes sublease income of

$0.1

million in both

2019

and

2020.

Supplemental cash flow information related to leases was as follows:

	Six Months Ended
(in thousands)	June 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,628
Operating cash flows from finance leases	$	73
Financing cash flows from finance leases	$	17
Leased assets obtained in exchange for new operating lease liabilities	$	38,487

Note 10 - Discontinued Operations

6 Months Ended

Jun. 29, 2019

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

10.	Discontinued Operations

October 1, 2018,

we acquired a fixtures services business as part of Xcerra. In the

fourth

quarter of

2018,

our management determined that this business did

not

align with our core business and was

not

a strategic fit within our organization. As a result, the fixtures services business has been marketed for sale since we acquired Xcerra on

October 1, 2018.

We expect to complete the sale of this business within

months and it qualifies to be reported as discontinued operations. For financial statement purposes, the results of operations for this business have been segregated from those of continuing operations and are presented in our consolidated financial statements as discontinued operations.

Balance sheet information for our fixtures services business presented as discontinued operations is summarized as follows

(in thousands)

	June 29,		December 29,
	2019		2018
Assets:
Cash and cash equivalents	$	750	$	461
Accounts receivable, net		1,856		1,718
Inventories		1,432		1,388
Other current assets		62		174
Total current assets		4,100		3,741
Property, plant and equipment, net		52		66
Other noncurrent assets		13		13
Total assets	$	4,165	$	3,820

Liabilities:
Other accrued current liabilities	$	624	$	518
Total current liabilities		624		518
Noncurrent liabilities		-		-
Total liabilities	$	624	$	518

Operating results of our discontinued segment are summarized as follows

(in thousands)

	Three Months Ended		Six Months Ended
	June 29, 2019		June 29, 2019

Net sales	$	1,708	$	3,300

Operating income before income taxes	$	38	$	227
Income tax provision		14		39
Income, net of tax	$	24	$	188

Note 11 - Contingencies

6 Months Ended

Jun. 29, 2019

Contingencies Disclosure [Text Block]

11.	Contingencies

From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our business. The outcome of any litigation is inherently uncertain. While there can be

assurance, we do

not

believe at the present time that the resolution of these matters will have a material adverse effect on our assets, financial position or results of operations.

Note 12 - Guarantees

6 Months Ended

Jun. 29, 2019

Commitments Contingencies and Guarantees [Text Block]

12.	Guarantees

Product Warranty

Our products are generally sold with warranty periods that range from

months following sale or acceptance. The product warranty promises customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC

460,

and

not

as a separate performance obligation. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical and projected experience by product and configuration.

Changes in accrued warranty were as follows (

in thousands

	Three Months Ended						Six Months Ended
	June 29,			June 30,			June 29,			June 30,
	2019			2018			2019			2018
Balance at beginning of period	$	7,088		$	4,916		$	8,014		$	4,848
Warranty expense accruals		1,830			1,806			3,558			3,388
Warranty payments		(2,066	)		(1,774	)		(4,720	)		(3,288	)
Balance at end of period	$	6,852		$	4,948		$	6,852		$	4,948

Accrued warranty amounts expected to be incurred after

one

year are included in noncurrent other accrued liabilities in the condensed consolidated balance sheet. These amounts total

$0.2

million at both

June 29, 2019

and

December 29, 2018.

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 29, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

The condensed consolidated balance sheet at

December 29, 2018,

has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of

June 29, 2019, (

also referred to as “the

second

quarter of fiscal

2019”

and “the

first

six

months of fiscal

2019”

) and

June 30, 2018, (

also referred to as “the

second

quarter of fiscal

2018”

and “the

first

six

months of fiscal

2018”

three

- and

six

-month periods ended

June 29, 2019,

were comprised of

and

weeks, respectively. The

three

- and

six

-month periods ended

June 30, 2018,

were comprised of

and

weeks, respectively.

Our interim results are

not

December 29, 2018,

which are included in our

2018

Annual Report on Form

80%

equity interest that is

not

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

Principles of Consolidation for Variable Interest Entities

We follow ASC Topic

810

guidance with respect to accounting for VIEs. These entities do

not

As of

June 29, 2019

and

December 29, 2018,

we consolidated

one

805,

Business Combinations

("ASC

805"

). The assets and liabilities and revenues and expenses of this VIE are included in our condensed consolidated financial statements. As of

June 29, 2019

and

December 29, 2018,

the assets and liabilities of ALBS set are immaterial to Cohu and, therefore,

not

shown separately on our condensed consolidated balance sheets. The

third

Reclassification, Policy [Policy Text Block]

Reclassifications

●

Gains and losses associated with foreign currency translation and remeasurement were included within SG&A. These amounts are now presented as “Foreign transaction gain (loss) and other”.

A summary of the reclassifications described above and the impact on our condensed consolidated statements of operations is as follows:

Three Months Ended June 30, 2018	As Presented		Amortization of Purchased Intangibles			Foreign Transaction Gains and Losses		As Adjusted
Cost of sales	$	58,316		(639	)		-	$	57,677
SG&A expense	$	16,652		(380	)		3,031	$	19,303

Six Months Ended June 30, 2018	As Presented		Amortization of Purchased Intangibles			Foreign Transaction Gains and Losses		As Adjusted
Cost of sales	$	113,915		(1,315	)		-	$	112,600
SG&A expense	$	34,415		(778	)		1,452	$	35,089

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

one

issuer.

Trade accounts receivable are presented net of allowance for doubtful accounts of

$0.3

million at both

June 29, 2019

and

December 29, 2018.

June 29, 2019,

we will continue to monitor customer liquidity and other economic conditions, which

may

result in changes to our estimates regarding collectability.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost, determined on a

first

-in,

first

Inventories by category were as follows (

in thousands

	June 29,		December 29,
	2019		2018
Raw materials and purchased parts	$	68,125	$	60,112
Work in process		52,769		57,953
Finished goods		16,335		21,249
Total inventories	$	137,229	$	139,314

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Plant and Equipment

Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of

thirty

forty

years for buildings,

five

fifteen

years for building improvements and

three

ten

years for machinery, equipment and software. Land is

not

depreciated.

Property, plant and equipment, at cost, consisted of the following

(in thousands)

	June 29,			December 29,
	2019			2018
Land and land improvements	$	12,182		$	11,905
Buildings and building improvements		39,243			37,265
Machinery and equipment		65,370			64,791
		116,795			113,961
Less accumulated depreciation and amortization		(45,019	)		(39,629	)
Property, plant and equipment, net	$	71,776		$	74,332

Segment Reporting, Policy [Policy Text Block]

Segment Information

We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”

October 1, 2018,

we have determined that our

four

280

due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in

two

segments, Semiconductor Test and Inspection Equipment (“Semiconductor Test & Inspection”) and PCB Test Equipment (“PCB Test”).

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill, Other Intangible Assets and

Long-lived Assets

We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value

may

not

be recoverable. We test goodwill for impairment by

first

comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a

second

We conduct our annual impairment test as of

October

1st

of each year, and have determined there was

impairment as of

October

2018

as we determined that the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances

may

also require goodwill to be tested for impairment between annual measurement dates. As of

June 29, 2019,

we do

not

believe that circumstances have occurred that indicate impairment of our goodwill is more-likely-than-

not.

In the event we determine that an interim goodwill impairment review is required in a future period, the review

may

result in an impairment charge, which would have a negative impact on our results of operations.

We evaluate our indefinite-lived intangible assets associated with in-process research and development by comparing the fair value of each project with its carrying value.

Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might

not

may

not

be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is

not

recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value.

Standard Product Warranty, Policy [Policy Text Block]

Product Warranty

Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from

- to

Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block]

Restructuring Costs

We record restructuring activities including costs for

one

-time termination benefits in accordance with ASC Topic

420

(“ASC

420”

Exit or Disposal Cost Obligations.

The timing of recognition for severance costs accounted for under ASC

420

712,

Nonretirement Postemployment Benefits.

These costs are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable.

Debt, Policy [Policy Text Block]

Debt Issuance Costs

$0.3

million and

$0.5

million for the

three

and

six

months ended

June 29, 2019.

We obtained the Term B Loan on

October 1, 2018,

so there were

debt issuance costs amortized during the

three

and

six

months ended

June 30, 2018.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Remeasurement and Currency Translation

three

and

six

months ended

June 29, 2019,

we recognized foreign exchange losses of

$0.5

million and

$0.3

million, respectively, in our condensed consolidated statements of operations. During the

three

and

six

months ended

June 30, 2018,

we recognized foreign exchange gains of

$3.0

million and

$1.5

Share-based Payment Arrangement [Policy Text Block]

Share-Based Compensation

Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows

(in thousands)

	Three Months Ended						Six Months Ended
	June 29,			June 30,			June 29,			June 30,
	2019			2018			2019			2018
Cost of sales	$	208		$	162		$	333		$	283
Research and development		776			395			1,414			744
Selling, general and administrative		2,678			1,391			5,608			2,590
Total share-based compensation		3,662			1,948			7,355			3,617
Income tax benefit		(79	)		(126	)		(359	)		(440	)
Total share-based compensation, net	$	3,583		$	1,822		$	6,996		$	3,177

Income Tax, Policy [Policy Text Block]

Income (Loss) Per Share

three

and

six

months ended

June 29, 2019,

stock options and awards to issue approximately

610,000

and

502,000

shares of common stock were excluded from the computation, respectively. For the

three

and

six

months ended

June 30, 2018,

stock options and awards to issue approximately

3,000

and

19,000

shares of common stock were excluded from the computation, respectively.

The following table reconciles the denominators used in computing basic and diluted income (loss) per share (

in thousands)

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
Weighted average common shares		41,125		28,893		40,999		28,747
Effect of dilutive securities		-		758		-		844
		41,125		29,651		40,999		29,591

Lessee, Leases [Policy Text Block]

Leases

We adopted

ASU

2016

02,

Leases (Topic

842

)

, as of

December 30, 2018.

not

may

Leases with an initial term of

months or less are

not

We sublease certain leased assets to

third

parties, mainly as a result of unused space in our facilities.

None

Revenue [Policy Text Block]

Revenue Recognition

not

transferred until destination or acceptance, we defer revenue recognition until such events occur.

not

may

Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At

June 29, 2019,

we have

$13.5

million of revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) for contracts with original expected durations of over

one

year. As allowed under ASC

606,

we have opted to

not

disclose unsatisfied performance obligations for contracts with original expected durations of less than

one

year.

460,

Guarantees

(ASC

460

), and

not

as a separate performance obligation.

The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and

may

not

occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration that does

not

meet revenue recognition criteria is deferred.

Our contracts are typically less than

one

year in duration and we have elected to use the practical expedient available in ASC

606

to expense cost to obtain contracts as they are incurred because they would be amortized over less than

one

year.

Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do

not

exceed

one

year from the invoice date and therefore do

not

include a significant financing component. To date, there have been

material impairment losses on accounts receivable. There were

material contract assets or contract liabilities recorded on the condensed consolidated balance sheet in any of the periods presented.

On shipments where sales are

not

recognized, gross profit is generally recorded as deferred profit in our condensed consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. At

June 29, 2019,

we had deferred revenue totaling approximately

$16.7

million, current deferred profit of

$8.2

million and deferred profit expected to be recognized after

one

year included in noncurrent other accrued liabilities of

$4.3

million. At

December 29, 2018,

we had deferred revenue totaling approximately

$10.8

million, current deferred profit of

$6.9

million and deferred profit expected to be recognized after

one

year included in noncurrent other accrued liabilities of

$2.0

million.

Net sales of our reportable segments, by type, are as follows

(in thousands):

	Three Months Ended				Six Months Ended
Net Sales (1)	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
Systems:
Semiconductor Test & Inspection	$	76,155	$	55,663	$	156,095	$	110,568
PCB Test		8,407		N/A		15,379		N/A
Non-systems:
Semiconductor Test & Inspection		61,424		44,154		118,177		84,399
PCB Test		4,025		N/A		8,169		N/A
Total net sales	$	150,011	$	99,817	$	297,820	$	194,967

(

)

After the acquisition of Xcerra on

October 1, 2018

we report in

two

Revenue by geographic area based upon product shipment destination

(

in thousands

	Three Months Ended				Six Months Ended
Net Sales	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
China	$	32,738	$	19,140	$	56,289	$	39,383
United States		19,408		15,662		36,509		30,140
Malaysia		16,993		13,048		34,707		24,857
Taiwan		17,202		2,905		32,172		5,846
Philippines		11,395		9,916		25,936		20,462
Rest of the World		52,275		39,146		112,207		74,279
Total net sales	$	150,011	$	99,817	$	297,820	$	194,967

A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows:

Three Months Ended

Six Months Ended

June 29,

June 30,

June 29,

June 30,

2019

2018

2019

2018

Semiconductor Test & Inspection

(1)

Customers individually accounting for more than 10% of net sales

one

Percentage of net sales

PCB Test

Customers individually accounting for more than 10% of net sales

N/A

Percentage of net sales

N/A

single customer represented more than

10%

of consolidated net sales.

(

)

After the acquisition of Xcerra on

October 1, 2018

we report in

two

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately

$27.0

million and

$25.9

million at

June 29, 2019

and

December 29, 2018,

not

the U.S. Dollar and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss during the

first

six

months of fiscal

2019

and

2018

were

not

significant.

Pension and Other Postretirement Plans, Policy [Policy Text Block]

Retiree Medical Benefits

We provide post-retirement health benefits to certain retired executives,

one

director (who is a former executive) and their eligible dependents under a noncontributory plan. These benefits are

longer offered to any other retired Cohu employees. The net periodic benefit cost incurred during the

first

six

months of fiscal

2019

and

2018

was

not

significant.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

Management has determined that the fixtures services business, that was acquired as part of Xcerra, does

not

December 29, 2018.

See Note

10,

“Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

We adopted

ASU

2016

02,

Leases (Topic

842

)

, as of

December 30, 2018,

We made an accounting policy election to

not

record ROU assets and lease liabilities for leases with an initial term of

not

Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately

$30.7

million and

$29.9

million, respectively, as of

December 30, 2018.

We had previously recorded a sale and operating leaseback transaction in accordance with Topic

840

and as a result of the adoption of the new standard, recognized

$10.2

million of deferred gain as an adjustment to retained earnings. In addition, we had previously recognized assets and liabilities related to a build-to-suit designation under Topic

840

and as a result of the adoption of the new standard, derecognized assets and liabilities of

$0.5

million and

$0.6

million, respectively, with the difference recorded as an adjustment to retained earnings. The standard did

not

materially impact our consolidated net earnings and had

impact on cash flows.

Recently Issued Accounting Pronouncements

August 2018,

the FASB issued ASU

2018

14,

Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans

, which improves defined benefit disclosure requirements by removing disclosures that are

not

cost beneficial, clarifying disclosures’ specific requirements and adding relevant disclosure requirements. This ASU is effective for fiscal years ending after

December 15, 2020

and early adoption is permitted. The amendments in this ASU are required to be applied on a retrospective basis to all periods presented. We are currently assessing and have

not

yet determined the impact that the adoption of ASU

2018

will have on the consolidated financial statements.

August 2018,

the FASB issued ASU

2018

13,

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement

, which improves fair value disclosure requirements by removing disclosures that are

not

December 15, 2019.

The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level

not

yet determined the impact that the adoption of ASU

2018

will have on the consolidated financial statements.

Note 1 - Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 29, 2019

Reclassification of Amounts on Income Statement [Table Text Block]

Three Months Ended June 30, 2018	As Presented		Amortization of Purchased Intangibles			Foreign Transaction Gains and Losses		As Adjusted
Cost of sales	$	58,316		(639	)		-	$	57,677
SG&A expense	$	16,652		(380	)		3,031	$	19,303

Six Months Ended June 30, 2018	As Presented		Amortization of Purchased Intangibles			Foreign Transaction Gains and Losses		As Adjusted
Cost of sales	$	113,915		(1,315	)		-	$	112,600
SG&A expense	$	34,415		(778	)		1,452	$	35,089

Schedule of Inventory, Current [Table Text Block]

	June 29,		December 29,
	2019		2018
Raw materials and purchased parts	$	68,125	$	60,112
Work in process		52,769		57,953
Finished goods		16,335		21,249
Total inventories	$	137,229	$	139,314

Property, Plant and Equipment [Table Text Block]

	June 29,			December 29,
	2019			2018
Land and land improvements	$	12,182		$	11,905
Buildings and building improvements		39,243			37,265
Machinery and equipment		65,370			64,791
		116,795			113,961
Less accumulated depreciation and amortization		(45,019	)		(39,629	)
Property, plant and equipment, net	$	71,776		$	74,332

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended						Six Months Ended
	June 29,			June 30,			June 29,			June 30,
	2019			2018			2019			2018
Cost of sales	$	208		$	162		$	333		$	283
Research and development		776			395			1,414			744
Selling, general and administrative		2,678			1,391			5,608			2,590
Total share-based compensation		3,662			1,948			7,355			3,617
Income tax benefit		(79	)		(126	)		(359	)		(440	)
Total share-based compensation, net	$	3,583		$	1,822		$	6,996		$	3,177

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
Weighted average common shares		41,125		28,893		40,999		28,747
Effect of dilutive securities		-		758		-		844
		41,125		29,651		40,999		29,591

Disaggregation of Revenue [Table Text Block]

	Three Months Ended				Six Months Ended
Net Sales (1)	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
Systems:
Semiconductor Test & Inspection	$	76,155	$	55,663	$	156,095	$	110,568
PCB Test		8,407		N/A		15,379		N/A
Non-systems:
Semiconductor Test & Inspection		61,424		44,154		118,177		84,399
PCB Test		4,025		N/A		8,169		N/A
Total net sales	$	150,011	$	99,817	$	297,820	$	194,967

	Three Months Ended				Six Months Ended
Net Sales	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
China	$	32,738	$	19,140	$	56,289	$	39,383
United States		19,408		15,662		36,509		30,140
Malaysia		16,993		13,048		34,707		24,857
Taiwan		17,202		2,905		32,172		5,846
Philippines		11,395		9,916		25,936		20,462
Rest of the World		52,275		39,146		112,207		74,279
Total net sales	$	150,011	$	99,817	$	297,820	$	194,967

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Three Months Ended

Six Months Ended

June 29,

June 30,

June 29,

June 30,

2019

2018

2019

2018

Semiconductor Test & Inspection

(1)

Customers individually accounting for more than 10% of net sales

one

Percentage of net sales

PCB Test

Customers individually accounting for more than 10% of net sales

N/A

Percentage of net sales

N/A

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Tables)

6 Months Ended

Jun. 29, 2019

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

	Estimated Fair Value		Weighted Average Useful Life (years)
Developed technology	$	194,600	7.8
Customer relationships		65,890	10.6
In-process technology		36,360	indefinite
Product backlog		6,410	0.8
Trade names		16,800	11.0
Favorable leases		1,100	5.5
Total intangible assets	$	321,160

	June 29, 2019					December 29, 2018
					Remaining
					Weighted
	Gross				Average	Gross
	Carrying		Accum.		Amort.	Carrying		Accum.
	Amount		Amort.		Period (years)	Amount		Amort.
Developed technology	$	216,620	$	35,347	6.9	$	214,266	$	21,197
Customer relationships		73,226		11,202	9.7		73,104		7,378
Trade names		22,775		2,872	10.0		22,701		1,807
Backlog		6,371		6,142	0.1		6,372		4,696
Favorable leases		-		-	4.9		1,100		62
Covenant not-to-compete		327		82	7.5		314		63
Total intangible assets	$	319,319	$	55,645		$	317,857	$	35,203

Schedule of Goodwill [Table Text Block]

	Semiconductor Test
	& Inspection (1)			PCB Test			Total
Balance, December 30, 2017	$	65,613		$	-		$	65,613
Additions, net		157,661			21,602			179,263
Impact of currency exchange		(2,466	)		(283	)		(2,749	)
Balance, December 29, 2018		220,808			21,319			242,127
Adjustments (2)		1,681			(983	)		698
Impact of currency exchange		(1,377	)		18			(1,359	)
Balance, June 29, 2019	$	221,112		$	20,354		$	241,466

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Current assets, including cash received	$	375,990
Property, plant and equipment		40,729
Other assets *		1,051
Intangible assets		321,160
Goodwill *		179,961
Total assets acquired		918,891
Liabilities assumed *		(124,461	)
Net assets acquired	$	794,430

Note 4 - Restructuring Charges (Tables)

6 Months Ended

Jun. 29, 2019

Restructuring and Related Costs [Table Text Block]

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 29, 2018	$	4,026		$	-		$	4,026
Costs accrued		9,412			494			9,906
Amounts paid or charged		(5,290	)		(494	)		(5,784	)
Impact of currency exchange		26			-			26
Balance, June 29, 2019	$	8,174		$	-		$	8,174

Note 5 - Financial Instruments Measured at Fair Value (Tables)

6 Months Ended

Jun. 29, 2019

Available-for-sale Securities [Table Text Block]

June 29, 2019

Gross

Estimated

Amortized

Unrealized

Fair

Cost

Gains

Losses

(1)

Value

Foreign government security

581

December 29, 2018

Gross

Estimated

Amortized

Unrealized

Fair

Cost

Gains

Losses

(1)

Value

Foreign government security

560

Investments Classified by Contractual Maturity Date [Table Text Block]

	June 29, 2019				December 29, 2018
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due after one year through three years	$	581	$	581	$	560	$	560

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Fair value measurements at June 29, 2019 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	130,051	$	-	$	-	$	130,051
Money market funds		-		12,963		-		12,963
Foreign government security		-		581		-		581
	$	130,051	$	13,544	$	-	$	143,595

	Fair value measurements at December 29, 2018 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	144,696	$	-	$	-	$	144,696
Money market funds		-		19,764		-		19,764
Foreign government security		-		560		-		560
	$	144,696	$	20,324	$	-	$	165,020

Note 8 - Segment and Geographic Information (Tables)

6 Months Ended

Jun. 29, 2019

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended						Six Months Ended
	June 29,			June 30,			June 29,			June 30,
Net sales by segment:	2019			2018			2019			2018
Semiconductor Test & Inspection	$	137,578		$	99,817		$	274,272		$	194,967
PCB Test		12,433			-			23,548			-
Total consolidated net sales for reportable segments	$	150,011		$	99,817		$	297,820		$	194,967

Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	(14,400	)	$	18,997		$	(29,444	)	$	31,132
PCB Test		740			-			1,759			-
Profit (loss) for reportable segments		(13,660	)		18,997			(27,685	)		31,132

Other unallocated amounts:
Corporate expenses		(1,548	)		(5,199	)		(5,289	)		(7,321	)
Interest expense		(5,282	)		(11	)		(10,789	)		(22	)
Interest income		191			329			413			576
Income (loss) from continuing operations before taxes	$	(20,299	)	$	14,116		$	(43,350	)	$	24,365

	June 29,		December 29,
	2019		2018
Semiconductor Test & Inspection	$	1,021,348	$	1,038,053
PCB Test		62,031		57,762
Total assets for reportable segments		1,083,379		1,095,815
Corporate, principally cash and investments		15,960		34,367
Discontinued operations		4,165		3,820
Total consolidated assets	$	1,103,504	$	1,134,002

Note 9 - Leases (Tables)

6 Months Ended

Jun. 29, 2019

Leases, Balance Sheet Information [Table Text Block]

(in thousands)	Classification	June 29, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	35,224
Finance lease assets	Property, plant and equipment, net (1)		2,604
Total lease assets		$	37,828
Liabilities
Current
Operating	Other accrued liabilities	$	4,958
Finance	Other accrued liabilities		35
Noncurrent
Operating	Long-term lease liabilities		30,168
Finance	Long-term lease liabilities		2,605
Total lease liabilities		$	37,766

Weighted-average remaining lease term (years)
Operating leases			8.2
Finance leases			1.0

Weighted-average discount rate
Operating leases			6.1	%
Finance leases			4.5	%

Lease, Cost [Table Text Block]

	Three Months Ended			Six Months Ended
(in thousands)	June 29, 2019			June 29, 2019
Operating leases	$	2,139		$	4,261
Variable leases		635			1,201
Short-term operating leases		66			144
Finance leases
Amortization of leased assets		21			62
Interest on lease liabilities		29			88
Sublease income		(34	)		(70	)
Net lease cost	$	2,856		$	5,686

Lessee, Lease, Liability, Maturity [Table Text Block]

	Operating			Finance
(in thousands)	leases (1)			leases			Total
2019	$	3,079		$	76		$	3,155
2020		6,825			2,682			9,507
2021		5,631			-			5,631
2022		5,374			-			5,374
2023		4,940			-			4,940
Thereafter		21,037			-			21,037
Total lease payments		46,886			2,758			49,644
Less: Interest		(11,760	)		(118	)		(11,878	)
Present value of lease liabilities	$	35,126		$	2,640		$	37,766

Lease, Cash Flow Information [Table Text Block]

	Six Months Ended
(in thousands)	June 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,628
Operating cash flows from finance leases	$	73
Financing cash flows from finance leases	$	17
Leased assets obtained in exchange for new operating lease liabilities	$	38,487

Note 10 - Discontinued Operations (Tables)

6 Months Ended

Jun. 29, 2019

Disposal Groups, Including Discontinued Operations [Table Text Block]

	June 29,		December 29,
	2019		2018
Assets:
Cash and cash equivalents	$	750	$	461
Accounts receivable, net		1,856		1,718
Inventories		1,432		1,388
Other current assets		62		174
Total current assets		4,100		3,741
Property, plant and equipment, net		52		66
Other noncurrent assets		13		13
Total assets	$	4,165	$	3,820

Liabilities:
Other accrued current liabilities	$	624	$	518
Total current liabilities		624		518
Noncurrent liabilities		-		-
Total liabilities	$	624	$	518

	Three Months Ended		Six Months Ended
	June 29, 2019		June 29, 2019

Net sales	$	1,708	$	3,300

Operating income before income taxes	$	38	$	227
Income tax provision		14		39
Income, net of tax	$	24	$	188

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 205
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Note 1 - Summary of Significant Accounting Policies (Details Textual)

3 Months Ended

6 Months Ended

Dec. 30, 2018

USD ($)

Oct. 01, 2018

USD ($)

Jun. 29, 2019

USD ($)

Jun. 30, 2018

USD ($)

Jun. 29, 2019

USD ($)

Jun. 30, 2018

USD ($)

Dec. 29, 2018

USD ($)

Number of VIEs Consolidated

Accounts Receivable, Allowance for Credit Loss, Current

$ 300,000

$ 0.30

Number of Operating Segments

Number of Reportable Segments

Goodwill and Intangible Asset Impairment, Total

$ 0

Amortization of Debt Issuance Costs and Discounts, Total

300,000

$ 0

$ 546,000

$ 0

Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax

$ 500,000

$ 3,000,000

$ 300,000

$ 1,500,000

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares

610,000

3,000

502,000

19,000

Revenue, Remaining Performance Obligation, Amount

$ 13,500,000

Accounts Receivable, Credit Loss Expense (Reversal)

Contract with Customer, Liability, Total

Contract with Customer, Liability, Current

16,700,000

10,800,000

Deferred Profit

8,163,000

6,896,000

Accumulated Other Comprehensive Income (Loss), Net of Tax, Total

(27,019,000)

(25,880,000)

Assets, Total

1,103,504,000

1,134,002,000

^[1]

Accounting Standards Update 2016-02 [Member]

Lease Assets

$ 30,700,000

Lease Liabilities

29,900,000

Cumulative Effect on Retained Earnings, Net of Tax, Total

10,200,000

Assets, Total

(500,000)

Liabilities, Total

$ (600,000)

Non-current Other Accrued Liabilities [Member]

Deferred Profit Recognized After Year One

$ 4,300,000

$ 2,000,000

Minimum [Member]

Standard Product Warranty Term

1 year

Maximum [Member]

Standard Product Warranty Term

3 years

Building [Member] | Minimum [Member]

Building [Member] | Maximum [Member]

30 years

Building Improvements [Member] | Minimum [Member]

40 years

Building Improvements [Member] | Maximum [Member]

5 years

Machinery, Equipment and Software [Member] | Minimum [Member]

15 years

Machinery, Equipment and Software [Member] | Maximum [Member]

3 years

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

10 years

ALBS [Member]

80.00%

Variable Interest Entity, Consolidated, Assets, Pledged, Total

$ 0

[1]	Derived from December 29, 2018 audited financial statements

Note 1 - Summary of Significant Accounting Policies - Reclassification (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 29, 2019

Jun. 30, 2018

Jun. 29, 2019

Jun. 30, 2018

^[1]

$ 87,605

$ 57,677

$ 180,999

$ 112,600

Previously Reported [Member]

$ 36,428

19,303

$ 74,714

35,089

58,316

113,915

Restatement Adjustment [Member] | Amortization of Purchased Intangibles [Member]

16,652

34,415

(639)

(1,315)

Restatement Adjustment [Member] | Foreign Transaction Gains and (Losses) [Member]

(380)

(778)

Raw materials and purchased parts

$ 3,031

$ 1,452

[1]	Excludes amortization of $7,625 and $639 for the three months ended June 29, 2019, and June 30, 2018, respectively, and $15,266 and $1,315 for the six months ended June 29, 2019, and June 30, 2018, respectively.

Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($)
$ in Thousands

Jun. 29, 2019

Dec. 29, 2018

$ 68,125

$ 60,112

Work in process

52,769

57,953

Finished goods

16,335

21,249

Total inventories

$ 137,229

$ 139,314

^[1]

[1]	Derived from December 29, 2018 audited financial statements

Note 1 - Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($)
$ in Thousands

Jun. 29, 2019

Dec. 29, 2018

Less accumulated depreciation and amortization

$ 116,795

$ 113,961

(45,019)

(39,629)

Property, plant and equipment, net

71,776

74,332

^[1]

Land and Land Improvements [Member]

Building and Building Improvements [Member]

12,182

11,905

Machinery and Equipment [Member]

39,243

37,265

$ 65,370

$ 64,791

[1]	Derived from December 29, 2018 audited financial statements

Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Allocated share-based compensation	$ 3,662	$ 1,948	$ 7,355	$ 3,617
Income tax benefit	(79)	(126)	(359)	(440)
Total share-based compensation, net	3,583	1,822	6,996	3,177
Cost of Sales [Member]
Allocated share-based compensation	208	162	333	283
Research and Development Expense [Member]
Allocated share-based compensation	776	395	1,414	744
Selling, General and Administrative Expenses [Member]
Allocated share-based compensation	$ 2,678	$ 1,391	$ 5,608	$ 2,590

Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Weighted average common shares (in shares)	41,125	28,893	40,999	28,747
Effect of dilutive securities (in shares)		758		844
(in shares)	41,125	29,651	40,999	29,591

Note 1 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 29, 2019

Jun. 30, 2018

Jun. 29, 2019

Jun. 30, 2018

^[1]

$ 150,011

$ 99,817

$ 297,820

$ 194,967

137,578

99,817

274,272

194,967

Systems [Member] | Semiconductor Test and Inspection [Member]

12,433

23,548

Systems [Member] | PCB Test [Member]

^[1]

76,155

55,663

156,095

110,568

Non-systems [Member] | Semiconductor Test and Inspection [Member]

^[1]

8,407

15,379

Non-systems [Member] | PCB Test [Member]

^[1]

61,424

44,154

118,177

84,399

^[1]

4,025

8,169

CHINA

32,738

19,140

56,289

39,383

UNITED STATES

19,408

15,662

36,509

30,140

Malaysia [Member]

TAIWAN, PROVINCE OF CHINA

16,993

13,048

34,707

24,857

17,202

2,905

32,172

5,846

PHILIPPINES

Rest of the World [Member]

11,395

9,916

25,936

20,462

$ 52,275

$ 39,146

$ 112,207

$ 74,279

[1]	After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.

Note 1 - Summary of Significant Accounting Policies - Customer Concentration (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member]

3 Months Ended

6 Months Ended

Jun. 29, 2019

Jun. 30, 2018

Jun. 29, 2019

Jun. 30, 2018

Customers individually accounting for more than 10% of net sales

^[1]

Semiconductor Test and Inspection [Member] | One Customer [Member]

Percentage of net sales

^[1]

12.00%

11.00%

12.00%

11.00%

Customers individually accounting for more than 10% of net sales

^[1]

^[2]

Percentage of net sales

^[1]

^[2]

[1]	After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.
[2]	No single customer represented more than 10% of consolidated net sales.

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Oct. 01, 2018	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018	Dec. 29, 2018
Share Price	$ 25.10
Transfer From In-Process Technology to Developed Technology				$ 2,700
Amortization of Intangible Assets, Total		$ 9,987	$ 1,019	20,006	$ 2,093
Secured Term Loan Facility [Member]
Debt Instrument, Face Amount	$ 350,000
Debt Instrument, Amortization, Percentage of Principal Amount	0.25%
Secured Term Loan Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Xcerra [Member]
Business Combination, Consideration Transferred, Total	$ 794,400
Payments to Acquire Businesses, Gross	160,500
Business Combination, Acquisition Related Costs				400	$ 4,100
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets		1,100
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities		400
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred		700
Xcerra [Member] \| In-process Technology [Member]
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance		$ 33,500		$ 33,500		$ 36,300
Xcerra [Member] \| Fair Value Adjustment to Inventory [Member]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value	$ 19,600
Xcerra [Member] \| Common Stock [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	11,776,149
Xcerra [Member] \| Cohu RSUs [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	529,995
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Attributed to Pre-Merger Services	$ 800

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Purchase Price Allocation, Xcerra Acquisition (Details) - USD ($)
$ in Thousands

Jun. 29, 2019

Dec. 29, 2018

^[1]

Oct. 01, 2018

Dec. 30, 2017

Goodwill

$ 241,466

$ 242,127

$ 65,613

Current assets, including cash received

$ 375,990

40,729

Other assets

^[2]

1,051

Intangible assets

321,160

Goodwill

^[2]

179,961

Total assets acquired

918,891

Liabilities assumed

^[2]

(124,461)

Net assets acquired

$ 794,430

[1]	Derived from December 29, 2018 audited financial statements
[2]	Includes a measurement period adjustment recorded during the three months ended June 29, 2019, as a result of obtaining new facts and circumstances related to certain assets acquired ($1.1 million) and liabilities assumed ($0.4 million) as of the date of acquisition. The net impact of this measurement period adjustment, totaling $0.7 million, was offset against goodwill.

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Preliminary Allocation of Intangible Assets, Xcerra Acquisition (Details) - USD ($) $ in Thousands		6 Months Ended
	Oct. 01, 2018	Jun. 29, 2019	Dec. 29, 2018
Intangible assets, estimated fair value	$ 321,160
Gross carrying amount		$ 319,319	$ 317,857
Accumulated amortization		$ 55,645	35,203
Remaining weighted average amortization period (Year)
In-process Technology [Member]
Indefinite-lived intangible assets, estimated fair value	36,360
Developed Technology Rights [Member]
Finite-lived intangible assets, estimated fair value	$ 194,600
Finite-lived intangible assets, average useful life (Year)	7 years 292 days
Gross carrying amount		$ 216,620	214,266
Accumulated amortization		$ 35,347	21,197
Remaining weighted average amortization period (Year)		6 years 328 days
Customer Relationships [Member]
Finite-lived intangible assets, estimated fair value	$ 65,890
Finite-lived intangible assets, average useful life (Year)	10 years 219 days
Gross carrying amount		$ 73,226	73,104
Accumulated amortization		$ 11,202	7,378
Remaining weighted average amortization period (Year)		9 years 255 days
Order or Production Backlog [Member]
Finite-lived intangible assets, estimated fair value	$ 6,410
Finite-lived intangible assets, average useful life (Year)	292 days
Gross carrying amount		$ 6,371	6,372
Accumulated amortization		$ 6,142	4,696
Remaining weighted average amortization period (Year)		36 days
Trade Names [Member]
Finite-lived intangible assets, estimated fair value	$ 16,800
Finite-lived intangible assets, average useful life (Year)	11 years
Gross carrying amount		$ 22,775	22,701
Accumulated amortization		$ 2,872	1,807
Remaining weighted average amortization period (Year)		10 years
Off-Market Favorable Lease [Member]
Finite-lived intangible assets, estimated fair value	$ 1,100
Finite-lived intangible assets, average useful life (Year)	5 years 182 days
Gross carrying amount			1,100
Accumulated amortization			62
Remaining weighted average amortization period (Year)		4 years 328 days
Noncompete Agreements [Member]
Gross carrying amount		$ 327	314
Accumulated amortization		$ 82	$ 63
Remaining weighted average amortization period (Year)		7 years 182 days

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Acquired Goodwill Activity (Details) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 29, 2019

Dec. 29, 2018

Impact of currency exchange

$ 242,127

^[1]

$ 65,613

Additions, net

179,263

(1,359)

(2,749)

Adjustments

^[2]

698

241,466

242,127

^[1]

Impact of currency exchange

^[3]

220,808

65,613

Additions, net

^[3]

157,661

^[3]

(1,377)

(2,466)

Adjustments

^[2],[3]

1,681

^[3]

221,112

220,808

Impact of currency exchange

21,319

Additions, net

21,602

(283)

Adjustments

^[2]

(983)

Debt Security, Government, Non-US [Member]

$ 20,354

$ 21,319

[1]	Derived from December 29, 2018 audited financial statements
[2]	Amounts represent adjustments to the preliminary goodwill from the Xcerra acquisition.
[3]	After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Prior year amounts would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.

Note 3 - Borrowings and Credit Agreements (Details Textual) $ in Thousands, SFr in Millions		6 Months Ended
	Oct. 01, 2018 USD ($)	Jun. 29, 2019 USD ($)	Jun. 29, 2019 CHF (SFr)	Dec. 29, 2018 USD ($)
Long-term Debt, Current Maturities, Total		$ 6,487		$ 6,676
Long-term Line of Credit, Total		3,244		3,115
Ismeca [Member]
Line of Credit Facility, Maximum Borrowing Capacity \| SFr			SFr 2
Long-term Line of Credit, Total		$ 0		$ 0
Number of Available Lines of Credit		1	1
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 6,500
Long-term Line of Credit, Total		3,200
Secured Term Loan Facility [Member]
Debt Instrument, Face Amount	$ 350,000
Debt Instrument, Amortization, Percentage of Principal Amount	0.25%
Long-term Debt, Total		339,400
Long-term Debt, Current Maturities, Total		2,400
Long-term Debt, Fair Value		336,100
Secured Term Loan Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Kita Term Loans [Member]
Long-term Debt, Total		4,200
Long-term Debt, Current Maturities, Total		$ 500
Kita Term Loans [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage		0.05%	0.05%
Kita Term Loans [Member] \| Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage		0.45%	0.45%
Xcerra Term Loan [Member]
Long-term Debt, Total		$ 1,700
Long-term Debt, Current Maturities, Total		$ 300
Debt Instrument, Interest Rate, Stated Percentage		2.35%	2.35%
Debt Instrument, Term		10 years

Note 3 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Lines of Credit	$ 3,244	$ 3,115
Total debt	356,469	358,655
Less: financing fees and discount	(8,004)	(8,551)
Less: current portion	(6,487)	(6,676)
Total long-term debt	341,978	343,428
Secured Term Loan Facility [Member]
Bank Term Loan under Credit Agreement	347,375	349,125
Less: current portion	(2,400)
Kita Term Loans [Member]
Bank Term Loan under Credit Agreement	4,180	4,576
Less: current portion	(500)
Xcerra [Member]
Bank Term Loan under Credit Agreement	$ 1,670	$ 1,839

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Note 4 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Restructuring Charges, Total	$ 8,545		$ 9,906
Integration Program [Member]
Accrued restructuring, beginning balance			4,026
Restructuring Charges, Total			9,906
Amounts paid or charged			(5,784)
Impact of currency exchange			26
Accrued restructuring, ending balance	8,174		8,174
Employee Severance [Member] \| Integration Program [Member]
Accrued restructuring, beginning balance			4,026
Restructuring Charges, Total			9,412
Amounts paid or charged			(5,290)
Impact of currency exchange			26
Accrued restructuring, ending balance	8,174		8,174
Other Restructuring [Member] \| Integration Program [Member]
Accrued restructuring, beginning balance
Restructuring Charges, Total			494
Amounts paid or charged			(494)
Impact of currency exchange
Accrued restructuring, ending balance

Note 5 - Financial Instruments Measured at Fair Value - Short-term Investments by Security Type (Details) - USD ($)
$ in Thousands

Jun. 29, 2019

Dec. 29, 2018

Short-term investments

$ 581

$ 560

^[1]

Amortized Cost

581

560

Gross Unrealized Gains

Gross Unrealized Losses

^[2]

Short-term investments

$ 581

$ 560

[1]	Derived from December 29, 2018 audited financial statements
[2]	As of June 29, 2019 and December 29, 2018, there were no investments in our portfolio in a loss position.

Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
Due after one year through three years, amortized cost	$ 581	$ 560
Due after one year through three years, fair value	$ 581	$ 560

Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 29, 2019	Dec. 29, 2018
	$ 143,595	$ 165,020
Debt Security, Government, Non-US [Member]
Short-term investments	581	560
Cash [Member]
Cash and cash equivalents	130,051	144,696
Money Market Funds [Member]
Cash and cash equivalents	12,963	19,764
Fair Value, Inputs, Level 1 [Member]
	130,051	144,696
Fair Value, Inputs, Level 1 [Member] \| Debt Security, Government, Non-US [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Cash [Member]
Cash and cash equivalents	130,051	144,696
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 2 [Member]
	13,544	20,324
Fair Value, Inputs, Level 2 [Member] \| Debt Security, Government, Non-US [Member]
Short-term investments	581	560
Fair Value, Inputs, Level 2 [Member] \| Cash [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]
Cash and cash equivalents	12,963	19,764
Fair Value, Inputs, Level 3 [Member]

Fair Value, Inputs, Level 3 [Member] \| Debt Security, Government, Non-US [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Cash [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 3 [Member] \| Money Market Funds [Member]
Cash and cash equivalents

Note 6 - Employee Stock Benefit Plans (Details Textual) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended	6 Months Ended
	May 08, 2019	Mar. 30, 2019	Jun. 29, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			14,650
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance			390,276
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance			$ 10.29
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value			$ 2.0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			3 years 73 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			661,621
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			359,367
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance			1,539,067
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding			$ 23.9
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms			1 year 182 days
Restricted Stock Units (RSUs) [Member] \| Vesting Over One Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			1 year
Restricted Stock Units (RSUs) [Member] \| Vesting Over Four Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			167,226
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			34,292
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance			369,811
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding			$ 5.7
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms			1 year 328 days
Equity Based Performance Stock Units Granted in 2018, 2017, and 2016 [Member] \| Vest on the Third Anniversary of Awards Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			100.00%
Minimum [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue			25.00%
Maximum [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue			200.00%
Equity Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			2,500,306
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	2,000,000
Equity Incentive Plan 2005 [Member] \| Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Equity Incentive Plan 2005 [Member] \| Minimum [Member] \| Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			1 year
Equity Incentive Plan 2005 [Member] \| Maximum [Member] \| Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			1,034,612
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	500,000
Stock Issued During Period, Shares, New Issues			63,998

Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Effective Income Tax Rate Reconciliation, Percent, Total	4.50%	17.50%	2.60%	18.90%
Unrecognized Tax Benefits, Period Increase (Decrease), Total	$ 0	$ 0	$ 0	$ 0

Note 8 - Segment and Geographic Information - Summary of Current Segments (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 29, 2019

Jun. 30, 2018

Jun. 29, 2019

Jun. 30, 2018

Dec. 29, 2018

^[1]

$ 150,011

$ 99,817

$ 297,820

$ 194,967

Profit (loss) for reportable segments

(13,660)

18,997

(27,685)

31,132

Interest expense

(5,282)

(11)

(10,789)

(22)

Interest income

191

329

413

576

Income (loss) from continuing operations before taxes

(20,299)

14,116

(43,350)

24,365

Corporate, Non-Segment [Member]

1,103,504

$ 1,134,002

^[2]

Total assets

4,165

3,820

Corporate expenses

(1,548)

(5,199)

(5,289)

(7,321)

15,960

34,367

137,578

99,817

274,272

194,967

Profit (loss) for reportable segments

(14,400)

18,997

(29,444)

31,132

1,021,348

1,038,053

12,433

23,548

Profit (loss) for reportable segments

740

1,759

Semiconductor Test and Inspection and PCB Test [Member]

62,031

57,762

Other Accrued Liabilities [Member]

$ 1,083,379

$ 1,095,815

[1]	After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly.
[2]	Derived from December 29, 2018 audited financial statements

Note 9 - Leases (Details Textual) $ in Millions	6 Months Ended
Note 9 - Leases (Details Textual) $ in Millions	Jun. 29, 2019 USD ($)
Lessee, Operating Lease, Renewal Term	25 years
Finance Lease Right-of-use Asset, Accumulated Amortization	$ 0.1
Lessee, Sublease Income, Receivable, Remainder of Fiscal Year	0.1
Lessee, Sublease Income, Receivable, Year Two	$ 0.1
Minimum [Member]
Lessee, Lease, Remaining Term of Contract	1 year
Maximum [Member]
Lessee, Lease, Remaining Term of Contract	39 years

Note 9 - Leases - Balance Sheet Information (Details) - USD ($)
$ in Thousands

Jun. 29, 2019

Dec. 29, 2018

^[1]

Operating lease assets

$ 35,224

Finance lease assets

^[2]

2,604

Total lease assets

37,828

Operating

30,168

Finance

2,605

Total lease liabilities

$ 37,766

Operating leases (Year)

8 years 73 days

Finance leases (Year)

1 year

Operating leases

6.10%

Finance leases

4.50%

Operating

$ 4,958

Finance

$ 35

[1]	Derived from December 29, 2018 audited financial statements
[2]	Finance lease assets are recorded net of accumulated amortization of $0.1 million.

Note 9 - Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 29, 2019	Jun. 29, 2019
Operating leases	$ 2,139	$ 4,261
Variable leases	635	1,201
Short-term operating leases	66	144
Amortization of leased assets	21	62
Interest on lease liabilities	29	88
Sublease income	(34)	(70)
Net lease cost	$ 2,856	$ 5,686

Note 9 - Leases - Future Minimum Lease Payments (Details)
$ in Thousands

Jun. 29, 2019

USD ($)

2019, operating leases

$ 3,079

^[1]

2019, finance leases

2019, total

3,155

2020, operating leases

6,825

^[1]

2020, finance leases

2,682

2020, total

9,507

2021, operating leases

5,631

^[1]

2021, finance leases

2021, total

5,631

2022, operating leases

5,374

^[1]

2022, finance leases

2022, total

5,374

2023, operating leases

4,940

^[1]

2023, finance leases

2023, total

4,940

Thereafter, operating leases

21,037

^[1]

Thereafter, finance leases

Thereafter, total

21,037

Total lease payments, operating leases

46,886

^[1]

Total lease payments, finance leases

2,758

Total lease payments, total

49,644

Less: Interest, operating leases

(11,760)

^[1]

Less: Interest, finance leases

(118)

Less: Interest, total

(11,878)

Present value of lease liabilities, operating leases

35,126

^[1]

Present value of lease liabilities, finance leases

2,640

Present value of lease liabilities, total

$ 37,766

[1]	Excludes sublease income of $0.1 million and $0.1 million for 2019 and 2020, respectively.

Note 9 - Leases - Cash Flow Information (Details) $ in Thousands	6 Months Ended
	Jun. 29, 2019 USD ($)
Operating cash flows from operating leases	$ 3,628
Operating cash flows from finance leases	73
Financing cash flows from finance leases	17
Leased assets obtained in exchange for new operating lease liabilities	$ 38,487

Note 10 - Discontinued Operations - Balance Sheet Information and Operating Results for Fixture Services Business (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 29, 2019

Jun. 30, 2018

Jun. 29, 2019

Jun. 30, 2018

Dec. 29, 2018

Assets:

Total current assets

$ 4,100

$ 3,741

^[1]

Total assets

4,165

3,820

Liabilities:

Total current liabilities

624

518

^[1]

Income, net of tax

188

Liabilities: