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Selling, general and administrative

$ 583,329

$ 451,768

$ 352,704

Cost and expenses:

Cost of sales (1)

^[1]

353,500

292,460

209,297

Research and development

86,147

56,434

40,737

142,936

96,754

60,737

Amortization of purchased intangible assets

39,590

17,197

4,208

Restructuring charges (Note 5)

13,484

18,704

635,657

481,549

314,979

Income (loss) from operations

(52,328)

(29,781)

37,725

Other (expense) income:

Interest expense

(20,556)

(4,977)

(54)

Interest income

764

1,187

671

Foreign transaction gain (loss) and other

1,659

(2,977)

Income (loss) from continuing operations before taxes

(72,077)

(31,912)

35,365

Income tax provision (benefit)

(3,082)

631

2,244

Income (loss) from continuing operations

(68,995)

(32,543)

33,121

Income (loss) from discontinued operations, net of tax

(697)

119

(278)

Net income (loss) attributable to noncontrolling interest

(69,692)

(32,424)

32,843

(243)

Net income (loss) attributable to Cohu

$ (69,700)

$ (32,181)

$ 32,843

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

Basic (in shares)

41,159

31,776

27,836

Diluted (in shares)

41,159

31,776

28,916

Basic:

Income (loss) from continuing operations before non-controlling interest (in dollars per share)

$ (1.68)

$ (1.02)

$ 1.19

Income (loss) from discontinued operations (in dollars per share)

^[1]

(0.01)

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

(0.01)

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

(1.69)

(1.01)

1.18

Diluted:

Income (loss) from continuing operations before non-controlling interest (in dollars per share)

(1.68)

(1.02)

1.15

Income (loss) from discontinued operations (in dollars per share)

^[1]

(0.01)

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

(0.01)

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

$ (1.69)

$ (1.01)

$ 1.14

[1]	Excludes amortization of $30,126, $13,586, and $2,689 for the years ended December 28, 2019, December 29, 2018, and December 30, 2017, respectively.

Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Cost of sales, Amortization	$ 30,126	$ 13,586	$ 2,689

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Net income (loss)	$ (69,692)	$ (32,424)	$ 32,843
Net income (loss) attributable to noncontrolling interest	8	(243)
Net income (loss) attributable to Cohu	(69,700)	(32,181)	32,843
Foreign currency translation adjustments, net of tax	(7,522)	(8,905)	11,345
Adjustments related to postretirement benefits	(628)	805	(1,248)
Change in unrealized gain/loss on investments, net of tax		7	(2)
Other comprehensive income (loss), net of tax	(8,150)	(8,093)	10,095
Other comprehensive income (loss) attributable to noncontrolling interest	(4)	(5)
Other comprehensive income (loss) attributable to Cohu	(8,146)	(8,088)	10,095
Comprehensive income (loss)	(77,842)	(40,517)	42,938
Comprehensive income (loss) attributable to noncontrolling interest	4	(248)
Comprehensive income (loss) attributable to Cohu	$ (77,846)	$ (40,269)	$ 42,938

Consolidated Statements of Stockholders' Equity - 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. 31, 2016

$ 26,842

$ 111,950

$ 124,559

$ (27,882)

$ 235,469

Changes in cumulative translation adjustment

32,843

11,345

(1,248)

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

(2)

Cash dividends - $0.24 per share

(6,676)

Exercise of stock options

1,164

11,617

12,781

Shares issued under ESPP

1,140

1,239

Shares issued for restricted stock units vested

595

(595)

Repurchase and retirement of stock

(211)

(3,456)

(3,667)

Share-based compensation expense

7,007

Balance at Dec. 30, 2017

28,489

127,663

150,726

(17,787)

289,091

Changes in cumulative translation adjustment

(32,424)

(8,905)

805

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

Cash dividends - $0.24 per share

(7,689)

Exercise of stock options

613

680

Shares issued under ESPP

1,438

1,523

Shares issued for restricted stock units vested

541

(541)

Repurchase and retirement of stock

(195)

(11,405)

(11,600)

Share-based compensation expense

18,280

Cumulative effect of accounting change, a | Adjustments for New Accounting Principle, Early Adoption [Member]

^[1]

1,057

Noncontrolling interest

(299)

Shares issued for acquisition of Xcerra

11,776

283,642

295,418

Balance at Dec. 29, 2018

40,763

419,690

111,670

(25,880)

(299)

545,944

Changes in cumulative translation adjustment

(69,692)

(7,522)

(4)

(7,526)

(628)

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

Cash dividends - $0.24 per share

(9,866)

Exercise of stock options

367

409

Shares issued under ESPP

187

2,159

2,346

Shares issued for restricted stock units vested

599

(599)

Repurchase and retirement of stock

(196)

(2,575)

(2,771)

Share-based compensation expense

14,148

Cumulative effect of accounting change, a | Adjustments for New Accounting Principle, Early Adoption [Member]

^[2]

10,352

Noncontrolling interest

(53)

Divestiture of interest in consolidated entity

356

Balance at Dec. 28, 2019

$ 41,395

$ 433,190

$ 42,517

$ (34,030)

$ 483,072

[1]	Cumulative effect of accounting change relates to our adoption of ASU 2014-09.
[2]	Cumulative effect of accounting change relates to our adoption of ASU 2016-02. Please refer to Note 1 of the Consolidated Financial Statements for further detail on the adoption of this accounting standard.

Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Retained Earnings [Member]
Cash dividend, per share (in dollars per share)	$ 0.24	$ 0.24	$ 0.24

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
Consolidated Statements of Cash Flows $ in Thousands	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Cash flows from operating activities:
Net income (loss) attributable to Cohu	$ (69,700)	$ (32,181)	$ 32,843
Net income (loss) from noncontrolling interest	8	(243)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss on impairment and disposal of segments held for sale (Note 13)	1,138		278
Interest capitalized associated with cloud computing implementation	(168)
Gain on divestiture of consolidated entity	(149)
Depreciation and amortization	58,871	26,047	9,195
Share-based compensation expense including restructuring charges	14,148	18,279	7,007
Amortization of inventory step-up and inventory related charges	8,347	24,179	1,404
Amortization of debt discounts and issuance costs	1,110
Accrued retiree benefits	1,017	(560)	322
Deferred income taxes	(5,385)	(8,207)	(3,791)
Adjustment to contingent consideration liability		657	1,423
Changes in other assets	(3,044)	(2,961)	1,501
(Gain) loss on disposal of fixed assets	173	293	(42)
Changes in other accrued liabilities	5,348	198	979
Changes in current assets and liabilities, excluding effects from acquisitions and divestitures:
Accounts receivable	21,150	5,785	(3,259)
Inventories	26	2,043	(12,196)
Accrued compensation, warranty and other liabilities	2,143	3,985	937
Accounts payable	(3,122)	(7,103)	4,157
Deferred profit	997	37	(442)
Other current assets	(5,996)	148	952
Income taxes payable	(10,719)	4,041	(1,518)
Operating lease right-of-use assets	7,159
Current and long-term operating lease liabilities	(6,083)
Net cash provided by operating activities	17,269	34,437	39,750
Cash flows from investing activities, excluding effects from acquisitions and divestitures:
Purchases of property, plant and equipment	(18,000)	(4,967)	(6,093)
Net cash received from sale of land, facility and assets	1,767	1,005	104
Purchases of short-term investments	(315)	(38,700)	(37,010)
Sales and maturities of short-term investments		59,469	47,671
Net cash used in investing activities	(16,548)	(322,308)	(7,044)
Cash flows from financing activities:
Cash dividends paid	(9,827)	(6,949)	(6,577)
Proceeds from construction loan	5,477
Repayments of long-term debt	(3,817)	(2,323)	(1,631)
Issuance (repurchases) of common stock, net including awards settled in cash	(16)	(8,978)	10,353
Proceeds from Term B Loan		348,250
Payment of debt issuance costs		(7,072)
Payment of contingent consideration		(823)
Net cash provided by (used in) financing activities	(8,183)	322,105	2,145
Effect of exchange rate changes on cash and cash equivalents	(1,529)	(3,599)	3,390
Net increase (decrease) in cash and cash equivalents	(8,991)	30,635	38,241
Cash and cash equivalents at beginning of year	164,921	134,286	96,045
Cash and cash equivalents at end of year	155,930	164,921	134,286
Cash held by discontinued operations (Note 13)	(736)	(461)
Cash and cash equivalents at end of year from continuing operations	155,194	164,460	134,286
Supplemental disclosure of cash flow information:
Cash paid during the year for income taxes	14,942	6,243	7,094
Cash paid for interest	14,846	4,977
Dividends declared but not yet paid	2,484	2,445	1,705
Property, plant and equipment purchases included in accounts payable	1,601	599	260
Inventory capitalized as capital assets	300	857	190
Xcerra [Member]
Cash flows from investing activities, excluding effects from acquisitions and divestitures:
Payment for purchase of business, net of cash received		(339,115)
Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member]
Cash flows from investing activities, excluding effects from acquisitions and divestitures:
Payment for purchase of business, net of cash received			$ (11,716)

Note 1 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2019

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Basis of Presentation

– Cohu, Inc. (“Cohu”, “we”, “our”, “us” and the “Company”), through our wholly owned subsidiaries, is a provider of semiconductor test equipment and services. Our Consolidated Financial Statements include the accounts of Cohu and our wholly owned subsidiaries and variable interest entities (“VIEs”) for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. We evaluate the need to consolidate affiliates based on standards set forth in ASC Topic

810,

Consolidation

(“ASC

810”

December 28, 2019,

we divested our entire

20%

interest in ALBS Solutions Sdn Bhd (“ALBS”), our only consolidated VIE. As a result of the divestment, we determined that we

longer had a controlling interest in ALBS and we

longer consolidate ALBS as of that date. Divestment of our ownership interest resulted in a gain of

$0.1

million which is included in restructuring charges for the year ended

December 28, 2019.

All significant consolidated transactions and balances have been eliminated in consolidation.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

Our current fiscal year, which ended on

December 28, 2019,

consisted of

weeks. Our fiscal years ended on

December 29, 2018,

and

December 30, 2017,

each consisted of

weeks.

Principles of Consolidation for Variable Interest Entities

– Prior to the divestment of our ownership interest in ALBS we followed ASC Topic

810

guidance with respect to accounting for VIEs and as of

December 28, 2019,

we consolidated

one

VIE, ALBS.

Discontinued Operations

– Management determined that the fixtures services business, that was acquired as part of Xcerra, did

not

align with Cohu’s long-term strategic plan and divested this portion of the business in

February 2020.

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 28, 2019.

See Note

13,

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

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 years ended

December 28, 2019,

December 29, 2018

and

December 30, 2017,

approximately

422,000,

146,000

and

77,000

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

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

(in thousands)	2019		2018		2017
Weighted average common shares outstanding		41,159		31,776		27,836
Effect of dilutive stock options and restricted stock units		-		-		1,080
		41,159		31,776		28,916

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.

Cash, Cash Equivalents and Short-term Investments

– Highly liquid investments with insignificant interest rate risk and original maturities of

three

months or less are classified as cash and cash equivalents. Investments with maturities greater than

three

months are classified as short-term investments. All of our short-term investments are classified as available-for-sale and are reported at fair value, with any unrealized gains and losses, net of tax, recorded in the statement of comprehensive income (loss). We manage our cash equivalents and short-term investments as a single portfolio of highly marketable securities. We have the ability and intent, if necessary, to liquidate any of our investments in order to meet the liquidity needs of our current operations during the next

months. Accordingly, investments with contractual maturities greater than

one

year have been classified as current assets in the accompanying consolidated balance sheets.

Fair Value of Financial Instruments

– The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value due to the short maturities of these financial instruments.

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, which were insignificant at

December 28, 2019

and

December 29, 2018.

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

December 28, 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 market 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 market values are below our costs. Charges to cost of sales for excess and obsolete inventories totaled

$4.8

million in

2019.

Included in this amount is

$0.7

million of inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products. Charges to cost of sales for excess and obsolete inventories totaled

$10.8

million in

2018.

Included in this amount is

$9.4

million of inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products. In

2017

we recorded charges of

$1.1

million.

Inventories by category were as follows

(in thousands)

	December 28,		December 29,
	2019		2018
Raw materials and purchased parts	$	69,665	$	60,112
Work in process		46,591		57,953
Finished goods		14,450		21,249
Total inventories	$	130,706	$	139,314

Assets Held for Sale –

We expect to complete the sale of our facility located in Penang, Malaysia in the

first

half of

2020

and, as a result, it is being presented as held for sale at

December 28, 2019.

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,

three

ten

years for machinery, equipment and software and the lease life for financing leases. Land is

not

depreciated.

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

(in thousands)

	December 28,			December 29,
	2019			2018
Land and land improvements (1)	$	11,659		$	11,905
Buildings and building improvements (1)		41,474			37,265
Machinery and equipment		61,006			64,791
		114,139			113,961
Less accumulated depreciation and amortization		(43,227	)		(39,629	)
Property, plant and equipment, net	$	70,912		$	74,332

(

)

Includes assets under financing leases acquired with Xcerra totaling

$2.6

million and

$2.7

million as of

December 28, 2019

and

December 29, 2018,

respectively.

December 9, 2019,

we committed to exercise our bargain purchase option to acquire our leased facility located in Rosenheim, Germany, currently subject to a financing lease, for

€1.1

million

later than

June 30, 2020.

Depreciation expense was

$19.3

million in

2019,

$8.8

million in

2018

and

$5.0

million in

2017.

The increase in depreciation expense in

2019

was driven by depreciation recorded on assets acquired from Xcerra.

Cloud Computing Implementation Costs

– We have capitalized certain costs associated with the implementation of our new cloud-based Enterprise Resource Planning (“ERP”) system in accordance with ASU

2018

15,

Intangibles—Goodwill and Other—Internal-Use Software (Subtopic

350

) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

. Capitalized costs include only external direct costs of materials and services consumed in developing of the system and interest costs incurred, when material, while developing the system.

Total unamortized capitalized cloud computing implementation costs totaled

$10.3

million at

December 28, 2019

and were insignificant at

December 29, 2018.

We expect to begin amortizing these costs when the ERP system is placed into service in

2020,

and will amortize the implementation costs using the straight-line method over

seven

years. Capitalized amounts are recorded within other assets in our consolidated balance sheets.

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, Purchased Intangible Assets and Other 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 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, an impairment charge is recognized as the amount by which the carrying amount of goodwill exceeds the reporting unit's fair value,

not

to exceed the carrying amount of goodwill. 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

2019,

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

December 28, 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.

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

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 fair value and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred.

Income Taxes

– We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting dates. For those tax positions where it is more-likely-than-

not

that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than

percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is

not

more-likely-than-

not

that a tax benefit will be sustained,

tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized and recorded, net of federal and state tax benefits, in income tax expense.

The U.S. Tax Cuts and Jobs Act (“Tax Act”) was enacted on

December 22, 2017.

The accounting for the tax effects of the enactment of the Tax Act was completed in

2018.

Contingencies and Litigation

– We assess the probability of adverse judgments in connection with current and threatened litigation. We would accrue the cost of an adverse judgment if, in our estimation, the adverse outcome is probable, and we can reasonably estimate the ultimate cost.

Adoption of New Revenue Accounting Standard

– We adopted ASC Topic

606,

Revenue from Contracts with Customers (“ASC

606”

)

, on

December 31, 2017,

the

first

day of our

2018

fiscal year. We elected to implement the new standard using the modified retrospective method of adoption which only applies to those contracts which were

not

completed as of

December 31, 2017.

Revenue for the years ended

December 28, 2019

and

December 29, 2018,

have been accounted for using ASC

606

and the prior year ended

December 30, 2017,

has

not

been adjusted. Upon adoption of ASC

606,

we recorded a cumulative-effect adjustment to retained earnings of

$1.1

million on

December 31, 2017,

which represents the impact of ASC

606

on our deferred revenue.

The adoption of ASC

606

had

impact to cash used in net operating, investing or financing activities in our consolidated statements of cash flows.

Under ASC

606

our revenue will continue to be recognized at a point in time when the performance obligation has been satisfied and transfer of control has occurred, typically, this occurs upon shipment of products to our customers. In certain instances, when customer payment terms provide that a minority portion of the equipment purchase price be paid only upon customer acceptance, recognition of revenue

may

occur sooner under ASC

606.

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

December 28, 2019

and

December 29, 2018,

we had

$10.0

million and

$19.1

million of revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied), respectively.

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. 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 customers. 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 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 consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. In certain instances where customer payments are received prior to product shipment, the customer’s payments are recorded as customer advances. At

December 28, 2019,

we had deferred revenue totaling approximately

$16.1

million, current deferred profit of

$7.6

million and deferred profit expected to be recognized after

one

year included in noncurrent other accrued liabilities of

$7.2

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. Our balances at

December 29, 2018,

include a

$1.1

million beginning retained earnings adjustment as a result of our adoption of ASC

606

on the

first

day of fiscal

2018.

The periodic change is primarily a result of increases and decreases in deferrals of revenue associated with product shipments made to our customers in accordance with our revenue recognition policy.

Net sales by type and segment are as follows

(in thousands)

	Twelve Months Ended
Disaggregated Net Sales	December 28, 2019		December 29, 2018		December 30, 2017
Systems-Semiconductor Test & Inspection	$	299,473	$	249,514	$	197,454
Non-systems-Semiconductor Test & Inspection		241,405		193,737		155,250
Systems-PCB Test		25,928		6,565		-
Non-systems-PCB Test		16,523		1,952		-
Net sales	$	583,329	$	451,768	$	352,704

Advertising Costs

– Advertising costs are expensed as incurred and were

not

material for all periods presented.

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 B Loan are presented within noncurrent liabilities as a reduction of 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

$1.1

million and insignificant for the years ended

December 28, 2019

and

December 29, 2018,

respectively.

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.

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 year ended

December 28, 2019,

foreign exchange gains included in our consolidated statement of operations were insignificant. During the year ended

December 29, 2018,

we recognized foreign exchange gains totaling

$1.7

million. During the year ended

December 30, 2017,

we recognized foreign exchange losses totaling

$3.0

million.

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.

Accumulated Other Comprehensive Loss

– Our accumulated other comprehensive loss totaled approximately

$34.0

million at

December 28, 2019,

and

$25.9

million at

December 29, 2018,

and was attributed to, net of income taxes where applicable: foreign currency adjustments resulting from the translation of certain accounts into U.S. Dollars, unrealized losses and gains on investments and adjustments to accumulated postretirement benefit obligations. The U.S. Dollar strengthened relative to certain foreign currencies in countries where we have operations as of

December 28, 2019,

compared to

December 29, 2018

and consequently, our accumulated other comprehensive loss increased by

$7.5

million. Similarly, in the previous year, the U.S. Dollar strengthened relative to certain foreign currencies in countries where we have operations and, as a result, our accumulated other comprehensive loss increased by

$8.9

million. Additional information related to accumulated other comprehensive loss, on an after-tax basis is included in Note

14.

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 right of use ("ROU") assets and lease liabilities for leases with an initial term of

months or less. We recognized those lease payments in our 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

– In

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments-Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

. ASU

2016

was subsequently amended by ASU

2019

04,

Codification Improvements to Topic

326,

Financial Instruments-Credit Losses

, ASU

2019

05,

Financial Instruments-Credit Losses (Topic

326

): Targeted Transition Relief

, ASU

2019

10,

Financial Instruments—Credit Losses (Topic

326

)

, Derivatives and Hedging (Topic

815

), and Leases (Topic

842

): Effective Dates and ASU

2019

11,

Codification Improvements to Topic

326,

Financial Instruments—Credit Losses

. ASU

2016

13,

as amended, affects trade receivables, financial assets and certain other instruments that are

not

measured at fair value through net income. This ASU will replace the currently required incurred loss approach with an expected loss model for instruments measured at amortized cost and is effective for financial statements issued for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. We do

not

expect the adoption of this guidance will have a material impact on our consolidated financial statements.

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 disclosures to our 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 our consolidated financial statements.

December 2019,

the FASB issued ASU

No.

2019

12,

Simplifying the Accounting for Income Taxes

, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC

740,

Income Taxes

, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU

2019

is effective for fiscal years beginning after

December 15, 2020.

Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We are currently assessing and have

not

yet determined the impact that the adoption of ASU

2019

will have on our consolidated financial statements.

Note 2 - Business Acquisitions

12 Months Ended

Dec. 28, 2019

Business Combination Disclosure [Text Block]

Business Acquisitions

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

May 7, 2018,

among Cohu, Inc., a Delaware corporation (“Cohu”), Xcerra Corporation, a Massachusetts corporation (“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), were 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.

Xcerra is comprised of

four

businesses in the semiconductor and electronics manufacturing test markets: atg-Luther & Maelzer, Everett Charles Technologies, LTX-Credence and Multitest. The combination of these businesses creates a company with a broad spectrum of semiconductor and PCB test expertise that drives innovative new products and services, and the ability to deliver to customers fully integrated semiconductor test cell solutions. Xcerra addresses the broad, divergent requirements of the mobility, industrial, automotive and consumer end markets, offering a comprehensive portfolio of solutions and technologies, and a global network of strategically deployed applications and support resources. The acquisition of Xcerra was a strategic transaction to expand our total available market, extend our market leadership and broaden our product offerings.

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

assumed RSUs to Xcerra employees, of which

$0.8

million of the fair value of the assumed 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 thereto from time to time as 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 equal to

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

may

accelerate the payment terms of the Credit Agreement upon the occurrence of certain events of default set forth therein, which include: the failure of Cohu to make timely payments of amounts due under the Credit Agreement, the failure of the Cohu to adhere to the representations and covenants set forth in the Credit Agreement or to provide 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.

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,

Business Combinations

(“ASC

805”

), and uses the fair value concepts defined in ASC

820,

Fair Value Measurement

(“ASC

820”

). The purchase price allocation described herein contains adjustments made during the post-acquisition measurement period, which were made as a result of obtaining new facts and circumstances related to certain assets acquired and liabilities assumed as of the date of acquisition. The net impact of the measurement period adjustments was offset against goodwill.

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

$9.8

million in the years ended

December 28, 2019

and

December 29, 2018,

respectively. Severance and other separation payments made to certain executive officers of Xcerra related to change-in-control with double trigger provisions in their existing employment agreements totaled

$6.9

million in the year ended

December 29, 2018.

The table below summarizes the assets acquired and liabilities assumed as of the acquisition date,

October 1, 2018,

with purchase price allocation adjustments made subsequent to the preliminary purchase price allocation (

in thousands

	Fair Value at			Measurement			Adjusted
	Acquisition Date			Period Adjustments*			Fair Value
Current assets, including cash received	$	375,990					$	375,990
Property, plant and equipment		40,729						40,729
Other assets		2,109			(1,058	)		1,051
Intangible assets		321,160						321,160
Goodwill		179,263			1,134			180,397
Total assets acquired		919,251						919,327
Liabilities assumed		(124,821	)		(76	)		(124,897	)
Net assets acquired	$	794,430					$	794,430

Measurement period adjustments made as a result of obtaining new facts and circumstances related to certain assets acquired and liabilities assumed as of the date of acquisition. The net impact of the measurement period adjustments were 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 valuation which has been fully amortized to cost of sales as of

December 28, 2019.

The 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 research and development		36,360		indefinite
Product backlog		6,410		0.8
Trademarks and 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 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 amortized to rent expense over the terms of the related lease. As of

December 29, 2018,

favorable leases were reclassified from intangible assets, net to operating lease right of use assets as a result of our adoption of ASU

2016

Leases (Topic

842

)

Note 3 - Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 28, 2019

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Purchased Intangible Assets

Changes in the carrying value of our goodwill during the years ended

December 28, 2019,

and

December 29, 2018,

were as follows (

in thousands

	Semiconductor Test & Inspection			PCB Test			Total Goodwill
Balance December 30, 2017	$	65,613		$	-		$	65,613
Additions		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		2,117			(983	)		1,134
Impairments (1)		(715	)		-			(715	)
Impact of currency exchange		(3,435	)		(442	)		(3,877	)
Balance December 28, 2019	$	218,775		$	19,894		$	238,669

(

)

Impairment of goodwill associated with our FSG segment that is presented as discontinued operations. This amount was

not

pushed down in the consolidated financial statements and was included within the balance of our Semiconductor Test & Inspection segment.

Purchased intangible assets, subject to amortization, are as follows

(in thousands)

	December 28, 2019						December 29, 2018
					Remaining
	Gross Carrying		Accumulated		Useful Life		Gross Carrying		Accumulated
	Amount		Amortization		(years)		Amount		Amortization
Developed technology	$	227,619	$	49,805		6.6	$	214,266	$	21,197
Customer relationships		72,251		14,824		9.3		73,104		7,378
Trade names		22,612		3,892		9.5		22,701		1,807
Backlog		6,328		6,328		-		6,372		4,696
Favorable leases*		-		-		-		1,100		62
Covenant not-to-compete		322		96		7.0		314		63
	$	329,132	$	74,945			$	317,857	$	35,203

Favorable leases were reclassified to operating lease right of use assets on

December 30, 2018

as a result of our adoption of ASU

2016

The table above excludes

$20.8

million and

$36.3

million of in-process technology in

2019

and

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 current year

$15.3

million of in-process technology was completed and transferred to developed technology and began being amortized. 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 purchased intangible assets was approximately

$39.6

million in

2019,

$17.2

million in

2018

and

$4.2

million in

2017.

The increases in amortization expense is the result of amortization of purchased intangible assets acquired from Xcerra. As of

December 28, 2019,

we expect amortization expense in future periods to be as follows:

2020

$38.4

million;

2021

$34.8

million;

2022

$34.8

million;

2023

$34.8

million

2024

$34.8

million; and thereafter

$76.8

million.

Note 4 - Borrowings and Credit Agreements

12 Months Ended

Dec. 28, 2019

Debt Disclosure [Text Block]

4.	Borrowings and Credit Agreements

The following table is a summary of our borrowings as of

December 28, 2019

and

December 29, 2018:

	Fiscal year ended
(in thousands)	December 28, 2019			December 29, 2018 (1)
Bank Term Loan under Credit Agreement	$	346,500		$	349,125
Bank Term Loans-Kita		3,830			4,576
Bank Term Loan-Xcerra		1,475			1,839
Construction Loan-Rasco		5,476			-
Lines of Credit		3,195			3,115
Total debt		360,476			358,655
Less: financing fees and discount		(7,441	)		(8,551	)
Less: current portion		(6,517	)		(6,676	)
Total long-term debt	$	346,518		$	343,428

(

)

Excludes financing lease obligations, which are included in long-term and short-term debt in our consolidated balance sheet, as they were

not

material at

December 29, 2018.

The debt principal payments, excluding financing lease obligations, for the next

five

years and thereafter are as follows:

(in thousands)
2020	$	7,679
2021		4,636
2022		4,997
2023		5,001
2024		4,467
Thereafter		333,696
Total	$	360,476

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 equal to

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%.

December 28, 2019,

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

$339.1

million and

$2.3

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

December 28, 2019

includes

$0.9

million of principal that was paid subsequent to year-end on

December 31, 2019.

As of

December 28, 2019,

the fair value of the debt was

$344.8

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

December 28, 2019

and is considered a Level

fair value measurement. See Note

“Business Acquisitions” 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%

0.43%,

and expire at various dates through

2034.

December 28, 2019,

the outstanding loan balance was

$3.8

million and

$0.4

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

December 28, 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. At

December 28, 2019,

the outstanding loan balance was

$1.5

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

December 28, 2019.

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

Construction Loans

July 26, 2019,

one

of our wholly owned subsidiaries located in Germany entered into

two

construction loans (“Loan Facilities”) with a German financial institution providing total borrowing of

€8.6

million. The Loan Facilities have

-year and

-year terms, which commenced on

August 1, 2019,

the initial draw-down date. The Loan Facilities are being utilized to finance the expansion of our facility in Kolbermoor, Germany, enabling us to combine the operations of multiple subsidiaries in

one

location as part of our previously announced strategic restructuring program. The Loan Facilities are secured by the land and the existing building on the site and bear interest at agreed upon rates based on separate

€3.4

million and

€5.2

million facility amounts.

August 1, 2019,

the full

€3.4

million was drawn under the

first

facility, which is payable over

years at an annual interest rate of

0.8%.

Interest payments only are required to be made each quarter starting in

September 2019

with principal and interest payments due each quarter starting in the month of

December 2021.

Principal repayments will be made over

years starting at the end of

2021.

December 10, 2019,

we drew

€1.5

million under the

second

facility, which is payable over

years at an annual interest rate of

1.05%.

Interest payments only are required to be made each quarter starting in

December 2019

with principal and interest payments due each quarter starting in the month of

May 2020.

Principal repayments will be made over

years starting at the end of

May 2020.

As of

December 28, 2019,

€3.7

million had

not

been drawn under the

second

facility as is expected to be drawn in the

first

half of

2020.

December 28, 2019,

total outstanding borrowings under the Loan Facilities was

$5.5

million with

$0.3

million of the total outstanding balance being presented as current installments of long-term debt in our consolidated balance sheets based on contractual due dates. The loans are denominated in Euros and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. The fair value of the debt approximates the carrying value at

December 28, 2019.

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

$8.8

million. At

December 28, 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

December 28, 2019,

and

December 29, 2018,

amounts were outstanding under this line of credit.

Note 5 - Restructuring Charges

12 Months Ended

Dec. 28, 2019

Restructuring and Related Activities Disclosure [Text Block]

Restructuring Charges

Subsequent to the acquisition of Xcerra on

October

1st,

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 consolidated our global handler and contactor manufacturing operations and closed our manufacturing operations in Penang, Malaysia and Fontana, California in

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

$16.2

million and

$37.8

million for the years ended

December 28, 2019

and

December 29, 2018,

respectively, that are within the scope of ASC

420,

Exit or Disposal Cost Obligations

(“ASC

420”

). Severance and other separation payments made to certain executive officers of Xcerra related to change-in-control with double trigger provisions in their existing employment agreements totaled

$6.9

million in the year ended

December 29, 2018.

Additionally, in the year ended

December 29, 2018,

we incurred

$8.2

million of compensation costs related to the acceleration of RSUs held by certain executive officers and the Board of Directors of Xcerra because of the change in control. This non-cash expense is included in restructuring in our consolidated statements of operations.

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

Charges related to the Integration Program for the years ended

December 28, 2019

and

December 29, 2018,

were as follows

(in thousands)

	Twelve Months Ended
	December 28, 2019		December 29, 2018
Employee severance costs	$	12,170	$	17,791
Inventory related charges		2,729		19,053
Other restructuring costs		1,314		913
Total	$	16,213	$	37,757

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 years ended

December 28, 2019

and

December 29, 2018

(in thousands)

	Employee Severance			Other Exit Costs			Total

Balance, December 30, 2017	$	-		$	-		$	-
Costs accrued		17,791			913			18,704
Amounts paid or charged		(13,750	)		(913	)		(14,663	)
Impact of currency exchange		(15	)		-			(15	)
Balance, December 29, 2018		4,026			-			4,026
Costs accrued		12,170			1,314			13,484
Amounts paid or charged		(14,909	)		(1,314	)		(16,223	)
Impact of currency exchange		(51	)		-			(51	)
Balance, December 28, 2019	$	1,236		$	-		$	1,236

December 28, 2019,

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

2020.

The estimated costs associated with the employee severance and facility consolidation actions will be paid predominantly in cash. All amounts accrued related to inventory will remain in our consolidated balance sheet until it is scrapped.

Note 6 - Employee Benefit Plans

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Text Block]

Employee Benefit Plans

Defined Contribution Retirement Plans

– Cohu and Xcerra each maintain defined contribution

401

(k) retirement savings plans covering all their respective salaried and hourly U.S. employees. Participation is voluntary and participants’ contributions are based on their eligible compensation. Participants in the Cohu plan receive matching contributions of

50%

up to

of salary contributed and participants in the Xcerra plan receive matching contributions of

50%

up to

of salary contributed, both subject to various statutory limits. In

2019

we made matching contributions to the plan of

$2.0

million. In

2018

we made contributions to the plan of

$1.1

million, which includes matching contributions to the Xcerra

401

(k) plan from

October 1

through

December 29, 2018.

2017

we made contributions to the plan of

$0.6

million.

Defined Benefit Retirement Plans

– As a result of our acquisition of Ismeca in

2013,

we took over the Ismeca Europe Semiconductor BVG Pension Plan in Switzerland (“the Swiss Plan”) and the following discussion relates solely to the Swiss Plan.

Net periodic benefit cost of the Swiss Plan was as follows:

(in thousands)	2019			2018			2017
Service cost	$	920		$	925		$	907
Interest cost		267			207			198
Expected return on assets		(168	)		(124	)		(119	)
Net periodic costs	$	1,019		$	1,008		$	986

The following table sets forth the projected benefit obligation, the fair value of plan assets, the funded status and the liability we have recorded in our consolidated balance sheet related to the Swiss Plan:

(in thousands)	2019			2018
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	(29,910	)	$	(30,512	)
Service cost		(920	)		(925	)
Interest cost		(267	)		(207	)
Actuarial gain (loss)		(1,456	)		708
Participant contributions		(1,434	)		(816	)
Benefits paid		2,313			1,079
Plan change		-			199
Foreign currency exchange adjustment		(567	)		564
Benefit obligation at end of year		(32,241	)		(29,910	)
Change in plan assets:
Fair value of plan assets at beginning of year		18,088			17,746
Return on assets, net of actuarial loss		281			114
Employer contributions		882			816
Participant contributions		1,434			816
Benefits paid		(2,313	)		(1,079	)
Foreign currency exchange adjustment		333			(325	)
Fair value of plan assets at end of year		18,705			18,088
Net liability at end of year	$	(13,536	)	$	(11,822	)

December 28, 2019

and

December 29, 2018,

the Swiss Plan’s net liability is included in noncurrent accrued retirement benefits. Amounts recognized in accumulated other comprehensive income net of tax related to the Swiss Plan consisted of an unrecognized net actuarial loss totaling

$4.1

million at

December 28, 2019,

and

$2.7

million at

December 29, 2018.

Weighted-average actuarial assumptions used to determine the projected benefit obligation under the Swiss Plan are as follows:

	2019			2018
Discount rate		0.2	%		0.9	%
Compensation increase		1.1	%		1.8	%

Weighted-average assumptions used to determine net periodic benefit cost of the Swiss Plan are as follows:

	2019			2018			2017
Discount rate		0.9	%		0.7	%		0.7	%
Rate of return on assets		0.9	%		0.7	%		0.7	%
Compensation increase		1.8	%		1.8	%		1.5	%

During

2020

employer and employee contributions to the Swiss Plan are expected to total

$0.9

million. Estimated benefit payments are expected to be as follows:

2020

$1.4

million;

2021

$1.3

million;

2022

$1.1

million;

2023

$1.7

million;

2024

$1.3

million; and

$7.0

million thereafter through

2029.

As is customary with Swiss pension plans, the assets of the plan are invested in a collective fund with multiple employers. We have

investment authority over the assets of the plan that are held and invested by a Swiss insurance company. Investment holdings are made with respect to Swiss laws and target allocations for plan assets are

62%

debt securities and cash,

17%

real estate investments,

10%

alternative investments and

11%

equity securities. The valuation of the collective fund assets as a whole is a Level

measurement; however, the individual investments of the fund are generally Level

(equity securities), Level

(fixed income) and Level

(real estate and alternative) investments. We determine the fair value of the plan assets based on information provided by the collective fund, through review of the collective fund’s annual financial statements. See Note

“Financial Instruments Measured at Fair Value” for additional information on the

three

-tier fair value hierarchy.

We maintain other defined benefit plans for employees located outside the U.S. for which the majority of the obligations and net periodic benefit cost were determined to be immaterial for all periods presented.

Retiree Medical Benefits

– We provide post-retirement health benefits to certain executives and directors under a noncontributory plan. The net periodic benefit cost was

$0.1

million in

2019,

2018,

and

2017.

We fund benefits as costs are incurred and as a result there are

plan assets.

The weighted average discount rate used in determining the accumulated post-retirement benefit obligation was

3.0%

2019,

4.1%

2018

and

3.4%

2017.

The annual rates of increase of the cost of health benefits was assumed to be

7.4%

2020.

This rate was then assumed to decrease

0.4%

per year to

4.4%

2027

and remain level thereafter. A

one

percent increase (decrease) in health care cost trend rates would increase (decrease) the

2019

net periodic benefit cost by approximately

$14,000

(

$12,000

) and the accumulated post-retirement benefit obligation as of

December 28, 2019,

by approximately

$318,000

(

$270,000

Contributions to the post-retirement health benefit plan are expected to total

$0.1

million in

2020.

Estimated benefit payments are expected to be as follows:

2020

$0.1

million;

2021

$0.1

million;

2022

$0.1

million;

2023

$0.1

million;

2024

$0.1

million and

$0.7

million thereafter through

2029.

The following table sets forth the post-retirement benefit obligation, funded status and the liability we have recorded in our consolidated balance sheets:

(in thousands)	2019			2018
Accumulated benefit obligation at beginning of year	$	2,880		$	3,148
Interest cost		115			105
Actuarial gain		(258	)		(216	)
Benefits paid		(166	)		(157	)
Accumulated benefit obligation at end of year		2,571			2,880
Plan assets at end of year		-			-
Funded status	$	(2,571	)	$	(2,880	)

Deferred Compensation

– The Cohu, Inc. Deferred Compensation Plan allows certain of our officers to defer a portion of their current compensation. We have purchased life insurance policies on the participants with Cohu as the named beneficiary. Participant contributions, distributions and investment earnings and losses are accumulated in a separate account for each participant. At

December 28, 2019,

the payroll liability to participants, included in accrued compensation and benefits in the consolidated balance sheet, was approximately

$2.0

million and the cash surrender value of the related life insurance policies included in other current assets was approximately

$1.7

million. At

December 29, 2018,

the liability totaled

$2.0

million and the corresponding assets were

$1.6

million.

Employee Stock Purchase Plan

– The Cohu, Inc.

1997

Employee Stock Purchase Plan (“the Plan”) provides for the issuance of a maximum of

2,650,000

shares of our common stock. 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.

Under the Plan, eligible employees

may

purchase shares of common stock through payroll deductions. The price paid for the common stock is equal to

85%

of the fair market value of our common stock on specified dates. During the last

three

years we issued shares under the Plan as follows:

2019

187,273;

2018

84,678

and

2017

99,144.

December 28, 2019,

there were

911,337

shares reserved for issuance under the Plan.

Stock Options

– At

December 28, 2019,

a total of

2,503,918

shares were available for future equity grants under the Cohu, Inc.

2005

Equity Incentive Plan (“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. Under the

2005

Plan stock options

may

be granted to employees, consultants and outside directors to purchase a fixed number of shares of our common stock at prices

not

less than

100%

of the fair market value at the date of grant. Options generally vest and become exercisable after

one

year or in

four

annual increments beginning

one

year after the grant date and expire

ten

years from the grant date. We have historically issued new shares of Cohu common stock upon share option exercise.

During

2019,

2018

and

2017

stock options were granted and the activity under our share-based compensation plans was as follows:

	2019					2018					2017
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Shares			Ex. Price		Shares			Ex. Price		Shares			Ex. Price
Outstanding, beginning of year		405		$	10.22		472		$	10.20		1,641		$	10.79
Exercised		(42	)	$	9.82		(67	)	$	10.10		(1,164	)	$	10.98
Cancelled		-		$	-		-		$	-		(5	)	$	20.73
Outstanding, end of year		363		$	10.27		405		$	10.22		472		$	10.20

Options exercisable at year end		363		$	10.27		405		$	10.22		469		$	10.20

The aggregate intrinsic value of options exercised was

$0.2

million in

2019,

$0.9

million in

2018,

and

$10.1

million in

2017.

December 28, 2019,

the aggregate intrinsic value of options outstanding, vested and expected to vest and exercisable was

$4.4

million.

Information about stock options outstanding at

December 28, 2019

is as follows

(options in thousands)

					Options Outstanding						Options Exercisable
							Approximate
							Wt. Avg.
Range of					Number		Remaining		Wt. Avg.		Number		Wt. Avg.
Exercise Prices					Outstanding		Life (Years)		Ex. Price		Exercisable		Ex. Price
$	9.44	-	$	10.54		200		3.2	$	9.50		200	$	9.50
$	10.55	-	$	10.58		126		2.2	$	10.58		126	$	10.58
$	10.59	-	$	15.89		37		2.3	$	13.32		37	$	13.23
						363		2.8	$	10.27		363	$	10.27

Restricted Stock Units

– Under our equity incentive plans, restricted stock units

may

be granted to employees, consultants and outside directors. Restricted stock units vest over a

one

-year,

two

-year or a

four

-year period from the date of grant. Prior to vesting, restricted stock units do

not

have dividend equivalent rights, do

not

have voting rights and the shares underlying the restricted stock units are

not

considered issued and outstanding. New shares of our common stock will be issued on the date the restricted stock units vest net of the 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

December 28, 2019.

Restricted stock unit activity under our share-based compensation plans was as follows:

	2019					2018					2017
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		1,265		$	19.48		981		$	12.50		1,083		$	10.50
Granted		694		$	14.32		822		$	23.70		353		$	15.95
Released		(563	)	$	19.08		(500	)	$	13.10		(409	)	$	10.26
Cancelled		(68	)	$	17.60		(38	)	$	14.67		(46	)	$	11.85
Outstanding, end of year		1,328		$	17.05		1,265		$	19.48		981		$	12.50

RSUs granted in

2018

in the table above include the issuance of

529,995

assumed RSUs to Xcerra employees, based on a conversion formula.

Equity-Based Performance Stock Units

–

We grant performance stock units (“PSUs”) to certain senior executives as a part of our long-term equity compensation program. The performance criteria for the PSUs is based on a combination of the Company’s annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of the Company’s TSR compared with the annualized TSR of certain peer companies for the performance period.

The number of shares of common stock that will ultimately be issued to settle PSUs granted over the last

four

years is as follows:

Year Granted	Range of Awards				Performance Criteria Period (in years)
2019		25%	-	200%		3
2018		25%	-	200%		3
2017		25%	-	200%		3
2016		25%	-	200%		3

PSUs granted in

2019,

2018,

2017

and

2016

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 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 of PSUs outstanding at

December 28, 2019.

PSU activity under our share-based compensation plans was as follows:

	2019					2018					2017
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		340		$	17.89		334		$	14.31		403		$	11.04
Granted		167		$	14.11		89		$	24.32		185		$	17.60
Released		(36	)	$	11.35		(41	)	$	9.92		(186	)	$	11.35
Cancelled		(107	)	$	11.35		(42	)	$	10.69		(68	)	$	11.94
Outstanding, end of year		364		$	18.72		340		$	17.89		334		$	14.31

Share-based Compensation

– We estimate the fair value of each share-based award on the grant date using the Black-Scholes and the Monte Carlo simulation valuation models. Option valuation models require the input of highly subjective assumptions and changes in the assumptions used can materially affect the grant date fair value of an award. These assumptions for the Black-Scholes model include the risk-free rate of interest, expected dividend yield, expected volatility, and the expected life of the award. The risk-free rate of interest is based on the U.S. Treasury rates appropriate for the expected term of the award as of the grant date. Expected dividends are based primarily on historical factors related to our common stock. Expected volatility is based on historic weekly stock price observations of our common stock during the period immediately preceding the share-based award grant that is equal in length to the award’s expected term. We believe that historical volatility is the best estimate of future volatility. Expected life of the award is based on historical option exercise data. The Monte Carlo simulation model incorporates assumptions for the risk-free interest rate, Cohu and the selected peer group price volatility, the correlation between Cohu and the selected index, and dividend yields. Share-based compensation expense related to restricted stock unit awards is calculated based on the market price of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit.

The following weighted average assumptions were used to value share-based awards granted:

Employee Stock Purchase Plan	2019			2018			2017
Dividend yield		1.3	%		1.1	%		1.4	%
Expected volatility		46.4	%		39.0	%		33.3	%
Risk-free interest rate		2.2	%		1.7	%		0.7	%
Expected term (years)		0.5			0.5			0.5
Weighted-average grant date fair value per share	$	5.35		$	5.90		$	4.63

Restricted Stock Units		2019				2018				2017
Dividend yield			1.6	%			1.0	%			1.4	%

Reported share-based compensation is classified in the Consolidated Financial Statements as follows:

(in thousands)	2019			2018			2017
Cost of sales	$	736		$	546		$	423
Research and development		2,994			1,717			1,054
Selling, general and administrative		10,418			7,790			5,530
Share-based compensation of continuing operations		14,148			10,053			7,007
Income tax benefit		(587	)		(993	)		(530	)
Total share-based compensation, net of tax	$	13,561		$	9,060		$	6,477

We account for forfeitures of plan based awards as they occur. Share based compensation for the year ended

December 29, 2018,

excludes

$8.2

million of compensation recorded related to the acceleration of RSU awards held by certain executive officers and the Board of Directors of Xcerra because of the change in control. This non-cash expense has been included in restructuring charges in our consolidated statements of operations for the year ended

December 28, 2019.

December 28, 2019,

we had approximately

$18.7

million of pre-tax unrecognized compensation cost related to unvested restricted stock units and performance stock units which is expected to be recognized over a weighted-average period of approximately

2.2

years.

Note 7 - Financial Instruments Measured at Fair Value

12 Months Ended

Dec. 28, 2019

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

7.	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, which are comprised entirely of short-term debt securities, 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)

At December 28, 2019

Gross

Estimated

Amortized

Unrealized

Fair

Cost

Gains

Losses

(1)

Value

Foreign government security

904

At December 29, 2018

Gross

Estimated

Amortized

Unrealized

Fair

Cost

Gains

Losses

(1)

Value

Foreign government security

560

(

)

As of

December 28, 2019

and

December 29, 2018

we had

investments with loss positions.

Effective maturities of short-term investments at

December 28, 2019,

were as follows:

	Amortized		Estimated
(in thousands)	Cost		Fair Value
Due after one year through three years	$	904	$	904

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.

Table of Contents

COHU, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 December 28, 2019 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	147,523	$	-	$	-	$	147,523
Money market funds		-		7,671		-		7,671
Foreign government security		-		904		-		904
	$	147,523	$	8,575	$	-	$	156,098

	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 - Income Taxes

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Text Block]

Income Taxes

Significant components of the provision (benefit) for income taxes for continuing operations are as follows:

(in thousands)	2019			2018			2017
Current:
U.S. Federal	$	-		$	-		$	12
U.S. State		130			51			18
Foreign		2,173			8,787			6,005
Total current		2,303			8,838			6,035
Deferred:
U.S. Federal		98			56			(3,451	)
U.S. State		1			-			(481	)
Foreign		(5,484	)		(8,263	)		141
Total deferred		(5,385	)		(8,207	)		(3,791	)
	$	(3,082	)	$	631		$	2,244

Income (loss) before income taxes from continuing operations consisted of the following:

(in thousands)	2019			2018			2017
U.S.	$	(72,669	)	$	(42,682	)	$	1,430
Foreign		592			10,770			33,935
Total	$	(72,077	)	$	(31,912	)	$	35,365

The Tax Act was enacted on

December 22, 2017,

and introduced significant changes to U.S. income tax law. Effective in

2018,

the Tax Act reduced the U.S. statutory tax rate from

35%

21%

and created new taxes on certain foreign-sourced earnings and related-party payments, which are referred to as the global intangible low-taxed income (“GILTI”) tax and the base erosion and anti-abuse tax, respectively. In addition, in

2017

we were subject to a

one

-time transition tax on accumulated foreign subsidiary earnings

not

previously subject to U.S. income tax. The Tax Act also repealed the alternative minimum tax (AMT) effective

January 1, 2018,

and made changes to net operating loss provisions, expensing of certain assets and capitalization of research and development expense with such changes effective for

2018

and later years.

Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of

December 30, 2017

by applying the guidance in SAB

118

because we had

not

completed our accounting for these effects. During

2018,

the Company completed the accounting for these effects. Except as described below under “One-time transition tax”, due to the valuation allowance against our deferred tax assets, there was

net change made in

2018

to our

2017

enactment-date provisional income tax.

Under GAAP, we are allowed to make an accounting policy election to either (i) treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred or (ii) factor such amounts into a company’s measurement of its deferred taxes. We have elected to account for GILTI as a period cost.

One-time transition tax

The Tax Act required us to pay U.S. income taxes on accumulated foreign subsidiary earnings

not

previously subject to U.S. income tax at a rate of

15.5%

to the extent of foreign cash and certain other net current assets and

on the remaining earnings. Foreign tax credits and net operating losses

may

be used to reduce this tax which is referred to as a transition or deemed repatriation tax.

2017

we recorded a provisional amount for our

one

-time transition tax liability of

$16.6

million and used foreign tax credits and net operating losses to fully offset this liability. In

2018

the IRS and U.S. Treasury issued Notice

2018

that addresses certain aspects of the calculation of the transition tax (“Notice

2018

29”

). Application of Notice

2018

resulted in an increase to our transition tax liability of approximately

$5.1

million that was fully offset by net operating losses resulting in

net increase to income tax expense.

Deferred tax effects

The Tax Act reduces the U.S. statutory tax rate from

35%

21%

for years after

2017.

Accordingly, we remeasured our deferred taxes as of

December 30, 2017

to reflect the reduced rate that will apply in future periods when these deferred taxes are settled or realized. We recognized a deferred tax benefit of

$4.0

million, net of a reduction in the related valuation allowance, to reflect the reduced U.S. tax rate and other effects of the Tax Act including the change in the life of NOL carryforwards from

years to indefinite.

Beginning in

2018,

the Tax Act provides a

100%

deduction for dividends received from

-percent owned foreign corporations by U.S. corporate shareholders, subject to a

one

-year holding period. Although dividend income is now exempt from U.S. federal tax in the hands of U.S. corporate shareholders, we must still apply the guidance of ASC

740

to account for the tax consequences of outside basis differences and other tax impacts of their investments in non-U.S. subsidiaries.

Except for working capital requirements in certain foreign jurisdictions, we provide for all taxes, including withholding and other residual taxes, related to unremitted earnings of our foreign subsidiaries.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of our deferred tax assets and liabilities were as follows:

(in thousands)	2019			2018
Deferred tax assets:
Inventory, receivable and warranty reserves	$	11,896		$	12,560
Net operating loss carryforwards		69,096			65,587
Tax credit carryforwards		36,489			34,251
Accrued employee benefits		4,685			5,134
Stock-based compensation		2,372			2,108
Lease liabilities		7,890			-
Other		7,885			7,827
Gross deferred tax assets		140,313			127,467
Less valuation allowance		(93,498	)		(84,718	)
Total deferred tax assets		46,815			42,749
Deferred tax liabilities:
Depreciation and fixed asset related		948			3,156
Intangible assets and other acquisition basis differences		62,325			70,415
Operating lease right-of-use assets		7,504			-
Unremitted earnings of foreign subsidiaries		2,462			5,257
Total deferred tax liabilities		73,239			78,828
Net deferred tax liabilities	$	(26,424	)	$	(36,079	)

Companies are required to assess whether a valuation allowance should be recorded against their deferred tax assets (“DTAs”) based on the consideration of all available evidence, using a “more likely than

not”

realization standard. The

four

sources of taxable income that must be considered in determining whether DTAs will be realized are, (

) future reversals of existing taxable temporary differences (i.e. offset of gross deferred tax assets against gross deferred tax liabilities); (

) taxable income in prior carryback years, if carryback is permitted under the tax law; (

) tax planning strategies and (

) future taxable income exclusive of reversing temporary differences and carryforwards.

In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. We have evaluated our DTAs each reporting period, including an assessment of our cumulative income or loss over the prior

three

-year period and future periods, to determine if a valuation allowance was required. A significant negative factor in our assessment was Cohu's

three

-year cumulative loss history at the end of various fiscal periods including

2019.

As a result of our cumulative,

three

-year U.S. GAAP pretax loss from continuing operations at the end of

2019

we were unable to conclude that it was “more likely than

not”

that our U.S. DTAs would be realized. We will evaluate the realizability of our DTAs at the end of each quarterly reporting period in

2020

and should circumstances change it is possible an additional valuation allowance will be recorded or the remaining valuation allowance, or a portion thereof, will be reversed in a future period.

Our valuation allowance on our DTAs at

December 28, 2019,

and

December 29, 2018,

was approximately

$93.5

million and

$84.7

million, respectively. The remaining gross DTAs for which a valuation allowance was

not

recorded are realizable primarily through future reversals of existing taxable temporary differences.

As the realization of DTAs is determined by tax jurisdiction, the deferred tax liabilities recorded by our non-U.S. subsidiaries were

not

a source of taxable income in assessing the realization of our DTAs in the U.S.

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the provision (benefit) for income taxes for continuing operations is as follows:

(in thousands)	2019			2018			2017
Tax provision at U.S. 21% statutory rate (35% in 2017)	$	(15,136	)	$	(6,702	)	$	12,378
Impact of Tax Act, before reduction in valuation allowance		-			5,095			12,397
State income taxes, net of federal tax benefit		(1,097	)		(663	)		56
Settlements, adjustments and releases from statute expirations		(1,204	)		(783	)		(1,731	)
Federal tax credits		(1,458	)		(864	)		(371	)
Stock-based compensation		587			(838	)		(2,801	)
Executive compensation limited by Section 162(m)		190			3,456			246
Change in valuation allowance		11,270			(2,015	)		(13,484	)
Non-deductible transaction related costs		-			1,106			331
GILTI		2,480			3,531			-
Foreign rate differential		187			(435	)		(4,866	)
Other, net		1,099			(257	)		89
	$	(3,082	)	$	631		$	2,244

December 28, 2019,

including carryforwards from the Xcerra acquisition as described below, we had federal, state and foreign net operating loss carryforwards of approximately

$246.9

million,

$160.5

million and

$25.1

million, respectively, that expire in various tax years beginning in

2020

through

2039

or have

expiration date. We also have federal and state tax credit carryforwards at

December 28, 2019

of approximately

$11.5

million and

$31.6

million, respectively, certain of which expire in various tax years beginning in

2020

through

2039

or have

expiration date. The federal and state loss and credit carryforwards are subject to annual limitations under Sections

382

and

383

of the Internal Revenue Code and applicable state tax law. We believe the state tax credit is

not

likely to be realized in the foreseeable future.

The Company has completed a Section

382

and

383

analysis of the Internal Revenue Code and applicable state law, regarding the limitation of its net operating loss and business tax credit carryforwards as of

December 28, 2019.

As a result of the analysis, the Company concluded that the acquisition of Xcerra on

October 1, 2018,

triggered a limitation in the utilization of Xcerra’s net operating loss and research credit carryforwards. The Company has reduced its deferred tax assets related to the Xcerra U.S. net operating loss and credit carryforwards that are anticipated to expire unused as a result of ownership changes. These tax attributes have been excluded from deferred tax assets with a corresponding reduction of the valuation allowance with

net effect on the income tax provision or effective tax rate. The Company will continue to assess the realizability of these carryforwards in subsequent periods. Future changes in the ownership of Cohu could further limit the utilization of these carryforwards.

We have certain tax holidays with respect to our operations in Malaysia and the Philippines. These holidays require compliance with certain conditions and expire at various dates through

2027.

The impact of these holidays was an increase in net income of approximately

$2.1

million or

$0.05

per share in

2019,

$2.4

million, or

$0.08

per share, in

2018

and

$2.8

million, or

$0.10

per share, in fiscal

2017.

A reconciliation of our gross unrecognized tax benefits, excluding accrued interest and penalties, is as follows:

(in thousands)	2019			2018			2017
Balance at beginning of year	$	34,701		$	10,321		$	10,075
Additions for tax positions of current year		1,231			524			200
Additions (reductions) for tax positions of prior years		(484	)		191			58
Reductions due to lapse of the statute of limitations		(957	)		(645	)		(1,148	)
Additions related to Xcerra and Kita acquisitions		-			24,352			900
Reductions due to settlements		(30	)		-			-
Foreign exchange rate impact		104			(42	)		236
Balance at end of year	$	34,565		$	34,701		$	10,321

If the unrecognized tax benefits at

December 28, 2019

are ultimately recognized, excluding the impact of U.S. tax benefits netted against deferred taxes that are subject to a valuation allowance, approximately

$7.0

million (

$8.2

million at

December 29, 2018)

would result in a reduction in our income tax expense and effective tax rate. It is reasonably possible that our gross unrecognized tax benefits as of

December 28, 2019,

could decrease in

2020

by approximately

$0.4

million as a result of the expiration of certain statutes of limitations.

We recognize interest and penalties related to unrecognized tax benefits in income tax expense. Cohu had approximately

$1.3

million and

$1.5

million accrued for the payment of interest and penalties at

December

28,

2019,

and

December 29, 2018,

respectively. Interest expense, net of accrued interest reversed, was $(

0.3

) million in

2019,

$0.6

million in

2018

and $(

0.3

) million in

2017.

Our U.S. federal and state income tax returns for years after

2015

and

2014

respectively, remain open to examination, subject to the statute of limitations. Net operating loss and credit carryforwards arising prior to these years are also open to examination if and when utilized. The statute of limitations for the assessment and collection of income taxes related to our foreign tax returns varies by country. In the foreign countries where we have significant operations these time periods generally range from

four

ten

years after the year for which the tax return is due or the tax is assessed. Our German subsidiaries income tax returns for

2012

2016

are currently under routine examination by tax authorities in Germany. Our Philippines subsidiary income tax return for

2017

is currently under routine examination by the Bureau of Internal Revenue. The examination of our Japan subsidiary income tax returns for

2017

and

2018

was concluded in

2019.

Note 9 - Segment and Geographic Information

12 Months Ended

Dec. 28, 2019

Segment Reporting Disclosure [Text Block]

Segment and Geographic Information

We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”

October 1, 2018,

we 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 & Inspection and PCB Test.

(in thousands)	2019			2018			2017
Net sales by segment:
Semiconductor Test & Inspection	$	540,878		$	443,276		$	352,704
PCB Test		42,451			8,492			-
Total consolidated net sales for reportable segments	$	583,329		$	451,768		$	352,704
Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	(45,072	)	$	2,489		$	42,535
PCB Test		2,635			(5,154	)		-
Profit (loss) for reportable segments		(42,437	)		(2,665	)		42,535
Other unallocated amounts:
Corporate expenses		(9,848	)		(25,457	)		(7,787	)
Interest expense		(20,556	)		(4,977	)		(54	)
Interest income		764			1,187			671
Income (loss) from continuing operations before taxes	$	(72,077	)	$	(31,912	)	$	35,365

(in thousands)	2019		2018		2017
Depreciation and amortization by segment deducted in arriving at profit (loss):
Semiconductor Test & Inspection	$	56,621	$	24,634	$	9,195
PCB Test		2,250		1,413		-
Total depreciation and amortization for reportable segments	$	58,871	$	26,047	$	9,195
Capital expenditures by segment:
Semiconductor Test & Inspection	$	17,831	$	4,957	$	6,093
PCB Test		169		10		-
Total consolidated capital expenditures	$	18,000	$	4,967	$	6,093

(in thousands)	2019		2018		2017
Total assets by segment:
Semiconductor Test & Inspection	$	998,756	$	1,038,053	$	368,158
PCB Test		56,938		57,762		-
Total assets for reportable segments		1,055,694		1,095,815		368,158
Corporate, principally cash and investments		18,398		34,367		52,299
Discontinued operations		3,618		3,820		-
Total consolidated assets	$	1,077,710	$	1,134,002	$	420,457

During the last

three

years, the following customers of our Semiconductor Test & Inspection segment that comprised

10%

or greater of our consolidated net sales were as follows:

	2019			2018		2017
Intel		11.1	%		**		11.2	%
NXP Semiconductors N.V.		*			**		15.9	%

* Less than 10% of consolidated net sales.
**No single customer exceeded 10% of consolidated net sales for the year ended December 29, 2018.

customer of our PCB Test segment exceeded

10%

of consolidated net sales for the years ended

December 28, 2019

and

December 29, 2018.

Net sales to customers, attributed to countries based on product shipment destination, were as follows:

(in thousands)	2019		2018		2017
China	$	118,213	$	90,255	$	82,474
Malaysia		61,826		61,793		80,102
United States		71,963		61,177		38,729
Philippines		51,683		46,421		26,268
Taiwan		75,725		25,074		16,517
Rest of the World		203,919		167,048		108,614
Total, net	$	583,329	$	451,768	$	352,704

Geographic location of our property, plant and equipment and other long-lived assets was as follows:

(in thousands)	2019		2018
Property, plant and equipment:
Germany	$	25,234	$	21,655
United States		16,671		20,417
Japan		9,964		11,905
Malaysia		7,151		10,535
Philippines		8,637		5,842
Rest of the World		3,255		3,978
Total, net	$	70,912	$	74,332

Goodwill and other intangible assets:
Germany	$	228,476	$	249,605
United States		207,642		228,022
Malaysia		44,140		43,569
Singapore		13,915		15,173
Switzerland		8,190		11,604
Japan		3,872		4,138
Rest of the World		7,453		8,977
Total, net	$	513,688	$	561,088

Note 10 - Leases

12 Months Ended

Dec. 28, 2019

Lessee, Leases [Text Block]

10.

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 in the consolidated balance sheet, but we recognized those lease payments in the 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 ranging from

year to

years, some of which include

one

or more options to extend the lease for up to

years. Our lease term includes renewal terms when we are reasonably certain that 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:

		December 28,
(in thousands)	Classification	2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	33,269
Finance lease assets	Property, plant and equipment, net (1)		2,515
Total lease assets		$	35,784
Liabilities
Current
Operating	Other accrued liabilities	$	5,458
Finance	Other accrued liabilities		2,574
Noncurrent
Operating	Long-term lease liabilities		28,877
Total lease liabilities		$	36,909

Weighted-average remaining lease term (years)
Operating leases			7.9
Finance leases			0.5

Weighted-average discount rate
Operating leases			6.3	%
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:

	December 28,
(in thousands)	2019
Operating leases (1)	$	8,525
Variable lease expense		2,318
Short-term operating leases		256
Finance leases
Amortization of leased assets		102
Interest on lease liabilities		146
Sublease income		(133	)
Net lease cost	$	11,214

(

)

Operating lease cost excludes impairment expense of

$0.2

million related to the write-down of the Fontana facility right-of-use asset.

Prior to adoption of ASC ASU

2016

02,

Leases

, rental expense was

$4.8

million and

$3.6

million in

2018

and

2017.

The increase in rental expense was a result of the acquisition of Xcerra on

October 1, 2018.

Future minimum lease payments at

December 28, 2019,

are as follows:

	Operating			Finance
(in thousands)	leases (1)			leases			Total
2020	$	7,383		$	2,631		$	10,014
2021		6,090			-			6,090
2022		5,535			-			5,535
2023		4,987			-			4,987
2024		4,692			-			4,692
Thereafter		16,314			-			16,314
Total lease payments		45,001			2,631			47,632
Less: Interest		(10,666	)		(57	)		(10,723	)
Present value of lease liabilities	$	34,335		$	2,574		$	36,909

(

)

Excludes sublease income of

$0.1

million in both

2020

and

2021

and also excludes

$0.1

million of legally binding minimum lease payments for lease signed but

not

yet commenced.

Supplemental cash flow information related to leases was as follows:

	December 28,
(in thousands)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,932
Operating cash flows from finance leases	$	117
Financing cash flows from finance leases	$	34
Leased assets obtained in exchange for new operating lease liabilities	$	40,488

Note 11 - Commitments and Contingencies

12 Months Ended

Dec. 28, 2019

Contingencies Disclosure [Text Block]

11.	Commitments and 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, at the present time we do

not

believe that the resolution of the matters described above will have a material adverse effect on our assets, financial position or results of operations.

Note 12 - Guarantees

12 Months Ended

Dec. 28, 2019

Commitments Contingencies and Guarantees [Text Block]

12.	Guarantees

Accrued Warranty

Changes in accrued warranty during the

three

-year period ended

December 28, 2019,

was as follows:

(in thousands)	2019			2018			2017
Beginning balance	$	8,014		$	4,849		$	4,350
Warranty accruals		6,714			7,154			6,765
Warranty payments		(8,573	)		(8,358	)		(6,316	)
Warranty liability assumed		-			4,369			50
Ending balance	$	6,155		$	8,014		$	4,849

Accrued warranty amounts expected to be incurred after

one

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

$0.3

million and

$0.2

million at

December 28, 2019

and

December 29, 2018,

respectively.

Note 13 - Discontinued Operations

12 Months Ended

Dec. 28, 2019

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

13.	Discontinued Operations

Fixtures Services Business (“FSG”)

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

and it has been presented as discontinued operation. 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 for the years ended

December 28, 2019

and

December 29, 2018.

February 2020,

we completed the sale of this business which generated a charge of

$1.1

million, taken in the

fourth

quarter of

2019,

as a result of the impairment of goodwill and purchased intangible assets associated with this operating segment. The goodwill and purchased intangible assets were

not

pushed down in consolidation and had previously been presented as part of our Semiconductor Test & Inspection segment.

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

(in thousands)

	December 28,		December 29,
	2019		2018
Assets:
Cash	$	736	$	461
Accounts receivable, net		1,316		1,718
Inventories		1,411		1,388
Other current assets		40		174
Total current assets		3,503		3,741
Property, plant and equipment, net		33		66
Other noncurrent assets		82		13
Total assets	$	3,618	$	3,820

Liabilities:
Other accrued current liabilities	$	599	$	518
Total current liabilities		599		518
Noncurrent liabilities		24		-
Total liabilities	$	623	$	518

Operating results of our discontinued operations are summarized as follows

(in thousands)

	December 28,			December 29,		December 30,
	2019			2018		2017
Net sales	$	6,136		$	1,593	$	-

Operating income	$	478		$	157	$	-
Loss from impairment of FSG		(1,086	)		-		-
Loss from sale of BMS (1)		-			-		(278	)
Income (loss) before taxes		(608	)		157		(278	)
Income tax provision		89			38		-
Income (loss), net of tax	$	(697	)	$	119	$	(278	)

Note 14 - Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 28, 2019

Comprehensive Income (Loss) Note [Text Block]

14.	Accumulated Other Comprehensive Loss

Components of other comprehensive loss, on an after-tax basis, were as follows:

(in thousands)	Before Tax amount			Tax (Expense) Benefit			Net of Tax Amount
Year ended December 30, 2017
Foreign currency translation adjustments	$	11,345		$	-		$	11,345
Adjustments related to postretirement benefits		(1,369	)		121			(1,248	)
Change in unrealized gain/loss on investments		(2	)		-			(2	)
Other comprehensive income (loss)	$	9,974		$	121		$	10,095
Year ended December 29, 2018
Foreign currency translation adjustments	$	(8,905	)	$	-		$	(8,905	)
Adjustments related to postretirement benefits		865			(60	)		805
Change in unrealized gain/loss on investments		7			-			7
Other comprehensive income (loss)	$	(8,033	)	$	(60	)	$	(8,093	)
Year ended December 28, 2019
Foreign currency translation adjustments	$	(7,522	)	$	-		$	(7,522	)
Adjustments related to postretirement benefits		(856	)		228			(628	)
Other comprehensive income (loss)	$	(8,378	)	$	228		$	(8,150	)

Components of accumulated other comprehensive loss, net of tax, at the end of each period are as follows:

(in thousands)	2019			2018
Accumulated net currency translation adjustments	$	(30,198	)	$	(22,676	)
Accumulated net adjustments related to postretirement benefits		(3,832	)		(3,204	)
Total accumulated other comprehensive loss	$	(34,030	)	$	(25,880	)

Note 15 - Related Party Transactions

12 Months Ended

Dec. 28, 2019

15.	Related Party Transactions

December 28, 2019

certain of our cash and short-term investments were held and managed by BlackRock, Inc. which owns

15.5%

of our outstanding common stock as reported in its Form

-G filing made with the Securities and Exchange Commission on

February 4, 2020.

As part of Xcerra, we gained ownership interests in

two

companies that supply components and provide services to wholly owned subsidiaries of Xcerra. Multitest elektronische Systeme GmbH and atg-Luther & Maelzer GmbH of FTZ Fraes-und Technologiezentrum GmbH Frasdorf (“FTZ”) and ETZ Elektrisches Testzentrum fuer Leiterplatten GmbH (“ETZ”), respectively. FTZ, based in Germany, provides milling services and ETZ, which is also based in Germany, provides certain component parts. These investments are accounted for under the equity method and are

not

material to our consolidated balance sheets. During

2019,

purchases of products from FTZ and ETZ were

not

material.

Note 16 - Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information [Text Block]

16.	Quarterly Financial Data (Unaudited)

Quarter			First (a)			Second (a)			Third (a)			Fourth (a)			Year
(in thousands, except per share data)

Net sales:	2019		$	147,809		$	150,011		$	143,498		$	142,011		$	583,329
	2018		$	95,150		$	99,817		$	86,164		$	170,637		$	451,768

Cost of sales:	2019	(b)	$	93,394		$	87,605		$	84,565		$	87,936		$	353,500
	2018	(b)	$	54,923		$	57,677		$	51,142		$	128,718		$	292,460

Income (loss) from continuing operations	2019		$	(22,851	)	$	(19,383	)	$	(10,480	)	$	(16,281	)	$	(68,995	)
	2018		$	8,122		$	11,648		$	4,803		$	(57,116	)	$	(32,543	)

Net income (loss)	2019		$	(22,687	)	$	(19,359	)	$	(10,326	)	$	(17,320	)	$	(69,692	)
	2018		$	8,122		$	11,648		$	4,803		$	(56,997	)	$	(32,424	)

Net income (loss) attributable to Cohu	2019		$	(22,643	)	$	(19,323	)	$	(10,468	)	$	(17,266	)	$	(69,700	)
	2018		$	8,122		$	11,648		$	4,803		$	(56,754	)	$	(32,181	)

Income (loss) per share attributable to Cohu (c):
Basic:
Income (loss) from continuing operations	2019		$	(0.56	)	$	(0.47	)	$	(0.25	)	$	(0.39	)	$	(1.68	)
	2018		$	0.28		$	0.40		$	0.17		$	(1.40	)	$	(1.02	)

Net income (loss)	2019		$	(0.55	)	$	(0.47	)	$	(0.25	)	$	(0.42	)	$	(1.69	)
	2018		$	0.28		$	0.40		$	0.17		$	(1.40	)	$	(1.01	)

Diluted:
Income (loss) from continuing operations	2019		$	(0.56	)	$	(0.47	)	$	(0.25	)	$	(0.39	)	$	(1.68	)
	2018		$	0.28		$	0.39		$	0.16		$	(1.40	)	$	(1.02	)

Net income (loss)	2019		$	(0.55	)	$	(0.47	)	$	(0.25	)	$	(0.42	)	$	(1.69	)
	2018		$	0.28		$	0.39		$	0.16		$	(1.40	)	$	(1.01	)

(a)

All quarters presented above were comprised of

weeks. We acquired Xcerra on

October 1, 2018.

The results of Xcerra have been included in our results of operations from the date of acquisition. See Note

“Business Acquisitions” for additional information regarding this transaction. Total operating expenses in

2019

and

2018

include acquisition costs and amounts related to the integration and our announced restructuring plan as follows. The

fourth

quarter of

2018

includes

$19.1

million of inventory write-offs,

$14.8

million of amortization of inventory step-up, and

$18.7

million of restructuring charges. The

first

quarter of

2019

includes

$6.0

million of amortization of inventory step-up. The

second

quarter of

2019

includes

$8.5

million of restructuring charges.

(b)

Cost of sales is shown exclusive of the amortization of purchased intangible assets.

(c)

The sum of the

four

quarters

may

not

agree to the year total due to rounding or losses within a quarter and the inclusion or exclusion of common stock equivalents.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 28, 2019

SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

HU, INC.

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

(in thousands)

			Additions			Additions
			(Reductions)			(Reductions)
	Balance at		Not			Charged					Balance
	Beginning		Charged			(Credited)			Deductions/		at End
Description	of Year		to Expense			to Expense			Write-offs		of Year

Allowance for doubtful accounts:

Year ended December 31, 2017	$	81	$	174	(1)	$	6		$	61	$	200

Year ended December 30, 2018	$	200	$	(20	) (1)	$	(109	)	$	31	$	40

Year ended December 28, 2019	$	40	$	24	(1)	$	(28	)	$	27	$	9


Reserve for excess and obsolete inventories:

Year ended December 31, 2017	$	21,485	$	(1,165	) (1)	$	1,148		$	4,106	$	17,362

Year ended December 29, 2018	$	17,362	$	(300	) (1)	$	10,783		$	3,907	$	23,938

Year ended December 28, 2019	$	23,938	$	1,285	(1)	$	4,792		$	9,057	$	20,958

All amounts presented above have been restated to exclude the impact of our discontinued operations.

(

) Changes in reserve balances resulting from foreign currency impact and reclassifications from other reserves.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

810,

Consolidation

(“ASC

810”

December 28, 2019,

we divested our entire

20%

interest in ALBS Solutions Sdn Bhd (“ALBS”), our only consolidated VIE. As a result of the divestment, we determined that we

longer had a controlling interest in ALBS and we

longer consolidate ALBS as of that date. Divestment of our ownership interest resulted in a gain of

$0.1

million which is included in restructuring charges for the year ended

December 28, 2019.

All significant consolidated transactions and balances have been eliminated in consolidation.

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

Our current fiscal year, which ended on

December 28, 2019,

consisted of

weeks. Our fiscal years ended on

December 29, 2018,

and

December 30, 2017,

each consisted of

weeks.

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

Principles of Consolidation for Variable Interest Entities

– Prior to the divestment of our ownership interest in ALBS we followed ASC Topic

810

guidance with respect to accounting for VIEs and as of

December 28, 2019,

we consolidated

one

VIE, ALBS.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

– Management determined that the fixtures services business, that was acquired as part of Xcerra, did

not

align with Cohu’s long-term strategic plan and divested this portion of the business in

February 2020.

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 28, 2019.

See Note

13,

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

Earnings Per Share, Policy [Policy Text Block]

Income (Loss

) Per Share

December 28, 2019,

December 29, 2018

and

December 30, 2017,

approximately

422,000,

146,000

and

77,000

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

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

(in thousands)	2019		2018		2017
Weighted average common shares outstanding		41,159		31,776		27,836
Effect of dilutive stock options and restricted stock units		-		-		1,080
		41,159		31,776		28,916

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash, Cash Equivalents and Short-term Investments

– Highly liquid investments with insignificant interest rate risk and original maturities of

three

months or less are classified as cash and cash equivalents. Investments with maturities greater than

three

months. Accordingly, investments with contractual maturities greater than

one

year have been classified as current assets in the accompanying consolidated balance sheets.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value of Financial Instruments

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, which were insignificant at

December 28, 2019

and

December 29, 2018.

December 28, 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

$4.8

million in

2019.

Included in this amount is

$0.7

$10.8

million in

2018.

Included in this amount is

$9.4

million of inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products. In

2017

we recorded charges of

$1.1

million.

Inventories by category were as follows

(in thousands)

	December 28,		December 29,
	2019		2018
Raw materials and purchased parts	$	69,665	$	60,112
Work in process		46,591		57,953
Finished goods		14,450		21,249
Total inventories	$	130,706	$	139,314

Assets Held-for-sale [Policy Text Block]

Assets Held for Sale –

We expect to complete the sale of our facility located in Penang, Malaysia in the

first

half of

2020

and, as a result, it is being presented as held for sale at

December 28, 2019.

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,

three

ten

years for machinery, equipment and software and the lease life for financing leases. Land is

not

depreciated.

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

(in thousands)

	December 28,			December 29,
	2019			2018
Land and land improvements (1)	$	11,659		$	11,905
Buildings and building improvements (1)		41,474			37,265
Machinery and equipment		61,006			64,791
		114,139			113,961
Less accumulated depreciation and amortization		(43,227	)		(39,629	)
Property, plant and equipment, net	$	70,912		$	74,332

(

)

Includes assets under financing leases acquired with Xcerra totaling

$2.6

million and

$2.7

million as of

December 28, 2019

and

December 29, 2018,

respectively.

December 9, 2019,

we committed to exercise our bargain purchase option to acquire our leased facility located in Rosenheim, Germany, currently subject to a financing lease, for

€1.1

million

later than

June 30, 2020.

Depreciation expense was

$19.3

million in

2019,

$8.8

million in

2018

and

$5.0

million in

2017.

The increase in depreciation expense in

2019

was driven by depreciation recorded on assets acquired from Xcerra.

Internal Use Software, Policy [Policy Text Block]

Cloud Computing Implementation Costs

– We have capitalized certain costs associated with the implementation of our new cloud-based Enterprise Resource Planning (“ERP”) system in accordance with ASU

2018

15,

Intangibles—Goodwill and Other—Internal-Use Software (Subtopic

350

) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

. Capitalized costs include only external direct costs of materials and services consumed in developing of the system and interest costs incurred, when material, while developing the system.

Total unamortized capitalized cloud computing implementation costs totaled

$10.3

million at

December 28, 2019

and were insignificant at

December 29, 2018.

We expect to begin amortizing these costs when the ERP system is placed into service in

2020,

and will amortize the implementation costs using the straight-line method over

seven

years. Capitalized amounts are recorded within other assets in our consolidated balance sheets.

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, Purchased Intangible Assets and Other 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

We conduct our annual impairment test as of

October

1st

of each year, and have determined there was

impairment as of

October

2019,

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

December 28, 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.

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

Income Tax, Policy [Policy Text Block]

Income Taxes

not

that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than

percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is

not

more-likely-than-

not

that a tax benefit will be sustained,

The U.S. Tax Cuts and Jobs Act (“Tax Act”) was enacted on

December 22, 2017.

The accounting for the tax effects of the enactment of the Tax Act was completed in

2018.

Commitments and Contingencies, Policy [Policy Text Block]

Contingencies and Litigation

Adoption of New Accounting Standard [Policy Text Block]

Adoption of New Revenue Accounting Standard

– We adopted ASC Topic

606,

Revenue from Contracts with Customers (“ASC

606”

)

, on

December 31, 2017,

the

first

day of our

2018

fiscal year. We elected to implement the new standard using the modified retrospective method of adoption which only applies to those contracts which were

not

completed as of

December 31, 2017.

Revenue for the years ended

December 28, 2019

and

December 29, 2018,

have been accounted for using ASC

606

and the prior year ended

December 30, 2017,

has

not

been adjusted. Upon adoption of ASC

606,

we recorded a cumulative-effect adjustment to retained earnings of

$1.1

million on

December 31, 2017,

which represents the impact of ASC

606

on our deferred revenue.

The adoption of ASC

606

had

impact to cash used in net operating, investing or financing activities in our consolidated statements of cash flows.

Under ASC

606

may

occur sooner under ASC

606.

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

December 28, 2019

and

December 29, 2018,

we had

$10.0

million and

$19.1

million of revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied), respectively.

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 customers. 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 consolidated balance sheet in any of the periods presented.

On shipments where sales are

not

December 28, 2019,

we had deferred revenue totaling approximately

$16.1

million, current deferred profit of

$7.6

million and deferred profit expected to be recognized after

one

year included in noncurrent other accrued liabilities of

$7.2

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. Our balances at

December 29, 2018,

include a

$1.1

million beginning retained earnings adjustment as a result of our adoption of ASC

606

on the

first

day of fiscal

2018.

The periodic change is primarily a result of increases and decreases in deferrals of revenue associated with product shipments made to our customers in accordance with our revenue recognition policy.

Net sales by type and segment are as follows

(in thousands)

	Twelve Months Ended
Disaggregated Net Sales	December 28, 2019		December 29, 2018		December 30, 2017
Systems-Semiconductor Test & Inspection	$	299,473	$	249,514	$	197,454
Non-systems-Semiconductor Test & Inspection		241,405		193,737		155,250
Systems-PCB Test		25,928		6,565		-
Non-systems-PCB Test		16,523		1,952		-
Net sales	$	583,329	$	451,768	$	352,704

Advertising Cost [Policy Text Block]

Advertising Costs

– Advertising costs are expensed as incurred and were

not

material for all periods presented.

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

$1.1

million and insignificant for the years ended

December 28, 2019

and

December 29, 2018,

respectively.

Share-based Payment Arrangement [Policy Text Block]

Share-based Compensation

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Remeasurement and Currency Translation

December 28, 2019,

foreign exchange gains included in our consolidated statement of operations were insignificant. During the year ended

December 29, 2018,

we recognized foreign exchange gains totaling

$1.7

million. During the year ended

December 30, 2017,

we recognized foreign exchange losses totaling

$3.0

million.

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss

– Our accumulated other comprehensive loss totaled approximately

$34.0

million at

December 28, 2019,

and

$25.9

million at

December 29, 2018,

December 28, 2019,

compared to

December 29, 2018

and consequently, our accumulated other comprehensive loss increased by

$7.5

$8.9

million. Additional information related to accumulated other comprehensive loss, on an after-tax basis is included in Note

14.

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 right of use ("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

– In

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments-Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

. ASU

2016

was subsequently amended by ASU

2019

04,

Codification Improvements to Topic

326,

Financial Instruments-Credit Losses

, ASU

2019

05,

Financial Instruments-Credit Losses (Topic

326

): Targeted Transition Relief

, ASU

2019

10,

Financial Instruments—Credit Losses (Topic

326

)

, Derivatives and Hedging (Topic

815

), and Leases (Topic

842

): Effective Dates and ASU

2019

11,

Codification Improvements to Topic

326,

Financial Instruments—Credit Losses

. ASU

2016

13,

as amended, affects trade receivables, financial assets and certain other instruments that are

not

December 15, 2019,

including interim periods within those fiscal years. We do

not

expect the adoption of this guidance will have a material impact on our consolidated financial statements.

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 disclosures to our 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 our consolidated financial statements.

December 2019,

the FASB issued ASU

No.

2019

12,

Simplifying the Accounting for Income Taxes

, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC

740,

Income Taxes

, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU

2019

is effective for fiscal years beginning after

December 15, 2020.

not

yet determined the impact that the adoption of ASU

2019

will have on our consolidated financial statements.

Note 1 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2019

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

(in thousands)	2019		2018		2017
Weighted average common shares outstanding		41,159		31,776		27,836
Effect of dilutive stock options and restricted stock units		-		-		1,080
		41,159		31,776		28,916

Schedule of Inventory, Current [Table Text Block]

	December 28,		December 29,
	2019		2018
Raw materials and purchased parts	$	69,665	$	60,112
Work in process		46,591		57,953
Finished goods		14,450		21,249
Total inventories	$	130,706	$	139,314

Property, Plant and Equipment [Table Text Block]

	December 28,			December 29,
	2019			2018
Land and land improvements (1)	$	11,659		$	11,905
Buildings and building improvements (1)		41,474			37,265
Machinery and equipment		61,006			64,791
		114,139			113,961
Less accumulated depreciation and amortization		(43,227	)		(39,629	)
Property, plant and equipment, net	$	70,912		$	74,332

Disaggregation of Revenue [Table Text Block]

	Twelve Months Ended
Disaggregated Net Sales	December 28, 2019		December 29, 2018		December 30, 2017
Systems-Semiconductor Test & Inspection	$	299,473	$	249,514	$	197,454
Non-systems-Semiconductor Test & Inspection		241,405		193,737		155,250
Systems-PCB Test		25,928		6,565		-
Non-systems-PCB Test		16,523		1,952		-
Net sales	$	583,329	$	451,768	$	352,704

Note 2 - Business Acquisitions (Tables) - Xcerra [Member]

12 Months Ended

Dec. 28, 2019

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

	Fair Value at			Measurement			Adjusted
	Acquisition Date			Period Adjustments*			Fair Value
Current assets, including cash received	$	375,990					$	375,990
Property, plant and equipment		40,729						40,729
Other assets		2,109			(1,058	)		1,051
Intangible assets		321,160						321,160
Goodwill		179,263			1,134			180,397
Total assets acquired		919,251						919,327
Liabilities assumed		(124,821	)		(76	)		(124,897	)
Net assets acquired	$	794,430					$	794,430

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 research and development		36,360		indefinite
Product backlog		6,410		0.8
Trademarks and trade names		16,800		11.0
Favorable leases		1,100		5.5
Total intangible assets	$	321,160

Note 3 - Goodwill and Purchased Intangible Assets (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Goodwill [Table Text Block]

	Semiconductor Test & Inspection			PCB Test			Total Goodwill
Balance December 30, 2017	$	65,613		$	-		$	65,613
Additions		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		2,117			(983	)		1,134
Impairments (1)		(715	)		-			(715	)
Impact of currency exchange		(3,435	)		(442	)		(3,877	)
Balance December 28, 2019	$	218,775		$	19,894		$	238,669

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Table Text Block]

	December 28, 2019						December 29, 2018
					Remaining
	Gross Carrying		Accumulated		Useful Life		Gross Carrying		Accumulated
	Amount		Amortization		(years)		Amount		Amortization
Developed technology	$	227,619	$	49,805		6.6	$	214,266	$	21,197
Customer relationships		72,251		14,824		9.3		73,104		7,378
Trade names		22,612		3,892		9.5		22,701		1,807
Backlog		6,328		6,328		-		6,372		4,696
Favorable leases*		-		-		-		1,100		62
Covenant not-to-compete		322		96		7.0		314		63
	$	329,132	$	74,945			$	317,857	$	35,203

Note 4 - Borrowings and Credit Agreements (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Debt [Table Text Block]

	Fiscal year ended
(in thousands)	December 28, 2019			December 29, 2018 (1)
Bank Term Loan under Credit Agreement	$	346,500		$	349,125
Bank Term Loans-Kita		3,830			4,576
Bank Term Loan-Xcerra		1,475			1,839
Construction Loan-Rasco		5,476			-
Lines of Credit		3,195			3,115
Total debt		360,476			358,655
Less: financing fees and discount		(7,441	)		(8,551	)
Less: current portion		(6,517	)		(6,676	)
Total long-term debt	$	346,518		$	343,428

Schedule of Maturities of Long-term Debt [Table Text Block]

(in thousands)
2020	$	7,679
2021		4,636
2022		4,997
2023		5,001
2024		4,467
Thereafter		333,696
Total	$	360,476

Note 5 - Restructuring Charges (Tables)

12 Months Ended

Dec. 28, 2019

Restructuring and Related Costs [Table Text Block]

	Twelve Months Ended
	December 28, 2019		December 29, 2018
Employee severance costs	$	12,170	$	17,791
Inventory related charges		2,729		19,053
Other restructuring costs		1,314		913
Total	$	16,213	$	37,757

	Employee Severance			Other Exit Costs			Total

Balance, December 30, 2017	$	-		$	-		$	-
Costs accrued		17,791			913			18,704
Amounts paid or charged		(13,750	)		(913	)		(14,663	)
Impact of currency exchange		(15	)		-			(15	)
Balance, December 29, 2018		4,026			-			4,026
Costs accrued		12,170			1,314			13,484
Amounts paid or charged		(14,909	)		(1,314	)		(16,223	)
Impact of currency exchange		(51	)		-			(51	)
Balance, December 28, 2019	$	1,236		$	-		$	1,236

Note 6 - Employee Benefit Plans (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Net Benefit Costs [Table Text Block]

(in thousands)	2019			2018			2017
Service cost	$	920		$	925		$	907
Interest cost		267			207			198
Expected return on assets		(168	)		(124	)		(119	)
Net periodic costs	$	1,019		$	1,008		$	986

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]

(in thousands)	2019			2018
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	(29,910	)	$	(30,512	)
Service cost		(920	)		(925	)
Interest cost		(267	)		(207	)
Actuarial gain (loss)		(1,456	)		708
Participant contributions		(1,434	)		(816	)
Benefits paid		2,313			1,079
Plan change		-			199
Foreign currency exchange adjustment		(567	)		564
Benefit obligation at end of year		(32,241	)		(29,910	)
Change in plan assets:
Fair value of plan assets at beginning of year		18,088			17,746
Return on assets, net of actuarial loss		281			114
Employer contributions		882			816
Participant contributions		1,434			816
Benefits paid		(2,313	)		(1,079	)
Foreign currency exchange adjustment		333			(325	)
Fair value of plan assets at end of year		18,705			18,088
Net liability at end of year	$	(13,536	)	$	(11,822	)

Defined Benefit Plan, Assumptions [Table Text Block]

	2019			2018
Discount rate		0.2	%		0.9	%
Compensation increase		1.1	%		1.8	%

	2019			2018			2017
Discount rate		0.9	%		0.7	%		0.7	%
Rate of return on assets		0.9	%		0.7	%		0.7	%
Compensation increase		1.8	%		1.8	%		1.5	%

Schedule of Net Funded Status [Table Text Block]

(in thousands)	2019			2018
Accumulated benefit obligation at beginning of year	$	2,880		$	3,148
Interest cost		115			105
Actuarial gain		(258	)		(216	)
Benefits paid		(166	)		(157	)
Accumulated benefit obligation at end of year		2,571			2,880
Plan assets at end of year		-			-
Funded status	$	(2,571	)	$	(2,880	)

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	2019					2018					2017
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Shares			Ex. Price		Shares			Ex. Price		Shares			Ex. Price
Outstanding, beginning of year		405		$	10.22		472		$	10.20		1,641		$	10.79
Exercised		(42	)	$	9.82		(67	)	$	10.10		(1,164	)	$	10.98
Cancelled		-		$	-		-		$	-		(5	)	$	20.73
Outstanding, end of year		363		$	10.27		405		$	10.22		472		$	10.20

Options exercisable at year end		363		$	10.27		405		$	10.22		469		$	10.20

Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

					Options Outstanding						Options Exercisable
							Approximate
							Wt. Avg.
Range of					Number		Remaining		Wt. Avg.		Number		Wt. Avg.
Exercise Prices					Outstanding		Life (Years)		Ex. Price		Exercisable		Ex. Price
$	9.44	-	$	10.54		200		3.2	$	9.50		200	$	9.50
$	10.55	-	$	10.58		126		2.2	$	10.58		126	$	10.58
$	10.59	-	$	15.89		37		2.3	$	13.32		37	$	13.23
						363		2.8	$	10.27		363	$	10.27

Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]

	2019					2018					2017
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		1,265		$	19.48		981		$	12.50		1,083		$	10.50
Granted		694		$	14.32		822		$	23.70		353		$	15.95
Released		(563	)	$	19.08		(500	)	$	13.10		(409	)	$	10.26
Cancelled		(68	)	$	17.60		(38	)	$	14.67		(46	)	$	11.85
Outstanding, end of year		1,328		$	17.05		1,265		$	19.48		981		$	12.50

Schedule of Share-based Compensation, Equity-based Performance Stock Units [Table Text Block]

Year Granted	Range of Awards				Performance Criteria Period (in years)
2019		25%	-	200%		3
2018		25%	-	200%		3
2017		25%	-	200%		3
2016		25%	-	200%		3

Schedule of Nonvested Performance-based Units Activity [Table Text Block]

	2019					2018					2017
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		340		$	17.89		334		$	14.31		403		$	11.04
Granted		167		$	14.11		89		$	24.32		185		$	17.60
Released		(36	)	$	11.35		(41	)	$	9.92		(186	)	$	11.35
Cancelled		(107	)	$	11.35		(42	)	$	10.69		(68	)	$	11.94
Outstanding, end of year		364		$	18.72		340		$	17.89		334		$	14.31

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

Employee Stock Purchase Plan	2019			2018			2017
Dividend yield		1.3	%		1.1	%		1.4	%
Expected volatility		46.4	%		39.0	%		33.3	%
Risk-free interest rate		2.2	%		1.7	%		0.7	%
Expected term (years)		0.5			0.5			0.5
Weighted-average grant date fair value per share	$	5.35		$	5.90		$	4.63

Restricted Stock Units		2019				2018				2017
Dividend yield			1.6	%			1.0	%			1.4	%

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

(in thousands)	2019			2018			2017
Cost of sales	$	736		$	546		$	423
Research and development		2,994			1,717			1,054
Selling, general and administrative		10,418			7,790			5,530
Share-based compensation of continuing operations		14,148			10,053			7,007
Income tax benefit		(587	)		(993	)		(530	)
Total share-based compensation, net of tax	$	13,561		$	9,060		$	6,477

Note 7 - Financial Instruments Measured at Fair Value (Tables)

12 Months Ended

Dec. 28, 2019

Available-for-sale Securities [Table Text Block]

At December 28, 2019

Gross

Estimated

Amortized

Unrealized

Fair

Cost

Gains

Losses

(1)

Value

Foreign government security

904

At 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]

	Amortized		Estimated
(in thousands)	Cost		Fair Value
Due after one year through three years	$	904	$	904

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

	Fair value measurements at December 28, 2019 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	147,523	$	-	$	-	$	147,523
Money market funds		-		7,671		-		7,671
Foreign government security		-		904		-		904
	$	147,523	$	8,575	$	-	$	156,098

	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 - Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

(in thousands)	2019			2018			2017
Current:
U.S. Federal	$	-		$	-		$	12
U.S. State		130			51			18
Foreign		2,173			8,787			6,005
Total current		2,303			8,838			6,035
Deferred:
U.S. Federal		98			56			(3,451	)
U.S. State		1			-			(481	)
Foreign		(5,484	)		(8,263	)		141
Total deferred		(5,385	)		(8,207	)		(3,791	)
	$	(3,082	)	$	631		$	2,244

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

(in thousands)	2019			2018			2017
U.S.	$	(72,669	)	$	(42,682	)	$	1,430
Foreign		592			10,770			33,935
Total	$	(72,077	)	$	(31,912	)	$	35,365

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(in thousands)	2019			2018
Deferred tax assets:
Inventory, receivable and warranty reserves	$	11,896		$	12,560
Net operating loss carryforwards		69,096			65,587
Tax credit carryforwards		36,489			34,251
Accrued employee benefits		4,685			5,134
Stock-based compensation		2,372			2,108
Lease liabilities		7,890			-
Other		7,885			7,827
Gross deferred tax assets		140,313			127,467
Less valuation allowance		(93,498	)		(84,718	)
Total deferred tax assets		46,815			42,749
Deferred tax liabilities:
Depreciation and fixed asset related		948			3,156
Intangible assets and other acquisition basis differences		62,325			70,415
Operating lease right-of-use assets		7,504			-
Unremitted earnings of foreign subsidiaries		2,462			5,257
Total deferred tax liabilities		73,239			78,828
Net deferred tax liabilities	$	(26,424	)	$	(36,079	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

(in thousands)	2019			2018			2017
Tax provision at U.S. 21% statutory rate (35% in 2017)	$	(15,136	)	$	(6,702	)	$	12,378
Impact of Tax Act, before reduction in valuation allowance		-			5,095			12,397
State income taxes, net of federal tax benefit		(1,097	)		(663	)		56
Settlements, adjustments and releases from statute expirations		(1,204	)		(783	)		(1,731	)
Federal tax credits		(1,458	)		(864	)		(371	)
Stock-based compensation		587			(838	)		(2,801	)
Executive compensation limited by Section 162(m)		190			3,456			246
Change in valuation allowance		11,270			(2,015	)		(13,484	)
Non-deductible transaction related costs		-			1,106			331
GILTI		2,480			3,531			-
Foreign rate differential		187			(435	)		(4,866	)
Other, net		1,099			(257	)		89
	$	(3,082	)	$	631		$	2,244

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

(in thousands)	2019			2018			2017
Balance at beginning of year	$	34,701		$	10,321		$	10,075
Additions for tax positions of current year		1,231			524			200
Additions (reductions) for tax positions of prior years		(484	)		191			58
Reductions due to lapse of the statute of limitations		(957	)		(645	)		(1,148	)
Additions related to Xcerra and Kita acquisitions		-			24,352			900
Reductions due to settlements		(30	)		-			-
Foreign exchange rate impact		104			(42	)		236
Balance at end of year	$	34,565		$	34,701		$	10,321

Note 9 - Segment and Geographic Information (Tables)

12 Months Ended

Dec. 28, 2019

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

(in thousands)	2019			2018			2017
Net sales by segment:
Semiconductor Test & Inspection	$	540,878		$	443,276		$	352,704
PCB Test		42,451			8,492			-
Total consolidated net sales for reportable segments	$	583,329		$	451,768		$	352,704
Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	(45,072	)	$	2,489		$	42,535
PCB Test		2,635			(5,154	)		-
Profit (loss) for reportable segments		(42,437	)		(2,665	)		42,535
Other unallocated amounts:
Corporate expenses		(9,848	)		(25,457	)		(7,787	)
Interest expense		(20,556	)		(4,977	)		(54	)
Interest income		764			1,187			671
Income (loss) from continuing operations before taxes	$	(72,077	)	$	(31,912	)	$	35,365

(in thousands)	2019		2018		2017
Depreciation and amortization by segment deducted in arriving at profit (loss):
Semiconductor Test & Inspection	$	56,621	$	24,634	$	9,195
PCB Test		2,250		1,413		-
Total depreciation and amortization for reportable segments	$	58,871	$	26,047	$	9,195
Capital expenditures by segment:
Semiconductor Test & Inspection	$	17,831	$	4,957	$	6,093
PCB Test		169		10		-
Total consolidated capital expenditures	$	18,000	$	4,967	$	6,093

(in thousands)	2019		2018		2017
Total assets by segment:
Semiconductor Test & Inspection	$	998,756	$	1,038,053	$	368,158
PCB Test		56,938		57,762		-
Total assets for reportable segments		1,055,694		1,095,815		368,158
Corporate, principally cash and investments		18,398		34,367		52,299
Discontinued operations		3,618		3,820		-
Total consolidated assets	$	1,077,710	$	1,134,002	$	420,457

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

	2019			2018		2017
Intel		11.1	%		**		11.2	%
NXP Semiconductors N.V.		*			**		15.9	%

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

(in thousands)	2019		2018		2017
China	$	118,213	$	90,255	$	82,474
Malaysia		61,826		61,793		80,102
United States		71,963		61,177		38,729
Philippines		51,683		46,421		26,268
Taiwan		75,725		25,074		16,517
Rest of the World		203,919		167,048		108,614
Total, net	$	583,329	$	451,768	$	352,704

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]

(in thousands)	2019		2018
Property, plant and equipment:
Germany	$	25,234	$	21,655
United States		16,671		20,417
Japan		9,964		11,905
Malaysia		7,151		10,535
Philippines		8,637		5,842
Rest of the World		3,255		3,978
Total, net	$	70,912	$	74,332

Goodwill and other intangible assets:
Germany	$	228,476	$	249,605
United States		207,642		228,022
Malaysia		44,140		43,569
Singapore		13,915		15,173
Switzerland		8,190		11,604
Japan		3,872		4,138
Rest of the World		7,453		8,977
Total, net	$	513,688	$	561,088

Note 10 - Leases (Tables)

12 Months Ended

Dec. 28, 2019

Leases, Balance Sheet Information [Table Text Block]

		December 28,
(in thousands)	Classification	2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	33,269
Finance lease assets	Property, plant and equipment, net (1)		2,515
Total lease assets		$	35,784
Liabilities
Current
Operating	Other accrued liabilities	$	5,458
Finance	Other accrued liabilities		2,574
Noncurrent
Operating	Long-term lease liabilities		28,877
Total lease liabilities		$	36,909

Weighted-average remaining lease term (years)
Operating leases			7.9
Finance leases			0.5

Weighted-average discount rate
Operating leases			6.3	%
Finance leases			4.5	%

Lease, Cost [Table Text Block]

	December 28,
(in thousands)	2019
Operating leases (1)	$	8,525
Variable lease expense		2,318
Short-term operating leases		256
Finance leases
Amortization of leased assets		102
Interest on lease liabilities		146
Sublease income		(133	)
Net lease cost	$	11,214

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

	Operating			Finance
(in thousands)	leases (1)			leases			Total
2020	$	7,383		$	2,631		$	10,014
2021		6,090			-			6,090
2022		5,535			-			5,535
2023		4,987			-			4,987
2024		4,692			-			4,692
Thereafter		16,314			-			16,314
Total lease payments		45,001			2,631			47,632
Less: Interest		(10,666	)		(57	)		(10,723	)
Present value of lease liabilities	$	34,335		$	2,574		$	36,909

Lease, Cash Flow Information [Table Text Block]

	December 28,
(in thousands)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,932
Operating cash flows from finance leases	$	117
Financing cash flows from finance leases	$	34
Leased assets obtained in exchange for new operating lease liabilities	$	40,488

Note 12 - Guarantees (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Product Warranty Liability [Table Text Block]

(in thousands)	2019			2018			2017
Beginning balance	$	8,014		$	4,849		$	4,350
Warranty accruals		6,714			7,154			6,765
Warranty payments		(8,573	)		(8,358	)		(6,316	)
Warranty liability assumed		-			4,369			50
Ending balance	$	6,155		$	8,014		$	4,849

Note 13 - Discontinued Operations (Tables)

12 Months Ended

Dec. 28, 2019

Disposal Groups, Including Discontinued Operations [Table Text Block]

	December 28,			December 29,		December 30,
	2019			2018		2017
Net sales	$	6,136		$	1,593	$	-

Operating income	$	478		$	157	$	-
Loss from impairment of FSG		(1,086	)		-		-
Loss from sale of BMS (1)		-			-		(278	)
Income (loss) before taxes		(608	)		157		(278	)
Income tax provision		89			38		-
Income (loss), net of tax	$	(697	)	$	119	$	(278	)

Fixtures Services Business FSG [Member]

Disposal Groups, Including Discontinued Operations [Table Text Block]

	December 28,		December 29,
	2019		2018
Assets:
Cash	$	736	$	461
Accounts receivable, net		1,316		1,718
Inventories		1,411		1,388
Other current assets		40		174
Total current assets		3,503		3,741
Property, plant and equipment, net		33		66
Other noncurrent assets		82		13
Total assets	$	3,618	$	3,820

Liabilities:
Other accrued current liabilities	$	599	$	518
Total current liabilities		599		518
Noncurrent liabilities		24		-
Total liabilities	$	623	$	518

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.

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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Note 14 - Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

(in thousands)	Before Tax amount			Tax (Expense) Benefit			Net of Tax Amount
Year ended December 30, 2017
Foreign currency translation adjustments	$	11,345		$	-		$	11,345
Adjustments related to postretirement benefits		(1,369	)		121			(1,248	)
Change in unrealized gain/loss on investments		(2	)		-			(2	)
Other comprehensive income (loss)	$	9,974		$	121		$	10,095
Year ended December 29, 2018
Foreign currency translation adjustments	$	(8,905	)	$	-		$	(8,905	)
Adjustments related to postretirement benefits		865			(60	)		805
Change in unrealized gain/loss on investments		7			-			7
Other comprehensive income (loss)	$	(8,033	)	$	(60	)	$	(8,093	)
Year ended December 28, 2019
Foreign currency translation adjustments	$	(7,522	)	$	-		$	(7,522	)
Adjustments related to postretirement benefits		(856	)		228			(628	)
Other comprehensive income (loss)	$	(8,378	)	$	228		$	(8,150	)

Condensed Statement of Comprehensive Income [Table Text Block]

(in thousands)	2019			2018
Accumulated net currency translation adjustments	$	(30,198	)	$	(22,676	)
Accumulated net adjustments related to postretirement benefits		(3,832	)		(3,204	)
Total accumulated other comprehensive loss	$	(34,030	)	$	(25,880	)

Note 16 - Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information [Table Text Block]

Quarter			First (a)			Second (a)			Third (a)			Fourth (a)			Year
(in thousands, except per share data)

Net sales:	2019		$	147,809		$	150,011		$	143,498		$	142,011		$	583,329
	2018		$	95,150		$	99,817		$	86,164		$	170,637		$	451,768

Cost of sales:	2019	(b)	$	93,394		$	87,605		$	84,565		$	87,936		$	353,500
	2018	(b)	$	54,923		$	57,677		$	51,142		$	128,718		$	292,460

Income (loss) from continuing operations	2019		$	(22,851	)	$	(19,383	)	$	(10,480	)	$	(16,281	)	$	(68,995	)
	2018		$	8,122		$	11,648		$	4,803		$	(57,116	)	$	(32,543	)

Net income (loss)	2019		$	(22,687	)	$	(19,359	)	$	(10,326	)	$	(17,320	)	$	(69,692	)
	2018		$	8,122		$	11,648		$	4,803		$	(56,997	)	$	(32,424	)

Net income (loss) attributable to Cohu	2019		$	(22,643	)	$	(19,323	)	$	(10,468	)	$	(17,266	)	$	(69,700	)
	2018		$	8,122		$	11,648		$	4,803		$	(56,754	)	$	(32,181	)

Income (loss) per share attributable to Cohu (c):
Basic:
Income (loss) from continuing operations	2019		$	(0.56	)	$	(0.47	)	$	(0.25	)	$	(0.39	)	$	(1.68	)
	2018		$	0.28		$	0.40		$	0.17		$	(1.40	)	$	(1.02	)

Net income (loss)	2019		$	(0.55	)	$	(0.47	)	$	(0.25	)	$	(0.42	)	$	(1.69	)
	2018		$	0.28		$	0.40		$	0.17		$	(1.40	)	$	(1.01	)

Diluted:
Income (loss) from continuing operations	2019		$	(0.56	)	$	(0.47	)	$	(0.25	)	$	(0.39	)	$	(1.68	)
	2018		$	0.28		$	0.39		$	0.16		$	(1.40	)	$	(1.02	)

Net income (loss)	2019		$	(0.55	)	$	(0.47	)	$	(0.25	)	$	(0.42	)	$	(1.69	)
	2018		$	0.28		$	0.39		$	0.16		$	(1.40	)	$	(1.01	)

Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 28, 2019

Valuation and Qualifying Accounts Disclosure [Table Text Block]

			Additions			Additions
			(Reductions)			(Reductions)
	Balance at		Not			Charged					Balance
	Beginning		Charged			(Credited)			Deductions/		at End
Description	of Year		to Expense			to Expense			Write-offs		of Year

Allowance for doubtful accounts:

Year ended December 31, 2017	$	81	$	174	(1)	$	6		$	61	$	200

Year ended December 30, 2018	$	200	$	(20	) (1)	$	(109	)	$	31	$	40

Year ended December 28, 2019	$	40	$	24	(1)	$	(28	)	$	27	$	9


Reserve for excess and obsolete inventories:

Year ended December 31, 2017	$	21,485	$	(1,165	) (1)	$	1,148		$	4,106	$	17,362

Year ended December 29, 2018	$	17,362	$	(300	) (1)	$	10,783		$	3,907	$	23,938

Year ended December 28, 2019	$	23,938	$	1,285	(1)	$	4,792		$	9,057	$	20,958

Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands, € in Millions		3 Months Ended	12 Months Ended
	Oct. 01, 2019 USD ($)	Dec. 29, 2018 USD ($)	Dec. 28, 2019 USD ($) shares	Dec. 29, 2018 USD ($) shares	Dec. 30, 2017 USD ($) shares	Dec. 09, 2019 EUR (€)	Dec. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Number of VIEs Consolidated		1	1	1
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount \| shares			422,000	146,000	77,000
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense			$ 4,800	$ 10,800	$ 1,100
Inventory Write-down		$ 19,100
Amount Committed to Acquire Leased Facility \| €						€ 1.1
Depreciation, Total			19,300	8,800	5,000
Capitalized Computer Software, Gross			$ 10,300
Number of Operating Segments			4
Number of Reportable Segments			2
Goodwill and Intangible Asset Impairment, Total	$ 0
Revenue, Remaining Performance Obligation, Amount		19,100	$ 10,000	19,100
Contract with Customer, Liability, Total		10,800	16,100	10,800
Contract with Customer, Liability, Current		6,900	7,600	6,900
Contract with Customer, Liability, Noncurrent		2,000	7,200	2,000
Amortization of Debt Issuance Costs			1,100	1,100
Foreign Currency Transaction Gain (Loss), Realized				1,700	(3,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total		(25,880)	(34,030)	(25,880)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax			(7,500)	(8,900)
Operating Lease, Right-of-Use Asset			33,269
Assets, Total		1,134,002	1,077,710	1,134,002	$ 420,457
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption								$ 1,100
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset							$ 30,700
Operating Lease, Liability, Total							29,900
Sale Leaseback Transaction, Deferred Gain, Gross							(10,200)
Assets, Total							(500)
Liabilities, Total							$ (600)
Xcerra [Member]
Capital Leased Assets, Gross, Total		$ 2,700	$ 2,600	2,700
Minimum [Member]
Standard Product Warranty Term			1 year
Maximum [Member]
Standard Product Warranty Term			3 years
Building [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life			30 years
Building [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life			40 years
Building Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life			5 years
Building Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life			15 years
Machinery, Equipment and Software [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life			3 years
Machinery, Equipment and Software [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life			10 years
Xcerra [Member]
Inventory Write-down			$ 700	$ 9,400
ALBS [Member]
Variable Interest Entity, Ownership Percentage Sold			20.00%
Gain (Loss) on Disposition of Business			$ 100

Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Weighted average common shares outstanding (in shares)	41,159	31,776	27,836
Effect of dilutive stock options and restricted stock units (in shares)			1,080
(in shares)	41,159	31,776	28,916

Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Raw materials and purchased parts	$ 69,665	$ 60,112
Work in process	46,591	57,953
Finished goods	14,450	21,249
Total inventories	$ 130,706	$ 139,314

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

Dec. 28, 2019

Dec. 29, 2018

Less accumulated depreciation and amortization

$ 114,139

$ 113,961

(43,227)

(39,629)

Property, plant and equipment, net

70,912

74,332

Land and Land Improvements [Member]

Building and Building Improvements [Member]

^[1]

11,659

11,905

Machinery and Equipment [Member]

^[1]

41,474

37,265

$ 61,006

$ 64,791

[1]	Includes assets under financing leases acquired with Xcerra totaling $2.6 million and $2.7 million as of December 28, 2019 and December 29, 2018, respectively.

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

3 Months Ended

12 Months Ended

Dec. 28, 2019

^[1]

Sep. 28, 2019

^[1]

Jun. 29, 2019

^[1]

Mar. 30, 2019

^[1]

Dec. 29, 2018

^[1]

Sep. 29, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 28, 2019

Dec. 29, 2018

Dec. 30, 2017

Semiconductor Test and Inspection [Member]

$ 142,011

$ 143,498

$ 150,011

$ 147,809

$ 170,637

$ 86,164

$ 99,817

$ 95,150

$ 583,329

$ 451,768

$ 352,704

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

540,878

443,276

352,704

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

299,473

249,514

197,454

241,405

193,737

155,250

PCB Test [Member]

PCB Test [Member] | Systems [Member]

42,451

8,492

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

25,928

6,565

Goodwill, measurement period adjustments

$ 16,523

$ 1,952

[1]

All quarters presented above were comprised of 13 weeks. We acquired Xcerra on October 1, 2018. The results of Xcerra have been included in our results of operations from the date of acquisition. See Note 2, “Business Acquisitions” for additional information regarding this transaction. Total operating expenses in 2019 and 2018 include acquisition costs and amounts related to the integration and our announced restructuring plan as follows. The fourth quarter of 2018 includes $19.1 million of inventory write-offs, $14.8 million of amortization of inventory step-up, and $18.7 million of restructuring charges. The first quarter of 2019 includes $6.0 million of amortization of inventory step-up. The second quarter of 2019 includes $8.5 million of restructuring charges.

Note 2 - Business Acquisitions (Details Textual) $ / shares in Units, $ in Millions		12 Months Ended
	Oct. 01, 2018 USD ($) $ / shares shares	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)
Share Price \| $ / shares	$ 25.10
Secured Term Loan Facility [Member]
Debt Instrument, Face Amount	$ 350.0
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	$ 794.4
Business Combination, Number of Brands Acquired	4
Payments to Acquire Businesses, Gross	$ 160.5
Business Combination, Acquisition Related Costs		$ 0.4	$ 9.8
Xcerra [Member] \| Fair Value Adjustment to Inventory [Member]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value	$ 19.6
Xcerra [Member] \| Severance and Other Separation Payments [Member]
Business Combination, Contingent Consideration, Liability, Total			$ 6.9
Xcerra [Member] \| Common Stock [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares \| shares	11,776,149
Xcerra [Member] \| Cohu RSUs [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares \| shares	529,995
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Attributed to Pre-Merger Services	$ 0.8

Note 2 - Business Acquisitions - Purchase Price Allocation, Xcerra Acquisition (Details) - USD ($)
$ in Thousands

12 Months Ended

14 Months Ended

Dec. 28, 2019

Dec. 29, 2018

Oct. 01, 2018

Dec. 30, 2017

Goodwill

$ 238,669

$ 242,127

$ 65,613

1,134

Xcerra [Member]

Current assets, including cash received

375,990

$ 375,990

Other assets, measurement period adjustments

40,729

Other assets

1,051

2,109

^[1]

(1,058)

Intangible assets

321,160

Goodwill

180,397

179,263

Goodwill, measurement period adjustments

^[1]

1,134

Total assets acquired

919,327

919,251

Liabilities assumed

(124,897)

(124,821)

Liabilities assumed, measurement period adjustments

^[1]

(76)

Net assets acquired

$ 794,430

[1]	Measurement period adjustments made as a result of obtaining new facts and circumstances related to certain assets acquired and liabilities assumed as of the date of acquisition. The net impact of the measurement period adjustments were offset against goodwill.

Note 2 - Business Acquisitions - Preliminary Allocation of Intangible Assets, Xcerra Acquisition (Details) - Xcerra [Member] $ in Thousands	Oct. 01, 2018 USD ($)
Intangible assets, estimated fair value	$ 321,160
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
Customer Relationships [Member]
Finite-lived intangible assets, estimated fair value	$ 65,890
Finite-lived intangible assets, average useful life (Year)	10 years 219 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
Trademarks and Trade Names [Member]
Finite-lived intangible assets, estimated fair value	$ 16,800
Finite-lived intangible assets, average useful life (Year)	11 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

Note 3 - Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Transfer From In-Process Technology to Developed Technology	$ 15,300
Amortization of Intangible Assets, Total	39,590	$ 17,197	$ 4,208
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	38,400
Finite-Lived Intangible Assets, Amortization Expense, Year Two	34,800
Finite-Lived Intangible Assets, Amortization Expense, Year Three	34,800
Finite-Lived Intangible Assets, Amortization Expense, Year Four	34,800
Finite-Lived Intangible Assets, Amortization Expense, Year Five	34,800
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	76,800
In-process Technology [Member]
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance	$ 20,800	$ 36,300

Note 3 - Goodwill and Purchased Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 28, 2019

Dec. 29, 2018

Beginning balance

$ 242,127

$ 65,613

Additions

179,263

Impact of currency exchange

(3,877)

(2,749)

Adjustments

1,134

Impairments (1)

^[1]

(715)

Ending balance

238,669

242,127

Semiconductor Test and Inspection [Member]

Beginning balance

220,808

65,613

Additions

157,661

Impact of currency exchange

(3,435)

(2,466)

Adjustments

2,117

Impairments (1)

^[1]

(715)

Ending balance

218,775

220,808

PCB Test [Member]

Beginning balance

21,319

Additions

21,602

Impact of currency exchange

(442)

(283)

Adjustments

(983)

Impairments (1)

^[1]

Ending balance

$ 19,894

$ 21,319

[1]	Impairment of goodwill associated with our FSG segment that is presented as discontinued operations. This amount was not pushed down in the consolidated financial statements and was included within the balance of our Semiconductor Test & Inspection segment.

Note 3 - Goodwill and Purchased Intangible Assets - Purchased Intangible Assets (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 28, 2019

Dec. 29, 2018

Gross Carrying Amount, finite-lived and indefinite-lived intangible assets

$ 74,945

$ 35,203

329,132

317,857

Developed Technology Rights [Member]

Gross Carrying Amount, finite-lived intangible assets

227,619

214,266

$ 49,805

21,197

Customer Relationships [Member]

6 years 219 days

Gross Carrying Amount, finite-lived intangible assets

$ 72,251

73,104

$ 14,824

7,378

Gross Carrying Amount, finite-lived intangible assets

9 years 109 days

Trade Names [Member]

$ 22,612

22,701

$ 3,892

1,807

Order or Production Backlog [Member]

9 years 182 days

Gross Carrying Amount, finite-lived intangible assets

$ 6,328

6,372

$ 6,328

4,696

Off-Market Favorable Lease [Member]

Gross Carrying Amount, finite-lived intangible assets

^[1]

1,100

^[1]

Noncompete Agreements [Member]

^[1]

Gross Carrying Amount, finite-lived intangible assets

$ 322

314

$ 96

$ 63

7 years

[1]	Favorable leases were reclassified to operating lease right of use assets on December 30, 2018 as a result of our adoption of ASU 2016-2.

Note 4 - Borrowings and Credit Agreements (Details Textual)
$ in Thousands, € in Millions, SFr in Millions

12 Months Ended

Dec. 31, 2019

USD ($)

Dec. 10, 2019

EUR (€)

Aug. 01, 2019

EUR (€)

Jul. 26, 2019

EUR (€)

Oct. 01, 2018

USD ($)

Dec. 28, 2019

USD ($)

Dec. 29, 2018

USD ($)

Dec. 30, 2017

USD ($)

Dec. 28, 2019

EUR (€)

Dec. 28, 2019

CHF (SFr)

$ 360,476

Proceeds from Issuance of Long-term Debt, Total

6,517

$ 6,676

^[1]

348,250

Long-term Line of Credit, Total

3,195

3,115

^[1]

Ismeca [Member]

Line of Credit Facility, Maximum Borrowing Capacity | SFr

SFr 2

Long-term Line of Credit, Total

$ 0

Number of Available Lines of Credit

Revolving Credit Facility [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 8,800

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%

339,100

Long-term Debt, Fair Value

2,300

344,800

Secured Term Loan Facility [Member] | Subsequent Event [Member]

Repayments of Long-term Debt, Current Maturities

$ 900

Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument, Basis Spread on Variable Rate

3.00%

Kita Term Loans [Member]

3,800

Kita Term Loans [Member] | Minimum [Member]

$ 400

Kita Term Loans [Member] | Maximum [Member]

0.05%

Xcerra Term Loan [Member]

0.43%

$ 1,500

$ 300

Loan Facilities [Member] | Construction Loans [Member]

2.35%

Debt Instrument, Term

10 years

Debt Instrument, Face Amount | €

€ 8.6

$ 5,500

First Facility [Member] | Construction Loans [Member]

$ 300

Debt Instrument, Collateral Amount | €

0.80%

Debt Instrument, Term

10 years

€ 3.4

Proceeds from Issuance of Long-term Debt, Total | €

€ 3.4

Debt Instrument, Principal Payment Terms

8 years

Second Facility [Member] | Construction Loans [Member]

Debt Instrument, Collateral Amount | €

1.05%

Debt Instrument, Term

15 years

€ 5.2

Proceeds from Issuance of Long-term Debt, Total | €

€ 1.5

Debt Instrument, Principal Payment Terms

15 years

Debt Instrument, Unused Borrowing Capacity, Amount | €

€ 3.7

[1]	Excludes capital lease obligations, which are included in long-term and short-term debt in our consolidated balance sheet, as they were not material at December 29, 2018.

Note 4 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($)
$ in Thousands

Dec. 28, 2019

Dec. 29, 2018

Lines of Credit

$ 3,195

$ 3,115

^[1]

Total debt

360,476

358,655

^[1]

Less: financing fees and discount

(7,441)

(8,551)

^[1]

Less: current portion

(6,517)

(6,676)

^[1]

Total long-term debt

346,518

343,428

^[1]

Secured Term Loan Facility [Member]

346,500

349,125

^[1]

Less: current portion

(2,300)

Kita Term Loans [Member]

3,830

4,576

^[1]

Less: current portion

(400)

Xcerra [Member]

Rasco Construction Loan [Member]

1,475

1,839

^[1]

Debt Security, Government, Non-US [Member]

$ 5,476

[1]	Excludes capital lease obligations, which are included in long-term and short-term debt in our consolidated balance sheet, as they were not material at December 29, 2018.

Note 4 - Borrowings and Credit Agreements - Debt Principal Payments for the Next Five Years and Thereafter (Details) $ in Thousands	Dec. 28, 2019 USD ($)
2020	$ 7,679
2021	4,636
2022	4,997
2023	5,001
2024	4,467
Thereafter	333,696
Total	$ 360,476

Note 5 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 29, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Restructuring Charges, Total	$ 8,500	$ 18,700	$ 13,484	$ 18,704
Integration Program [Member]
Restructuring Charges, Total			16,213	37,757
Integration Program [Member] \| Employee Severance [Member]
Restructuring Charges, Total			$ 12,170	17,791
Integration Program [Member] \| Employee Severance [Member] \| Executive Officers and Board of Directors of Xcerra [Member]
Restructuring Charges, Total				8,200
Integration Program [Member] \| Severance and Other Separation Payments [Member]
Business Combination, Contingent Consideration, Liability, Total		$ 6,900		$ 6,900

Note 5 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 29, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Restructuring Charges, Total	$ 8,500	$ 18,700	$ 13,484	$ 18,704
Integration Program [Member]
Restructuring Charges, Total			16,213	37,757
Employee Severance [Member] \| Integration Program [Member]
Restructuring Charges, Total			12,170	17,791
Accrued restructuring, beginning balance			4,026
Amounts paid or charged			(14,909)	(13,750)
Impact of currency exchange			(51)	(15)
Amounts paid or charged			(14,909)	(13,750)
Impact of currency exchange			(51)	(15)
Accrued restructuring, ending balance		4,026	1,236	4,026
Other Restructuring [Member] \| Integration Program [Member]
Restructuring Charges, Total			1,314	913
Accrued restructuring, beginning balance
Amounts paid or charged			(1,314)	(913)
Impact of currency exchange
Amounts paid or charged			(1,314)	(913)
Impact of currency exchange
Accrued restructuring, ending balance
Employee Severance and Other Exit Costs [Member] \| Integration Program [Member]
Restructuring Charges, Total			13,484	18,704
Accrued restructuring, beginning balance			4,026
Amounts paid or charged			(16,223)	(14,663)
Impact of currency exchange			(51)	(15)
Amounts paid or charged			(16,223)	(14,663)
Impact of currency exchange			(51)	(15)
Accrued restructuring, ending balance		$ 4,026	1,236	4,026
Inventory Charges [Member] \| Integration Program [Member]
Restructuring Charges, Total			$ 2,729	$ 19,053

Note 6 - Employee Benefit Plans (Details Textual) - USD ($)		12 Months Ended
	May 08, 2019	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Defined Contribution Plan, Employer Matching Contribution, Percent of Match		50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay		8.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount		$ 2,000,000	$ 1,100,000	$ 600,000
Deferred Compensation Liability, Current, Total		2,000,000	2,000,000
Cash Surrender Value of Life Insurance		$ 1,700,000	$ 1,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 200,000	$ 900,000	$ 10,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value		4,400,000
Share-based Payment Arrangement, Expense		$ 14,148,000	$ 10,053,000	$ 7,007,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		694,000	822,000	353,000
Restricted Stock Units (RSUs) [Member] \| Xcerra Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			529,995
Restricted Stock Units (RSUs) [Member] \| Executive Officers and Board of Directors of Xcerra [Member]
Share-based Payment Arrangement, Expense			$ 8,200,000
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 Two Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			2 years
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
Equity Based Performance Stock Units Granted in 2019, 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%
Unvested Restricted Stock Units [Member]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total		$ 18,700,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 73 days
Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan, Shares Reserved for Future Issuance		2,650,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	500,000
Percentage of Fair Value to Determine Price of Common Stock		85.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans		187,273	84,678	99,144
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		911,337
Equity Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	2,000,000
Percentage of Fair Value to Determine Price of Common Stock	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		2,503,918
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
Postretirement Health Coverage [Member]
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months		$ 100,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Two		100,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Three		100,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Four		100,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Five		100,000
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter		700,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total		$ 100,000	$ 100,000	$ 100,000
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		3.00%	4.10%	3.40%
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year		7.40%
Defined Benefit Plan, Health Care Cost Trend Rate, Annual Rate of Change		0.40%
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate		4.40%
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate			2027
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components		$ 14,000
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components		12,000
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation		318,000
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation		270,000
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year		100,000
Swiss Plan [Member]
Accumulated Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Tax		(4,100,000)	$ (2,700,000)
Defined Benefit Plan, Expected Future Employee and Employer Contributions, Next Twelve Months		900,000
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months		1,400,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Two		1,300,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Three		1,100,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Four		1,700,000
Defined Benefit Plan, Expected Future Benefit Payment, Year Five		1,300,000
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter		7,000,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total		$ 1,019,000	$ 1,008,000	$ 986,000
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		0.20%	0.90%
Swiss Plan [Member] \| Debt Securities and Cash [Member]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		62.00%
Swiss Plan [Member] \| Real Estate Investments [Member]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		17.00%
Swiss Plan [Member] \| Alternative Investments [Member]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		10.00%
Swiss Plan [Member] \| Defined Benefit Plan, Equity Securities [Member]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage		11.00%
Xcerra [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match		50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay		6.00%

Note 6 - Employee Benefit Plans - Net Periodic Benefit Cost of Swiss Plan (Details) - Swiss Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Service cost	$ 920	$ 925	$ 907
Interest cost	267	207	198
Expected return on assets	(168)	(124)	(119)
Net periodic costs	$ 1,019	$ 1,008	$ 986

Note 6 - Employee Benefit Plans - Benefit Obligation, Fair Value of Plan Assets, Funded Status and Liability of Swiss Plan (Details) - Swiss Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Benefit obligation at beginning of year	$ (29,910)	$ (30,512)
Service cost	(920)	(925)	$ (907)
Interest cost	(267)	(207)	(198)
Actuarial gain (loss)	(1,456)	708
Participant contributions	(1,434)	(816)
Benefits paid	2,313	1,079
Plan change		199
Foreign currency exchange adjustment	(567)	564
Benefit obligation at end of year	(32,241)	(29,910)	(30,512)
Fair value of plan assets at beginning of year	18,088	17,746
Return on assets, net of actuarial loss	281	114
Employer contributions	882	816
Participant contributions	1,434	816
Benefits paid	(2,313)	(1,079)
Foreign currency exchange adjustment	333	(325)
Fair value of plan assets at end of year	18,705	18,088	$ 17,746
Net liability at end of year	$ (13,536)	$ (11,822)

Note 6 - Employee Benefit Plans - Weighted-average Actuarial Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Details) - Swiss Plan [Member]	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Discount rate	0.20%	0.90%
Compensation increase	1.10%	1.80%
Discount rate	0.90%	0.70%	0.70%
Rate of return on assets	0.90%	0.70%	0.70%
Compensation increase	1.80%	1.80%	1.50%

Note 6 - Employee Benefit Plans - Post-retirement Benefit Obligation to Funded Status and Liability (Details) - Postretirement Health Coverage [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Accumulated benefit obligation at beginning of year	$ 2,880	$ 3,148
Interest cost	115	105
Actuarial gain	(258)	(216)
Benefits paid	(166)	(157)
Accumulated benefit obligation at end of year	2,571	2,880
Plan assets at end of year
Funded status	$ (2,571)	$ (2,880)

Note 6 - Employee Benefit Plans - Stock Option Activity Under Share-based Compensation Plans (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Outstanding, beginning of year (in shares)	405	472	1,641
Outstanding, weighted average exercise price, beginning of year (in dollars per share)	$ 10.22	$ 10.20	$ 10.79
Exercised (in shares)	(42)	(67)	(1,164)
Exercised, weighted average exercise price (in dollars per share)	$ 9.82	$ 10.10	$ 10.98
Cancelled (in shares)			(5)
Cancelled, weighted average exercise price (in dollars per share)			$ 20.73
Outstanding, end of year (in shares)	363	405	472
Outstanding, weighted average exercise price, end of year (in dollars per share)	$ 10.27	$ 10.22	$ 10.20
Options exercisable at year end (in shares)	363	405	469
Options exercisable at year end, weighted average exercise price (in dollars per share)	$ 10.27	$ 10.22	$ 10.20

Note 6 - Employee Benefit Plans - Stock Options Outstanding and Exercisable (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Number Outstanding (in shares)	363	405	472	1,641
Options Outstanding, Weighted Average Remaining Life (Year)	2 years 292 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 10.27	$ 10.22	$ 10.20	$ 10.79
Options Exercisable (in shares)	363	405	469
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 10.27	$ 10.22	$ 10.20
Range 1 [Member]
Range of Exercise Prices, Lower (in dollars per share)	9.44
Range of Exercise Prices, Upper (in dollars per share)	$ 10.54
Number Outstanding (in shares)	200
Options Outstanding, Weighted Average Remaining Life (Year)	3 years 73 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 9.50
Options Exercisable (in shares)	200
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.50
Range 2 [Member]
Range of Exercise Prices, Lower (in dollars per share)	10.55
Range of Exercise Prices, Upper (in dollars per share)	$ 10.58
Number Outstanding (in shares)	126
Options Outstanding, Weighted Average Remaining Life (Year)	2 years 73 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 10.58
Options Exercisable (in shares)	126
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 10.58
Range 3 [Member]
Range of Exercise Prices, Lower (in dollars per share)	10.59
Range of Exercise Prices, Upper (in dollars per share)	$ 15.89
Number Outstanding (in shares)	37
Options Outstanding, Weighted Average Remaining Life (Year)	2 years 109 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 13.32
Options Exercisable (in shares)	37
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 13.23

Note 6 - Employee Benefit Plans - Restricted Stock Unit Activity Under Share-based Compensation Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Outstanding, beginning of year, units (in shares)	1,265	981	1,083
Outstanding, beginning of year, wt. avg. (in dollars per share)	$ 19.48	$ 12.50	$ 10.50
Granted, units (in shares)	694	822	353
Granted, wt. avg. (in dollars per share)	$ 14.32	$ 23.70	$ 15.95
Released, units (in shares)	(563)	(500)	(409)
Released, wt. avg. (in dollars per share)	$ 19.08	$ 13.10	$ 10.26
Cancelled, units (in shares)	(68)	(38)	(46)
Cancelled, wt. avg. (in dollars per share)	$ 17.60	$ 14.67	$ 11.85
Outstanding, end of year, units (in shares)	1,328	1,265	981
Outstanding, end of year, wt. avg. (in dollars per share)	$ 17.05	$ 19.48	$ 12.50

Note 6 - Employee Benefit Plans - Equity-based Performance Stock Units (Details)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Equity-based Performance Stock Units Granted in 2019 [Member]
Performance Criteria Period (Year)	3 years
Equity-based Performance Stock Units Granted in 2019 [Member] \| Minimum [Member]
Range of Award	25.00%
Equity-based Performance Stock Units Granted in 2019 [Member] \| Maximum [Member]
Range of Award	200.00%
Equity-based Performance Stock Units Granted in 2018 [Member]
Performance Criteria Period (Year)		3 years
Equity-based Performance Stock Units Granted in 2018 [Member] \| Minimum [Member]
Range of Award		25.00%
Equity-based Performance Stock Units Granted in 2018 [Member] \| Maximum [Member]
Range of Award		200.00%
Equity-based Performance Stock Units Granted in 2017 [Member]
Performance Criteria Period (Year)			3 years
Equity-based Performance Stock Units Granted in 2017 [Member] \| Minimum [Member]
Range of Award			25.00%
Equity-based Performance Stock Units Granted in 2017 [Member] \| Maximum [Member]
Range of Award			200.00%
Equity-based Performance Stock Units Granted in 2016 [Member]
Performance Criteria Period (Year)				3 years
Equity-based Performance Stock Units Granted in 2016 [Member] \| Minimum [Member]
Range of Award				25.00%
Equity-based Performance Stock Units Granted in 2016 [Member] \| Maximum [Member]
Range of Award				200.00%

Note 6 - Employee Benefit Plans - Performance Based Stock Unit Activity Under Share-based Compensation Plans (Details) - Equity Based Performance Stock Units [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Outstanding, beginning of year, units (in shares)	340	334	403
Outstanding, beginning of year, wt. avg. (in dollars per share)	$ 17.89	$ 14.31	$ 11.04
Granted, units (in shares)	167	89	185
Granted, wt. avg. (in dollars per share)	$ 14.11	$ 24.32	$ 17.60
Released, units (in shares)	(36)	(41)	(186)
Released, wt. avg. (in dollars per share)	$ 11.35	$ 9.92	$ 11.35
Cancelled, units (in shares)	(107)	(42)	(68)
Cancelled, wt. avg. (in dollars per share)	$ 11.35	$ 10.69	$ 11.94
Outstanding, end of year, units (in shares)	364	340	334
Outstanding, end of year, wt. avg. (in dollars per share)	$ 18.72	$ 17.89	$ 14.31

Note 6 - Employee Benefit Plans - Weighted-average Assumptions to Value Share-based Awards Granted (Details) - $ / shares	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Restricted Stock Units (RSUs) [Member]
Dividend yield	1.60%	1.00%	1.40%
Employee Stock Purchase Plan [Member]
Dividend yield	1.30%	1.10%	1.40%
Expected volatility	46.40%	39.00%	33.30%
Risk-free interest rate	2.20%	1.70%	0.70%
Expected term (Year)	182 days	182 days	182 days
Weighted-average grant date fair value per share (in dollars per share)	$ 5.35	$ 5.90	$ 4.63

Note 6 - Employee Benefit Plans - Reported Share-based Compensation in Consolidated Financial Statements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based compensation of continuing operations	$ 14,148	$ 10,053	$ 7,007
Income tax benefit	(587)	(993)	(530)
Total share-based compensation, net of tax	13,561	9,060	6,477
Cost of Sales [Member]
Share-based compensation of continuing operations	736	546	423
Research and Development Expense [Member]
Share-based compensation of continuing operations	2,994	1,717	1,054
Selling, General and Administrative Expenses [Member]
Share-based compensation of continuing operations	$ 10,418	$ 7,790	$ 5,530

Note 7 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	$ 0	$ 0

Note 7 - Financial Instruments Measured at Fair Value - Short-term Investments by Security Type (Details) - USD ($)
$ in Thousands

Dec. 28, 2019

Dec. 29, 2018

Estimated Fair Value

$ 904

$ 560

Amortized Cost

904

560

Gross Unrealized Gains

Gross Unrealized Losses

^[1]

Estimated Fair Value

$ 904

$ 560

[1]	As of December 28, 2019 and December 29, 2018 we had no investments with loss positions.

Note 7 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Due after one year through three years, amortized cost	$ 904
Due after one year through three years, fair value	$ 904

Note 7 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
	$ 156,098	$ 165,020
Debt Security, Government, Non-US [Member]
Short-term investments	904	560
Cash [Member]
Cash and cash equivalents	147,523	144,696
Money Market Funds [Member]
Cash and cash equivalents	7,671	19,764
Fair Value, Inputs, Level 1 [Member]
	147,523	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	147,523	144,696
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 2 [Member]
	8,575	20,324
Fair Value, Inputs, Level 2 [Member] \| Debt Security, Government, Non-US [Member]
Short-term investments	904	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	7,671	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 8 - Income Taxes (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	35.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount	$ 5,100		$ 16,600
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability			(4,000)
Deferred Tax Assets, Valuation Allowance, Total	93,498	$ 84,718
Increase (Decrease) of Net Income Due to Impact of Tax Holidays	$ 2,100	$ 2,400	$ 2,800
Increase (Decrease) of Earning Per Share Due To Impact Of Tax Holidays	$ 0.05	$ 0.08	$ 0.10
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 7,000	$ 8,200
Decrease in Unrecognized Tax Benefits is Reasonably Possible	400
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	1,300	1,500
Unrecognized Tax Benefits, Interest Expense, Net of Accrued Interest Reversed	(300)	$ 600	$ (300)
Minimum [Member]
Collection Term Range		4 years
Maximum [Member]
Collection Term Range		10 years
Domestic Tax Authority [Member]
Operating Loss Carryforwards, Total	246,900
Tax Credit Carryforward, Amount	$ 11,500
Open Tax Year	2015 2016 2017 2018 2019
State and Local Jurisdiction [Member]
Operating Loss Carryforwards, Total	$ 160,500
Tax Credit Carryforward, Amount	$ 31,600
Open Tax Year	2014 2015 2016 2017 2018 2019
Foreign Tax Authority [Member]
Operating Loss Carryforwards, Total	$ 25,100

Note 8 - Income Taxes - Components of Provision (Benefit) for Income Taxes for Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
U.S. Federal			$ 12
U.S. State	130	51	18
Foreign	2,173	8,787	6,005
Total current	2,303	8,838	6,035
U.S. Federal	98	56	(3,451)
U.S. State	1		(481)
Foreign	(5,484)	(8,263)	141
Total deferred	(5,385)	(8,207)	(3,791)
	$ (3,082)	$ 631	$ 2,244

Note 8 - Income Taxes - Income (Loss) Before Income Taxes From Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income (loss) from continuing operations, U.S.	$ (72,669)	$ (42,682)	$ 1,430
Income from continuing operations, Foreign	592	10,770	33,935
Income (loss) from continuing operations before taxes	$ (72,077)	$ (31,912)	$ 35,365

Note 8 - Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Inventory, receivable and warranty reserves	$ 11,896	$ 12,560
Net operating loss carryforwards	69,096	65,587
Tax credit carryforwards	36,489	34,251
Accrued employee benefits	4,685	5,134
Stock-based compensation	2,372	2,108
Lease liabilities	7,890
Other	7,885	7,827
Gross deferred tax assets	140,313	127,467
Less valuation allowance	(93,498)	(84,718)
Total deferred tax assets	46,815	42,749
Depreciation and fixed asset related	948	3,156
Intangible assets and other acquisition basis differences	62,325	70,415
Operating lease right-of-use assets	7,504
Unremitted earnings of foreign subsidiaries	2,462	5,257
Total deferred tax liabilities	73,239	78,828
Net deferred tax liabilities	$ (26,424)	$ (36,079)

Note 8 - Income Taxes - Reconciliation of Income Tax Computed at U.S. Federal Statutory Tax Rate to Provision (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Tax provision at U.S. 21% statutory rate (35% in 2017)	$ (15,136)	$ (6,702)	$ 12,378
Impact of Tax Act, before reduction in valuation allowance		5,095	12,397
State income taxes, net of federal tax benefit	(1,097)	(663)	56
Settlements, adjustments and releases from statute expirations	(1,204)	(783)	(1,731)
Federal tax credits	(1,458)	(864)	(371)
Stock-based compensation	587	(838)	(2,801)
Executive compensation limited by Section 162(m)	190	3,456	246
Change in valuation allowance	11,270	(2,015)	(13,484)
Non-deductible transaction related costs		1,106	331
GILTI	2,480	3,531
Foreign rate differential	187	(435)	(4,866)
Other, net	1,099	(257)	89
	$ (3,082)	$ 631	$ 2,244

Note 8 - Income Taxes - Reconciliation of Income Tax Computed at U.S. Federal Statutory Tax Rate to Provision (Benefit) (Details) (Parentheticals)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
U.S. statutory rate	21.00%	21.00%	35.00%

Note 8 - Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Balance at beginning of year	$ 34,701	$ 10,321	$ 10,075
Additions for tax positions of current year	1,231	524	200
Additions (reductions) for tax positions of prior years	(484)
Additions (reductions) for tax positions of prior years		191	58
Reductions due to lapse of the statute of limitations	(957)	(645)	(1,148)
Additions related to Xcerra and Kita acquisitions		24,352	900
Reductions due to settlements	(30)
Foreign exchange rate impact	104		236
Foreign exchange rate impact		(42)
Balance at end of year	$ 34,565	$ 34,701	$ 10,321

Note 9 - Segment and Geographic Information (Details Textual)	12 Months Ended
	Dec. 28, 2019
Number of Operating Segments	4
Number of Reportable Segments	2

Note 9 - Segment and Geographic Information - Summary of Current Segments (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 28, 2019

Sep. 28, 2019

^[1]

Jun. 29, 2019

^[1]

Mar. 30, 2019

^[1]

Dec. 29, 2018

Sep. 29, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 28, 2019

Dec. 29, 2018

Dec. 30, 2017

Net sales by segment:

$ 142,011

^[1]

$ 143,498

$ 150,011

$ 147,809

$ 170,637

^[1]

$ 86,164

$ 99,817

$ 95,150

$ 583,329

$ 451,768

$ 352,704

Profit (loss) for reportable segments

(42,437)

(2,665)

42,535

Interest expense

(20,556)

(4,977)

(54)

Interest income

764

1,187

671

Income (loss) from continuing operations before taxes

(72,077)

(31,912)

35,365

Depreciation

19,300

8,800

5,000

Total depreciation and amortization for reportable segments

58,871

26,047

9,195

Capital expenditures

18,000

4,967

6,093

Corporate, Non-Segment [Member]

1,077,710

1,134,002

1,077,710

1,134,002

420,457

Discontinued operations

3,618

3,820

3,618

3,820

Corporate expenses

(9,848)

(25,457)

(7,787)

Semiconductor Test and Inspection [Member]

18,398

34,367

18,398

34,367

52,299

Net sales by segment:

540,878

443,276

352,704

Profit (loss) for reportable segments

(45,072)

2,489

42,535

Depreciation

56,621

24,634

9,195

Capital expenditures

17,831

4,957

6,093

998,756

1,038,053

998,756

1,038,053

368,158

PCB Test [Member]

Net sales by segment:

42,451

8,492

Profit (loss) for reportable segments

2,635

(5,154)

Depreciation

2,250

1,413

Capital expenditures

169

Semiconductor Test and Inspection and PCB Test [Member]

56,938

57,762

56,938

57,762

NXP Semiconductors N.V. [Member]

$ 1,055,694

$ 1,095,815

$ 1,055,694

$ 1,095,815

$ 368,158

[1]

Note 9 - Segment and Geographic Information - Customers Comprising 10% of Consolidated Sales (Details) - Semiconductor Equipment [Member] - Revenue Benchmark [Member] - Customer Concentration Risk [Member]

12 Months Ended

Dec. 28, 2019

Dec. 30, 2017

Intel [Member]

Net sales percentage

11.10%

11.20%

Net sales percentage

^[1]

15.90%

[1]	Less than 10% of consolidated net sales.

Note 9 - Segment and Geographic Information - Summary of Net Sales to Customers, Attributed to Countries (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 28, 2019

^[1]

Sep. 28, 2019

^[1]

Jun. 29, 2019

^[1]

Mar. 30, 2019

^[1]

Dec. 29, 2018

^[1]

Sep. 29, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 28, 2019

Dec. 29, 2018

Dec. 30, 2017

$ 142,011

$ 143,498

$ 150,011

$ 147,809

$ 170,637

$ 86,164

$ 99,817

$ 95,150

$ 583,329

$ 451,768

$ 352,704

CHINA

118,213

90,255

82,474

Malaysia [Member]

61,826

61,793

80,102

UNITED STATES

71,963

61,177

38,729

PHILIPPINES

TAIWAN, PROVINCE OF CHINA

51,683

46,421

26,268

Rest of the World [Member]

75,725

25,074

16,517

Operating Lease, Right-of-Use Asset

$ 203,919

$ 167,048

$ 108,614

[1]

Note 9 - Segment and Geographic Information - Summary of Property, Plant and Equipment and Other Long Lived Assets in Geographical Area (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Property plant and equipment, net	$ 70,912	$ 74,332
Goodwill and other intangible assets	513,688	561,088
GERMANY
Property plant and equipment, net	25,234	21,655
Goodwill and other intangible assets	228,476	249,605
UNITED STATES
Property plant and equipment, net	16,671	20,417
Goodwill and other intangible assets	207,642	228,022
JAPAN
Property plant and equipment, net	9,964	11,905
Goodwill and other intangible assets	3,872	4,138
Malaysia [Member]
Property plant and equipment, net	7,151	10,535
Goodwill and other intangible assets	44,140	43,569
PHILIPPINES
Property plant and equipment, net	8,637	5,842
Rest of the World [Member]
Property plant and equipment, net	3,255	3,978
Goodwill and other intangible assets	7,453	8,977
SINGAPORE
Goodwill and other intangible assets	13,915	15,173
SWITZERLAND
Goodwill and other intangible assets	$ 8,190	$ 11,604

Note 10 - Leases (Details Textual) - USD ($) $ in Millions	12 Months Ended
Note 10 - Leases (Details Textual) - USD ($) $ in Millions	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Lessee, Operating Lease, Renewal Term	25 years
Finance Lease Right-of-use Asset, Accumulated Amortization	$ 0.1
Operating Lease, Impairment Loss	0.2
Operating Leases, Rent Expense, Total		$ 4.8	$ 3.6
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	38 years

Note 10 - Leases - Balance Sheet Information (Details) - USD ($)
$ in Thousands

Dec. 28, 2019

Dec. 29, 2018

$ 33,269

Finance lease assets

^[1]

2,515

Total lease assets

35,784

Operating

28,877

Total lease liabilities

$ 36,909

Operating leases (Year)

7 years 328 days

Finance leases (Year)

182 days

Operating leases

6.30%

Finance leases

4.50%

Other Accrued Liabilities [Member]

Operating

$ 5,458

Finance

$ 2,574

[1]	Finance lease assets are recorded net of accumulated amortization of $0.1 million.

Note 10 - Leases - Lease Expense (Details)
$ in Thousands

12 Months Ended

Dec. 28, 2019

USD ($)

Operating leases (1)

$ 8,525

^[1]

Variable lease expense

2,318

Short-term operating leases

256

Amortization of leased assets

102

Interest on lease liabilities

146

Sublease income

(133)

Net lease cost

$ 11,214

[1]	Operating lease cost excludes impairment expense of $0.2 million related to the write-down of the Fontana facility right-of-use asset.

Note 10 - Leases - Future Minimum Lease Payments (Details)
$ in Thousands

Dec. 28, 2019

USD ($)

2020, operating leases

$ 7,383

^[1]

2020, finance leases

2,631

2020, total

10,014

2021, operating leases

6,090

^[1]

2021, finance leases

2021, total

6,090

2022, operating leases

5,535

^[1]

2022, finance leases

2022, total

5,535

2023, operating leases

4,987

^[1]

2023, finance leases

2023, total

4,987

2024, operating leases

4,692

2024, finance leases

2024, total

4,692

Thereafter, operating leases

16,314

^[1]

Thereafter, finance leases

Thereafter, total

16,314

Total lease payments, operating leases

45,001

^[1]

Total lease payments, finance leases

2,631

Total lease payments, total

47,632

Less: Interest, operating leases

(10,666)

^[1]

Less: Interest, finance leases

(57)

Less: Interest, total

(10,723)

Present value of lease liabilities, finance leases

2,574

Present value of lease liabilities, total

36,909

Other Accrued Liabilities and Long-term Lease Liabilities [Member]

Present value of lease liabilities, operating leases

$ 34,335

^[1]

[1]	Excludes sublease income of $0.1 million in both 2020 and 2021 and also excludes $0.1 million of legally binding minimum lease payments for lease signed but not yet commenced.

Note 10 - Leases - Cash Flow Information (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)
Operating cash flows from operating leases	$ 6,932
Operating cash flows from finance leases	117
Financing cash flows from finance leases	34
Leased assets obtained in exchange for new operating lease liabilities	$ 40,488

Note 12 - Guarantees (Details Textual) - USD ($) $ in Millions	Dec. 28, 2019	Dec. 29, 2018
Non-current Other Accrued Liabilities [Member]
Product Warranty Accrual, Noncurrent	$ 0.3	$ 0.2

Note 12 - Guarantees - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Beginning balance	$ 8,014	$ 4,849	$ 4,350
Warranty accruals	6,714	7,154	6,765
Warranty payments	(8,573)	(8,358)	(6,316)
Warranty liability assumed		4,369	50
Ending balance	$ 6,155	$ 8,014	$ 4,849

Note 13 - Discontinued Operations (Details Textual) - Fixtures Services Business FSG [Member] - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2020	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Disposal Group, Including Discontinued Operation, Impairment		$ 1,086
Subsequent Event [Member]
Disposal Group, Including Discontinued Operation, Impairment	$ 1,100

Note 13 - Discontinued Operations - Balance Sheet Information for Fixture Services Business (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Cash	$ 736	$ 461
Total current assets	3,503	3,741
Discontinued operations	3,618	3,820
Total current liabilities	599	518
Noncurrent liabilities of discontinued operations (Note 13)	24
Fixtures Services Business FSG [Member] \| Discontinued Operations, Held-for-sale [Member]
Cash	736	461
Accounts receivable, net	1,316	1,718
Inventories	1,411	1,388
Other current assets	40	174
Total current assets	3,503	3,741
Property, plant and equipment, net	33	66
Other noncurrent assets	82	13
Discontinued operations	3,618	3,820
Other accrued current liabilities	599	518
Total current liabilities	599	518
Noncurrent liabilities of discontinued operations (Note 13)	24
Total liabilities	$ 623	$ 518

Note 13 - Discontinued Operations - Summary of Operating Results (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 28, 2019

Dec. 29, 2018

Dec. 30, 2017

Income (loss) before taxes

$ 6,136

$ 1,593

Operating income

478

157

(608)

157

(278)

Income tax provision

Income (loss), net of tax

(697)

119

(278)

Fixtures Services Business FSG [Member]

Loss from impairment of FSG

(1,086)

Broadcast Microwave Services, Inc. (“BMS”) [Member]

Loss from sale of BMS

^[1]

$ (278)

[1]	Represents the write-off of the contingent consideration receivable from the sale of Broadcast Microwave Services, Inc.

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

Amount after tax of income (loss) from a discontinued operation attributable to the parent. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Note 14 - Accumulated Other Comprehensive Loss - Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Foreign currency translation adjustments, before tax	$ (7,522)	$ (8,905)	$ 11,345
Foreign currency translation adjustments, tax
Foreign currency translation adjustments, net of tax	(7,522)	(8,905)	11,345
Adjustments related to postretirement benefits, before tax	(856)	865	(1,369)
Adjustments related to postretirement benefits, tax	228	(60)	121
Adjustments related to postretirement benefits, net of tax	(628)	805	(1,248)
Change in unrealized gain/loss on investments, before tax		7	(2)
Change in unrealized gain/loss on investments, tax
Change in unrealized gain/loss on investments, net of tax		7	(2)
Other comprehensive income (loss), before tax	(8,378)	(8,033)	9,974
Other comprehensive income (loss), tax	228	(60)	121
Other comprehensive income (loss), net of tax	$ (8,150)	$ (8,093)	$ 10,095

Note 14 - Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Accumulated net currency translation adjustments	$ (30,198)	$ (22,676)
Accumulated net adjustments related to postretirement benefits	(3,832)	(3,204)
Total accumulated other comprehensive loss	$ (34,030)	$ (25,880)

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

Note 15 - Related Party Transactions (Details Textual)	12 Months Ended
Note 15 - Related Party Transactions (Details Textual)	Dec. 28, 2019
Blackrock [Member]
Ownership Percentage of the Company	15.50%

Note 16 - Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Inventory Write-down			$ 19,100
Amortization of Inventory, Step-up		$ 6,000	14,800
Restructuring Charges, Total	$ 8,500		$ 18,700	$ 13,484	$ 18,704

Note 16 - Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 28, 2019

Sep. 28, 2019

Jun. 29, 2019

Mar. 30, 2019

^[1]

Dec. 29, 2018

Sep. 29, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 28, 2019

Dec. 29, 2018

Dec. 30, 2017

Income (loss) from continuing operations

$ 142,011

^[1]

$ 143,498

^[1]

$ 150,011

^[1]

$ 147,809

$ 170,637

^[1]

$ 86,164

$ 99,817

$ 95,150

$ 583,329

$ 451,768

$ 352,704

Cost of sales:

87,936

^[1],[2]

84,565

^[1],[2]

87,605

^[1],[2]

93,394

^[2]

128,718

^[1],[2]

51,142

^[2]

57,677

^[2]

54,923

^[2]

353,500

292,460

(16,281)

(10,480)

(19,383)

(22,851)

(57,116)

4,803

11,648

8,122

(68,995)

(32,543)

33,121

Net income (loss) attributable to Cohu

(17,320)

(10,326)

^[1]

(19,359)

^[1]

(22,687)

(56,997)

4,803

^[2]

11,648

8,122

(69,692)

(32,424)

32,843

$ (17,266)

^[1]

$ (10,468)

^[1]

$ (19,323)

^[1]

$ (22,643)

$ (56,754)

$ 4,803

$ 11,648

$ 8,122

$ (69,700)

$ (32,181)

$ 32,843

Income (loss) from continuing operations (in dollars per share)

$ (0.39)

^[1],[3]

$ (0.25)

^[1],[3]

$ (0.47)

^[1],[3]

$ (0.56)

^[3]

$ (1.40)

^[1],[3]

$ 0.17

^[3]

$ 0.40

^[3]

$ 0.28

^[3]

$ (1.68)

$ (1.02)

$ 1.19

Net income (loss) (in dollars per share)

(0.42)

^[1],[3]

(0.25)

^[1],[3]

(0.47)

^[1],[3]

(0.55)

^[3]

(1.40)

^[1],[3]

0.17

^[3]

0.40

^[3]

0.28

^[3]

(1.69)

(1.01)

1.18

Income (loss) from continuing operations before non-controlling interest (in dollars per share)

(0.39)

^[1],[3]

(0.25)

^[1],[3]

(0.47)

^[1],[3]

(0.56)

^[3]

(1.40)

^[1],[3]

0.16

^[3]

0.39

^[3]

0.28

^[3]

(1.68)

(1.02)

1.15

Net income (loss) (in dollars per share)

$ (0.42)

^[1],[3]

$ (0.25)

^[1],[3]

$ (0.47)

^[1],[3]

$ (0.55)

^[3]

$ (1.40)

^[1],[3]

$ 0.16

^[3]

$ 0.39

^[3]

$ 0.28

^[3]

$ (1.69)

$ (1.01)

$ 1.14

[1]	All quarters presented above were comprised of 13 weeks. We acquired Xcerra on October 1, 2018. The results of Xcerra have been included in our results of operations from the date of acquisition. See Note 2, “Business Acquisitions” for additional information regarding this transaction. Total operating expenses in 2019 and 2018 include acquisition costs and amounts related to the integration and our announced restructuring plan as follows. The fourth quarter of 2018 includes $19.1 million of inventory write-offs, $14.8 million of amortization of inventory step-up, and $18.7 million of restructuring charges. The first quarter of 2019 includes $6.0 million of amortization of inventory step-up. The second quarter of 2019 includes $8.5 million of restructuring charges.
[2]	Cost of sales is shown exclusive of the amortization of purchased intangible assets.
[3]	The sum of the four quarters may not agree to the year total due to rounding or losses within a quarter and the inclusion or exclusion of common stock equivalents.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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