0001437749-21-010747 | 10-Q | XBRL Viewer

Selling, general and administrative

$ 225,488

$ 138,921

Cost and expenses:

Cost of sales (1)

^[1]

123,283

82,837

Research and development

23,152

22,468

32,739

33,352

Amortization of purchased intangible assets

9,244

9,538

Restructuring charges

1,340

403

Impairment charges

3,949

Costs and Expenses, Total

189,758

152,547

Income (loss) from operations

35,730

(13,626)

Other (expense) income:

Interest expense

(2,575)

(4,427)

Interest income

147

Foreign transaction loss

(262)

(404)

Loss on extinguishment of debt

(1,761)

Income (loss) from continuing operations before taxes

31,182

(18,310)

Income tax provision (benefit)

3,575

(992)

Income (loss) from continuing operations

27,607

(17,318)

Income from discontinued operations

Net income (loss)

$ 27,607

$ (17,276)

Basic:

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

$ 0.63

$ (0.42)

Income from discontinued operations (in dollars per share)

0.00

Net income (loss) (in dollars per share)

0.63

(0.42)

Diluted:

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

0.61

(0.42)

Income from discontinued operations (in dollars per share)

0.00

Net income (loss) (in dollars per share)

$ 0.61

$ (0.42)

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

Basic (in shares)

43,756

41,502

Diluted (in shares)

45,482

41,502

Cash dividend, per share (in dollars per share)

$ 0

$ 0.06

[1]	Excludes amortization of $7,101 and $7,266 for the three months ended March 27, 2021 and March 28, 2020, respectively.

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Amortization of cost	$ 7,101	$ 7,266

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Net income (loss)	$ 27,607	$ (17,276)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(10,246)	(929)
Adjustments related to postretirement benefits	(180)	0
Change in unrealized gain/loss on investments	(6)	0
Other comprehensive loss, net of tax	(10,432)	(929)
Comprehensive income (loss)	$ 17,175	$ (18,205)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Changes in cumulative translation adjustment

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

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

Total

Balance at Dec. 28, 2019

$ 41,395

$ 433,190

$ 42,517

$ (34,030)

$ 483,072

Net income (loss)

(17,276)

(929)

Cash dividends

(2,486)

Exercise of stock options

267

289

Shares issued for restricted stock units vested

403

(403)

Repurchase and retirement of stock

(134)

(1,263)

(1,397)

Share-based compensation expense

3,611

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

Balance at Mar. 28, 2020

41,686

435,402

22,755

(34,959)

464,884

Balance at Dec. 26, 2020

42,190

448,194

26,230

(4,326)

512,288

^[1]

Net income (loss)

27,607

Changes in cumulative translation adjustment

(10,246)

Exercise of stock options

192

1,730

1,922

Shares issued for restricted stock units vested

526

(526)

Repurchase and retirement of stock

(190)

(8,363)

(8,553)

Share-based compensation expense

3,523

(180)

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

(6)

Sale of common stock, net of issuance costs

5,693

217,426

223,119

Balance at Mar. 27, 2021

$ 48,411

$ 661,984

$ 53,837

$ (14,758)

$ 749,474

[1]	Derived from December 26, 2020 audited financial statements

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Cash dividend, per share (in dollars per share)	$ 0	$ 0.06

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Cash flows from operating activities:
Net income (loss)	$ 27,607	$ (17,276)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Gain on disposal of discontinued operation	0	(35)
Loss on extinguishment of debt	1,761	0
Impairment charges related to indefinite lived intangibles	0	3,949
(Gain) loss from sale of property, plant and equipment	(65)	88
Depreciation and amortization	12,567	12,956
Share-based compensation expense	3,523	3,611
Non-cash inventory related charges	1,110	1,603
Deferred income taxes	280	(2,706)
Changes in accrued retiree medical benefits	(81)	254
Changes in other accrued liabilities	(78)	(106)
Changes in other assets	62	605
Amortization of cloud-based software implementation costs	370	205
Interest capitalized associated with cloud computing implementation	(43)	(45)
Amortization of debt discounts and issuance costs	250	290
Changes in assets and liabilities:
Customer advances	882	14,434
Accounts receivable	(47,241)	17,078
Inventories	(20,804)	(6,067)
Other current assets	(6,629)	(5,888)
Accounts payable	28,486	55
Deferred profit	4,383	1,619
Income taxes payable	5,131	7,454
Accrued compensation, warranty and other liabilities	(5,457)	(14,313)
Operating lease right-of-use assets	1,556	1,843
Current and long-term operating lease liabilities	(1,427)	(1,795)
Net cash provided by operating activities	6,143	17,813
Cash flows from investing activities:
Net cash received from sale of fixtures services business	0	2,975
Cash received from sale of property, plant and equipment	98	74
Purchases of short-term investments	(129,736)	0
Sales and maturities of short-term investments	2,481	0
Purchases of property, plant and equipment	(2,700)	(1,584)
Net cash provided by (used in) investing activities	(129,857)	1,465
Cash flows from financing activities:
Cash dividends paid	0	(2,483)
Issuance (repurchases) of common stock, net	(5,421)	253
Proceeds from revolving line of credit and construction loans	818	1,117
Proceeds received from issuance of common stock, net of fees	223,118	0
Repayments of long-term debt	(101,922)	(1,133)
Net cash provided by (used in) financing activities	116,593	(2,246)
Effect of exchange rate changes on cash and cash equivalents	882	(1,488)
Net increase (decrease) in cash and cash equivalents	(6,239)	15,544
Cash and cash equivalents at beginning of period	149,358	155,930
Cash and cash equivalents at end of period	143,119	171,474
Supplemental disclosure of cash flow information:
Cash paid for income taxes	279	690
Inventory capitalized as property, plant and equipment	455	238
Dividends declared but not yet paid	0	2,488
Property, plant and equipment purchases included in accounts payable	862	3,370
Capitalized cloud computing service costs included in accounts payable	757	1,552
Cash paid for interest	$ 2,532	$ 7,308

Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 27, 2021

Significant Accounting Policies [Text Block]

1.	Summary of Significant Accounting Policies

Basis of Presentation

Our fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. The condensed consolidated balance sheet at December 26, 2020, has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of March 27, 2021, (also referred to as “the first quarter of fiscal 2021” and “the first three months of fiscal 2021”) and March 28, 2020, (also referred to as “the first quarter of fiscal 2020” and “the first three months of fiscal 2020”) are unaudited. However, in management’s opinion, these financial statements reflect all adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. The first quarter of fiscal 2021 and 2020 were both comprised of 13 weeks.

Our interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended December 26, 2020, which are included in our 2020 Annual Report on Form 10-K, filed with the U. S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”.

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

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.

Our trade accounts receivable are presented net of allowance for credit losses, which is determined in accordance with the guidance provided by Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments-Credit Losses, (“ASC 326”). At March 27, 2021 and December 26, 2020 our allowance for credit losses was $0.4 million and $0.1 million, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors and other customers located throughout the world. While we believe that our allowance for credit losses is adequate and represents our best estimate at March 27, 2021, we will continue to monitor customer liquidity and other economic conditions, including the impact of the COVID-19 pandemic, which may result in changes to our estimates regarding expected credit losses.

Inventories

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

Inventories by category were as follows (in thousands):

March 27,

December 26,

2021

2020

Raw materials and purchased parts
$ 90,890 $ 83,755

Work in process
54,247 44,315

Finished goods
15,734 14,430

Total inventories
$ 160,871 $ 142,500

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 to forty years for buildings, five to fifteen years for building improvements and three to ten years for machinery, equipment and software. Land is not depreciated.

Property, plant and equipment, at cost, consisted of the following (in thousands):

March 27,

December 26,

2021

2020

Land and land improvements
$ 7,934 $ 8,141

Buildings and building improvements
40,247 41,153

Machinery and equipment
64,599 65,342

112,780 114,636

Less accumulated depreciation and amortization
(47,004 ) (47,720 )

Property, plant and equipment, net
$ 65,776 $ 66,916

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 ASC Topic 350, Intangibles—Goodwill and Other, (“ASC 350”). Capitalized costs include only external direct costs of materials and services consumed in developing the system and interest costs incurred, when material, while developing the system.

Unamortized capitalized cloud computing implementation costs totaled $12.7 million and $13.5 million at March 27, 2021 and December 26, 2020, respectively. These amounts are recorded within other assets in our condensed consolidated balance sheets. The change in the capitalized amount is costs capitalized in the current period, offset by amortization recorded, and an adjustment to accrued costs resulting from renegotiation of our software license that was finalized in the first quarter of 2021. We began amortizing some of these costs when our new ERP system was placed into service during the first quarter of 2020 and we continue to capitalize costs related to implementation projects that are ongoing. Implementation costs are amortized using the straight-line method over seven years and we recorded $0.4 million and $0.2 million in amortization expense during the three months ended March 27, 2021 and March 28, 2020, respectively.

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. We have determined that our four identified operating segments are: Test Handler Group (THG), Semiconductor Test Group (STG), Interface Solutions Group (ISG) and PCB Test Group (PTG). Our THG, STG and ISG operating segments qualify for aggregation under ASC 280 due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in two segments, Semiconductor Test and Inspection Equipment (“Semiconductor Test & Inspection”) and PCB Test Equipment (“PCB Test”).

Goodwill and Indefinite-Lived Intangibles, Other Intangible Assets and Long-lived Assets

We evaluate goodwill and other indefinite-lived intangible assets, which are solely comprised of in-process research and development (“IPR&D”), for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting unit or asset, in the case of in-process research and development. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the fair value of the reporting unit and its carrying value, not to exceed the carrying value 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. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors.

We conduct our annual impairment test as of October 1st of each year and have determined there was no impairment as of October 1, 2020, as the estimated fair values of our reporting units and indefinite-lived intangible assets 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.

During the first quarter of 2020, the volatility in Cohu’s stock price, the global economic downturn and business interruptions associated with the COVID-19 pandemic led us to determine that there was a triggering event related to goodwill within all of our identified reporting units and our indefinite-lived intangible assets. We performed an interim assessment as of March 28, 2020 and determined that the fair values of our identified reporting units all exceeded their carrying values and we concluded there were no impairment of goodwill within our reporting units. During the three months ended March 28, 2020, anticipated delays in customer adoption of certain new products under development as a result of the COVID-19 pandemic, changes to future project roadmap and an increase in the discount rate used in developing our interim fair value estimate resulted in a $3.9 million impairment to IPR&D as the carrying value exceeded fair value.

Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value.

During the first quarter of 2021, no events or conditions occurred suggesting an impairment in our goodwill, indefinite-lived intangibles, other intangible assets and long-lived assets.

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 12 to 36 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.

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. See Note 4, “Restructuring Charges” for additional information.

Debt Issuance Costs

We capitalize costs related to the issuance of debt. Debt issuance costs that were directly related to our Term Loan B are presented within noncurrent liabilities as a reduction of long-term debt in our condensed consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 million for both the three months ended March 27, 2021 and March 28, 2020.

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. 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. During the three months ended March 27, 2021, we recognized foreign exchange losses of $0.3 million, in our condensed consolidated statements of operations. During the three months ended March 28, 2020, we recognized foreign exchange losses of $0.4 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.

Foreign Exchange Derivative Contracts

We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We enter into foreign currency forward contracts with a financial institution to hedge against future movements in foreign exchange rates that affect certain existing U.S. Dollar denominated assets and liabilities at our subsidiaries whose functional currency is the local currency. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses.

We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our condensed consolidated balance sheets with changes in fair value recorded within foreign transaction gain (loss) in our condensed consolidated statements of operations for both realized and unrealized gains and losses. See Note 7, “Derivative Financial Instruments” for additional information.

Share-Based Compensation

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

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

Three Months Ended

March 27,

March 28,

2021

2020

Cost of sales
$ 262 $ 212

Research and development
781 833

Selling, general and administrative
2,480 2,566

Total share-based compensation
3,523 3,611

Income tax benefit
(234 ) (172 )

Total share-based compensation, net
$ 3,289 $ 3,439

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 per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three months ended March 27, 2021, no stock options and awards were excluded from the computation. For the three months ended March 28, 2020, stock options and awards to issue approximately 58,000 shares of 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):

Three Months Ended

March 27,

March 28,

2021

2020

Weighted average common shares
43,756 41,502

Effect of dilutive securities
1,726 -

45,482 41,502

For the three months ended March 28, 2020 Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories.

Leases

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

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rates for the remaining lease terms based on the information available at the adoption date or commencement date in determining the present value of future payments.

The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments, as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may include renewal options to extend the lease when it is reasonably certain that we will exercise those options. In addition, we include purchase option amounts in our calculations when it is reasonably certain that we will exercise those options. Rent expense for minimum payments under operating leases is recognized on a straight-line basis over the term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet but recognized in our condensed consolidated statements of operations on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component and include both in our calculation of the ROU assets and lease liabilities.

We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities. None of our subleases contain extension options. Variable lease payments in our subleases include tax payments that are based on prevailing rates. We account for lease and non-lease components as a single lease component.

Revenue Recognition

Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not transferred until destination or acceptance, we defer revenue recognition until such events occur.

Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not determinable and in the case of new products, revenue and cost of sales are deferred until customer acceptance has been received. Our post-shipment obligations typically include installation and standard warranties. The relative standalone selling price 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 March 27, 2021, we had $8.2 million of revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) for contracts with original expected durations of over one year. As allowed under ASC 606, we have opted to not disclose unsatisfied performance obligations for contracts with original expected durations of less than one year.

We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees (ASC 460), and not as a separate performance obligation.

The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to customers that are known as of the end of the reporting period. Variable consideration includes sales in which the amount of consideration that we will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to certain customers with cumulative tier volume discounts offered. Variable consideration arrangements are rare; however, when they occur, we estimate variable consideration as the expected value to which we expect to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration that does not meet revenue recognition criteria is deferred.

Our contracts are typically less than one year in duration and we have elected to use the practical expedient available in ASC 606 to expense cost to obtain contracts as they are incurred because they would be amortized over less than one year.

Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not exceed one year from the invoice date and therefore do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on our condensed consolidated balance sheet in any of the periods presented.

On shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our condensed consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. At March 27, 2021, we had deferred revenue totaling approximately $25.4 million, current deferred profit of $13.0 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $6.5 million. At December 26, 2020, we had deferred revenue totaling approximately $17.1 million, current deferred profit of $8.7 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $6.7 million.

Net sales of our reportable segments, by type, are as follows (in thousands):

Three Months Ended

Disaggregated Net Sales

March 27, 2021

March 28, 2020

Systems:

Semiconductor Test & Inspection
$ 138,159 $ 70,539

PCB Test
8,620 6,840

Non-systems:

Semiconductor Test & Inspection
74,247 57,474

PCB Test
4,462 4,068

Total net sales
$ 225,488 $ 138,921

Revenue by geographic area based upon product shipment destination (in thousands):

Three Months Ended

Disaggregated Net Sales

March 27, 2021

March 28, 2020

China
$ 54,265 $ 30,811

Philippines
33,754 10,022

Taiwan
32,196 13,881

Malaysia
23,259 15,174

United States
20,059 19,078

Rest of the World
61,955 49,955

Total net sales
$ 225,488 $ 138,921

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

Three Months Ended

March 27,

March 28,

2021

2020

Semiconductor Test & Inspection

Customers individually accounting for more than 10% of net sales
* two

Percentage of net sales
* 26%

PCB Test

Customers individually accounting for more than 10% of net sales
* *

Percentage of net sales
* *

*

No single customer represented more than 10% of consolidated net sales.

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately $14.8 million and $4.3 million at March 27, 2021 and December 26, 2020, respectively, and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain of our subsidiary accounts where the functional currency is not the U.S. Dollar and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss during the first three months of fiscal 2021 and 2020 were not significant.

Retiree Medical Benefits

We provide post-retirement health benefits to certain retired executives, one director (who is a former executive) and their eligible dependents under a noncontributory plan. These benefits are no longer offered to any other retired Cohu employees. The net periodic benefit cost incurred during the first three months of fiscal 2021 and 2020 was not significant.

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. See Note 12, “Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

New Accounting Pronouncements

There have been no material changes in recently issued or adopted accounting standards from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 26, 2020.

Note 2 - Goodwill and Purchased Intangible Assets

3 Months Ended

Mar. 27, 2021

Goodwill and Intangible Assets Disclosure [Text Block]

2.	Goodwill and Purchased Intangible Assets

Goodwill and Intangible Assets

Changes in the carrying value of goodwill during the year ended December 26, 2020, and the three-month period ended March 27, 2021, by segment, were as follows (in thousands):

	Semiconductor Test
	& Inspection			PCB Test			Total
Balance, December 28, 2019	$	218,775		$	19,894		$	238,669
Impact of currency exchange		11,949			1,686			13,635
Balance, December 26, 2020		230,724			21,580			252,304
Impact of currency exchange		(5,109	)		(460	)		(5,569	)
Balance, March 27, 2021	$	225,615		$	21,120		$	246,735

Purchased intangible assets, subject to amortization are as follows (in thousands):

	March 27, 2021						December 26, 2020
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (years)		Amount		Amort.
Developed technology	$	238,892	$	88,305		5.3	$	239,250	$	83,246
Customer relationships		73,691		23,803		8.2		74,933		22,751
Trade names		23,245		6,662		8.5		23,756		6,279
Covenant not-to-compete		321		137		5.8		340		136
Total intangible assets	$	336,149	$	118,907			$	338,279	$	112,412

The table above excludes $4.1 million and $7.8 million of in-process technology, at March 27, 2021 and December 26, 2020, respectively, which has an indefinite life and is subject to impairment or future amortization as developed technology when the projects are completed. During the first quarter of 2021, $3.7 million of in-process technology was completed and transferred to developed technology. Changes in the carrying values of purchased intangible assets presented above are a result of the impact of fluctuation in currency exchange rates.

Amortization expense related to intangible assets in the first quarter of fiscal 2021 and 2020 was $9.2 million and $9.5 million, respectively.

Note 3 - Borrowings and Credit Agreements

3 Months Ended

Mar. 27, 2021

Debt Disclosure [Text Block]

3.	Borrowings and Credit Agreements

The following table is a summary of our borrowings as of March 27, 2021 and December 26, 2020 (in thousands):

	March 27,			December 26,
	2021			2020
Bank Term Loan under Credit Agreement	$	204,880		$	306,630
Bank Term Loans-Kita		3,395			3,662
Construction Loan- Cohu GmbH		10,298			9,902
Lines of Credit		5,018			5,314
Total debt		223,591			325,508
Less: financing fees and discount		(3,558	)		(5,568	)
Less: current portion		(8,851	)		(8,389	)
Total long-term debt	$	211,182		$	311,551

Credit Agreement

On October 1, 2018, we entered into a Credit Agreement providing for a $350.0 million Credit Facility and borrowed the full amount to finance a portion of the Xcerra acquisition. Loans under the Credit Facility amortize in equal quarterly installments of 0.25% of the original principal amount, with the balance payable at maturity. All outstanding principal and interest in respect of the Credit Facility must be repaid on or before October 1, 2025. The loans under the Term Loan Facility bear interest, at Cohu’s option in terms of the time-based interest period, at a floating annual rate equal to the selected LIBOR interest period plus a margin of 3.00%. At March 27, 2021, the outstanding loan balance, net of discount and deferred financing costs, was $201.3 million and $2.7 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 26, 2020, the outstanding loan balance, net of discount and deferred financing costs, was $301.1 million and $2.4 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. As of March 27, 2021, the fair value of the debt was $204.1 million. The measurement of the fair value of debt is based on the average of the bid and ask trading quotes as of March 27, 2021 and is considered a Level 2 fair value measurement.

Under the terms of the Credit Agreement, the lender may accelerate the payment terms 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 Cohu to adhere to the representations and covenants set forth in the Credit Agreement, the failure to provide notice of any event that causes a material adverse effect or to provide other required notices, upon the event that related collateral agreements become ineffective, upon the event that certain legal judgments are entered against Cohu, the insolvency of Cohu, or upon the change of control of Cohu. As of March 27, 2021, we believe no such events of default have occurred.

During the first quarter of 2021, we repurchased $100.0 million in principal of our Term Loan Facility for $100.0 million in cash. This resulted in a loss of $1.8 million reflected in other expense in our condensed consolidated statement of operations and a corresponding $1.8 million reduction in debt discounts and deferred financing costs in our condensed consolidated balance sheets. After the repurchase, approximately $204.9 million in principal of the Term Loan Facility remains outstanding as of March 27, 2021.

Kita Term Loans

Our wholly owned Kita subsidiary has outstanding 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% to 0.43%, and expire at various dates through 2034. At March 27, 2021, the outstanding loan balance was $3.4 million and $0.3 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 26, 2020, the outstanding loan balance was $3.6 million and $0.3 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. The fair value of the debt approximates the carrying value at March 27, 2021.

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

Construction Loans

In July 2019 and June 2020, one of our wholly owned subsidiaries located in Germany entered into a series of construction loans (“Loan Facilities”) with a German financial institution providing it with total borrowings of €10.1 million. The Loan Facilities have terms of 10 years and 15 years. 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 the facility amounts as discussed below.

In August 2019, the initial €3.4 million was drawn under the first facility, which is payable over 10 years at a fixed annual interest rate of 0.8%. Interest only payments 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 8 years starting at the end of December 2021.

As of March 2021, the full €5.2 million was drawn under the second facility, which is payable over 15 years at an annual interest rate of 1.05%, which is fixed until April 2027. Interest only payments are required to be made each month starting in December 2019 with principal and interest payments due each month starting in the month of May 2020. Principal repayments will be made over 15 years starting at the end of May 2020.

As of March 27, 2021, we have drawn €0.4 million under the third facility, which is payable over 10 years at an annual interest rate of 1.2%, which is fixed until May 2030. Interest payments are required to be made each month starting in March 2021 with principal and interest payments due each month starting in the month of May 2021. Principal repayments will be made over 10 years starting at the end of May 2021.

At March 27, 2021 and December 26, 2020, total outstanding borrowings under the Loan Facilities was $10.3 million and $9.9 million with $0.8 million and $0.4 million of the total outstanding balance being presented as current installments of long-term debt in our condensed consolidated balance sheets based on contractual due dates, respectively. 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 March 27, 2021.

Lines of Credit

Our wholly owned Kita subsidiary has outstanding 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 March 27, 2021, total borrowings outstanding under the revolving lines of credit were $5.0 million. As these credit facility agreements renew monthly, they have been included in short-term borrowings in our condensed consolidated balance sheets.

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, a portion of which is reserved for tax guarantees. At March 27, 2021 and December 26, 2020 no amounts were outstanding under this line of credit.

Note 4 - Restructuring Charges

3 Months Ended

Mar. 27, 2021

Restructuring and Related Activities Disclosure [Text Block]

4.	Restructuring Charges

Subsequent to the acquisition of Xcerra on October 1, 2018, 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”). 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.

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. During the fourth quarter of 2020 we implemented a voluntary program and termination agreements with certain employees of our wholly owned subsidiary, Cohu GmbH. These programs will collectively reduce headcount, enable us to consolidate the facilities of our multiple operations located near Kolbermoor and Rosenheim, Germany, as well as transition certain manufacturing to other lower cost regions. The facility consolidations 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 $1.7 million and $2.0 million for the three months ended March 27, 2021 and March 28, 2020, respectively, that are within the scope of ASC 420, Exit or Disposal Cost Obligations (“ASC 420”). All costs of the Integration Program were, and are expected to be, incurred by our Semiconductor Test & Inspection segment.

Costs associated with restructuring activities are presented in our condensed 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 three months ended March 27, 2021 and March 28, 2020 (in thousands):

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 28, 2019	$	1,236		$	-		$	1,236
Costs accrued		234			169			403
Amounts paid or charged		(1,218	)		(169	)		(1,387	)
Impact of currency exchange		(33	)		-			(33	)
Balance, March 28, 2020	$	219		$	-		$	219

Balance, December 26, 2020	$	5,826		$	-		$	5,826
Costs accrued		952			388			1,340
Amounts paid or charged		(2,444	)		(388	)		(2,832	)
Impact of currency exchange		(140	)		-			(140	)
Balance, March 27, 2021	$	4,194		$	-		$	4,194

At March 27, 2021, our total accrual for restructuring related items is reflected within current liabilities of our condensed consolidated balance sheets as these amounts are expected to be paid out within a year. The estimated costs associated with the employee severance and facility consolidation actions will be paid predominantly in cash.

Note 5 - Financial Instruments Measured at Fair Value

3 Months Ended

Mar. 27, 2021

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

5.	Financial Instruments Measured at Fair Value

Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. We do not hold investment securities for trading purposes. All short-term investments in 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.

We assess whether unrealized loss positions on available-for-sale debt securities are due to credit-related factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in earnings through an allowance account. Unrealized gains and losses that are not due to credit-related factors are included in accumulated other comprehensive income (loss). 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):

	March 27, 2021
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities⁽²⁾	$	136,400	$	16	$	11	$	136,405
U.S. Treasury securities		7,811		-		-		7,811
Government-sponsored enterprise securities		1,999		1		-		2,000
Bank certificates of deposit		750		-		-		750
Foreign government security		960		-		-		960
	$	147,920	$	17	$	11	$	147,926

	December 26, 2020
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities ⁽²⁾	$	14,943	$	2	$	1	$	14,944
U.S. treasury securities		2,012		-		-		2,012
Government-sponsored enterprise securities		1,998		-		-		1,998
Bank certificates of deposit		750		-		-		750
Foreign government security		965		-		-		965
	$	20,668	$	2	$	1	$	20,669

(1)

As of March 27, 2021 and December 26, 2020, the cost and fair value of investments with loss positions were approximately $61.6 million and $8.7 million, respectively. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.

(2)

Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Effective maturities of short-term investments are as follows (in thousands):

	March 27, 2021				December 26, 2020
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	146,960	$	146,966	$	20,668	$	20,669
Due after one year through three years		960		960		-		-
	$	147,920	$	147,926	$	20,668	$	20,669

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 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no 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 1. When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information, and they are included in Level 2.

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 March 27, 2021 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	115,626	$	-	$	-	$	115,626
U.S. Treasury securities		-		7,811		-		7,811
Corporate debt securities		-		136,405		-		136,405
Government-sponsored enterprise securities		-		2,000		-		2,000
Money market funds		-		27,493		-		27,493
Bank certificates of deposit		-		750		-		750
Foreign government security		-		960		-		960
	$	115,626	$	175,419	$	-	$	291,045

	Fair value measurements at December 26, 2020 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	128,874	$	-	$	-	$	128,874
Corporate debt securities		-		15,694		-		15,694
U.S. treasury securities		-		2,012		-		2,012
Government-sponsored enterprise securities		-		1,998		-		1,998
Money market funds		-		19,734		-		19,734
Bank certificates of deposit		-		750		-		750
Foreign government security		-		965		-		965
	$	128,874	$	41,153	$	-	$	170,027

Note 6 - Employee Stock Benefit Plans

3 Months Ended

Mar. 27, 2021

Share-based Payment Arrangement [Text Block]

6.	Employee Stock Benefit Plans

Our 2005 Equity Incentive Plan (“2005 Plan”) is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. Awards that may be granted under the program include, but are not limited to, non-qualified and incentive stock options, restricted stock units, and performance stock units. We settle employee stock option exercises, employee stock purchase plan purchases, and the vesting of restricted stock units, and performance stock units with newly issued common shares. At March 27, 2021, there were 1,390,895 shares available for future equity grants under the 2005 Plan.

Stock Options

Stock options may be granted to employees, consultants and non-employee directors to purchase a fixed number of shares of our common stock. The exercise prices of options granted are at least equal to the fair market value of our common stock on the dates of grant and options vest and become exercisable in annual increments that range from one to four years from the date of grant. Stock options granted under the 2005 Plan have a maximum contractual term of ten years. In the three months of fiscal 2021 we did not grant any stock options and we issued 192,432 shares of our common stock on the exercise of options that were granted previously.

At March 27, 2021, we had 70,203 stock options exercisable and outstanding. These options had a weighted-average exercise price of $10.04 per share, an aggregate intrinsic value of approximately $2.2 million and the weighted average remaining contractual term was approximately 2.0 years.

Restricted Stock Units

We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from one to four years from the date of grant. Prior to vesting, RSUs do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued and outstanding. New shares of our common stock will be issued on the date the RSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding at March 27, 2021.

In the first three months of fiscal 2021 we awarded 204,449 RSUs, we issued 409,690 shares of our common stock on vesting of previously granted awards and 4,406 shares were forfeited. At March 27, 2021, we had 1,205,125 RSUs outstanding with an aggregate intrinsic value of approximately $49.2 million and the weighted average remaining vesting period was approximately 1.6 years.

Performance Stock Units

We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted ranges from 25% to 200% of the number granted and is determined based on certain performance criteria over a three-year measurement period. The performance criteria for the PSUs are based on a combination of our annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of our TSR compared with the annualized TSR of certain peer companies or index for the performance period. PSUs granted vest 100% on the third anniversary of their grant, assuming achievement of the applicable performance criteria.

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

In the first three months of fiscal 2021, we awarded 92,719 PSUs, we issued 116,219 shares of our common stock on vesting of previously granted awards and 3,182 shares were forfeited. At March 27, 2021, we had 398,753 PSUs outstanding with an aggregate intrinsic value of approximately $16.3 million and the weighted average remaining vesting period was approximately 1.8 years.

Employee Stock Purchase Plan

The Cohu, Inc. 1997 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of shares of our common stock. Under the ESPP, eligible employees may purchase shares of Cohu common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Cohu common stock at the beginning or end of each 6-month purchase period, subject to certain limits. During the first three months of fiscal 2021, no shares of our common stock were sold to our employees under the ESPP leaving 668,704 shares available for future issuance.

Note 7 - Derivative Financial Instruments

3 Months Ended

Mar. 27, 2021

Derivative Instruments and Hedging Activities Disclosure [Text Block]

7.	Derivative Financial Instruments

Foreign Exchange Derivative Contracts

We operate and sell our products in various global markets and, as a result, we are exposed to changes in foreign currency exchange rates. In the fourth quarter of 2020, we began utilizing foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts to mitigate the risks and volatility associated with foreign currency transaction gains or losses.

We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our condensed consolidated balance sheets with changes in fair value recorded within foreign transaction gain (loss) in our condensed consolidated statements of operations for both realized and unrealized gains and losses. The cash flows associated with the foreign currency forward contracts are reported in net cash provided by operating activities in our condensed consolidated statements of cash flows.

The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All our foreign exchange derivative contracts outstanding at March 27, 2021 will mature during the second quarter of fiscal 2021.

The following table provides information about our foreign currency forward contracts outstanding as of March 27, 2021 (in thousands):

		Contract Amount		Contract Amount
Currency	Contract Position	(Local Currency)		(U.S. Dollars)
Swiss Franc	Buy		10,315	$	11,000
Japanese Yen	Buy		294,354		2,700
Euro	Buy		13,275		15,650
Malaysian Ringgit	Buy		14,514		3,500
				$	32,850

Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. The fair values of foreign currency contracts outstanding at March 27, 2021 were immaterial.

The location and amount of gains (losses) related to non-designated derivative instruments in the condensed consolidated statements of operations were as follows (in thousands):

Derivatives Not Designated	Location of Gain (Loss)	Three months ended
as Hedging Instruments	Recognized on Derivatives	March 27, 2021			March 28, 2020
Foreign exchange forward contracts	Foreign transaction gain (loss)	$	(1,515	)		n/a

Note 8 - Equity

3 Months Ended

Mar. 27, 2021

Stockholders' Equity Note Disclosure [Text Block]

8.	Equity

On March 8, 2021, we closed an underwritten public offering of 4,950,000 shares of our common stock at $41.00 per share. As part of the transaction, the underwriters were also granted a 30-day option to purchase up to an aggregate of 742,500 additional shares of common stock to cover over-allotments which was exercised in full on March 11, 2021. The offering, and the follow-on option to sell additional shares, resulted in net proceeds, after deducting underwriting discounts and commissions and offering expenses, of approximately $223.1 million. All of the shares were sold pursuant to an effective shelf registration statement previously filed with the SEC.

Note 9 - Income Taxes

3 Months Ended

Mar. 27, 2021

Income Tax Disclosure [Text Block]

9.	Income Taxes

For the three months ended March 27, 2021, we used the estimated annual effective tax rate (“ETR”) expected to be applicable for the full fiscal year in computing our tax provision. The ETR on income from continuing operations for the three months ended March 27, 2021 was 11.5% and reflects a partial release of our domestic valuation allowance on deferred tax assets to offset tax liabilities on current year earnings, and an excess benefit relating to stock-based compensation. For the three months ended March 28, 2020, we determined that a reliable estimate of the annual ETR could not be made, since relatively small changes in our projected income produce a significant variation in our ETR, and instead used the actual ETR for the year-to-date period to calculate our tax provision. The ETR on loss from continuing operations for the three months ended March 28, 2020 was 5.4% and primarily reflected the lack of a tax benefit on our domestic losses as a result of our valuation allowance on deferred tax assets, and non-deductible expenses relating to stock-based compensation.

We conduct business globally and as a result, Cohu or one or more of its subsidiaries files income tax returns in the US and various state and foreign jurisdictions. In the normal course of business, we are subject to examinations by taxing authorities throughout the world and are currently under examination in Germany, Malaysia and Philippines. We believe our financial statement accruals for income taxes are appropriate.

In accordance with the disclosure requirements as described in ASC Topic 740, Income Taxes, we have classified unrecognized tax benefits as non-current income tax liabilities, or a reduction in non-current deferred tax assets, unless expected to be paid within one year. Our continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. There were no material changes to our unrecognized tax benefits and interest accrued related to unrecognized tax benefits during the three months ended March 27, 2021 and March 28, 2020.

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (2017 Tax Act). Corporate taxpayers may carryback net operating losses (NOLs) originating during 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for tax years beginning January 1, 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act.

In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. The enactment of the CARES Act did not result in any material adjustments to our income tax provision for the three months ended March 28, 2020, or to our net deferred tax assets as of March 28, 2020.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Note 10 - Segment and Geographic Information

3 Months Ended

Mar. 27, 2021

Segment Reporting Disclosure [Text Block]

10.

Segment and Geographic Information

The summary below presents our current segments, Semiconductor Test & Inspection and PCB Test, for the three-month periods ended March 27, 2021 and March 28, 2020.

Financial information by reportable segment is as follows (in thousands):

				Three Months Ended
	March 27,			March 28,
	2021			2020
Net sales by segment:
Semiconductor Test & Inspection	$	212,406		$	128,013
PCB Test		13,082			10,908
Total consolidated net sales for reportable segments	$	225,488		$	138,921
Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	36,627		$	(11,573	)
PCB Test		2,429			994
Profit (loss) for reportable segments		39,056			(10,579	)
Other unallocated amounts:
Corporate expenses		(3,588	)		(3,451	)
Interest expense		(2,575	)		(4,427	)
Interest income		50			147
Loss on extinguishment of debt		(1,761	)		-
Income (loss) from continuing operations before taxes	$	31,182		$	(18,310	)

The following table summarizes our total assets by reportable business segment (in thousands):

	March 27,		December 26,
	2021		2020
Semiconductor Test & Inspection	$	1,012,182	$	968,028
PCB Test		66,979		66,826
Total assets for reportable segments		1,079,161		1,034,854
Corporate, principally cash and investments		179,594		55,492
Total consolidated assets	$	1,258,755	$	1,090,346

For revenues by geography and information on customer concentration, see Note 1, “Summary of Significant Accounting Policies”.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Note 11 - Leases

3 Months Ended

Mar. 27, 2021

Lessee, Leases [Text Block]

11.

Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms of 12 months or less are not recorded on the condensed consolidated balance sheet, but we recognized those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. Lease and non-lease components are included in the calculation of the ROU asset and lease liabilities.

Our leases have remaining lease terms of 1 year to 37 years, some of which include one or more options to extend the leases for up to 25 years. Our lease term includes renewal terms when we are reasonably certain we will exercise the renewal options.

We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities. Supplemental balance sheet information related to leases was as follows:

(in thousands)	Classification	March 27, 2021			December 26, 2020
Assets
Operating lease assets	Operating lease right-of-use assets	$	29,917		$	29,203
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		502			486
Total lease assets		$	30,419		$	29,689
Liabilities
Current
Operating	Other accrued liabilities	$	5,490		$	5,287
Finance	Other accrued liabilities		182			179
Noncurrent
Operating	Long-term lease liabilities		26,041			25,565
Finance	Long-term lease liabilities		210			222
Total lease liabilities		$	31,923		$	31,253

Weighted-average remaining lease term (years)
Operating leases			7.1			7.3
Finance leases			2.4			2.3

Weighted-average discount rate
Operating leases			6.2	%		6.3	%
Finance leases			0.6	%		0.0	%

(1)

Finance lease assets are recorded net of accumulated amortization of $0.1 million as of March 27, 2021 and December 26, 2020.

The components of lease expense were as follows:

	Three Months Ended
(in thousands)	March 27, 2021			March 28, 2020
Operating leases	$	2,040		$	2,151
Variable lease expense		552			532
Short-term operating leases		33			19
Finance leases
Amortization of leased assets		21			20
Interest on lease liabilities		-			28
Sublease income		(19	)		(32	)
Net lease cost	$	2,627		$	2,718

Future minimum lease payments at March 27, 2021, are as follows:

	Operating			Finance
(in thousands)	leases⁽¹⁾			leases			Total
2021	$	5,435		$	138		$	5,573
2022		6,742			184			6,926
2023		5,771			51			5,822
2024		5,139			11			5,150
2025		4,820			11			4,831
Thereafter		12,181			2			12,183
Total lease payments		40,088			397			40,485
Less: Interest		(8,557	)		(5	)		(8,562	)
Present value of lease liabilities	$	31,531		$	392		$	31,923

(1)

Excludes sublease income of $0.1 million in 2021.

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
(in thousands)	March 27, 2021		March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,943	$	2,133
Operating cash flows from finance leases	$	-	$	28
Financing cash flows from finance leases	$	45	$	9
Leased assets obtained in exchange for new finance lease liabilities	$	54	$	373
Leased assets obtained in exchange for new operating lease liabilities	$	2,350	$	1,062

Note 12 - Discontinued Operations

3 Months Ended

Mar. 27, 2021

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

12.

Discontinued Operations

On 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 operations. For financial statement purposes, the results of operations for this business have been segregated from those of continuing operations and are presented in our consolidated financial statements as discontinued operations for all periods presented.

In February 2020, we completed the sale of this business with an immaterial impact to the statement of operations for the three months ended March 28, 2020.

Operating results of our discontinued segment are summarized as follows (in thousands):

	Three Months Ended
	March 28,
	2020
Net sales	$	432

Operating income before income taxes	$	11
Gain on sale of Fixtures business		35
Income before taxes		46
Income tax provision		4
Income, net of tax	$	42

Note 13 - Contingencies

3 Months Ended

Mar. 27, 2021

Contingencies Disclosure [Text Block]

13.

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 no assurance, we do not believe at the present time that the resolution of these matters will have a material adverse effect on our assets, financial position or results of operations.

Note 14 - Guarantees

3 Months Ended

Mar. 27, 2021

Commitments Contingencies and Guarantees [Text Block]

14.

Guarantees

Product Warranty

Our products are generally sold with warranty periods that range from 12 to 36 months following sale or acceptance. The product warranty promises customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, and not as a separate performance obligation. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical and projected experience by product and configuration.

Changes in accrued warranty were as follows (in thousands):

	Three Months Ended
	March 27,			March 28,
	2021			2020
Balance at beginning of period	$	6,382		$	6,155
Warranty expense accruals		2,409			1,891
Warranty payments		(1,653	)		(1,778	)
Balance at end of period	$	7,138		$	6,268

Accrued warranty amounts expected to be incurred after one year are included in noncurrent other accrued liabilities in the condensed consolidated balance sheet. These amounts totaled $0.6 million and $0.3 million at March 27, 2021 and December 26, 2020, respectively.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 27, 2021

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

Our interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended December 26, 2020, which are included in our 2020 Annual Report on Form 10-K, filed with the U. S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”.

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

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

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.

Our trade accounts receivable are presented net of allowance for credit losses, which is determined in accordance with the guidance provided by Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments-Credit Losses, (“ASC 326”). At March 27, 2021 and December 26, 2020 our allowance for credit losses was $0.4 million and $0.1 million, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors and other customers located throughout the world. While we believe that our allowance for credit losses is adequate and represents our best estimate at March 27, 2021, we will continue to monitor customer liquidity and other economic conditions, including the impact of the COVID-19 pandemic, which may result in changes to our estimates regarding expected credit losses.

Inventory, Policy [Policy Text Block]

Inventories

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

Inventories by category were as follows (in thousands):

	March 27,		December 26,
	2021		2020
Raw materials and purchased parts	$	90,890	$	83,755
Work in process		54,247		44,315
Finished goods		15,734		14,430
Total inventories	$	160,871	$	142,500

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 to forty years for buildings, five to fifteen years for building improvements and three to ten years for machinery, equipment and software. Land is not depreciated.

Property, plant and equipment, at cost, consisted of the following (in thousands):

	March 27,			December 26,
	2021			2020
Land and land improvements	$	7,934		$	8,141
Buildings and building improvements		40,247			41,153
Machinery and equipment		64,599			65,342
		112,780			114,636
Less accumulated depreciation and amortization		(47,004	)		(47,720	)
Property, plant and equipment, net	$	65,776		$	66,916

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 ASC Topic 350, Intangibles—Goodwill and Other, (“ASC 350”). Capitalized costs include only external direct costs of materials and services consumed in developing the system and interest costs incurred, when material, while developing the system.

Unamortized capitalized cloud computing implementation costs totaled $12.7 million and $13.5 million at March 27, 2021 and December 26, 2020, respectively. These amounts are recorded within other assets in our condensed consolidated balance sheets. The change in the capitalized amount is costs capitalized in the current period, offset by amortization recorded, and an adjustment to accrued costs resulting from renegotiation of our software license that was finalized in the first quarter of 2021. We began amortizing some of these costs when our new ERP system was placed into service during the first quarter of 2020 and we continue to capitalize costs related to implementation projects that are ongoing. Implementation costs are amortized using the straight-line method over seven years and we recorded $0.4 million and $0.2 million in amortization expense during the three months ended March 27, 2021 and March 28, 2020, respectively.

Segment Reporting, Policy [Policy Text Block]

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. We have determined that our four identified operating segments are: Test Handler Group (THG), Semiconductor Test Group (STG), Interface Solutions Group (ISG) and PCB Test Group (PTG). Our THG, STG and ISG operating segments qualify for aggregation under ASC 280 due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in two segments, Semiconductor Test and Inspection Equipment (“Semiconductor Test & Inspection”) and PCB Test Equipment (“PCB Test”).

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Indefinite-Lived Intangibles, Other Intangible Assets and Long-lived Assets

We evaluate goodwill and other indefinite-lived intangible assets, which are solely comprised of in-process research and development (“IPR&D”), for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting unit or asset, in the case of in-process research and development. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the fair value of the reporting unit and its carrying value, not to exceed the carrying value 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. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors.

We conduct our annual impairment test as of October 1st of each year and have determined there was no impairment as of October 1, 2020, as the estimated fair values of our reporting units and indefinite-lived intangible assets 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.

During the first quarter of 2020, the volatility in Cohu’s stock price, the global economic downturn and business interruptions associated with the COVID-19 pandemic led us to determine that there was a triggering event related to goodwill within all of our identified reporting units and our indefinite-lived intangible assets. We performed an interim assessment as of March 28, 2020 and determined that the fair values of our identified reporting units all exceeded their carrying values and we concluded there were no impairment of goodwill within our reporting units. During the three months ended March 28, 2020, anticipated delays in customer adoption of certain new products under development as a result of the COVID-19 pandemic, changes to future project roadmap and an increase in the discount rate used in developing our interim fair value estimate resulted in a $3.9 million impairment to IPR&D as the carrying value exceeded fair value.

Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value.

During the first quarter of 2021, no events or conditions occurred suggesting an impairment in our goodwill, indefinite-lived intangibles, other intangible assets and long-lived assets.

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 12 to 36 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.

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 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. See Note 4, “Restructuring Charges” for additional information.

Debt, Policy [Policy Text Block]

Debt Issuance Costs

We capitalize costs related to the issuance of debt. Debt issuance costs that were directly related to our Term Loan B are presented within noncurrent liabilities as a reduction of long-term debt in our condensed consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 million for both the three months ended March 27, 2021 and March 28, 2020.

Derivatives, Policy [Policy Text Block]

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. 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. During the three months ended March 27, 2021, we recognized foreign exchange losses of $0.3 million, in our condensed consolidated statements of operations. During the three months ended March 28, 2020, we recognized foreign exchange losses of $0.4 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.

Foreign Exchange Derivative Contracts

We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We enter into foreign currency forward contracts with a financial institution to hedge against future movements in foreign exchange rates that affect certain existing U.S. Dollar denominated assets and liabilities at our subsidiaries whose functional currency is the local currency. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses.

We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our condensed consolidated balance sheets with changes in fair value recorded within foreign transaction gain (loss) in our condensed consolidated statements of operations for both realized and unrealized gains and losses. See Note 7, “Derivative Financial Instruments” for additional information.

Share-based Payment Arrangement [Policy Text Block]

Share-Based Compensation

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

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

	Three Months Ended
	March 27,			March 28,
	2021			2020
Cost of sales	$	262		$	212
Research and development		781			833
Selling, general and administrative		2,480			2,566
Total share-based compensation		3,523			3,611
Income tax benefit		(234	)		(172	)
Total share-based compensation, net	$	3,289		$	3,439

Earnings Per Share, Policy [Policy Text Block]

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 per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three months ended March 27, 2021, no stock options and awards were excluded from the computation. For the three months ended March 28, 2020, stock options and awards to issue approximately 58,000 shares of 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):

	Three Months Ended
	March 27,		March 28,
	2021		2020
Weighted average common shares		43,756		41,502
Effect of dilutive securities		1,726		-
		45,482		41,502

For the three months ended March 28, 2020 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.

Lessee, Leases [Policy Text Block]

Leases

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

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rates for the remaining lease terms based on the information available at the adoption date or commencement date in determining the present value of future payments.

The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments, as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may include renewal options to extend the lease when it is reasonably certain that we will exercise those options. In addition, we include purchase option amounts in our calculations when it is reasonably certain that we will exercise those options. Rent expense for minimum payments under operating leases is recognized on a straight-line basis over the term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet but recognized in our condensed consolidated statements of operations on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component and include both in our calculation of the ROU assets and lease liabilities.

We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities. None of our subleases contain extension options. Variable lease payments in our subleases include tax payments that are based on prevailing rates. We account for lease and non-lease components as a single lease component.

Revenue [Policy Text Block]

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 relative standalone selling price 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 March 27, 2021, we had $8.2 million of revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) for contracts with original expected durations of over one year. As allowed under ASC 606, we have opted to not disclose unsatisfied performance obligations for contracts with original expected durations of less than one year.

We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees (ASC 460), and not as a separate performance obligation.

The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to customers that are known as of the end of the reporting period. Variable consideration includes sales in which the amount of consideration that we will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to certain customers with cumulative tier volume discounts offered. Variable consideration arrangements are rare; however, when they occur, we estimate variable consideration as the expected value to which we expect to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration that does not meet revenue recognition criteria is deferred.

Our contracts are typically less than one year in duration and we have elected to use the practical expedient available in ASC 606 to expense cost to obtain contracts as they are incurred because they would be amortized over less than one year.

Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not exceed one year from the invoice date and therefore do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on our condensed consolidated balance sheet in any of the periods presented.

On shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our condensed consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. At March 27, 2021, we had deferred revenue totaling approximately $25.4 million, current deferred profit of $13.0 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $6.5 million. At December 26, 2020, we had deferred revenue totaling approximately $17.1 million, current deferred profit of $8.7 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $6.7 million.

Net sales of our reportable segments, by type, are as follows (in thousands):

	Three Months Ended
Disaggregated Net Sales	March 27, 2021		March 28, 2020
Systems:
Semiconductor Test & Inspection	$	138,159	$	70,539
PCB Test		8,620		6,840
Non-systems:
Semiconductor Test & Inspection		74,247		57,474
PCB Test		4,462		4,068
Total net sales	$	225,488	$	138,921

Revenue by geographic area based upon product shipment destination (in thousands):

	Three Months Ended
Disaggregated Net Sales	March 27, 2021		March 28, 2020
China	$	54,265	$	30,811
Philippines		33,754		10,022
Taiwan		32,196		13,881
Malaysia		23,259		15,174
United States		20,059		19,078
Rest of the World		61,955		49,955
Total net sales	$	225,488	$	138,921

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

	Three Months Ended
	March 27,		March 28,
	2021		2020
Semiconductor Test & Inspection
Customers individually accounting for more than 10% of net sales		*		two
Percentage of net sales		*		26%
PCB Test
Customers individually accounting for more than 10% of net sales		*		*
Percentage of net sales		*		*

No single customer represented more than 10% of consolidated net sales.

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately $14.8 million and $4.3 million at March 27, 2021 and December 26, 2020, respectively, and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain of our subsidiary accounts where the functional currency is not the U.S. Dollar and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss during the first three months of fiscal 2021 and 2020 were not significant.

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

Retiree Medical Benefits

We provide post-retirement health benefits to certain retired executives, one director (who is a former executive) and their eligible dependents under a noncontributory plan. These benefits are no longer offered to any other retired Cohu employees. The net periodic benefit cost incurred during the first three months of fiscal 2021 and 2020 was not significant.

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. See Note 12, “Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

There have been no material changes in recently issued or adopted accounting standards from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 26, 2020.

Note 1 - Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 27, 2021

Schedule of Inventory, Current [Table Text Block]

	March 27,		December 26,
	2021		2020
Raw materials and purchased parts	$	90,890	$	83,755
Work in process		54,247		44,315
Finished goods		15,734		14,430
Total inventories	$	160,871	$	142,500

Property, Plant and Equipment [Table Text Block]

	March 27,			December 26,
	2021			2020
Land and land improvements	$	7,934		$	8,141
Buildings and building improvements		40,247			41,153
Machinery and equipment		64,599			65,342
		112,780			114,636
Less accumulated depreciation and amortization		(47,004	)		(47,720	)
Property, plant and equipment, net	$	65,776		$	66,916

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

	Three Months Ended
	March 27,			March 28,
	2021			2020
Cost of sales	$	262		$	212
Research and development		781			833
Selling, general and administrative		2,480			2,566
Total share-based compensation		3,523			3,611
Income tax benefit		(234	)		(172	)
Total share-based compensation, net	$	3,289		$	3,439

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

	Three Months Ended
	March 27,		March 28,
	2021		2020
Weighted average common shares		43,756		41,502
Effect of dilutive securities		1,726		-
		45,482		41,502

Disaggregation of Revenue [Table Text Block]

	Three Months Ended
Disaggregated Net Sales	March 27, 2021		March 28, 2020
Systems:
Semiconductor Test & Inspection	$	138,159	$	70,539
PCB Test		8,620		6,840
Non-systems:
Semiconductor Test & Inspection		74,247		57,474
PCB Test		4,462		4,068
Total net sales	$	225,488	$	138,921

	Three Months Ended
Disaggregated Net Sales	March 27, 2021		March 28, 2020
China	$	54,265	$	30,811
Philippines		33,754		10,022
Taiwan		32,196		13,881
Malaysia		23,259		15,174
United States		20,059		19,078
Rest of the World		61,955		49,955
Total net sales	$	225,488	$	138,921

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

	Three Months Ended
	March 27,		March 28,
	2021		2020
Semiconductor Test & Inspection
Customers individually accounting for more than 10% of net sales		*		two
Percentage of net sales		*		26%
PCB Test
Customers individually accounting for more than 10% of net sales		*		*
Percentage of net sales		*		*

Note 2 - Goodwill and Purchased Intangible Assets (Tables)

3 Months Ended

Mar. 27, 2021

Schedule of Goodwill [Table Text Block]

	Semiconductor Test
	& Inspection			PCB Test			Total
Balance, December 28, 2019	$	218,775		$	19,894		$	238,669
Impact of currency exchange		11,949			1,686			13,635
Balance, December 26, 2020		230,724			21,580			252,304
Impact of currency exchange		(5,109	)		(460	)		(5,569	)
Balance, March 27, 2021	$	225,615		$	21,120		$	246,735

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

	March 27, 2021						December 26, 2020
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (years)		Amount		Amort.
Developed technology	$	238,892	$	88,305		5.3	$	239,250	$	83,246
Customer relationships		73,691		23,803		8.2		74,933		22,751
Trade names		23,245		6,662		8.5		23,756		6,279
Covenant not-to-compete		321		137		5.8		340		136
Total intangible assets	$	336,149	$	118,907			$	338,279	$	112,412

Note 3 - Borrowings and Credit Agreements (Tables)

3 Months Ended

Mar. 27, 2021

Schedule of Debt [Table Text Block]

	March 27,			December 26,
	2021			2020
Bank Term Loan under Credit Agreement	$	204,880		$	306,630
Bank Term Loans-Kita		3,395			3,662
Construction Loan- Cohu GmbH		10,298			9,902
Lines of Credit		5,018			5,314
Total debt		223,591			325,508
Less: financing fees and discount		(3,558	)		(5,568	)
Less: current portion		(8,851	)		(8,389	)
Total long-term debt	$	211,182		$	311,551

Note 4 - Restructuring Charges (Tables)

3 Months Ended

Mar. 27, 2021

Restructuring and Related Costs [Table Text Block]

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 28, 2019	$	1,236		$	-		$	1,236
Costs accrued		234			169			403
Amounts paid or charged		(1,218	)		(169	)		(1,387	)
Impact of currency exchange		(33	)		-			(33	)
Balance, March 28, 2020	$	219		$	-		$	219

Balance, December 26, 2020	$	5,826		$	-		$	5,826
Costs accrued		952			388			1,340
Amounts paid or charged		(2,444	)		(388	)		(2,832	)
Impact of currency exchange		(140	)		-			(140	)
Balance, March 27, 2021	$	4,194		$	-		$	4,194

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

3 Months Ended

Mar. 27, 2021

Available-for-sale Securities [Table Text Block]

	March 27, 2021
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities⁽²⁾	$	136,400	$	16	$	11	$	136,405
U.S. Treasury securities		7,811		-		-		7,811
Government-sponsored enterprise securities		1,999		1		-		2,000
Bank certificates of deposit		750		-		-		750
Foreign government security		960		-		-		960
	$	147,920	$	17	$	11	$	147,926

	December 26, 2020
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities ⁽²⁾	$	14,943	$	2	$	1	$	14,944
U.S. treasury securities		2,012		-		-		2,012
Government-sponsored enterprise securities		1,998		-		-		1,998
Bank certificates of deposit		750		-		-		750
Foreign government security		965		-		-		965
	$	20,668	$	2	$	1	$	20,669

Investments Classified by Contractual Maturity Date [Table Text Block]

	March 27, 2021				December 26, 2020
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	146,960	$	146,966	$	20,668	$	20,669
Due after one year through three years		960		960		-		-
	$	147,920	$	147,926	$	20,668	$	20,669

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

	Fair value measurements at March 27, 2021 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	115,626	$	-	$	-	$	115,626
U.S. Treasury securities		-		7,811		-		7,811
Corporate debt securities		-		136,405		-		136,405
Government-sponsored enterprise securities		-		2,000		-		2,000
Money market funds		-		27,493		-		27,493
Bank certificates of deposit		-		750		-		750
Foreign government security		-		960		-		960
	$	115,626	$	175,419	$	-	$	291,045

	Fair value measurements at December 26, 2020 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	128,874	$	-	$	-	$	128,874
Corporate debt securities		-		15,694		-		15,694
U.S. treasury securities		-		2,012		-		2,012
Government-sponsored enterprise securities		-		1,998		-		1,998
Money market funds		-		19,734		-		19,734
Bank certificates of deposit		-		750		-		750
Foreign government security		-		965		-		965
	$	128,874	$	41,153	$	-	$	170,027

Note 7 - Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 27, 2021

Schedule of Derivative Instruments [Table Text Block]

		Contract Amount		Contract Amount
Currency	Contract Position	(Local Currency)		(U.S. Dollars)
Swiss Franc	Buy		10,315	$	11,000
Japanese Yen	Buy		294,354		2,700
Euro	Buy		13,275		15,650
Malaysian Ringgit	Buy		14,514		3,500
				$	32,850

Derivative Instruments, Gain (Loss) [Table Text Block]

Derivatives Not Designated	Location of Gain (Loss)	Three months ended
as Hedging Instruments	Recognized on Derivatives	March 27, 2021			March 28, 2020
Foreign exchange forward contracts	Foreign transaction gain (loss)	$	(1,515	)		n/a

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Note 10 - Segment and Geographic Information (Tables)

3 Months Ended

Mar. 27, 2021

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

				Three Months Ended
	March 27,			March 28,
	2021			2020
Net sales by segment:
Semiconductor Test & Inspection	$	212,406		$	128,013
PCB Test		13,082			10,908
Total consolidated net sales for reportable segments	$	225,488		$	138,921
Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	36,627		$	(11,573	)
PCB Test		2,429			994
Profit (loss) for reportable segments		39,056			(10,579	)
Other unallocated amounts:
Corporate expenses		(3,588	)		(3,451	)
Interest expense		(2,575	)		(4,427	)
Interest income		50			147
Loss on extinguishment of debt		(1,761	)		-
Income (loss) from continuing operations before taxes	$	31,182		$	(18,310	)

	March 27,		December 26,
	2021		2020
Semiconductor Test & Inspection	$	1,012,182	$	968,028
PCB Test		66,979		66,826
Total assets for reportable segments		1,079,161		1,034,854
Corporate, principally cash and investments		179,594		55,492
Total consolidated assets	$	1,258,755	$	1,090,346

Note 11 - Leases (Tables)

3 Months Ended

Mar. 27, 2021

Leases, Balance Sheet Information [Table Text Block]

(in thousands)	Classification	March 27, 2021			December 26, 2020
Assets
Operating lease assets	Operating lease right-of-use assets	$	29,917		$	29,203
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		502			486
Total lease assets		$	30,419		$	29,689
Liabilities
Current
Operating	Other accrued liabilities	$	5,490		$	5,287
Finance	Other accrued liabilities		182			179
Noncurrent
Operating	Long-term lease liabilities		26,041			25,565
Finance	Long-term lease liabilities		210			222
Total lease liabilities		$	31,923		$	31,253

Weighted-average remaining lease term (years)
Operating leases			7.1			7.3
Finance leases			2.4			2.3

Weighted-average discount rate
Operating leases			6.2	%		6.3	%
Finance leases			0.6	%		0.0	%

Lease, Cost [Table Text Block]

	Three Months Ended
(in thousands)	March 27, 2021			March 28, 2020
Operating leases	$	2,040		$	2,151
Variable lease expense		552			532
Short-term operating leases		33			19
Finance leases
Amortization of leased assets		21			20
Interest on lease liabilities		-			28
Sublease income		(19	)		(32	)
Net lease cost	$	2,627		$	2,718

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

	Operating			Finance
(in thousands)	leases⁽¹⁾			leases			Total
2021	$	5,435		$	138		$	5,573
2022		6,742			184			6,926
2023		5,771			51			5,822
2024		5,139			11			5,150
2025		4,820			11			4,831
Thereafter		12,181			2			12,183
Total lease payments		40,088			397			40,485
Less: Interest		(8,557	)		(5	)		(8,562	)
Present value of lease liabilities	$	31,531		$	392		$	31,923

Lease, Cash Flow Information [Table Text Block]

	Three Months Ended
(in thousands)	March 27, 2021		March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,943	$	2,133
Operating cash flows from finance leases	$	-	$	28
Financing cash flows from finance leases	$	45	$	9
Leased assets obtained in exchange for new finance lease liabilities	$	54	$	373
Leased assets obtained in exchange for new operating lease liabilities	$	2,350	$	1,062

Note 12 - Discontinued Operations (Tables)

3 Months Ended

Mar. 27, 2021

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Three Months Ended
	March 28,
	2020
Net sales	$	432

Operating income before income taxes	$	11
Gain on sale of Fixtures business		35
Income before taxes		46
Income tax provision		4
Income, net of tax	$	42

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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Note 14 - Guarantees (Tables)

3 Months Ended

Mar. 27, 2021

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended
	March 27,			March 28,
	2021			2020
Balance at beginning of period	$	6,382		$	6,155
Warranty expense accruals		2,409			1,891
Warranty payments		(1,653	)		(1,778	)
Balance at end of period	$	7,138		$	6,268

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

3 Months Ended

Oct. 01, 2020

USD ($)

Mar. 27, 2021

USD ($)

Mar. 28, 2020

USD ($)

Dec. 26, 2020

USD ($)

Accounts Receivable, Allowance for Credit Loss, Ending Balance

$ 400

$ 100

Capitalized Computer Software, Gross

12,700

13,500

Capitalized Computer Software, Amortization

$ 370

$ 205

Number of Operating Segments

Number of Reportable Segments

Goodwill and Intangible Asset Impairment, Total

$ 0

3,900

Amortization of Debt Issuance Costs

$ 300

300

Foreign Currency Transaction Gain (Loss), Realized

$ (300)

$ (400)

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

58,000

Revenue, Remaining Performance Obligation, Amount

$ 8,200

Deferred Revenue, Total

25,400

17,100

Deferred Profit

12,955

8,671

^[1]

Deferred Profit Long-term

6,500

6,700

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

$ (14,758)

$ (4,326)

^[1]

Computer Software, Intangible Asset [Member]

Finite-Lived Intangible Asset, Useful Life (Year)

7 years

Minimum [Member]

Standard Product Warranty Term (Month)

12 months

Maximum [Member]

Standard Product Warranty Term (Month)

36 months

Building [Member] | Minimum [Member]

Building [Member] | Maximum [Member]

30 years

Building Improvements [Member] | Minimum [Member]

40 years

Building Improvements [Member] | Maximum [Member]

5 years

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

15 years

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

3 years

Raw materials and purchased parts

10 years

[1]	Derived from December 26, 2020 audited financial statements

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

Mar. 27, 2021

Dec. 26, 2020

$ 90,890

$ 83,755

Work in process

54,247

44,315

Finished goods

15,734

14,430

Total inventories

$ 160,871

$ 142,500

^[1]

[1]	Derived from December 26, 2020 audited financial statements

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

Mar. 27, 2021

Dec. 26, 2020

Less accumulated depreciation and amortization

$ 112,780

$ 114,636

(47,004)

(47,720)

Property, plant and equipment, net

65,776

66,916

^[1]

Land and Land Improvements [Member]

Building and Building Improvements [Member]

^[2]

7,934

8,141

Machinery and Equipment [Member]

^[2]

40,247

41,153

Impact of currency exchange

$ 64,599

$ 65,342

[1]	Derived from December 26, 2020 audited financial statements
[2]	Includes assets under financing leases acquired with Xcerra totaling $2.6 million as of December 28, 2019.

Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation in Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Share-based compensation of continuing operations	$ 3,523	$ 3,611
Income tax benefit	(234)	(172)
Total share-based compensation, net	3,289	3,439
Cost of Sales [Member]
Share-based compensation of continuing operations	262	212
Research and Development Expense [Member]
Share-based compensation of continuing operations	781	833
Selling, General and Administrative Expenses [Member]
Share-based compensation of continuing operations	$ 2,480	$ 2,566

Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Weighted average common shares (in shares)	43,756	41,502
Effect of dilutive securities (in shares)	1,726	0
Weighted Average Number of Shares Outstanding, Diluted, Total	45,482	41,502

Note 1 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Net sales	$ 225,488	$ 138,921
Semiconductor Test and Inspection [Member]
Net sales	212,406	128,013
PCB Test [Member]
Net sales	13,082	10,908
Systems [Member] \| Semiconductor Test and Inspection [Member]
Net sales	138,159	70,539
Systems [Member] \| PCB Test [Member]
Net sales	8,620	6,840
Non-systems [Member] \| Semiconductor Test and Inspection [Member]
Net sales	74,247	57,474
Non-systems [Member] \| PCB Test [Member]
Net sales	4,462	4,068
CHINA
Net sales	54,265	30,811
PHILIPPINES
Net sales	33,754	10,022
TAIWAN, PROVINCE OF CHINA
Net sales	32,196	13,881
Malaysia [Member]
Net sales	23,259	15,174
UNITED STATES
Net sales	20,059	19,078
Rest of the World [Member]
Net sales	$ 61,955	$ 49,955

Note 1 - Summary of Significant Accounting Policies - Customer Concentration (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] - Semiconductor Test and Inspection [Member]	3 Months Ended
	Mar. 28, 2020
Customers individually accounting for more than 10% of net sales	2
One Customer [Member]
Percentage of net sales	26.00%

Note 2 - Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020	Dec. 26, 2020
Transfer From In-Process Technology to Developed Technology	$ 3,700
Amortization of Intangible Assets, Total	9,244	$ 9,538
In-process Technology [Member]
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance	$ 4,100		$ 7,800

Note 2 - Goodwill and Purchased Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Mar. 27, 2021

Dec. 26, 2020

Beginning balance

$ 252,304

^[1]

$ 238,669

(5,569)

13,635

Ending balance

246,735

252,304

^[1]

Semiconductor Test and Inspection [Member]

Beginning balance

230,724

218,775

Impact of currency exchange

(5,109)

11,949

Ending balance

225,615

230,724

PCB Test [Member]

Beginning balance

21,580

19,894

Impact of currency exchange

(460)

1,686

Ending balance

$ 21,120

$ 21,580

[1]	Derived from December 26, 2020 audited financial statements

Note 2 - Goodwill and Purchased Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Dec. 26, 2020
Gross Carrying Amount, finite-lived intangible assets	$ 336,149	$ 338,279
Accumulated Amortization	118,907	112,412
Developed Technology Rights [Member]
Gross Carrying Amount, finite-lived intangible assets	238,892	239,250
Accumulated Amortization	$ 88,305	83,246
Remaining Useful Life (Year)	5 years 3 months 18 days
Customer Relationships [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 73,691	74,933
Accumulated Amortization	$ 23,803	22,751
Remaining Useful Life (Year)	8 years 2 months 12 days
Trade Names [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 23,245	23,756
Accumulated Amortization	$ 6,662	6,279
Remaining Useful Life (Year)	8 years 6 months
Noncompete Agreements [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 321	340
Accumulated Amortization	$ 137	$ 136
Remaining Useful Life (Year)	5 years 9 months 18 days

Note 3 - Borrowings and Credit Agreements (Details Textual) $ in Thousands, € in Millions, SFr in Millions			1 Months Ended				3 Months Ended
	Mar. 27, 2021 USD ($)	Oct. 01, 2018 USD ($)	Mar. 27, 2021 USD ($)	Jun. 30, 2020 EUR (€)	Aug. 31, 2019 EUR (€)	Jul. 31, 2019	Mar. 27, 2021 USD ($)	Mar. 28, 2020 USD ($)	Mar. 27, 2021 EUR (€)	Mar. 27, 2021 CHF (SFr)	Dec. 26, 2020 USD ($)
Long-term Debt, Current Maturities, Total	$ 8,851		$ 8,851				$ 8,851				$ 8,389
Long-term Debt, Fair Value	204,100		204,100				204,100
Repayments of Long-term Debt, Total							101,922	$ 1,133
Gain (Loss) on Extinguishment of Debt, Total							(1,761)	$ 0
Long-term Line of Credit, Total	5,018		5,018				5,018				5,314
Ismeca [Member]
Line of Credit Facility, Maximum Borrowing Capacity \| SFr										SFr 2
Long-term Line of Credit, Total	$ 0		$ 0				$ 0				0
Number of Available Lines of Credit	1		1				1		1	1
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 8,800		$ 8,800				$ 8,800
Long-term Line of Credit, Total	5,000		5,000				5,000
Secured Term Loan Facility [Member]
Debt Instrument, Face Amount		$ 350,000
Debt Instrument, Amortization, Percentage of Principal Amount		0.25%
Long-term Debt, Total	201,300		201,300				201,300				301,100
Long-term Debt, Current Maturities, Total	2,700		2,700				2,700				2,400
Extinguishment of Debt, Amount							100,000
Repayments of Long-term Debt, Total							100,000
Gain (Loss) on Extinguishment of Debt, Total							(1,800)
Extinguishment of Debt Decrease Deferred Financing Costs							1,800
Long-term Debt, Gross	204,880		204,880				204,880				306,630
Secured Term Loan Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		3.00%
Kita Term Loans [Member]
Long-term Debt, Total	3,400		3,400				3,400				3,600
Long-term Debt, Current Maturities, Total	300		300				300				300
Long-term Debt, Gross	$ 3,395		$ 3,395				$ 3,395				3,662
Kita Term Loans [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage	0.05%		0.05%				0.05%		0.05%	0.05%
Kita Term Loans [Member] \| Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage	0.43%		0.43%				0.43%		0.43%	0.43%
Loan Facilities [Member] \| Construction Loans [Member]
Debt Instrument, Face Amount \| €				€ 10.1
Long-term Debt, Total	$ 10,300		$ 10,300				$ 10,300				9,900
Long-term Debt, Current Maturities, Total	$ 800		$ 800				$ 800				$ 400
First Facility [Member] \| Construction Loans [Member]
Debt Instrument, Interest Rate, Stated Percentage					0.80%
Debt Instrument, Term (Year)					10 years	10 years
Debt Instrument, Collateral Amount \| €					€ 3.4
Debt Instrument, Principal Payment Terms (Year)					8 years
Second Facility [Member] \| Construction Loans [Member]
Debt Instrument, Interest Rate, Stated Percentage	1.05%		1.05%				1.05%		1.05%	1.05%
Debt Instrument, Term (Year)			15 years	15 years
Debt Instrument, Collateral Amount \| €									€ 5.2
Debt Instrument, Principal Payment Terms (Year)			15 years
Third Facility [Member] \| Construction Loans [Member]
Debt Instrument, Interest Rate, Stated Percentage	1.20%		1.20%				1.20%		1.20%	1.20%
Debt Instrument, Term (Year)	10 years
Debt Instrument, Collateral Amount \| €									€ 0.4

Note 3 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($) $ in Thousands	Mar. 27, 2021	Dec. 26, 2020
Lines of Credit	$ 5,018	$ 5,314
Total debt	223,591	325,508
Less: financing fees and discount	(3,558)	(5,568)
Less: current portion	(8,851)	(8,389)
Total long-term debt	211,182	311,551
Secured Term Loan Facility [Member]
Long term Debt	204,880	306,630
Less: current portion	(2,700)	(2,400)
Kita Term Loans [Member]
Long term Debt	3,395	3,662
Less: current portion	(300)	(300)
Construction Loan [Member]
Long term Debt	$ 10,298	$ 9,902

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

Note 4 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Restructuring Charges, Total	$ 1,340	$ 403
Integration Program [Member]
Restructuring Charges, Total	$ 1,700	$ 2,000

Note 4 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Costs accrued	$ 1,340	$ 403
Integration Program [Member]
Costs accrued	1,700	2,000
Integration Program [Member] \| Employee Severance [Member]
Accrued restructuring, beginning balance	5,826	1,236
Costs accrued	952	234
Amounts paid or charged	(2,444)	(1,218)
Impact of currency exchange	(140)	(33)
Accrued restructuring, ending balance	4,194	219
Integration Program [Member] \| Other Restructuring [Member]
Accrued restructuring, beginning balance	0	0
Costs accrued	388	169
Amounts paid or charged	(388)	(169)
Impact of currency exchange	0	0
Accrued restructuring, ending balance	0	0
Integration Program [Member] \| Employee Severance and Other Exit Costs [Member]
Accrued restructuring, beginning balance	5,826	1,236
Costs accrued	1,340	403
Amounts paid or charged	(2,832)	(1,387)
Impact of currency exchange	(140)	(33)
Accrued restructuring, ending balance	$ 4,194	$ 219

Note 5 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Millions	Mar. 27, 2021	Dec. 26, 2020
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	$ 61.6	$ 8.7

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

Mar. 27, 2021

Dec. 26, 2020

$ 147,920

$ 20,668

^[1]

Corporate Debt Securities [Member]

147,926

20,669

^[2]

^[3]

136,400

14,943

^[3]

^[1],[3]

US Treasury Securities [Member]

^[3]

136,405

14,944

7,811

2,012

^[1]

US Government-sponsored Enterprises Debt Securities [Member]

7,811

2,012

1,999

1,998

^[1]

Certificates of Deposit [Member]

2,000

1,998

750

^[1]

Debt Security, Government, Non-US [Member]

750

960

965

^[1]

$ 960

$ 965

[1]	As of March 27, 2021 and December 26, 2020, the cost and fair value of investments with loss positions were approximately $61.6 million and $8.7 million, respectively. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.
[2]	Derived from December 26, 2020 audited financial statements
[3]	Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands	Mar. 27, 2021	Dec. 26, 2020
Due in one year or less, amortized cost	$ 146,960	$ 20,668
Due in one year or less, fair value	146,966	20,669
Due after one year through three years, amortized cost	960	0
Due after one year through three years, fair value	960	0
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost, Total	147,920	20,668
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value, Total	$ 147,926	$ 20,669

Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Mar. 27, 2021	Dec. 26, 2020
Assets, Fair Value Disclosure	$ 291,045	$ 170,027
US Treasury Securities [Member]
Short-term investments	7,811	2,012
Corporate Debt Securities [Member]
Short-term investments	136,405	15,694
US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments	2,000	1,998
Certificates of Deposit [Member]
Short-term investments	750	750
Debt Security, Government, Non-US [Member]
Short-term investments	960	965
Cash [Member]
Cash and cash equivalents	115,626	128,874
Money Market Funds [Member]
Cash and cash equivalents	27,493	19,734
Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure	115,626	128,874
Fair Value, Inputs, Level 1 [Member] \| US Treasury Securities [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 1 [Member] \| Corporate Debt Securities [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 1 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 1 [Member] \| Certificates of Deposit [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 1 [Member] \| Debt Security, Government, Non-US [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 1 [Member] \| Cash [Member]
Cash and cash equivalents	115,626	128,874
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Cash and cash equivalents	0	0
Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure	175,419	41,153
Fair Value, Inputs, Level 2 [Member] \| US Treasury Securities [Member]
Short-term investments	7,811	2,012
Fair Value, Inputs, Level 2 [Member] \| Corporate Debt Securities [Member]
Short-term investments	136,405	15,694
Fair Value, Inputs, Level 2 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments	2,000	1,998
Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit [Member]
Short-term investments	750	750
Fair Value, Inputs, Level 2 [Member] \| Debt Security, Government, Non-US [Member]
Short-term investments	960	965
Fair Value, Inputs, Level 2 [Member] \| Cash [Member]
Cash and cash equivalents	0	0
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]
Cash and cash equivalents	27,493	19,734
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] \| US Treasury Securities [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 3 [Member] \| Corporate Debt Securities [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 3 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 3 [Member] \| Certificates of Deposit [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 3 [Member] \| Debt Security, Government, Non-US [Member]
Short-term investments	0	0
Fair Value, Inputs, Level 3 [Member] \| Cash [Member]
Cash and cash equivalents	0	0
Fair Value, Inputs, Level 3 [Member] \| Money Market Funds [Member]
Cash and cash equivalents	$ 0	$ 0

Note 6 - Employee Stock Benefit Plans (Details Textual) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 27, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)	192,432
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares)	70,203
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) \| $ / shares	$ 10.04
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value \| $	$ 2.2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)	2 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	204,449
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)	409,690
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)	4,406
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares)	1,205,125
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding \| $	$ 49.2
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms (Year)	1 year 7 months 6 days
Restricted Stock Units (RSUs) [Member] \| Vesting Over One Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	1 year
Restricted Stock Units (RSUs) [Member] \| Vesting Over Four Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	4 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	92,719
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)	116,219
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)	3,182
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares)	398,753
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding \| $	$ 16.3
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	1 year 9 months 18 days
Equity Based Performance Stock Units Granted in 2020, 2019, 2018, and 2017 [Member] \| Vest on the Third Anniversary of Awards Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%
Minimum [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue	25.00%
Maximum [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue	200.00%
Equity Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)	1,390,895
Equity Incentive Plan 2005 [Member] \| Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)	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 (Year)	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 (Year)	4 years
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)	668,704
Percentage of Fair Value to Determine Price of Common Stock	85.00%
Stock Issued During Period, Shares, New Issues (in shares)	0

Note 7 - Derivative Financial Instruments - Foreign Currency Forward Contracts Outstanding (Details) - Mar. 27, 2021 - Not Designated as Hedging Instrument [Member] € in Thousands, ¥ in Thousands, SFr in Thousands, RM in Thousands, $ in Thousands	USD ($)	EUR (€)	CHF (SFr)	JPY (¥)	MYR (RM)
Swiss Franc Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	$ 11,000		SFr 10,315
Japanese Yen Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	2,700			¥ 294,354
Euro Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	15,650	€ 13,275
Malaysian Ringgit Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	3,500				RM 14,514
Foreign Exchange Forward [Member]
Contract amount	$ 32,850

Note 7 - Derivative Financial Instruments - Locations and Amounts of Gains (Loss) (Details) $ in Thousands	3 Months Ended
	Mar. 27, 2021 USD ($)
Foreign Currency Gain (Loss) [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Foreign exchange forward contracts	$ (1,515)

Note 8 - Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended
	Mar. 11, 2021	Mar. 11, 2021	Mar. 08, 2021	Mar. 27, 2021	Mar. 28, 2020
Proceeds from Issuance of Common Stock				$ 223,118	$ 0
Underwritten Public Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)			4,950,000
Shares Issued, Price Per Share (in dollars per share)			$ 41.00
Proceeds from Issuance of Common Stock		$ 223,100
Over-Allotment Option [Member]
Stock Issued During Period, Shares, New Issues (in shares)	742,500

Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Effective Income Tax Rate Reconciliation, Percent, Total	11.50%	5.40%
Unrecognized Tax Benefits, Period Increase (Decrease), Total	$ 0	$ 0

Note 10 - Segment and Geographic Information - Summary of Current Segments (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 27, 2021

Mar. 28, 2020

Dec. 26, 2020

Profit (loss) for reportable segments

$ 225,488

$ 138,921

39,056

(10,579)

Interest expense

(2,575)

(4,427)

Interest income

147

Gain (Loss) on Extinguishment of Debt, Total

(1,761)

Income (loss) from continuing operations before taxes

31,182

(18,310)

Corporate, Non-Segment [Member]

1,258,755

$ 1,090,346

^[1]

Corporate expenses

(3,588)

(3,451)

Semiconductor Test and Inspection [Member]

179,594

55,492

Profit (loss) for reportable segments

212,406

128,013

36,627

(11,573)

1,012,182

968,028

PCB Test [Member]

Profit (loss) for reportable segments

13,082

10,908

2,429

$ 994

Semiconductor Test and Inspection and PCB Test [Member]

66,979

66,826

Other Accrued Liabilities [Member]

$ 1,079,161

$ 1,034,854

[1]	Derived from December 26, 2020 audited financial statements

Note 11 - Leases (Details Textual) - USD ($) $ in Millions	3 Months Ended
Note 11 - Leases (Details Textual) - USD ($) $ in Millions	Mar. 27, 2021	Dec. 26, 2020
Lessee, Operating Lease, Renewal Term (Year)	25 years
Finance Lease, Right-of-Use Asset, Accumulated Amortization	$ 0.1	$ 0.1
Lessor, Operating Lease, Payment to be Received, Year One	$ 0.1
Minimum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	1 year
Maximum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	37 years

Note 11 - Leases - Balance Sheet Information (Details) - USD ($)
$ in Thousands

Mar. 27, 2021

Dec. 26, 2020

Operating lease assets

$ 29,917

$ 29,203

^[1]

Finance lease assets

^[2]

502

486

Total lease assets

30,419

29,689

Total lease liabilities

$ 31,923

$ 31,253

Operating leases (Year)

7 years 1 month 6 days

7 years 3 months 18 days

Finance leases (Year)

2 years 4 months 24 days

2 years 3 months 18 days

Operating leases

6.20%

6.30%

Finance leases

0.60%

0.00%

Operating, current

$ 5,490

$ 5,287

Finance, current

182

179

Long-term Lease Liabilities [Member]

Operating, noncurrent

26,041

25,565

Finance, noncurrent

$ 210

$ 222

[1]	Derived from December 26, 2020 audited financial statements
[2]	Finance lease assets are recorded net of accumulated amortization of $0.1 million as of March 27, 2021 and December 26, 2020.

Note 11 - Leases - Lease Expense (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 27, 2021

Mar. 28, 2020

Operating leases

^[1]

$ 2,040

$ 2,151

Variable lease expense

552

532

Short-term operating leases

Amortization of leased assets

Interest on lease liabilities

Sublease income

(19)

(32)

Net lease cost

$ 2,627

$ 2,718

[1]	Operating lease cost excludes impairment expense of $0.2 million related to the write-down of the Fontana facility right-of-use asset recognized in 2019.

Note 11 - Leases - Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands

Mar. 27, 2021

Dec. 26, 2020

2021, operating leases

^[1]

$ 5,435

2021, finance leases

138

2021, total

5,573

2022, operating leases

^[1]

6,742

2022, finance leases

184

2022, total

6,926

2023, operating leases

^[1]

5,771

2023, finance leases

2023, total

5,822

2024, operating leases

^[1]

5,139

2024, finance leases

2024, total

5,150

2025, operating leases

^[1]

4,820

2025, finance leases

2025, total

4,831

Thereafter, operating leases

^[1]

12,181

Thereafter, finance leases

Thereafter, total

12,183

Total lease payments, operating leases

^[1]

40,088

Total lease payments, finance leases

397

Total lease payments, total

40,485

Less: Interest, operating leases

^[1]

(8,557)

Less: Interest, finance leases

(5)

Less: Interest, total

(8,562)

Present value of lease liabilities, finance leases

392

Present value of lease liabilities, total

31,923

$ 31,253

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

Present value of lease liabilities, operating leases

^[1]

$ 31,531

[1]	Excludes sublease income of $0.1 million in 2021.

Note 11 - Leases - Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Operating cash flows from operating leases	$ 1,943	$ 2,133
Operating cash flows from finance leases	0	28
Financing cash flows from finance leases	45	9
Leased assets obtained in exchange for new finance lease liabilities	54	373
Leased assets obtained in exchange for new operating lease liabilities	$ 2,350	$ 1,062

Note 12 - Discontinued Operations - Summary of Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2021	Mar. 28, 2020
Net sales		$ 432
Operating income before income taxes		11
Gain on sale of Fixtures business	$ (0)	35
Income before taxes		46
Income tax provision		4
Income, net of tax	$ 0	$ 42

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.

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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.