0001437749-23-022033 | 10-Q | XBRL Viewer

50,337

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

(21,440)

(173)

(510)

1,669

1,746

466

(466)

(160)

(4,945)

(5,105)

(20,378)

Exercise of stock options

7,355

105

118

Balance at Jun. 25, 2022

49,152

678,495

243,892

(49,385)

(27,702)

894,452

Balance at Mar. 26, 2022

49,025

673,034

215,124

(36,574)

(13,712)

886,897

28,768

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

(12,537)

(112)

(162)

1,669

1,746

(40)

(3)

(206)

(209)

(13,990)

Exercise of stock options

3,933

105

118

Balance at Jun. 25, 2022

49,152

678,495

243,892

(49,385)

(27,702)

894,452

Balance at Dec. 31, 2022

49,276

687,218

290,402

(40,012)

(58,043)

928,841

^[1]

26,269

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

3,059

186

208

1,837

1,904

(19,225)

19,218

(1,867)

(7,373)

(9,240)

(6,180)

8,346

Balance at Jul. 01, 2023

49,350

676,309

316,671

(36,559)

(52,378)

953,393

Balance at Apr. 01, 2023

49,283

671,204

306,087

(37,009)

(50,786)

938,779

10,584

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

358

157

(65)

1,837

1,904

(1,158)

1,158

(6)

(51)

(57)

(2,699)

Raw materials and purchased parts

4,432

Balance at Jul. 01, 2023

$ 49,350

$ 676,309

$ 316,671

$ (36,559)

$ (52,378)

$ 953,393

[1]	Derived from December 31, 2022 audited financial statements

Note 10 - Leases (Details Textual) - USD ($) $ in Millions	6 Months Ended
Note 10 - Leases (Details Textual) - USD ($) $ in Millions	Jul. 01, 2023	Apr. 01, 2023
Lessee, Operating Lease, Renewal Term (Year)	25 years
Finance Lease, Right-of-Use Asset, Accumulated Amortization	$ 0.3	$ 0.2
Minimum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	1 year
Maximum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	35 years

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Gross Carrying Amount, finite-lived intangible assets	$ 324,510	$ 309,615
Accumulated Amortization	189,210	169,511
Developed Technology Rights [Member]
Gross Carrying Amount, finite-lived intangible assets	233,884	224,253
Accumulated Amortization	$ 144,012	128,938
Remaining Useful Life (Year)	3 years 8 months 12 days
Customer Relationships [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 69,215	64,632
Accumulated Amortization	$ 34,219	31,015
Remaining Useful Life (Year)	6 years 6 months
Trade Names [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 20,667	20,461
Accumulated Amortization	$ 10,403	9,397
Remaining Useful Life (Year)	5 years 10 months 24 days
Order or Production Backlog [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 500	0
Accumulated Amortization	$ 417	0
Remaining Useful Life (Year)	1 month 6 days
Noncompete Agreements [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 244	269
Accumulated Amortization	$ 159	$ 161
Remaining Useful Life (Year)	3 years 6 months

Note 10 - Leases - Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022
Operating cash flows from operating leases	$ 3,353	$ 3,329
Operating cash flows from finance leases	1	1
Financing cash flows from finance leases	39	86
Leased assets obtained in exchange for new operating lease liabilities	409	1,251
MCT Worldwide, LLC [Member]
Financing lease assets acquired in MCT acquisition	19	0
Operating lease assets acquired in MCT acquisition	$ 130	$ 0

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

Jul. 01, 2023

Dec. 31, 2022

$ 108,335

$ 106,041

Work in process

35,752

36,024

Finished goods

29,666

28,076

Total inventories

$ 173,753

$ 170,141

^[1]

[1]	Derived from December 31, 2022 audited financial statements

Note 1 - Summary of Significant Accounting Policies - Significant Customer Concentration Information (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] - Semiconductor Test and Inspection [Member]	3 Months Ended	6 Months Ended
	Jul. 01, 2023	Jul. 01, 2023
Customers individually accounting for more than 10% of net sales	2	1
One Customer [Member]
Percentage of net sales	25.00%	13.00%

Note 8 - Equity

6 Months Ended

Jul. 01, 2023

Equity [Text Block]

8.	Equity

Share Repurchase Program

On October 28, 2021, we announced that our Board of Directors authorized a $70 million share repurchase program. On October 25, 2022, our Board of Directors authorized an additional $70 million under the share repurchase program. This share repurchase program was effective as of November 2, 2021 and has no expiration date, and the timing of share repurchases and the number of shares of common stock to be repurchased will depend upon prevailing market conditions and other factors. Repurchases under this program will be made using our existing cash resources and may be commenced or suspended from time-to-time at our discretion without prior notice. Repurchases may be made in the open market, through 10b5-1 programs, or in privately negotiated transactions at prevailing market rates in accordance with federal securities laws. During the three months ended July 1, 2023, we repurchased 77,203 shares of our common stock for $2.7 million to be held as treasury stock. During the six months ended July 1, 2023, we repurchased 176,885 shares of our common stock for $6.2 million to be held as treasury stock. During the three months ended June 25, 2022, we repurchased 504,102 shares of our common stock for $14.0 million to be held as treasury stock. During the six months ended June 25, 2022, we repurchased 717,808 shares of our common stock for $20.4 million to be held as treasury stock. As of July 1, 2023, $75.8 million of shares of our common stock remained available for us to repurchase under our share repurchase program.

The entire disclosure for equity.

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Basis of Accounting, Policy [Policy Text Block]

Note 10 - Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Operating leases	$ 1,680	$ 1,676	$ 3,359	$ 3,392
Variable lease expense	563	526	1,122	1,063
Short-term operating leases	7	1	13	2
Amortization of leased assets	28	26	54	58
Interest on lease liabilities	1	1	1	1
Sublease income	(8)	(18)	(18)	(38)
Net lease cost	$ 2,271	$ 2,212	$ 4,531	$ 4,478

Significant Accounting Policies (Policies)

6 Months Ended

Jul. 01, 2023

Accounting Policies [Abstract]

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 31, 2022, has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of July 1, 2023, (also referred to as “the second quarter of fiscal 2023” and “the first six months of fiscal 2023”) and June 25, 2022, (also referred to as “the second quarter of fiscal 2022” and “the first six months of fiscal 2022”) 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. Both the three- and six-month periods ended July 1, 2023 and June 25, 2022 were comprised of 13 and 26 weeks, respectively.

Our interim results are not necessarily indicative of the results that should be expected for the full year. The condensed consolidated financial statements presented herein reflect estimates and assumptions made by management at July 1, 2023 and for the three- and six-month period ended July 1, 2023. 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 31, 2022, which are included in our 2022 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 both July 1, 2023 and December 31, 2022, our allowance for credit losses was $0.2 million. Our customers include semiconductor manufacturers and semiconductor test subcontractors throughout many areas of the world. While we believe that our allowance for credit losses is adequate and represents our best estimate at July 1, 2023, we will continue to monitor customer liquidity and other economic conditions, 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, which occurs when estimated net realizable values are below our costs.

Inventories by category were as follows (in thousands):

	July 1,		December 31,
	2023		2022
Raw materials and purchased parts	$	108,335	$	106,041
Work in process		35,752		36,024
Finished goods		29,666		28,076
Total inventories	$	173,753	$	170,141

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):

	July 1,			December 31,
	2023			2022
Land and land improvements	$	7,069		$	7,066
Buildings and building improvements		32,831			31,161
Machinery and equipment		109,325			105,109
		149,225			143,336
Less accumulated depreciation and amortization		(82,599	)		(78,325	)
Property, plant and equipment, net	$	66,626		$	65,011

Internal Use Software, Policy [Policy Text Block]

Cloud-based Enterprise Resource Planning 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 $13.3 million and $14.7 million at July 1, 2023, and December 31, 2022, respectively. These amounts are recorded within other current assets and other assets in our condensed consolidated balance sheets. During the fourth quarter of 2022 the final phase of ERP system development was completed. Implementation costs are amortized using the straight-line method over seven years and we recorded amortization expense of $0.7 million and $1.4 million during the three and six months ended July 1, 2023, respectively, and amortization expense of $0.5 million and $1.0 million during the three and six months ended June 25, 2022, 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 three identified operating segments are: Test Handler Group (“THG”), Semiconductor Tester Group (“STG”) and Interface Solutions Group (“ISG”). 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 one segment, Semiconductor Test and Inspection Equipment (“Semiconductor Test & Inspection”).

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Other Intangible Assets

We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting unit. 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 using a weighting of the income and market approaches. Under the income approach, we use a discounted cash flow methodology to derive an indication of value, which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, we use the guideline public company method. Under this method we utilize information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance metrics of the reporting unit being tested, to obtain an indication of value. We then apply a 50/50 weighting to the indicated values from the income and market approaches to derive the fair values of the reporting units. 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 1^st of each year and have determined there was no impairment as of October 1, 2022 as the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates.

Other intangible assets 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 other intangible assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value.

Standard Product Warranty, Policy [Policy Text Block]

Product Warranty

Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 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 relative standalone selling price and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred.

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, Exit or Disposal Cost Obligations (“ASC 420”). 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 directly related to our Term Loan Credit Facility 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 $32,000 and $0.1 million for the three and six months ended July 1, 2023, respectively. Amortization related to deferred debt issuance costs and original discount costs was $0.1 million and $0.2 million for the three and six months ended June 25, 2022, respectively.

Foreign Currency Transactions and Translations 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. During the three and six months ended July 1, 2023, we recognized foreign exchange losses of $0.6 million and $1.1 million, respectively, in our condensed consolidated statements of income. During the three and six months ended June 25, 2022, we recognized foreign exchange gains of $1.5 million and $2.6 million, respectively, in our condensed consolidated statements of income. 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 foreign currency translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity.

Derivatives, Policy [Policy Text Block]

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 held at our subsidiaries whose functional currency is the local currency. 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 income 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.

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

	Three Months Ended						Six Months Ended
	July 1,			June 25,			July 1,			June 25,
	2023			2022			2023			2022
Cost of sales	$	216		$	172		$	396		$	317
Research and development		819			826			1,685			1,578
Selling, general and administrative		3,397			2,935			6,265			5,460
Total share-based compensation		4,432			3,933			8,346			7,355
Income tax benefit		(62	)		(836	)		(2,838	)		(2,462	)
Total share-based compensation, net	$	4,370		$	3,097		$	5,508		$	4,893

Earnings Per Share, Policy [Policy Text Block]

Income Per Share

Basic income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted income 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 and six months ended July 1, 2023, stock options and awards to issue approximately 319,000 and 216,000 shares of common stock were excluded from the computation, respectively. For the three and six months ended June 25, 2022, stock options and awards to issue approximately 351,000 and 288,000 shares of common stock were excluded from the computation, respectively. All shares repurchased and held as treasury stock are reflected as a reduction to our basic weighted average shares outstanding based on the trade date of the share repurchase.

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

	Three Months Ended				Six Months Ended
	July 1,		June 25,		July 1,		June 25,
	2023		2022		2023		2022
Weighted average common shares		47,618		48,475		47,481		48,626
Effect of dilutive securities		410		453		618		622
		48,028		48,928		48,099		49,248

Lessee, Leases [Policy Text Block]

Leases

We determine if a contract contains a lease at inception. Operating lpeases 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 income 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 July 1, 2023, we had $6.5 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 Topic 606, Revenue from Contracts with Customers (“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 Topic 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 July 1, 2023, we had deferred revenue totaling approximately $9.6 million, current deferred profit of $4.1 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $5.2 million. At December 31, 2022, we had deferred revenue totaling approximately $16.1 million, current deferred profit of $8.0 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $5.5 million.

Net sales by type are as follows (in thousands):

	Three Months Ended				Six Months Ended
Disaggregated Net Sales	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Systems	$	87,312	$	131,951	$	190,296	$	249,300
Non-systems		81,609		85,275		157,996		165,683
Total net sales	$	168,921	$	217,226	$	348,292	$	414,983

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

	Three Months Ended				Six Months Ended
Disaggregated Net Sales	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Philippines	$	25,359	$	21,562	$	57,149	$	45,947
Malaysia		23,258		28,857		55,153		48,973
China		28,394		46,585		49,504		85,238
United States		15,750		19,553		34,493		43,316
Rest of the World		76,160		100,669		151,993		191,509
Total net sales	$	168,921	$	217,226	$	348,292	$	414,983

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

Three Months Ended

Six Months Ended

July 1,

June 25,

July 1,

June 25,

2023

2022

2023

2022

Customers individually accounting for more than 10% of net sales

two

one

Percentage of net sales

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately $36.6 million and $40.0 million at July 1, 2023 and December 31, 2022, 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, unrealized loss on investments and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss during the first six months of fiscal 2023 and 2022 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 six months of fiscal 2023 and 2022 was not significant.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848.

Effective June 16, 2023, we adopted ASC 848. Our Term Loan B Credit and Guaranty Agreement is our only contract where interest expense is based on LIBOR. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing certain LIBOR settings and is expected to stop publishing the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings in 2023. In anticipation of that cessation, we commenced the transition of our LIBOR-based contract to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). The optional expedients under ASC 848 have allowed and will allow us to account for contract modifications as continuations of the existing contract without further reassessments or remeasurements that would otherwise be required under the applicable U.S. GAAP.

Note 3 - Borrowings and Credit Agreements

6 Months Ended

Jul. 01, 2023

Debt Disclosure [Text Block]

3.	Borrowings and Credit Agreements

The following table is a summary of our borrowings (in thousands):

	July 1,			December 31,
	2023			2022
Bank Term Loan under Credit Agreement	$	31,077		$	66,952
Bank Term Loans-Kita		2,144			2,466
Construction Loan- Cohu GmbH		8,079			8,414
Lines of Credit		1,732			1,907
Total debt		43,032			79,739
Less: financing fees and discount		(314	)		(764	)
Less: current portion		(6,261	)		(6,311	)
Total long-term debt	$	36,457		$	72,664

Credit Agreement

On October 1, 2018, we entered into a Credit Agreement providing for a $350.0 million Term Loan Credit Facility and borrowed the full amount to finance a portion of the Xcerra acquisition. Loans under the Term Loan 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 Term Loan Credit Facility must be repaid on or before October 1, 2025. The loans under the Term Loan Credit Facility bore interest, at Cohu’s option, at a floating annual rate equal to LIBOR plus a margin of 3.00%. On June 16, 2023, in connection with the discontinuation of LIBOR, we entered into an amendment to our Term Loan Credit Facility, which provided for the transition of the benchmark interest rate from LIBOR to SOFR. Effective with the interest period beginning July 1, 2023, LIBOR was replaced with Adjusted Term SOFR, a floating annual rate equal to SOFR plus a margin of 3.0%. At July 1, 2023, the outstanding loan balance, net of discount and deferred financing costs, was $30.8 million and $3.4 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 31, 2022, the outstanding loan balance, net of discount and deferred financing costs, was $66.2 million and $3.2 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. As of July 1, 2023, the fair value of the debt was $31.1 million. The measurement of the fair value of debt is based on the average of the bid and ask trading quotes as of July 1, 2023 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 July 1, 2023, we believe no such events of default have occurred.

During the first six months of 2023, we prepaid $34.1 million in principal of our Term Loan Credit Facility for $34.1 million in cash. We accounted for the prepayment as a debt extinguishment, which resulted in a loss of $0.4 million reflected in other expense, net, in our condensed consolidated statement of income and a $0.4 million reduction in debt discounts and deferred financing costs in our condensed consolidated balance sheets. During the first six months of 2022, we repurchased $22.0 million in principal of our Term Loan Credit Facility for $22.0 million in cash. This resulted in a loss of $0.2 million reflected in other expense in our condensed consolidated statement of income and a $0.3 million reduction in debt discounts and deferred financing costs in our condensed consolidated balance sheets. Approximately $31.1 million in principal of the Term Loan Credit Facility remains outstanding as of July 1, 2023.

Kita Term Loans

We have a series of term loans with Japanese financial institutions primarily related to the expansion of our facility in Osaka, Japan. The loans are collateralized by the facility and land, carry interest rates ranging from 0.05% to 0.42%, and expire at various dates through 2034. At July 1, 2023, the outstanding loan balance was $2.1 million and $0.2 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 31, 2022, the outstanding loan balance was $2.5 million and $0.2 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 July 1, 2023.

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 initially providing it with total borrowings of up to €10.1 million. In May 2022, one of the construction loans was amended, reducing total borrowings provided under the loans to up to €9.5 million. The Loan Facilities were utilized to finance the expansion of our facility in Kolbermoor, Germany and are secured by the land and the existing building on the site. The Loan Facilities bear interest at agreed upon rates based on the facility amounts as discussed below.

The first facility totaling €3.4 million has been fully drawn and is payable over 10 years at a fixed annual interest rate of 0.8%. Principal and interest payments are due each quarter over the duration of the facility ending in September 2029. The second facility totaling €5.2 million has been fully drawn and is payable over 15 years at an annual interest rate of 1.05%, which is fixed until April 2027. Principal and interest payments are due each month over the duration of the facility ending in January 2034. The third facility totaling €0.9 million has been fully drawn and is payable over 10 years at an annual interest rate of 1.2%. Principal and interest payments are due each month over the duration of the facility ending in May 2030.

At July 1, 2023, total outstanding borrowings under the Loan Facilities was $8.1 million with $1.0 million of the total outstanding balance being presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 31, 2022, total outstanding borrowings under the Loan Facilities was $8.4 million with $1.0 million of the total outstanding balance being presented as current installments of long-term debt in our condensed consolidated balance sheets. 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 July 1, 2023.

Lines of Credit

As a result of our acquisition of Kita, we assumed a series of revolving credit facilities with various financial institutions in Japan. The credit facilities renew monthly and provide Kita with access to working capital totaling up to 960 million Japanese Yen of which 250 million Japanese Yen was drawn as of July 1, 2023. At July 1, 2023, total borrowings outstanding under the revolving lines of credit were $1.7 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 subsidiary in Switzerland has one line of credit which provides borrowings of up to a total of 2.0 million Swiss Francs, a portion of which is reserved for tax guarantees. At July 1, 2023 and December 31, 2022 no amounts were outstanding under this line of credit.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Due in one year or less, amortized cost	$ 79,210	$ 112,956
Due in one year or less, fair value	78,793	112,683
Due after one year through three years, amortized cost	18,319	30,996
Due after one year through three years, fair value	18,234	30,552
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost, Total	97,529	143,952
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value, Total	$ 97,027	$ 143,235

Note 4 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Costs accrued	$ 416	$ 7	$ 1,304	$ 583
Employee Severance [Member] \| MCT Integration Program [Member]
Accrued restructuring, balance			0
Costs accrued			1,217
Amounts paid or charged			(813)
Accrued restructuring, balance	404		404
Employee Severance [Member] \| Xcerra Integration Program [Member]
Accrued restructuring, balance				348
Costs accrued				(15)
Amounts paid or charged				(269)
Impact of currency exchange				(4)
Accrued restructuring, balance		60		60
Other Restructuring [Member] \| MCT Integration Program [Member]
Accrued restructuring, balance			0
Costs accrued			87
Amounts paid or charged			(49)
Accrued restructuring, balance	38		38
Other Restructuring [Member] \| Xcerra Integration Program [Member]
Accrued restructuring, balance				0
Costs accrued				598
Amounts paid or charged				(598)
Impact of currency exchange				0
Accrued restructuring, balance		0		0
Employee Severance and Other Exit Costs [Member] \| MCT Integration Program [Member]
Accrued restructuring, balance			0
Costs accrued			1,304
Amounts paid or charged			(862)
Accrued restructuring, balance	$ 442		$ 442
Employee Severance and Other Exit Costs [Member] \| Xcerra Integration Program [Member]
Accrued restructuring, balance				348
Costs accrued				583
Amounts paid or charged				(867)
Impact of currency exchange				(4)
Accrued restructuring, balance		$ 60		$ 60

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets

6 Months Ended

Jul. 01, 2023

Business Combination, Goodwill, and Intangible Assets Disclosure [Text Block]

2. Business Acquisitions, Goodwill and Purchased Intangible Assets

MCT

On January 30, 2023, we completed the acquisition of all the outstanding membership units of MCT Worldwide, LLC. (“MCT”), pursuant to a membership unit purchase agreement dated January 30, 2023, by and among MCT Worldwide, LLC, Arise Acquisition Co., LLC, The Seaport Group LLC Profit Sharing Plan, and Delta Design, Inc., a wholly owned subsidiary of Cohu (“the Acquisition”). MCT is a U.S. based company with its principal manufacturing site in Penang Malaysia. MCT provides automated solutions for the semiconductor industry and designs, manufactures, markets, services and distributes strip test handlers, film frame handlers and laser mark handlers. On January 30, 2023, we made a cash payment totaling approximately $28.0 million for MCT. The Acquisition is a debt free transaction and was subject to a working capital adjustment which was finalized during the second quarter of 2023 resulting in a cash payment of $0.6 million received from the sellers. Taking into consideration the impact of our working capital adjustment and certain acquisition-related costs that were included in the transaction proceeds, the purchase price for MCT is $26.8 million. During the three and six-month period ended July 1, 2023, we incurred acquisition-related costs totaling $0.1 million and $0.4 million, respectively, which were expensed as selling, general and administrative costs. During the prior year period ended June 25, 2022, no acquisition-related costs were incurred. The Acquisition has been accounted for in conformity with ASC Topic 805, Business Combinations, (“ASC 805”).

We have not finalized the purchase price allocation. Accordingly, the preliminary purchase price allocation shown below could materially change as we are still in the process of finalizing the fair values of the tangible and intangible assets acquired and liabilities assumed, and the related income tax effects may still be adjusted as they are finalized during the remainder of the measurement period (which will not exceed 12 months from the acquisition closing date). The transaction was an asset acquisition for tax purposes. Consequently, we will record a stepped-up tax basis in the acquired assets, including goodwill and intangibles. The acquired assets and liabilities of MCT were recorded at their respective fair values including an amount for goodwill representing the difference between the Acquisition consideration and the fair value of the identifiable net assets. During the second quarter of 2023, we settled the working capital adjustment with the sellers resulting in an immaterial change to purchase consideration, current assets and goodwill. There were no changes to intangible assets and we expect to finalize the purchase accounting for MCT in the third quarter of 2023.

The table below summarizes the assets acquired and liabilities assumed as of January 30, 2023 (in thousands):

Current assets, including cash received	$	9,505
Property, plant and equipment		197
Other assets		356
Intangible assets		12,000
Goodwill		8,755
Total assets acquired		30,813
Liabilities assumed		(4,024	)
Net assets acquired	$	26,789

The preliminary allocation of the intangible assets subject to amortization is as follows (in thousands):

	Estimated Fair Value		Weighted Average Useful Life (years)
Developed technology	$	7,500		7.0
Customer relationships		4,000		10.0
Product backlog		500		0.5
Total intangible assets	$	12,000

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

The preliminary value assigned to developed technology was determined by using the using the relief from royalty method under the income approach, which included assumptions related to revenue growth rates, royalty rates, and discount rates. Developed technology, which comprises products that have reached technological feasibility, includes the products in MCT’s product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by MCT and competitors. The estimated after-tax cash flows were based on a hypothetical royalty rate applied to the revenues for the developed technology. The discount rate utilized to discount the net cash flows of the developed technology to present value was based on the risk associated with the respective cash flows taking into consideration the perceived risk of the technology relative to the other acquired assets, the weighted average cost of capital, the internal rate of return, and the weighted average return on assets.

The preliminary value assigned to customer relationships was determined by using the multi-period excess earnings method under the income approach. The estimated cash flows were based on revenues from the existing customers net of operating expenses and net of contributory asset charges. The discount rate utilized to discount the net cash flows of the customer relationships to present value was based on the respective cash flows taking into consideration the perceived risks.

The preliminary value assigned to backlog acquired was estimated based upon the contractual nature of the backlog as of January 30, 2023, using the multi-period excess earnings method under the income approach to discount back to present value the cash flows attributable to the backlog at a discount rate commensurate with the expected risks of the backlog cash flows.

MCT’s results of operations have been included starting January 30, 2023. The impact of MCT on our condensed consolidated statements of income and comprehensive income was not material.

Goodwill and Intangible Assets

Changes in the carrying value of goodwill during the year ended December 31, 2022, and the six-month period ended July 1, 2023 were as follows (in thousands):

	Goodwill
Balance, December 25, 2021	$	219,791
Impact of currency exchange		(6,252	)
Balance, December 31, 2022		213,539
Additions		8,755
Impact of currency exchange		1,997
Balance, July 1, 2023	$	224,291

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

	July 1, 2023						December 31, 2022
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (Years)		Amount		Amort.
Developed technology	$	233,884	$	144,012		3.7	$	224,253	$	128,938
Customer relationships		69,215		34,219		6.5		64,632		31,015
Trade names		20,667		10,403		5.9		20,461		9,397
Product backlog		500		417		0.1		-		-
Covenant not-to-compete		244		159		3.5		269		161
Total intangible assets	$	324,510	$	189,210			$	309,615	$	169,511

Changes in the carrying values of purchased intangible assets presented above are a result of the impact of fluctuation in currency exchange rates and the acquisition of MCT.

Amortization expense related to intangible assets was approximately $9.0 million in the second quarter of fiscal 2023 and $17.8 million in the first six months of fiscal 2023. Amortization expense related to intangible assets was approximately $8.3 million in the second quarter of fiscal 2022 and $16.9 million in the first six months of fiscal 2022.

Note 7 - Derivative Financial Instruments - Foreign Currency Forward Contracts Outstanding (Details) - Jul. 01, 2023 - Not Designated as Hedging Instrument [Member] € in Thousands, SFr in Thousands, RM in Thousands, ₩ in Millions, $ in Millions	USD ($)	EUR (€)	CHF (SFr)	MYR (RM)	KRW (₩)
Euro Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	$ 135.9	€ 124,382
Swiss Franc Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	16.2		SFr 14,457
Malaysian Ringgit Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	2.0			RM 9,307
South Korean Won Forward Exchange Forward [Member] \| Long [Member]
Contract amount	2.0				₩ 2,622.4
Foreign Exchange Forward [Member]
Contract amount	$ 156.1

Fair value, after the effects of master netting arrangements, of a financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes assets not subject to a master netting arrangement and not elected to be offset.

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Note 10 - Leases (Tables)

6 Months Ended

Jul. 01, 2023

Leases, Balance Sheet Information [Table Text Block]

(in thousands)	Classification	July 1, 2023			December 31, 2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	19,839		$	22,804
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		275			323
Total lease assets		$	20,114		$	23,127
Liabilities
Current
Operating	Other accrued liabilities	$	5,118		$	4,927
Finance	Other accrued liabilities		19			49
Noncurrent
Operating	Long-term lease liabilities		16,159			19,185
Finance	Long-term lease liabilities		19			24
Total lease liabilities		$	21,315		$	24,185

Weighted-average remaining lease term (years)
Operating leases			6.0			6.2
Finance leases			2.1			1.7

Weighted-average discount rate
Operating leases			6.4	%		6.2	%
Finance leases			3.2	%		2.2	%

Lease, Cost [Table Text Block]

	Three Months Ended						Six Months Ended
(in thousands)	July 1, 2023			June 25, 2022			July 1, 2023			June 25, 2022
Operating leases	$	1,680		$	1,676		$	3,359		$	3,392
Variable lease expense		563			526			1,122			1,063
Short-term operating leases		7			1			13			2
Finance leases
Amortization of leased assets		28			26			54			58
Interest on lease liabilities		1			1			1			1
Sublease income		(8	)		(18	)		(18	)		(38	)
Net lease cost	$	2,271		$	2,212		$	4,531		$	4,478

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

	Operating			Finance
(in thousands)	leases			leases			Total
2023	$	3,131		$	14		$	3,145
2024		5,813			11			5,824
2025		4,946			12			4,958
2026		2,695			3			2,698
2027		1,777			-			1,777
Thereafter		7,881			-			7,881
Total lease payments		26,243			40			26,283
Less: Interest		(4,966	)		(2	)		(4,968	)
Present value of lease liabilities	$	21,277		$	38		$	21,315

Lease, Cash Flow Information [Table Text Block]

	Six Months Ended
(in thousands)	July 1, 2023		June 25, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,353	$	3,329
Operating cash flows from finance leases	$	1	$	1
Financing cash flows from finance leases	$	39	$	86
Leased assets obtained in exchange for new operating lease liabilities	$	409	$	1,251
Financing lease assets acquired in MCT acquisition	$	19	$	-
Operating lease assets acquired in MCT acquisition	$	130	$	-

Note 12 - Guarantees (Details Textual) - USD ($) $ in Millions	6 Months Ended
	Jul. 01, 2023	Dec. 31, 2022
Non-current Other Accrued Liabilities [Member]
Product Warranty Accrual, Noncurrent	$ 0.6	$ 0.6
Minimum [Member]
Standard Product Warranty Term (Month)	12 months
Maximum [Member]
Standard Product Warranty Term (Month)	36 months

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022
Cash flows from operating activities:
Net income	$ 26,269	$ 50,337
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on extinguishment of debt	369	232
Net accretion on investments	(609)	0
Gain from sale of property, plant and equipment	(17)	(58)
Depreciation and amortization	24,458	23,199
Share-based compensation expense	8,346	7,355
Non-cash inventory related charges	3,215	2,154
Deferred income taxes	(1,489)	1,056
Changes in accrued retiree medical benefits	(281)	(270)
Changes in other accrued liabilities	(227)	(555)
Changes in other assets	(161)	(2,243)
Amortization of cloud-based software implementation costs	1,400	956
Interest capitalized associated with cloud computing implementation	0	(59)
Amortization of debt discounts and issuance costs	81	180
Operating lease right-of-use assets	3,536	2,751
Changes in assets and liabilities, excluding effects from acquisitions:
Customer advances	3,840	9,515
Accounts receivable	38,140	(24,913)
Inventories	(4,704)	(6,024)
Other current assets	1,416	(7,013)
Accounts payable	(8,781)	(4,194)
Deferred profit	(3,976)	(2,608)
Income taxes payable	(2,741)	6,950
Accrued compensation, warranty and other liabilities	(15,097)	(8,408)
Current and long-term operating lease liabilities	(3,357)	(2,541)
Net cash provided by operating activities	69,630	45,799
Cash flows from investing activities, excluding effects from acquisitions:
Purchases of short-term investments	(43,732)	(72,433)
Sales and maturities of short-term investments	90,769	74,150
Purchases of property, plant and equipment	(8,140)	(5,724)
Cash received from sale of property, plant and equipment	193	84
Payment for purchase of MCT, net of cash received	(26,331)	0
Net cash provided by (used in) investing activities	12,759	(3,923)
Cash flows from financing activities:
Payments on current and long-term finance lease liabilities	(39)	(86)
Repurchases of common stock, net	(7,335)	(3,241)
Repayments of long-term debt	(36,458)	(25,198)
Acquisition of treasury stock	(6,180)	(20,378)
Net cash used in financing activities	(50,012)	(48,903)
Effect of exchange rate changes on cash and cash equivalents	572	(2,588)
Net increase (decrease) in cash and cash equivalents	32,949	(9,615)
Cash and cash equivalents at beginning of period	242,341	290,201
Cash and cash equivalents at end of period	275,290	280,586
Supplemental disclosure of cash flow information:
Cash paid for income taxes	9,201	10,760
Inventory capitalized as property, plant and equipment	663	1,116
Property, plant and equipment purchases included in accounts payable	180	1,153
Cash paid for interest	$ 2,453	$ 1,458

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Net income	$ 10,584	$ 28,768	$ 26,269	$ 50,337
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	358	(12,537)	3,059	(21,440)
Adjustments related to postretirement benefits	157	(112)	186	(173)
Change in unrealized gain/loss on investments	(65)	(162)	208	(510)
Other comprehensive income (loss), net of tax	450	(12,811)	3,453	(22,123)
Comprehensive income	$ 11,034	$ 15,957	$ 29,722	$ 28,214

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

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Reference 30: http://www.xbrl.org/2003/role/disclosureRef
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Reference 31: http://www.xbrl.org/2003/role/disclosureRef
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Note 6 - Employee Stock Benefit Plans (Details Textual) - USD ($)			6 Months Ended
	Jul. 01, 2023	May 10, 2023	Jul. 01, 2023
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)			0
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)			342,683
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)			396,287
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)			9,304
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	906,334		906,334
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	$ 37,700,000		$ 37,700,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms (Year)			1 year 6 months
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, Aggregate Intrinsic Value, Outstanding	$ 16,700,000		$ 16,700,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms (Year)			2 years
Equity Based Performance Stock Units Granted in 2023, 2022, 2021, and 2020 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)			256,073
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)			257,845
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)			0
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	401,452		401,452
Equity Based Performance Stock Units Granted in 2023, 2022, 2021, and 2020 [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	0.00%		0.00%
Maximum [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue	200.00%		200.00%
Equity Incentive Plan 2005 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)	3,527,964	3,200,000	3,527,964
Cash Payout of Performance Awards Limitation Per Year	$ 4,000,000	$ 2,000,000
Equity Incentive Plan 2005 [Member] \| Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (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
Equity Incentive Plan 2005 [Member] \| Director [Member]
Annual Limitation on Compensation		$ 750,000
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)	878,856	600,000	878,856
Percentage of Fair Value to Determine Price of Common Stock	85.00%		85.00%
Stock Issued During Period, Shares, New Issues (in shares)			67,642
Share-Based Compensation Arrangement by Share-Based Payment Award, Share Value		$ 12,500

Note 10 - Leases

6 Months Ended

Jul. 01, 2023

Lessee, Leases [Text Block]

10.

Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms of 12 months or less are not recorded on the condensed consolidated balance sheet, but we recognize those lease payments in the condensed consolidated statements of income 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 35 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	July 1, 2023			December 31, 2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	19,839		$	22,804
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		275			323
Total lease assets		$	20,114		$	23,127
Liabilities
Current
Operating	Other accrued liabilities	$	5,118		$	4,927
Finance	Other accrued liabilities		19			49
Noncurrent
Operating	Long-term lease liabilities		16,159			19,185
Finance	Long-term lease liabilities		19			24
Total lease liabilities		$	21,315		$	24,185

Weighted-average remaining lease term (years)
Operating leases			6.0			6.2
Finance leases			2.1			1.7

Weighted-average discount rate
Operating leases			6.4	%		6.2	%
Finance leases			3.2	%		2.2	%

(1)

Finance lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million as of July 1, 2023 and December 31, 2022, respectively.

The components of lease expense were as follows:

	Three Months Ended						Six Months Ended
(in thousands)	July 1, 2023			June 25, 2022			July 1, 2023			June 25, 2022
Operating leases	$	1,680		$	1,676		$	3,359		$	3,392
Variable lease expense		563			526			1,122			1,063
Short-term operating leases		7			1			13			2
Finance leases
Amortization of leased assets		28			26			54			58
Interest on lease liabilities		1			1			1			1
Sublease income		(8	)		(18	)		(18	)		(38	)
Net lease cost	$	2,271		$	2,212		$	4,531		$	4,478

Future minimum lease payments at July 1, 2023, are as follows:

	Operating			Finance
(in thousands)	leases			leases			Total
2023	$	3,131		$	14		$	3,145
2024		5,813			11			5,824
2025		4,946			12			4,958
2026		2,695			3			2,698
2027		1,777			-			1,777
Thereafter		7,881			-			7,881
Total lease payments		26,243			40			26,283
Less: Interest		(4,966	)		(2	)		(4,968	)
Present value of lease liabilities	$	21,277		$	38		$	21,315

Supplemental cash flow information related to leases was as follows:

	Six Months Ended
(in thousands)	July 1, 2023		June 25, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,353	$	3,329
Operating cash flows from finance leases	$	1	$	1
Financing cash flows from finance leases	$	39	$	86
Leased assets obtained in exchange for new operating lease liabilities	$	409	$	1,251
Financing lease assets acquired in MCT acquisition	$	19	$	-
Operating lease assets acquired in MCT acquisition	$	130	$	-

Note 8 - Equity (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Note 8 - Equity (Details Textual) - USD ($) $ in Millions	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022	Oct. 25, 2022	Oct. 28, 2021
Stock Repurchase Program, Authorized Amount						$ 70.0
Stock Repurchase Program, Additional Authorized Amount					$ 70.0
Stock Repurchased During Period, Shares (in shares)	77,203	504,102	176,885	717,808
Stock Repurchased During Period, Value	$ 2.7	$ 14.0	$ 6.2	$ 20.4
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 75.8		$ 75.8

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

Note 10 - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
2023, operating lease	$ 3,131
2023, finance lease	14
2023, total	3,145
2024, operating lease	5,813
2024, finance lease	11
2024, total	5,824
2025, operating lease	4,946
2025, finance lease	12
2025, total	4,958
2026, operating lease	2,695
2026, finance lease	3
2026, total	2,698
2027, operating lease	1,777
2027, finance lease	0
2027, total	1,777
Thereafter, operating leases	7,881
Thereafter, finance leases	0
Thereafter, total	7,881
Total lease payments, operating leases	26,243
Total lease payments, finance leases	40
Total lease payments, total	26,283
Less: Interest, operating leases	(4,966)
Less: Interest, finance leases	(2)
Less: Interest, total	(4,968)
Present value of lease liabilities, finance leases	38
Present value of lease liabilities, total	21,315	$ 24,185
Other Accrued Liabilities and Long-term Lease Liabilities [Member]
Present value of lease liabilities, operating leases	$ 21,277

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Preliminary Allocation of Intangible Assets (Details) - MCT Worldwide, LLC [Member] $ in Millions	Jan. 30, 2023 USD ($)
Intangible assets, estimated fair value	$ 12.0
Developed Technology Rights [Member]
Finite-lived intangible assets, estimated fair value	$ 7.5
Finite-lived intangible assets, average useful life (Year)	7 years
Customer Relationships [Member]
Finite-lived intangible assets, estimated fair value	$ 4.0
Finite-lived intangible assets, average useful life (Year)	10 years
Order or Production Backlog [Member]
Finite-lived intangible assets, estimated fair value	$ 0.5
Finite-lived intangible assets, average useful life (Year)	6 months

Note 1 - Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jul. 01, 2023

Schedule of Inventory, Current [Table Text Block]

	July 1,		December 31,
	2023		2022
Raw materials and purchased parts	$	108,335	$	106,041
Work in process		35,752		36,024
Finished goods		29,666		28,076
Total inventories	$	173,753	$	170,141

Property, Plant and Equipment [Table Text Block]

	July 1,			December 31,
	2023			2022
Land and land improvements	$	7,069		$	7,066
Buildings and building improvements		32,831			31,161
Machinery and equipment		109,325			105,109
		149,225			143,336
Less accumulated depreciation and amortization		(82,599	)		(78,325	)
Property, plant and equipment, net	$	66,626		$	65,011

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

	Three Months Ended						Six Months Ended
	July 1,			June 25,			July 1,			June 25,
	2023			2022			2023			2022
Cost of sales	$	216		$	172		$	396		$	317
Research and development		819			826			1,685			1,578
Selling, general and administrative		3,397			2,935			6,265			5,460
Total share-based compensation		4,432			3,933			8,346			7,355
Income tax benefit		(62	)		(836	)		(2,838	)		(2,462	)
Total share-based compensation, net	$	4,370		$	3,097		$	5,508		$	4,893

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

	Three Months Ended				Six Months Ended
	July 1,		June 25,		July 1,		June 25,
	2023		2022		2023		2022
Weighted average common shares		47,618		48,475		47,481		48,626
Effect of dilutive securities		410		453		618		622
		48,028		48,928		48,099		49,248

Disaggregation of Revenue [Table Text Block]

	Three Months Ended				Six Months Ended
Disaggregated Net Sales	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Systems	$	87,312	$	131,951	$	190,296	$	249,300
Non-systems		81,609		85,275		157,996		165,683
Total net sales	$	168,921	$	217,226	$	348,292	$	414,983

	Three Months Ended				Six Months Ended
Disaggregated Net Sales	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Philippines	$	25,359	$	21,562	$	57,149	$	45,947
Malaysia		23,258		28,857		55,153		48,973
China		28,394		46,585		49,504		85,238
United States		15,750		19,553		34,493		43,316
Rest of the World		76,160		100,669		151,993		191,509
Total net sales	$	168,921	$	217,226	$	348,292	$	414,983

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

Three Months Ended

Six Months Ended

July 1,

June 25,

July 1,

June 25,

2023

2022

2023

2022

Customers individually accounting for more than 10% of net sales

two

one

Percentage of net sales

Note 4 - Restructuring Charges

6 Months Ended

Jul. 01, 2023

Restructuring and Related Activities Disclosure [Text Block]

4.	Restructuring Charges

MCT Integration Program

During the first quarter of 2023, we began a strategic restructuring and integration program in connection with the acquisition of MCT (“MCT Integration Program”). See Note 2, “Business Acquisitions, Goodwill and Purchased Intangible Assets” for additional information regarding the acquisition of MCT. As part of this program, we intend to consolidate MCT’s Penang, Malaysia manufacturing operations into Cohu’s Melaka, Malaysia manufacturing operations by the end of 2023. Relating to the facility consolidation actions, we notified certain impacted employees of a reduction in force program and the facility consolidation and reduction in force programs are being implemented as part of a comprehensive review of our operations and are intended to reduce our operating cost structure and capitalize on acquisition synergies.

As a result of the activities described above, we recognized total pretax charges of $0.4 million and $1.3 million during the three and six months ended July 1, 2023, that are within the scope of ASC 420.

The following table summarizes the activity within the restructuring related accounts for the MCT Integration Program during the first six months ended July 1, 2023 (in thousands):

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 31, 2022	$	-		$	-		$	-
Costs accrued		1,217			87			1,304
Amounts paid or charged		(813	)		(49	)		(862	)
Balance, July 1, 2023	$	404		$	38		$	442

Xcerra Integration Program

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 Xcerra (“Xcerra Integration Program”). As part of the Xcerra 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 Xcerra 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 collectively reduced headcount, enabled us to consolidate the facilities of our multiple operations located near Kolbermoor and Rosenheim, Germany, as well as transitioned certain manufacturing to other lower cost regions. The facility consolidations and reduction in force programs were implemented as part of a comprehensive review of our operations and were 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 $0.2 million for the first six months ended June 25, 2022, that are within the scope of ASC 420. Total pretax charges for the first six months ended July 1, 2023 were not material.

Costs associated with restructuring activities are presented in our condensed consolidated statements of income 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, impairments of fixed assets and building close expenses. As of December 31, 2022, restructuring activities associated with the Xcerra Integration Program were materially complete.

The following table summarizes the activity within the restructuring related accounts for the Xcerra Integration Program during the first six months ended June 25, 2022 (in thousands):

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 25, 2021	$	348		$	-		$	348
Costs accrued		(15	)		598			583
Amounts paid or charged		(269	)		(598	)		(867	)
Impact of currency exchange		(4	)		-			(4	)
Balance, June 25, 2022	$	60		$	-		$	60

At July 1, 2023, our total accrual for both the MCT and Xcerra Integration Programs are 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.

Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jul. 01, 2023

Jun. 25, 2022

Jul. 01, 2023

Jun. 25, 2022

Net sales

$ 168,921

$ 217,226

$ 348,292

$ 414,983

Cost and expenses:

Cost of sales (1)

^[1]

88,576

116,273

181,729

222,874

Research and development

22,466

23,160

44,976

46,266

Selling, general and administrative

32,798

32,531

66,987

63,777

Amortization of purchased intangible assets

9,006

8,341

17,760

16,876

Restructuring charges

416

1,304

583

Costs and Expenses

153,262

180,312

312,756

350,376

Income from operations

15,659

36,914

35,536

64,607

Other (expense) income:

Interest expense

(727)

(919)

(1,855)

(1,900)

Interest income

2,732

308

5,450

419

Foreign transaction gain (loss)

(645)

1,491

(1,085)

2,635

Loss on extinguishment of debt

(128)

(369)

(232)

Income before taxes

17,019

37,666

37,677

65,529

Income tax provision

6,435

8,898

11,408

15,192

Net income

$ 10,584

$ 28,768

$ 26,269

$ 50,337

Basic (in dollars per share)

$ 0.22

$ 0.59

$ 0.55

$ 1.04

Diluted (in dollars per share)

$ 0.22

$ 0.59

$ 0.55

$ 1.02

Weighted average shares used in computing income per share:

Basic (in shares)

47,618

48,475

47,481

48,626

Diluted (in shares)

48,028

48,928

48,099

49,248

[1]	Excludes amortization of $7,102 and $6,544 for the three months ended July 1, 2023 and June 25, 2022, respectively, and $13,993 and $13,240 for the six months ended July 1, 2023 and June 25, 2022, respectively.

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

6 Months Ended

12 Months Ended

Jul. 01, 2023

Dec. 31, 2022

Beginning balance

$ 213,539

^[1]

$ 219,791

Impact of currency exchange

1,997

(6,252)

Additions

8,755

Ending balance

$ 224,291

$ 213,539

^[1]

[1]	Derived from December 31, 2022 audited financial statements

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

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

6 Months Ended

Jul. 01, 2023

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

Current assets, including cash received	$	9,505
Property, plant and equipment		197
Other assets		356
Intangible assets		12,000
Goodwill		8,755
Total assets acquired		30,813
Liabilities assumed		(4,024	)
Net assets acquired	$	26,789

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

	Estimated Fair Value		Weighted Average Useful Life (years)
Developed technology	$	7,500		7.0
Customer relationships		4,000		10.0
Product backlog		500		0.5
Total intangible assets	$	12,000

Schedule of Goodwill [Table Text Block]

	Goodwill
Balance, December 25, 2021	$	219,791
Impact of currency exchange		(6,252	)
Balance, December 31, 2022		213,539
Additions		8,755
Impact of currency exchange		1,997
Balance, July 1, 2023	$	224,291

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

	July 1, 2023						December 31, 2022
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (Years)		Amount		Amort.
Developed technology	$	233,884	$	144,012		3.7	$	224,253	$	128,938
Customer relationships		69,215		34,219		6.5		64,632		31,015
Trade names		20,667		10,403		5.9		20,461		9,397
Product backlog		500		417		0.1		-		-
Covenant not-to-compete		244		159		3.5		269		161
Total intangible assets	$	324,510	$	189,210			$	309,615	$	169,511

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

MCT Worldwide, LLC [Member]

Note 5 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Millions	Jul. 01, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale, Unrealized Loss Position, Amortized Cost	$ 76.8	$ 86.3
Debt Securities, Available-for-Sale, Unrealized Loss Position	$ 76.2	$ 85.5

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
	Jan. 30, 2023	Jul. 01, 2023	Jun. 25, 2022	Mar. 26, 2022	Jul. 01, 2023	Jun. 25, 2022
Amortization of Intangible Assets		$ 9,006	$ 8,341		$ 17,760	$ 16,876
MCT Worldwide, LLC [Member]
Payments to Acquire Businesses, Gross	$ 28,000
Cash Acquired from Acquisition		600
Business Combination, Consideration Transferred	$ 26,800
Business Combination, Acquisition Related Costs		$ 100		$ 0	$ 400

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

Jul. 01, 2023

Jan. 30, 2023

Dec. 31, 2022

^[1]

Dec. 25, 2021

Goodwill

$ 224,291

$ 213,539

$ 219,791

Current assets, including cash received

$ 9,505

197

Other assets

356

Intangible assets

12,000

Goodwill

8,755

Total assets acquired

30,813

Liabilities assumed

(4,024)

Net assets acquired

$ 26,789

[1]	Derived from December 31, 2022 audited financial statements

Note 12 - Guarantees (Tables)

6 Months Ended

Jul. 01, 2023

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended						Six Months Ended
	July 1,			June 25,			July 1,			June 25,
	2023			2022			2023			2022
Balance at beginning of period	$	6,115		$	6,847		$	6,214		$	7,691
Warranty expense accruals		1,742			2,596			3,722			4,643
Warranty payments		(2,323	)		(2,428	)		(4,469	)		(5,319	)
Liability acquired		-			-			67			-
Balance at end of period	$	5,534		$	7,015		$	5,534		$	7,015

Item 5 - Other Information (Details Textual)	3 Months Ended
Item 5 - Other Information (Details Textual)	Jul. 01, 2023 shares
Jeffrey D. Jones, Senior Vice President, Finance & CFO [Member]
Issuer Rule 10b5-1, Arrangement Adoption Date	May 23, 2023
Issuer Rule 10b5-1, Arrangement Termination Date	May 07, 2023
Issuer Rule 10b5-1, Aggregate Available Shares (in shares)	40,000
Steven J. Bilodeau, Director [Member]
Issuer Rule 10b5-1, Arrangement Adoption Date	May 23, 2023
Issuer Rule 10b5-1, Arrangement Termination Date	May 23, 2024
Issuer Rule 10b5-1, Aggregate Available Shares (in shares)	9,000
William E. Bendush, Director [Member]
Issuer Rule 10b5-1, Arrangement Adoption Date	May 23, 2023
Issuer Rule 10b5-1, Arrangement Termination Date	May 31, 2024
Issuer Rule 10b5-1, Aggregate Available Shares (in shares)	5,091

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

6 Months Ended

Jul. 01, 2023

Unrealized Gain (Loss) on Investments [Table Text Block]

	July 1, 2023
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities⁽²⁾	$	40,643	$	5	$	113	$	40,535
Bank certificates of deposit		21,250		4		21		21,233
U.S. treasury securities		21,179		-		323		20,856
Asset-backed securities		10,644		-		55		10,589
Government-sponsored enterprise securities		2,980		1		-		2,981
Foreign government security		833		-		-		833
	$	97,529	$	10	$	512	$	97,027

	December 31, 2022
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities ⁽²⁾	$	59,283	$	30	$	240	$	59,073
Bank certificates of deposit		36,500		20		41		36,479
U.S. treasury securities		34,614		1		418		34,197
Asset-backed securities		12,727		10		79		12,658
Foreign government security		828		-		-		828
	$	143,952	$	61	$	778	$	143,235

Investments Classified by Contractual Maturity Date [Table Text Block]

	July 1, 2023				December 31, 2022
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	79,210	$	78,793	$	112,956	$	112,683
Due after one year through three years		18,319		18,234		30,996		30,552
	$	97,529	$	97,027	$	143,952	$	143,235

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

	Fair value measurements at July 1, 2023 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	150,874	$	-	$	-	$	150,874
U.S. treasury securities		-		23,342		-		23,342
Corporate debt securities		-		49,419		-		49,419
Asset-backed securities		-		10,590		-		10,590
Government-sponsored enterprise securities		-		2,981		-		2,981
Money market funds		-		113,045		-		113,045
Bank certificates of deposit		-		21,233		-		21,233
Foreign government security		-		833		-		833
	$	150,874	$	221,443	$	-	$	372,317

	Fair value measurements at December 31, 2022 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	190,371	$	-	$	-	$	190,371
Corporate debt securities		-		69,753		-		69,753
Money market funds		-		40,290		-		40,290
Bank certificates of deposit		-		37,480		-		37,480
U.S. treasury securities		-		34,196		-		34,196
Asset-backed securities		-		12,658		-		12,658
Foreign government security		-		828		-		828
	$	190,371	$	195,205	$	-	$	385,576

Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation in Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Share-based compensation of continuing operations	$ 4,432	$ 3,933	$ 8,346	$ 7,355
Income tax benefit	(62)	(836)	(2,838)	(2,462)
Total share-based compensation, net	4,370	3,097	5,508	4,893
Cost of Sales [Member]
Share-based compensation of continuing operations	216	172	396	317
Research and Development Expense [Member]
Share-based compensation of continuing operations	819	826	1,685	1,578
Selling, General and Administrative Expenses [Member]
Share-based compensation of continuing operations	$ 3,397	$ 2,935	$ 6,265	$ 5,460

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands

Jul. 01, 2023

Dec. 31, 2022

^[1]

Current assets:

$ 275,290

$ 242,341

Property, plant and equipment, net

97,027

143,235

Accounts receivable, net

144,137

176,148

Inventories

173,753

170,141

Prepaid expenses

29,257

24,017

Other current assets

2,827

8,969

Total current assets

722,291

764,851

66,626

65,011

Goodwill

224,291

213,539

Intangible assets, net

135,300

140,104

Other assets

19,718

21,105

Operating lease right of use assets

19,839

22,804

Assets

1,188,065

1,227,414

Current liabilities:

Short-term borrowings

1,732

1,907

Current installments of long-term debt

4,529

4,404

Accounts payable

45,677

51,763

Customer advances

10,833

6,886

Accrued compensation and benefits

28,149

38,348

Deferred profit

4,073

8,022

Accrued warranty

4,932

5,614

Income taxes payable

24,373

26,648

Other accrued liabilities

14,104

17,280

Total current liabilities

138,402

160,872

Long-term debt

36,457

72,664

Deferred income taxes

21,565

21,359

Noncurrent income tax liabilities

6,410

6,486

Accrued retirement benefits

8,276

10,363

Long-term lease liabilities

16,178

19,209

Other accrued liabilities

7,384

7,620

Stockholders’ equity

Preferred stock, $1 par value; 1,000 shares authorized, none issued

Common stock, $1 par value; 90,000 shares authorized, 49,350 shares issued and outstanding in 2023 and 49,276 shares in 2022

49,350

49,276

Paid-in capital

676,309

687,218

Treasury stock, at cost; 1,751 shares in 2023 and 1,767 shares in 2022

(52,378)

(58,043)

Retained earnings

316,671

290,402

Accumulated other comprehensive loss

(36,559)

(40,012)

Total stockholders’ equity

953,393

928,841

Liabilities and Equity

$ 1,188,065

$ 1,227,414

[1]	Derived from December 31, 2022 audited financial statements

Note 5 - Financial Instruments Measured at Fair Value

6 Months Ended

Jul. 01, 2023

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):

	July 1, 2023
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities⁽²⁾	$	40,643	$	5	$	113	$	40,535
Bank certificates of deposit		21,250		4		21		21,233
U.S. treasury securities		21,179		-		323		20,856
Asset-backed securities		10,644		-		55		10,589
Government-sponsored enterprise securities		2,980		1		-		2,981
Foreign government security		833		-		-		833
	$	97,529	$	10	$	512	$	97,027

	December 31, 2022
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities ⁽²⁾	$	59,283	$	30	$	240	$	59,073
Bank certificates of deposit		36,500		20		41		36,479
U.S. treasury securities		34,614		1		418		34,197
Asset-backed securities		12,727		10		79		12,658
Foreign government security		828		-		-		828
	$	143,952	$	61	$	778	$	143,235

(1)

As of July 1, 2023, the cost and fair value of investments with loss positions was approximately $76.8 million and $76.2 million, respectively. As of December 31, 2022, the cost and fair value of investments with loss positions was approximately $86.3 million and $85.5 million, respectively. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if a credit loss exists. 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):

	July 1, 2023				December 31, 2022
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	79,210	$	78,793	$	112,956	$	112,683
Due after one year through three years		18,319		18,234		30,996		30,552
	$	97,529	$	97,027	$	143,952	$	143,235

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 July 1, 2023 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	150,874	$	-	$	-	$	150,874
U.S. treasury securities		-		23,342		-		23,342
Corporate debt securities		-		49,419		-		49,419
Asset-backed securities		-		10,590		-		10,590
Government-sponsored enterprise securities		-		2,981		-		2,981
Money market funds		-		113,045		-		113,045
Bank certificates of deposit		-		21,233		-		21,233
Foreign government security		-		833		-		833
	$	150,874	$	221,443	$	-	$	372,317

	Fair value measurements at December 31, 2022 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	190,371	$	-	$	-	$	190,371
Corporate debt securities		-		69,753		-		69,753
Money market funds		-		40,290		-		40,290
Bank certificates of deposit		-		37,480		-		37,480
U.S. treasury securities		-		34,196		-		34,196
Asset-backed securities		-		12,658		-		12,658
Foreign government security		-		828		-		828
	$	190,371	$	195,205	$	-	$	385,576

Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands

Jul. 01, 2023

Dec. 31, 2022

US Treasury Securities [Member]

$ 97,027

$ 143,235

Corporate Debt Securities [Member]

20,856

34,197

Asset-Backed Securities [Member]

^[1]

40,535

59,073

Certificates of Deposit [Member]

10,589

12,658

US Government-sponsored Enterprises Debt Securities [Member]

21,233

36,479

Debt Security, Government, Non-US [Member]

2,981

Fair Value, Recurring [Member]

833

828

Fair Value, Recurring [Member] | US Treasury Securities [Member]

372,317

385,576

Fair Value, Recurring [Member] | Corporate Debt Securities [Member]

23,342

34,196

Fair Value, Recurring [Member] | Asset-Backed Securities [Member]

49,419

69,753

Fair Value, Recurring [Member] | Certificates of Deposit [Member]

10,590

12,658

Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member]

21,233

37,480

Fair Value, Recurring [Member] | Debt Security, Government, Non-US [Member]

2,981

Fair Value, Recurring [Member] | Cash [Member]

833

828

Fair Value, Recurring [Member] | Money Market Funds [Member]

150,874

190,371

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]

113,045

40,290

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]

150,874

190,371

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Asset-Backed Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Government-sponsored Enterprises Debt Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Security, Government, Non-US [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Cash [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]

150,874

190,371

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member]

221,443

195,205

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]

23,342

34,196

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-Backed Securities [Member]

49,419

69,753

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member]

10,590

12,658

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government-sponsored Enterprises Debt Securities [Member]

21,233

37,480

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Security, Government, Non-US [Member]

2,981

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Cash [Member]

833

828

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]

113,045

40,290

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset-Backed Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Government-sponsored Enterprises Debt Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Security, Government, Non-US [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Cash [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]

Property, Plant and Equipment, Net [Member]

$ 0

[1]	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 10 - Leases - Balance Sheet Information (Details) - USD ($)
$ in Thousands

Jul. 01, 2023

Dec. 31, 2022

Operating lease assets

$ 19,839

$ 22,804

^[1]

Total lease assets

20,114

23,127

Total lease liabilities

$ 21,315

$ 24,185

Operating leases (Year)

6 years

6 years 2 months 12 days

Finance leases (Year)

2 years 1 month 6 days

1 year 8 months 12 days

Operating leases

6.40%

6.20%

Finance leases

3.20%

2.20%

Finance lease assets

^[2]

$ 275

$ 323

Other Accrued Liabilities [Member]

Operating, current

5,118

4,927

Finance, current

Long-term Lease Liabilities [Member]

Operating, noncurrent

16,159

19,185

Finance, noncurrent

$ 19

$ 24

[1]	Derived from December 31, 2022 audited financial statements
[2]	Finance lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million as of July 1, 2023 and December 31, 2022, respectively.

Note 12 - Guarantees

6 Months Ended

Jul. 01, 2023

Guarantees [Text Block]

12.

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						Six Months Ended
	July 1,			June 25,			July 1,			June 25,
	2023			2022			2023			2022
Balance at beginning of period	$	6,115		$	6,847		$	6,214		$	7,691
Warranty expense accruals		1,742			2,596			3,722			4,643
Warranty payments		(2,323	)		(2,428	)		(4,469	)		(5,319	)
Liability acquired		-			-			67			-
Balance at end of period	$	5,534		$	7,015		$	5,534		$	7,015

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 at both July 1, 2023 and December 31, 2022.

The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

Note 12 - Guarantees - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Balance at beginning of period	$ 6,115	$ 6,847	$ 6,214	$ 7,691
Warranty expense accruals	1,742	2,596	3,722	4,643
Warranty payments	(2,323)	(2,428)	(4,469)	(5,319)
Liability acquired	0	0	67	0
Balance at end of period	$ 5,534	$ 7,015	$ 5,534	$ 7,015

Note 4 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Restructuring Charges	$ 416	$ 7	$ 1,304	$ 583
Integration Program [Member]
Restructuring Charges	$ 400		$ 1,300	$ 200

Note 7 - Derivative Financial Instruments (Tables)

6 Months Ended

Jul. 01, 2023

Schedule of Derivative Instruments [Table Text Block]

		Contract Amount		Contract Amount
Currency	Contract Position	(Local Currency)		(U.S. Dollars)
Euro	Buy		124,382	$	135,900
Swiss Franc	Buy		14,457		16,200
Malaysian Ringgit	Buy		9,307		2,000
South Korean Won	Buy		2,622,400		2,000
				$	156,100

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

Three months ended

Six months ended

Derivatives not designated

Location of gain (loss)

July 1,

June 25,

July 1,

June 25,

as hedging instruments

recognized on derivatives

2023

2022

2021

Foreign exchange forward contracts

Foreign transaction gain (loss)

132

(2,841

)

1,213

(4,251

)

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.

Note 3 - Borrowings and Credit Agreements (Details Textual) $ in Thousands, € in Millions, ¥ in Millions, SFr in Millions			3 Months Ended			6 Months Ended
	Jul. 31, 2023	Oct. 01, 2018 USD ($)	Jul. 01, 2023 USD ($)	Apr. 01, 2023 USD ($)	Jun. 25, 2022 USD ($)	Jul. 01, 2023 USD ($)	Jun. 25, 2022 USD ($)	Apr. 01, 2023 EUR (€)	Apr. 01, 2023 JPY (¥)	Apr. 01, 2023 CHF (SFr)	Dec. 31, 2022 USD ($)	May 31, 2022 EUR (€)	Jun. 30, 2020 EUR (€)
Long-Term Debt, Current Maturities			$ 6,261			$ 6,261					$ 6,311
Repayments of Long-Term Debt						36,458	$ 25,198
Gain (Loss) on Extinguishment of Debt			0		$ (128)	(369)	(232)
Long-Term Line of Credit, Total			1,732			1,732					1,907
Ismeca [Member]
Line of Credit Facility, Maximum Borrowing Capacity \| SFr										SFr 2
Number of Available Lines of Credit				1				1	1	1
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity \| ¥									¥ 960
Long-Term Line of Credit, Total			1,700			1,700			¥ 250
Secured Term Loan Facility [Member]
Debt Instrument, Face Amount		$ 350,000
Debt Instrument, Amortization, Percentage of Principal Amount		0.25%
Long-Term Debt			30,800			30,800					66,200
Long-Term Debt, Current Maturities			3,400			3,400					3,200
Long-Term Debt, Fair Value			31,100			31,100
Extinguishment of Debt, Amount						34,100	22,000
Repayments of Long-Term Debt						34,100	22,000
Gain (Loss) on Extinguishment of Debt						(400)	(200)
Extinguishment of Debt Decrease Deferred Financing Costs						400	$ 300
Long-Term Debt, Gross			31,077			31,077					66,952
Secured Term Loan Facility [Member] \| London Interbank Offered Rate (LIBOR) 1 [Member]
Debt Instrument, Basis Spread on Variable Rate		3.00%
Secured Term Loan Facility [Member] \| Secured Overnight Financing Rate (SOFR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Kita Term Loans [Member]
Long-Term Debt			2,100			2,100					2,500
Long-Term Debt, Current Maturities			200			200					200
Long-Term Debt, Gross			$ 2,144			$ 2,144					2,466
Kita Term Loans [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage			0.05%			0.05%
Kita Term Loans [Member] \| Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage			0.42%			0.42%
Loan Facilities [Member] \| Construction Loans [Member]
Debt Instrument, Face Amount \| €												€ 9.5	€ 10.1
Long-Term Debt			$ 8,100			$ 8,100					8,400
Long-Term Debt, Current Maturities				$ 1,000							$ 1,000
First Facility [Member] \| Construction Loans [Member]
Debt Instrument, Face Amount \| €								€ 3.4
Debt Instrument, Interest Rate, Stated Percentage				0.80%				0.80%	0.80%	0.80%
Debt Instrument, Term (Year)				10 years
Second Facility [Member] \| Construction Loans [Member]
Debt Instrument, Face Amount \| €								€ 5.2
Debt Instrument, Interest Rate, Stated Percentage				1.05%				1.05%	1.05%	1.05%
Debt Instrument, Term (Year)				15 years
Third Facility [Member] \| Construction Loans [Member]
Debt Instrument, Interest Rate, Stated Percentage				1.20%				1.20%	1.20%	1.20%
Debt Instrument, Term (Year)				10 years
Debt Instrument, Collateral Amount \| €								€ 0.9

Note 7 - Derivative Financial Instruments

6 Months Ended

Jul. 01, 2023

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 offset 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 reduce 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 income 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 July 1, 2023 will mature during the third quarter of fiscal 2023.

The following table provides information about our foreign currency forward contracts outstanding as of July 1, 2023 (in thousands):

		Contract Amount		Contract Amount
Currency	Contract Position	(Local Currency)		(U.S. Dollars)
Euro	Buy		124,382	$	135,900
Swiss Franc	Buy		14,457		16,200
Malaysian Ringgit	Buy		9,307		2,000
South Korean Won	Buy		2,622,400		2,000
				$	156,100

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 on July 1, 2023 were immaterial.

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

Three months ended

Six months ended

Derivatives not designated

Location of gain (loss)

July 1,

June 25,

July 1,

June 25,

as hedging instruments

recognized on derivatives

2023

2022

2021

Foreign exchange forward contracts

Foreign transaction gain (loss)

132

(2,841

)

1,213

(4,251

)

Note 3 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Lines of Credit	$ 1,732	$ 1,907
Total debt	43,032	79,739
Less: financing fees and discount	(314)	(764)
Less: current portion	(6,261)	(6,311)
Total long-term debt	36,457	72,664
Secured Term Loan Facility [Member]
Long term Debt	31,077	66,952
Less: current portion	(3,400)	(3,200)
Kita Term Loans [Member]
Long term Debt	2,144	2,466
Less: current portion	(200)	(200)
Construction Loan [Member]
Long term Debt	$ 8,079	$ 8,414

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 1 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Net sales	$ 168,921	$ 217,226	$ 348,292	$ 414,983
PHILIPPINES
Net sales	25,359	21,562	57,149	45,947
Malaysia [Member]
Net sales	23,258	28,857	55,153	48,973
CHINA
Net sales	28,394	46,585	49,504	85,238
UNITED STATES
Net sales	15,750	19,553	34,493	43,316
Rest of the World [Member]
Net sales	76,160	100,669	151,993	191,509
Systems [Member]
Net sales	87,312	131,951	190,296	249,300
Non-systems [Member]
Net sales	$ 81,609	$ 85,275	$ 157,996	$ 165,683

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

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Note 1 - Summary of Significant Accounting Policies

6 Months Ended

Jul. 01, 2023

Significant Accounting Policies [Text Block]

1.	Summary of Significant Accounting Policies

Basis of Presentation

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

Concentration of Credit Risk

Inventories

Inventories by category were as follows (in thousands):

	July 1,		December 31,
	2023		2022
Raw materials and purchased parts	$	108,335	$	106,041
Work in process		35,752		36,024
Finished goods		29,666		28,076
Total inventories	$	173,753	$	170,141

Property, Plant and Equipment

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

	July 1,			December 31,
	2023			2022
Land and land improvements	$	7,069		$	7,066
Buildings and building improvements		32,831			31,161
Machinery and equipment		109,325			105,109
		149,225			143,336
Less accumulated depreciation and amortization		(82,599	)		(78,325	)
Property, plant and equipment, net	$	66,626		$	65,011

Cloud-based Enterprise Resource Planning Implementation Costs

Segment Information

Goodwill and Other Intangible Assets

Product Warranty

Restructuring Costs

Debt Issuance Costs

Foreign Remeasurement and Currency Translation

Foreign Exchange Derivative Contracts

Share-Based Compensation

We measure and recognize all share-based compensation under the fair value method.

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

	Three Months Ended						Six Months Ended
	July 1,			June 25,			July 1,			June 25,
	2023			2022			2023			2022
Cost of sales	$	216		$	172		$	396		$	317
Research and development		819			826			1,685			1,578
Selling, general and administrative		3,397			2,935			6,265			5,460
Total share-based compensation		4,432			3,933			8,346			7,355
Income tax benefit		(62	)		(836	)		(2,838	)		(2,462	)
Total share-based compensation, net	$	4,370		$	3,097		$	5,508		$	4,893

Income Per Share

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

	Three Months Ended				Six Months Ended
	July 1,		June 25,		July 1,		June 25,
	2023		2022		2023		2022
Weighted average common shares		47,618		48,475		47,481		48,626
Effect of dilutive securities		410		453		618		622
		48,028		48,928		48,099		49,248

Leases

Revenue Recognition

Net sales by type are as follows (in thousands):

	Three Months Ended				Six Months Ended
Disaggregated Net Sales	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Systems	$	87,312	$	131,951	$	190,296	$	249,300
Non-systems		81,609		85,275		157,996		165,683
Total net sales	$	168,921	$	217,226	$	348,292	$	414,983

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

	Three Months Ended				Six Months Ended
Disaggregated Net Sales	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
Philippines	$	25,359	$	21,562	$	57,149	$	45,947
Malaysia		23,258		28,857		55,153		48,973
China		28,394		46,585		49,504		85,238
United States		15,750		19,553		34,493		43,316
Rest of the World		76,160		100,669		151,993		191,509
Total net sales	$	168,921	$	217,226	$	348,292	$	414,983

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

Three Months Ended

Six Months Ended

July 1,

June 25,

July 1,

June 25,

2023

2022

2023

2022

Customers individually accounting for more than 10% of net sales

two

one

Percentage of net sales

Accumulated Other Comprehensive Loss

Retiree Medical Benefits

New Accounting Pronouncements

Item 5 - Other Information

6 Months Ended

Jul. 01, 2023

Issuer Rule 10b5-1, Material Terms [Text Block]

Item 5. Other Information.

Rule 10b5-1 Trading Plans

Our directors and executive officers may purchase or sell shares of our common stock in the market from time to time, including pursuant to equity trading plans adopted in accordance with Rule 10b5-1 under the Exchange Act and in compliance with guidelines specified by our insider trading policy. In accordance with Rule 10b5-1 and our insider trading policy, directors, officers and certain employees who, at such time, are not in possession of material non-public information are permitted to enter into written plans that pre-establish amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of our stock, including shares acquired pursuant to our equity incentive plans. Under a Rule 10b5-1 trading plan, a broker executes trades pursuant to parameters established by the director or executive officer when entering into the plan, without further direction from them. The use of these trading plans permits asset diversification as well as personal financial and tax planning. Our directors and executive officers also may buy or sell additional shares outside of a Rule 10b5-1 plan when they are not in possession of material nonpublic information, subject to compliance with SEC rules, the terms of our insider trading policy and certain minimum holding requirements. The following table shows the Rule 10b5-1 trading plans intended to satisfy the affirmative defense conditions of Rule 10b-1(c) adopted or terminated by our directors and executive officers during the second quarter of 2023.

	Plan	Plan	Expiration	Number of Shares
Name and Position	Action	Adoption Date	Date	to be Sold under Plan
Jeffrey D. Jones, Senior Vice President, Finance & CFO	Adoption	5/23/2023	5/7/2025	40,000
Steven J. Bilodeau, Director	Adoption	5/23/2023	5/23/2024	9,000
William E. Bendush, Director	Adoption	5/23/2023	5/31/2024	5,091

Transactions by Section 16 directors and officers will be disclosed publicly through Form 144 and Form 4 filings with the SEC to the extent required by law. No non-Rule 10b5-1 trading arrangements (as defined by Item 408(a) of Regulation S-K) were entered into by any Section 16 director or officer during the second quarter of 2023.

Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Weighted average common shares (in shares)	47,618	48,475	47,481	48,626
Effect of dilutive securities (in shares)	410	453	618	622
Weighted Average Number of Shares Outstanding, Diluted	48,028	48,928	48,099	49,248

Note 11 - Contingencies

6 Months Ended

Jul. 01, 2023

Commitments and Contingencies Disclosure [Text Block]

11.

Contingencies

From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our business. The outcome of any litigation is inherently uncertain. While there can be 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 4 - Restructuring Charges (Tables)

6 Months Ended

Jul. 01, 2023

Restructuring and Related Costs [Table Text Block]

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 31, 2022	$	-		$	-		$	-
Costs accrued		1,217			87			1,304
Amounts paid or charged		(813	)		(49	)		(862	)
Balance, July 1, 2023	$	404		$	38		$	442

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 25, 2021	$	348		$	-		$	348
Costs accrued		(15	)		598			583
Amounts paid or charged		(269	)		(598	)		(867	)
Impact of currency exchange		(4	)		-			(4	)
Balance, June 25, 2022	$	60		$	-		$	60

Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Amortization of cost	$ 7,102	$ 6,544	$ 13,993	$ 13,240

Note 3 - Borrowings and Credit Agreements (Tables)

6 Months Ended

Jul. 01, 2023

Schedule of Debt [Table Text Block]

	July 1,			December 31,
	2023			2022
Bank Term Loan under Credit Agreement	$	31,077		$	66,952
Bank Term Loans-Kita		2,144			2,466
Construction Loan- Cohu GmbH		8,079			8,414
Lines of Credit		1,732			1,907
Total debt		43,032			79,739
Less: financing fees and discount		(314	)		(764	)
Less: current portion		(6,261	)		(6,311	)
Total long-term debt	$	36,457		$	72,664

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jul. 01, 2023	Jul. 26, 2023
Document Information [Line Items]
Entity Central Index Key	0000021535
Entity Registrant Name	COHU INC
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 01, 2023
Document Transition Report	false
Entity File Number	001-04298
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-1934119
Entity Address, Address Line One	12367 Crosthwaite Circle
Entity Address, City or Town	Poway
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92064-6817
City Area Code	858
Local Phone Number	848-8100
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	COHU
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,598,770

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
shares in Thousands

Jul. 01, 2023

Dec. 31, 2022

^[1]

Preferred stock, par value (in dollars per share)

$ 1

Preferred stock, shares authorized (in shares)

1,000

Preferred stock, shares issued (in shares)

Common stock, par value (in dollars per share)

$ 1

Common stock, shares authorized (in shares)

90,000

Common stock, shares issued (in shares)

49,350

49,276

Common stock, shares outstanding (in shares)

49,350

49,276

Treasury stock, shares (in shares)

1,751

1,767

[1]	Derived from December 31, 2022 audited financial statements

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

Jul. 01, 2023

Dec. 31, 2022

Less accumulated depreciation and amortization

$ 149,225

$ 143,336

(82,599)

(78,325)

Property, plant and equipment, net

66,626

65,011

^[1]

Land and Land Improvements [Member]

Building and Building Improvements [Member]

7,069

7,066

Machinery and Equipment [Member]

32,831

31,161

$ 109,325

$ 105,109

[1]	Derived from December 31, 2022 audited financial statements

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

Jul. 01, 2023

Dec. 31, 2022

$ 97,529

$ 143,952

^[1]

512

778

Corporate Debt Securities [Member]

97,027

143,235

^[2]

40,643

59,283

^[2]

^[1],[2]

113

240

Certificates of Deposit [Member]

^[2]

40,535

59,073

21,250

36,500

^[1]

US Treasury Securities [Member]

21,233

36,479

21,179

34,614

^[1]

323

418

Asset-Backed Securities [Member]

20,856

34,197

10,644

12,727

^[1]

US Government-sponsored Enterprises Debt Securities [Member]

10,589

12,658

2,980

^[1]

Debt Security, Government, Non-US [Member]

2,981

833

828

^[1]

$ 833

$ 828

[1]

As of July 1, 2023, the cost and fair value of investments with loss positions was approximately $76.8 million and $76.2 million, respectively. As of December 31, 2022, the cost and fair value of investments with loss positions was approximately $86.3 million and $85.5 million, respectively. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if a credit loss exists. 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.

Note 7 - Derivative Financial Instruments - Locations and Amounts of Gains (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Foreign Currency Gain (Loss) [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Foreign exchange forward contracts	$ 132	$ (2,841)	$ 1,213	$ (4,251)

Note 9 - Income Taxes

6 Months Ended

Jul. 01, 2023

Income Tax Disclosure [Text Block]

9.	Income Taxes

We account for income taxes in accordance with ASC Topic 740, Income Taxes, (“ASC 740”). The provision or benefit for income taxes is attributable to U.S. federal, state, and foreign income taxes. Our effective tax rate (“ETR”) used for interim periods is based on an estimated annual effective tax rate, including the tax effect of items required to be recorded discretely in the interim periods in which those items occur. Our ETR is different than the statutory rate in the U.S. due to foreign income taxed at different rates than the U.S., generation of tax credits, changes in uncertain tax benefit positions, changes to valuation allowances, and the impact of Global Intangible Low-Taxed Income (“GILTI”) and the Base Erosion and Anti-abuse Tax (“BEAT”). In addition, we have numerous tax holidays related to our manufacturing operations in Malaysia and the Philippines. The tax holiday periods expire at various times in the future; however, we actively seek to obtain new tax holidays.

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, the Philippines, Malaysia, Singapore, and Thailand. We believe our financial statement accruals for income taxes are appropriate.

Companies are required to assess whether a valuation allowance should be recorded against their deferred tax assets (“DTAs”) based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether DTAs will be realized are, (1) future reversals of existing taxable temporary differences (i.e. offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the tax law; (3) tax planning strategies and (4) future taxable income exclusive of reversing temporary differences and carryforwards.

In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. We have evaluated our DTAs at each reporting period, including an assessment of our cumulative income or loss over the prior three-year period and future periods, to determine if a valuation allowance was required.

Based on the evidence available, including a lack of sustainable earnings and history of expiring unused NOLs, and tax credits, we continue to maintain our judgement that a previously recorded valuation allowance against substantially all of our net deferred tax assets in the United States is still required. If a change in judgement regarding this valuation allowance were to occur in the future, we will record a potentially material deferred tax benefit, which could result in a favorable impact on the effective tax rate in that period.

In accordance with the disclosure requirements as described in ASC 740, 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 and six months ended July 1, 2023. There were no material changes to our unrecognized tax benefits and interest accrued related to unrecognized tax benefits during the three and six months ended June 25, 2022.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2