Segment and Related Information

12 Months Ended

Dec. 27, 2014

Segment Reporting [Abstract]

Segment and Related Information

8. Segment and Related Information

Our reportable segments are business units that offer different products and are managed separately because each business requires different technology and marketing strategies. As discussed in Note 2, in June 2014, we sold substantially all the assets of Cohu Electronics, which comprised our video camera segment and have presented financial information for this segment as discontinued operations. Subsequent to this transaction Cohu’s remaining reportable segments are semiconductor and microwave communications equipment.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. We allocate resources and evaluate the performance of segments based on profit or loss from operations, excluding interest, corporate expenses and unusual gains or losses. Intersegment sales were not significant for any period.

Financial information by industry segment is presented below:

(in thousands)	2014			2013			2012
Net sales by segment:
Semiconductor equipment	$	316,629		$	214,511		$	179,449
Microwave communications		16,694			17,063			26,863
Total consolidated net sales and net sales for reportable segments	$	333,323		$	231,574		$	206,312
Segment profit (loss):
Semiconductor equipment	$	26,658		$	(24,998	)	$	(5,331	)
Microwave communications (1)		(10,030	)		(6,142	)		(847	)
Profit (loss) for reportable segments		16,628			(31,140	)		(6,178	)
Other unallocated amounts:
Corporate expenses		(7,530	)		(5,977	)		(7,785	)
Interest and other from continuing operations, net		30			54			967
Income (loss) from continuing operations before taxes	$	9,128		$	(37,063	)	$	(12,996	)

(1) The loss of our microwave communications equipment segment for the year ended December 27, 2014 includes a $5.0 million impairment charge for goodwill and other assets see Note 3 for additional information.

(in thousands)	2014		2013		2012
Depreciation and amortization by segment deducted in arriving at profit (loss):
Semiconductor equipment	$	4,805	$	4,723	$	4,506
Microwave communications		633		523		652
		5,438		5,246		5,158
Intangible amortization		8,090		8,082		4,057
Total depreciation and amortization for reportable segments	$	13,528	$	13,328	$	9,215
Capital expenditures by segment:
Semiconductor equipment	$	1,457	$	3,607	$	2,759
Microwave communications		203		267		481
Total consolidated capital expenditures	$	1,660	$	3,874	$	3,240
(in thousands)	2014		2013		2012
Total assets by segment:
Semiconductor equipment	$	320,102	$	297,175	$	281,173
Microwave communications		12,935		22,156		22,635
Total assets for reportable segments		333,037		319,331		303,808
Corporate, principally cash and investments and deferred taxes		15,781		19,389		23,203
Discontinued operations		—		6,703		7,862
Total consolidated assets	$	348,818	$	345,423	$	334,873

The customer from the semiconductor equipment segment comprising 10% or greater of our consolidated net sales is summarized as follows:

	2014			2013			2012
Intel		15	%		17	%		42	%

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

(in thousands)	2014		2013		2012
United States	$	78,243	$	45,773	$	45,749
Malaysia		73,861		51,652		40,326
China		51,410		37,621		31,970
Philippines		28,670		26,563		22,507
Costa Rica		9,714		5,127		22,934
Rest of the World		91,425		64,838		42,826
Total	$	333,323	$	231,574	$	206,312

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

(in thousands)	2014		2013
Property, plant and equipment:
United States	$	18,986	$	21,464
Germany		7,484		8,973
Philippines		2,721		3,278
Rest of the World		2,663		2,081
Total, net	$	31,854	$	35,796

(in thousands)	2014		2013
Goodwill and other intangible assets:
Germany	$	38,527	$	51,032
Switzerland		25,921		32,513
United States		17,241		17,698
Malaysia		6,988		7,738
Singapore		6,558		6,558
Rest of the World		984		1,089
Total, net	$	96,219	$	116,628