Note 13 - Subsequent Events

3 Months Ended

Mar. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

13. Subsequent Events

Rosenheim Reorganization

Cohu has implemented a restructuring plan and entered into a social plan (“Plan”) with the German labor organization representing certain of the employees of our wholly owned subsidiary, Multitest elektronische Systeme GmbH, as part of our Integration Program associated with our

October 2018

acquisition of Xcerra Corporation. The Plan will reduce headcount, enable us to consolidate the facilities of our multiple operations located near Rosenheim, Germany, as well as transition certain manufacturing to other lower cost regions. As of

April 30, 2019,

we have completed the notifications to approximately

105

impacted employees in Germany. The Plan is being implemented as part of a comprehensive review of our operations and is intended to streamline and reduce our operating cost structure and capitalize on previously communicated acquisition synergies. 

We expect the reduction in force charges, consisting primarily of severance and other termination benefits, to be in the range of

$7.8

 million to

$8.8

 million. These estimated costs associated with the Plan will be paid predominantly in cash. We anticipate that these charges will be primarily recognized in

second

quarter fiscal

2019.

For additional information on the Integration Program see Note

4,

“Restructuring”.

Operating Lease Modification

On

April 1, 2019,

we amended the lease agreement for our Norwood, Massachusetts facility to extend the lease termination date from

November 30, 2021

to

August 31, 2032. 

This modification resulted in an increase of our right of use assets and lease liabilities of

$5.6

 million which will be recognized in the

second

quarter of fiscal

2019.

Employee Stock Benefit Plans

On

May 8, 2019,

our stockholders approved amendments to the Cohu 

2005

Equity Incentive Plan which increased the shares of stock available for issuance by

2,000,000

and eliminated a sublimit on the aggregate number of shares that

may

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

May 8, 2019

our stockholders also approved an amendment to the Cohu, Inc.

1997

Employee Stock Purchase Plan which increased the number of ESPP shares that

may

be issued by

500,000.