Note 10 - Segment and Geographic Information

12 Months Ended

Dec. 25, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10. Segment and Geographic 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”). Prior to the sale of our PCB Test Group (PTG) on June 24, 2021, we reported in two segments, Semiconductor Test & Inspection and PCB Test Equipment.

(in thousands)	2021			2020			2019
Net sales by segment:
Semiconductor Test & Inspection	$	860,454		$	585,240		$	540,878
PCB Test		26,760			50,767			42,451
Total consolidated net sales for reportable segments	$	887,214		$	636,007		$	583,329
Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	138,026		$	(2,497	)	$	(45,072	)
PCB Test		3,907			6,971			2,635
Profit (loss) for reportable segments		141,933			4,474			(42,437	)
Other unallocated amounts:
Corporate expenses		(10,819	)		(4,384	)		(9,848	)
Gain on sale of PCB Test business		70,815			-			-
Interest expense		(6,413	)		(13,759	)		(20,556	)
Interest income		239			224			764
Gain on extinguishment of debt		(3,411	)		268			-
Profit (loss) from continuing operations before taxes	$	192,344		$	(13,177	)	$	(72,077	)

(in thousands)	2021		2020		2019
Depreciation and amortization by segment deducted in arriving at profit (loss):
Semiconductor Test & Inspection	$	48,129	$	51,548	$	56,621
PCB Test		439		1,198		2,250
Total depreciation and amortization	$	48,568	$	52,746	$	58,871
Capital expenditures by segment:
Semiconductor Test & Inspection	$	11,954	$	18,616	$	17,831
PCB Test		46		44		169
Total consolidated capital expenditures	$	12,000	$	18,660	$	18,000

(in thousands)	2021		2020		2019
Total assets by segment:
Semiconductor Test & Inspection	$	1,121,858	$	968,028	$	998,756
PCB Test		-		66,826		56,938
Total assets for reportable segments		1,121,858		1,034,854		1,055,694
Corporate, principally cash and investments		137,186		55,492		18,398
Discontinued operations		-		-		3,618
Total consolidated assets	$	1,259,044	$	1,090,346	$	1,077,710

During the last three years, the following customers of our Semiconductor Test & Inspection segment that comprised 10% or greater of our consolidated net sales were as follows:

	2021			2020		2019
Analog Devices		14.1	%		*		*
Intel		*			*		11.1	%

* Less than 10% of consolidated net sales.

On June 24, 2021, we completed the divestment of our PCB Test business. Prior to this, no customer of our PCB Test segment exceeded 10% of consolidated net sales for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

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

(in thousands)	2021		2020		2019
China	$	213,575	$	143,360	$	118,213
Philippines		155,070		56,272		51,683
Taiwan		88,152		83,685		75,725
Malaysia		79,777		57,893		61,826
United States		77,495		108,694		71,963
Rest of the world		273,145		186,103		203,919
Total, net	$	887,214	$	636,007	$	583,329

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

(in thousands)	2021		2020
Property, plant and equipment:
United States	$	18,375	$	17,800
Germany		17,419		19,817
Japan		11,156		13,231
Philippines		10,384		9,333
Malaysia		4,082		3,986
Rest of the world		2,541		2,749
Total, net	$	63,957	$	66,916
Goodwill and other intangible assets:
Germany	$	181,146	$	232,925
United States		150,477		177,585
Malaysia		43,611		45,435
Singapore		12,990		13,469
Switzerland		4,583		5,006
Japan		3,148		3,703
Rest of the world		1,156		7,866
Total, net	$	397,111	$	485,989