Note 11 - Segment and Geographic Information

12 Months Ended

Dec. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11. Segment and Geographic Information

We applied the provisions of 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: THG, STG and 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 & Inspection. All amounts presented in our consolidated balance sheet as of December 30, 2023 and December 31, 2022, and our consolidated statement of income for the twelve months ended December 30, 2023 and December 31, 2022, represents the financial position and results of our remaining reportable segment. Prior to the sale of our PCB Test business on June 24, 2021, we reported in two segments, Semiconductor Test & Inspection and PCB Test.

(in thousands)	2021
Net sales by segment:
Semiconductor Test & Inspection	$	860,454
PCB Test		26,760
Total consolidated net sales for reportable segments	$	887,214
Segment profit (loss) before tax:
Semiconductor Test & Inspection	$	138,026
PCB Test		3,907
Profit for reportable segments		141,933
Other unallocated amounts:
Corporate expenses		(10,819	)
Gain on sale of PCB Test business		70,815
Interest expense		(6,413	)
Interest income		239
Gain on extinguishment of debt		(3,411	)
Profit (loss) from continuing operations before taxes	$	192,344

(in thousands)	2021
Depreciation and amortization by segment deducted in arriving at profit (loss):
Semiconductor Test & Inspection	$	48,129
PCB Test		439
Total depreciation and amortization	$	48,568
Capital expenditures by segment:
Semiconductor Test & Inspection	$	11,954
PCB Test		46
Total consolidated capital expenditures	$	12,000

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:

	2023			2022		2021
STMicroelectronics		12.0	%		*		*
Analog Devices		*			*		14.1	%
* 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 year ended December 25, 2021.

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

(in thousands)	2023		2022		2021
Malaysia	$	100,949	$	99,508	$	79,777
Philippines		92,529		111,647		155,070
China		92,408		146,227		213,575
United States		76,995		79,093		77,495
Rest of the world		273,441		376,300		361,297
Total, net	$	636,322	$	812,775	$	887,214

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

(in thousands)	2023		2022
Property, plant and equipment:
Philippines	$	22,501	$	14,706
United States		16,093		18,419
Germany		15,843		15,977
Japan		7,810		9,316
Malaysia		4,700		4,300
Rest of the world		2,138		2,293
Total, net	$	69,085	$	65,011
Goodwill and other intangible assets:
Germany	$	149,592	$	158,401
United States		111,660		131,068
Malaysia		63,249		43,571
Singapore		60,875		12,512
Switzerland		4,439		4,299
Japan		2,358		2,641
Rest of the world		1,255		1,151
Total, net	$	393,428	$	353,643