Note 4 - Restructuring Charges

3 Months Ended

Mar. 30, 2024

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

4. Restructuring Charges

MCT Integration Program

During the first quarter of 2023, in connection with the acquisition of MCT Worldwide, LLC (“MCT”), we began a strategic restructuring and integration program in connection with the acquisition of MCT (“MCT Integration Program”). As part of the MCT Integration Program, we consolidated MCT’s Penang, Malaysia manufacturing operations into Cohu’s Malacca, Malaysia manufacturing operations during 2023. Relating to the facility consolidation actions, we notified certain impacted employees of a reduction in force program and the facility consolidation and the reduction in force program were implemented as part of a comprehensive review of our operations and were intended to reduce our operating cost structure and capitalize on acquisition synergies. As of March 30, 2024, restructuring activities associated with the MCT Integration Program were materially complete.

As a result of the activities described above, we recognized total pretax charges of $0.9 million during the three months ended April 1, 2023, that are within the scope of ASC 420. Total pretax charges for the three months ended March 30, 2024 were not material.

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

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 31, 2022	$	-		$	-		$	-
Costs accrued		878			10			888
Amounts paid or charged		(707	)		(10	)		(717	)
Balance, April 1, 2023	$	171		$	-		$	171