Related Party Transactions

6 Months Ended

Jun. 29, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

As a result of the Company’s acquisition of IXYS, the Company has equity ownership in various investments that are accounted for under the equity method and recorded in investments in the Condensed Consolidated Balance Sheets. The following is a description of the investments and related party transactions.

Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (“Powersem”), a module manufacturer based in Germany. For the three months ended June 29, 2019 and June 30, 2018, the Company recorded revenues of $0.1 million and $0.3 million from sales of products to Powersem for use as components in their products, respectively. For the six months ended June 29, 2019 and June 30, 2018, the Company recorded revenues of $0.2 million and $0.4 million from sales of products to Powersem for use as components in their products, respectively. During the three months ended June 29, 2019 and June 30, 2018, the Company purchased $0.9 million and $1.0 million of products from Powersem, respectively. During the six months ended June 29, 2019 and June 30, 2018, the Company purchased $1.7 million and $2.1 million of products from Powersem, respectively. As of June 29, 2019, the accounts receivable balance from Powersem was $0.1 million and the accounts payable balance to Powersem was $0.1 million. As of December 29, 2018, the trade receivable balance from Powersem was $0.1 million and the accounts payable balance to Powersem was $0.2 million.

EB-Tech Co., Ltd.: The Company owns approximately 19% of the outstanding equity of EB Tech Co., Ltd. (“EB Tech”), a company with expertise in radiation technology based in South Korea. During both the three months ended June 29, 2019 and June 30, 2018, EB Tech rendered processing services for the Company totaling approximately $0.1 million. During both the six months ended June 29, 2019 and June 30, 2018, EB Tech rendered processing services for the Company totaling approximately $0.2 million. As of June 29, 2019 and December 29, 2018, the Company’s accounts payable balance to EB Tech was $0.1 million.

Automated Technology (Phil), Inc.: The Company owns approximately 24% of the outstanding common shares of Automated Technology (Phil), Inc. (“ATEC”), a supplier located in the Philippines that provides assembly and test services. During the three months ended June 29, 2019 and June 30, 2018, ATEC rendered assembly and test services to the Company totaling approximately $2.3 million and $2.8 million, respectively. During the six months ended June 29, 2019 and June 30, 2018, ATEC rendered assembly and test services to the Company totaling approximately $3.8 million and $5.2 million, respectively. As of June 29, 2019 and December 29, 2018, the Company’s accounts payable balance to ATEC was $0.5 million.

On March 25, 2019, the Company entered into a definitive agreement to sell the assets and liabilities of Microwave Technology, Inc. (“MWT”) resulting in a loss on disposal of $2.6 million reflected in Other income (expense), net in the Condensed Consolidated Statements of Net Income. The operations of Microwave Technology, Inc. were included in the Electronics segment. One member of the Company’s  Board of Directors is the co-owner of a company that agreed to purchase MWT. This transaction closed on April 26, 2019.