QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
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(Address of principal executive offices) | (ZIP Code) |
Title of Each Class | Trading Symbol | Name of exchange on which registered | |||||||||||||||
Global Select Market |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Condensed Consolidated Balance Sheets as of July 01, 2023 (unaudited) and December 31, 2022 | ||||||||
Condensed Consolidated Statements of Net Income for the three and six months ended July 01, 2023 (unaudited) and July 02, 2022 (unaudited) | ||||||||
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 01, 2023 (unaudited) and July 02, 2022 (unaudited) | ||||||||
Condensed Consolidated Statements of Cash Flows for the six months ended July 01, 2023 (unaudited) and July 02, 2022 (unaudited) | ||||||||
Condensed Consolidated Statements of Stockholders' Equity for the six months ended July 01, 2023 (unaudited) and July 02, 2022 (unaudited) | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
(Unaudited) | ||||||||||||||
(in thousands) | July 1, 2023 | December 31, 2022 | ||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||
Trade receivables, less allowances of $ | ||||||||||||||
Inventories | ||||||||||||||
Prepaid income taxes and income taxes receivable | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Net property, plant, and equipment | ||||||||||||||
Intangible assets, net of amortization | ||||||||||||||
Goodwill | ||||||||||||||
Investments | ||||||||||||||
Deferred income taxes | ||||||||||||||
Right of use lease assets, net | ||||||||||||||
Other long-term assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued liabilities | ||||||||||||||
Accrued income taxes | ||||||||||||||
Current portion of long-term debt | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt, less current portion | ||||||||||||||
Deferred income taxes | ||||||||||||||
Accrued post-retirement benefits | ||||||||||||||
Non-current operating lease liabilities | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Treasury stock, at cost: | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Littelfuse, Inc. shareholders’ equity | ||||||||||||||
Non-controlling interest | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands, except per share data) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Selling, general, and administrative expenses | ||||||||||||||||||||||||||
Research and development expenses | ||||||||||||||||||||||||||
Amortization of intangibles | ||||||||||||||||||||||||||
Restructuring, impairment, and other charges | ||||||||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Foreign exchange (gain) loss | ( | ( | ||||||||||||||||||||||||
Other (income) expense, net | ( | ( | ||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income taxes | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average shares and equivalent shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||
Pension and postemployment adjustment, net of tax | ( | ( | ||||||||||||||||||||||||
Cash flow hedge, net of tax | ( | ( | ||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ( | ||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Six Months Ended | ||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation | ||||||||||||||
Amortization of intangibles | ||||||||||||||
Deferred revenue | ||||||||||||||
Non-cash inventory charges | ||||||||||||||
Impairment charges | ||||||||||||||
Stock-based compensation | ||||||||||||||
(Gain) loss on investments and other assets | ( | |||||||||||||
Deferred income taxes | ( | ( | ||||||||||||
Other | ( | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade receivables | ( | ( | ||||||||||||
Inventories | ( | |||||||||||||
Accounts payable | ( | |||||||||||||
Accrued liabilities and income taxes | ( | ( | ||||||||||||
Prepaid expenses and other assets | ||||||||||||||
Net cash provided by operating activities | ||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Acquisitions of businesses, net of cash acquired | ( | ( | ||||||||||||
Purchases of property, plant, and equipment | ( | ( | ||||||||||||
Net proceeds from sale of property, plant and equipment, and other | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Proceeds of term loan | ||||||||||||||
Payments of senior notes payable | ( | |||||||||||||
Repayments of other debts | ( | |||||||||||||
Payments of term loan | ( | |||||||||||||
Net proceeds related to stock-based award activities | ( | |||||||||||||
Debt issuance costs | ( | |||||||||||||
Cash dividends paid | ( | ( | ||||||||||||
Net cash (used in) provided by financing activities | ( | |||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | ( | ( | ||||||||||||
(Decrease) increase in cash, cash equivalents, and restricted cash | ( | |||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | ||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | ||||||||||||
Supplementary Cash Flow Information | ||||||||||||||
Reconciliation of cash and cash equivalents: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash included in prepaid expenses and other current assets | $ | $ | ||||||||||||
Restricted cash included in other long-term assets | $ | $ | ||||||||||||
Cash paid during the period for interest | $ | $ | ||||||||||||
Capital expenditures, not yet paid | $ | $ | ||||||||||||
Littelfuse, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | Common Stock | Addl. Paid in Capital | Treasury Stock | Accum. Other Comp. Inc. (Loss) | Retained Earnings | Non-controlling Interest | Total | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Non-controlling interest | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Withheld shares on restricted share units for withholding taxes | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends paid ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Non-controlling interest | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Withheld shares on restricted share units for withholding taxes | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends paid ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance at July 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Littelfuse, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | Common Stock | Addl. Paid in Capital | Treasury Stock | Accum. Other Comp. (Loss) | Retained Earnings | Non-controlling Interest | Total | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Withheld shares on restricted share units for withholding taxes | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends paid ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance at April 2, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Withheld shares on restricted share units for withholding taxes | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Cash dividends paid ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance at July 2, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Three Months Ended July 1, 2023 | Six Months Ended July 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Electronics Segment | Transportation Segment | Industrial Segment | Total | Electronics Segment | Transportation Segment | Industrial Segment | Total | ||||||||||||||||||||||||||||||||||||||||||
Electronics – Passive Products and Sensors | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Electronics – Semiconductor | ||||||||||||||||||||||||||||||||||||||||||||||||||
Passenger Car Products | ||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive Sensors | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Vehicle Products | ||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial Products | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended July 2, 2022 | Six Months Ended July 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Electronics Segment | Transportation Segment | Industrial Segment | Total | Electronics Segment | Transportation Segment | Industrial Segment | Total | ||||||||||||||||||||||||||||||||||||||||||
Electronics – Passive Products and Sensors | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Electronics – Semiconductor | ||||||||||||||||||||||||||||||||||||||||||||||||||
Passenger Car Products | ||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive Sensors | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Vehicle Products | ||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial Products | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(in thousands) | July 1, 2023 | December 31, 2022 | ||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash included in prepaid expenses and other current assets | ||||||||||||||
Restricted cash included in other long-term assets | ||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ |
(in thousands) | Purchase Price Allocation | ||||
Total purchase consideration: | |||||
Cash, net of cash acquired | $ | ||||
Allocation of consideration to assets acquired and liabilities assumed: | |||||
Trade receivables, net | |||||
Inventories | |||||
Other current assets | |||||
Property, plant, and equipment | |||||
Intangible assets | |||||
Goodwill | |||||
Other non-current assets | |||||
Current liabilities | ( | ||||
Other non-current liabilities | ( | ||||
$ | |||||
(in thousands) | Purchase Price Allocation | ||||
Total purchase consideration: | |||||
Cash, net of cash acquired | $ | ||||
Allocation of consideration to assets acquired and liabilities assumed: | |||||
Trade receivables, net | |||||
Inventories | |||||
Other current assets | |||||
Property, plant, and equipment | |||||
Intangible assets | |||||
Goodwill | |||||
Other non-current assets | |||||
Current liabilities | ( | ||||
Long-term debt | ( | ||||
Other non-current liabilities | ( | ||||
$ |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||
(in thousands, except per share amounts) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Net income per share — basic | ||||||||||||||||||||||||||
Net income per share — diluted |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Amortization (a) | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Depreciation | ||||||||||||||||||||||||||
Transaction costs (b) | ||||||||||||||||||||||||||
Amortization of inventory step-up (c) | ||||||||||||||||||||||||||
Interest expense (d) | ||||||||||||||||||||||||||
Income tax expense of above items | ( | ( | ( | ( |
(in thousands) | July 1, 2023 | December 31, 2022 | ||||||||||||
Raw materials | $ | $ | ||||||||||||
Work in process | ||||||||||||||
Finished goods | ||||||||||||||
Inventory reserves | ( | ( | ||||||||||||
Total | $ | $ |
(in thousands) | July 1, 2023 | December 31, 2022 | ||||||||||||
Land and land improvements | $ | $ | ||||||||||||
Building and building improvements | ||||||||||||||
Machinery and equipment | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Total | $ | $ |
(in thousands) | Electronics | Transportation | Industrial | Total | ||||||||||||||||||||||
Net book value of goodwill as of December 31, 2022 | ||||||||||||||||||||||||||
Gross goodwill as of December 31, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||
Accumulated impairment losses as of December 31, 2022 | ( | ( | ( | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Changes during 2023: | ||||||||||||||||||||||||||
Additions (a) | ||||||||||||||||||||||||||
Currency translation | ( | |||||||||||||||||||||||||
Net book value of goodwill as of July 1, 2023 | ||||||||||||||||||||||||||
Gross goodwill as of July 1, 2023 | ||||||||||||||||||||||||||
Accumulated impairment losses as of July 1, 2023 | ( | $ | ( | ( | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
As of July 1, 2023 | |||||||||||||||||
(in thousands) | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||
Land use rights | $ | $ | $ | ||||||||||||||
Patents, licenses, and software | |||||||||||||||||
Distribution network | |||||||||||||||||
Customer relationships, trademarks, and tradenames | |||||||||||||||||
Total | $ | $ | $ |
December 31, 2022 | |||||||||||||||||
(in thousands) | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||
Land use rights | $ | $ | $ | ||||||||||||||
Patents, licenses, and software | |||||||||||||||||
Distribution network | |||||||||||||||||
Customer relationships, trademarks, and tradenames | |||||||||||||||||
Total | $ | $ | $ |
(in thousands) | Weighted Average Useful Life | Amount | |||||||||
Patents, licenses, and software | $ | ||||||||||
Customer relationships, trademarks, and tradenames | |||||||||||
Total | $ |
(in thousands) | Amount | ||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 and thereafter | |||||
Total | $ |
(in thousands) | July 1, 2023 | December 31, 2022 | ||||||||||||
Employee-related liabilities | $ | $ | ||||||||||||
Current lease liability | ||||||||||||||
Other non-income taxes | ||||||||||||||
Professional services | ||||||||||||||
Other customer reserves | ||||||||||||||
Interest | ||||||||||||||
Deferred revenue | ||||||||||||||
Restructuring liability | ||||||||||||||
Current benefit liability | ||||||||||||||
Other | ||||||||||||||
Total | $ | $ |
Three months ended July 1, 2023 | Six months ended July 1, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Electronics | Transportation | Industrial | Total | Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||||||||||||||||||
Employee terminations | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Other restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
Total restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Three months ended July 2, 2022 | Six months ended July 2, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Electronics | Transportation | Industrial | Total | Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||||||||||||||||||
Employee terminations | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Other restructuring charges | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(in thousands) | July 1, 2023 | December 31, 2022 | ||||||||||||
Revolving Credit Facility | $ | $ | ||||||||||||
Term Loan | ||||||||||||||
Euro Senior Notes, Series A due 2023 | ||||||||||||||
Euro Senior Notes, Series B due 2028 | ||||||||||||||
U.S. Senior Notes, Series B due 2027 | ||||||||||||||
U.S. Senior Notes, Series A due 2025 | ||||||||||||||
U.S. Senior Notes, Series B due 2030 | ||||||||||||||
U.S. Senior Notes, due 2032 | ||||||||||||||
Other | ||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||
Total debt | ||||||||||||||
Less: Current maturities | ( | ( | ||||||||||||
Total long-term debt | $ | $ |
(in thousands) | Consolidated Balance Sheet Classification | July 1, 2023 | December 31, 2022 | ||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||
Interest rate swap agreement: | |||||||||||||||||
Designated as cash flow hedge | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Other long-term assets | $ | $ | |||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
Foreign exchange forward contract | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
(in thousands) | Classification of (Gain) Loss Recognized in the Condensed Consolidated Statements of Operations | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||||||||||
Interest rate swap agreement | Interest expense, net | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Foreign exchange forward contract | Foreign exchange (gain) loss | $ | ( | $ | $ | ( | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||||
Interest rate swap agreement | $ | ( | $ | $ | ( | $ |
Fair Value Measurements Using | ||||||||||||||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||||||||||||||
Investments in equity securities | ||||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements Using | ||||||||||||||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||||||||||||||
Investments in equity securities | ||||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
July 1, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(in thousands) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||
Euro Senior Notes, Series A due 2023 | $ | $ | $ | $ | ||||||||||||||||||||||
Euro Senior Notes, Series B due 2028 | ||||||||||||||||||||||||||
USD Senior Notes, Series B due 2027 | ||||||||||||||||||||||||||
USD Senior Notes, Series A due 2025 | ||||||||||||||||||||||||||
USD Senior Notes, Series B due 2030 | ||||||||||||||||||||||||||
USD Senior Notes, due 2032 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of prior service and net actuarial loss | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
(in thousands) | Three Months Ended July 1, 2023 | Three Months Ended July 2, 2022 | ||||||||||||||||||||||||||||||||||||
Pre-tax | Tax | Net of Tax | Pre-tax | Tax | Net of Tax | |||||||||||||||||||||||||||||||||
Defined benefit pension plan and other adjustments | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Cash flow hedge | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments (a) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Total change in other comprehensive (loss) income | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
(in thousands) | Six Months Ended July 1, 2023 | Six Months Ended July 2, 2022 | ||||||||||||||||||||||||||||||||||||
Pre-tax | Tax | Net of Tax | Pre-tax | Tax | Net of Tax | |||||||||||||||||||||||||||||||||
Defined benefit pension plan adjustments | $ | ( | $ | ( | $ | ( | ( | $ | ||||||||||||||||||||||||||||||
Cash flow hedge | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments (a) | ( | ( | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Total change in other comprehensive (loss) income | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( |
(in thousands) | Defined benefit pension plan and other adjustments | Cash flow hedge | Foreign currency translation adjustment | Accumulated other comprehensive loss | ||||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||
Activity in the period | ( | ( | ( | |||||||||||||||||||||||
Balance at July 1, 2023 | $ | ( | $ | $ | ( | $ | ( |
(in thousands) | Defined benefit pension plan and other adjustments | Cash flow hedge | Foreign currency translation adjustment | Accumulated other comprehensive loss | ||||||||||||||||||||||
Balance at January 1, 2022 | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||
Activity in the period | ( | ( | ( | |||||||||||||||||||||||
Balance at July 2, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Pension and Postemployment plans: | ||||||||||||||||||||||||||
Amortization of prior service and net actuarial (gain) loss | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands, except per share amounts) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net income as reported | $ | $ | $ | $ | ||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Earnings Per Share: | ||||||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
Three Months Ended July 1, 2023 | Three Months Ended July 2, 2022 | |||||||||||||||||||||||||
(in millions) | Powersem | EB-Tech | ATEC | Powersem | EB Tech | ATEC | ||||||||||||||||||||
Sales to related party | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Purchase material/service from related party | ||||||||||||||||||||||||||
Six Months Ended July 1, 2023 | Six Months Ended July 2, 2022 | |||||||||||||||||||||||||
(in millions) | Powersem | EB-Tech | ATEC | Powersem | EB Tech | ATEC | ||||||||||||||||||||
Sales to related party | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Purchase material/service from related party | ||||||||||||||||||||||||||
July 1, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(in millions) | Powersem | EB Tech | ATEC | Powersem | EB Tech | ATEC | ||||||||||||||||||||
Accounts payable balance | $ | $ | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
Electronics | $ | $ | $ | $ | ||||||||||||||||||||||
Transportation | ||||||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Electronics | $ | $ | $ | |||||||||||||||||||||||
Transportation | ||||||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||
Total depreciation and amortization | $ | $ | $ | $ | ||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Electronics | $ | $ | $ | $ | ||||||||||||||||||||||
Transportation | ||||||||||||||||||||||||||
Industrial | ||||||||||||||||||||||||||
Other (a) | ( | ( | ( | ( | ||||||||||||||||||||||
Total operating income | ||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Foreign exchange (gain) loss | ( | ( | ||||||||||||||||||||||||
Other (income) expense, net | ( | ( | ||||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
China | ||||||||||||||||||||||||||
Other countries (a) | ||||||||||||||||||||||||||
Total net sales | $ | $ | $ | $ |
(in thousands) | July 1, 2023 | December 31, 2022 | ||||||||||||
Long-lived assets | ||||||||||||||
United States | $ | $ | ||||||||||||
China | ||||||||||||||
Mexico | ||||||||||||||
Germany | ||||||||||||||
Philippines | ||||||||||||||
Other countries (a) | ||||||||||||||
Total long-lived assets | $ | $ |
Six Months Ended | ||||||||||||||
(in thousands) | July 1, 2023 | July 2, 2022 | ||||||||||||
Additions to long-lived assets | ||||||||||||||
United States | $ | $ | ||||||||||||
China | ||||||||||||||
Mexico | ||||||||||||||
Germany | ||||||||||||||
Philippines | ||||||||||||||
Other countries (a) | ||||||||||||||
Total additions to long-lived assets | $ | $ |
Second Quarter | First Six Months | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | Change | % Change | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 611,997 | $ | 618,436 | $ | (6,439) | (1.0) | % | $ | 1,221,779 | $ | 1,241,766 | $ | (19,987) | (1.6) | % | ||||||||||||||||||||||||||||||||||
Cost of sales | 377,165 | 355,465 | 21,700 | 6.1 | % | 741,990 | 720,199 | 21,791 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||
Gross profit | 234,832 | 262,971 | (28,139) | (10.7) | % | 479,789 | 521,567 | (41,778) | (8.0) | % | ||||||||||||||||||||||||||||||||||||||||
Operating expenses | 142,779 | 128,807 | 13,972 | 10.8 | % | 277,095 | 236,813 | 40,282 | 17.0 | % | ||||||||||||||||||||||||||||||||||||||||
Operating income | 92,053 | 134,164 | (42,111) | (31.4) | % | 202,694 | 284,754 | (82,060) | (28.8) | % | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 85,451 | 109,612 | (24,161) | (22.0) | % | 194,354 | 243,737 | (49,383) | (20.3) | % | ||||||||||||||||||||||||||||||||||||||||
Income taxes | 15,380 | 22,596 | (7,216) | (31.9) | % | 35,538 | 39,203 | (3,665) | (9.3) | % | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 70,071 | $ | 87,016 | $ | (16,945) | (19.5) | % | $ | 158,816 | $ | 204,534 | $ | (45,718) | (22.4) | % |
Second Quarter | First Six Months | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | Change | % Change | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Electronics | $ | 350,147 | $ | 358,176 | $ | (8,029) | (2.2) | % | $ | 708,740 | $ | 723,997 | $ | (15,257) | (2.1) | % | ||||||||||||||||||||||||||||||||||
Transportation | 172,048 | 182,027 | (9,979) | (5.5) | % | 338,689 | 366,531 | (27,842) | (7.6) | % | ||||||||||||||||||||||||||||||||||||||||
Industrial | 89,802 | 78,233 | 11,569 | 14.8 | % | 174,350 | 151,238 | 23,112 | 15.3 | % | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 611,997 | $ | 618,436 | $ | (6,439) | (1.0) | % | $ | 1,221,779 | $ | 1,241,766 | $ | (19,987) | (1.6) | % |
Second Quarter | First Six Months | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | Change | % Change | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Asia-Pacific | $ | 229,691 | $ | 252,809 | $ | (23,118) | (9.1) | % | $ | 457,703 | $ | 513,027 | $ | (55,324) | (10.8) | % | ||||||||||||||||||||||||||||||||||
Americas | 227,896 | 247,591 | (19,695) | (8.0) | % | 461,750 | 484,821 | (23,071) | (4.8) | % | ||||||||||||||||||||||||||||||||||||||||
Europe | 154,410 | 118,036 | 36,374 | 30.8 | % | 302,326 | 243,918 | 58,408 | 23.9 | % | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 611,997 | $ | 618,436 | $ | (6,439) | (1.0) | % | $ | 1,221,779 | $ | 1,241,766 | $ | (19,987) | (1.6) | % |
First Six Months | ||||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||||
Net cash provided by operating activities | $ | 151,633 | $ | 165,322 | ||||||||||
Net cash used in investing activities | (199,020) | (65,367) | ||||||||||||
Net cash (used in) provided by financing activities | (32,686) | 245,017 | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,772) | (15,511) | ||||||||||||
(Decrease) increase in cash, cash equivalents, and restricted cash | (81,845) | 329,461 | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 564,939 | 482,836 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 483,094 | $ | 812,297 |
Exhibit | Description | |||||||
10.1 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
101 | The following financial information from LITTELFUSE, Inc.'s Quarterly Report on Form 10-Q for the quarter ended July 1, 2023 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Net Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Stockholders' Equity , (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements. | |||||||
104 | The cover page from this Quarterly Report on Form 10-Q for the quarter ended July 1, 2023, formatted in Inline XBRL. | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
Littelfuse, Inc. | |||||||||||
By: | /s/ Meenal A. Sethna | ||||||||||
Meenal A. Sethna | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
Date: August 2, 2023 | By: | /s/ Jeffrey G. Gorski | |||||||||
Jeffrey G. Gorski | |||||||||||
Senior Vice President and Chief Accounting Officer |
Dated: August 2, 2023 | |||||
/s/ David W. Heinzmann | |||||
David W. Heinzmann President and Chief Executive Officer |
Dated: August 2, 2023 | |||||
/s/ Meenal A. Sethna | |||||
Meenal A. Sethna Executive Vice President and Chief Financial Officer |
/s/ David W. Heinzmann | /s/ Meenal A. Sethna | |||||||
David W. Heinzmann | Meenal A. Sethna | |||||||
President and Chief Executive Officer | Executive Vice President and Chief Financial Officer | |||||||
Dated: August 2, 2023 | Dated: August 2, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 86,968 | $ 83,562 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 34,000,000 | 34,000,000 |
Common stock, issued (in shares) | 26,579,761 | 26,445,618 |
Treasury stock (in shares) | 1,709,947 | 1,685,357 |
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Income Statement [Abstract] | ||||
Net sales | $ 611,997 | $ 618,436 | $ 1,221,779 | $ 1,241,766 |
Cost of sales | 377,165 | 355,465 | 741,990 | 720,199 |
Gross profit | 234,832 | 262,971 | 479,789 | 521,567 |
Selling, general, and administrative expenses | 94,543 | 93,093 | 182,853 | 168,601 |
Research and development expenses | 24,496 | 23,488 | 51,786 | 43,044 |
Amortization of intangibles | 16,885 | 11,592 | 33,751 | 24,316 |
Restructuring, impairment, and other charges | 6,855 | 634 | 8,705 | 852 |
Total operating expenses | 142,779 | 128,807 | 277,095 | 236,813 |
Operating income | 92,053 | 134,164 | 202,694 | 284,754 |
Interest expense | 10,056 | 4,368 | 19,702 | 8,670 |
Foreign exchange (gain) loss | (1,404) | 14,124 | (3,079) | 21,860 |
Other (income) expense, net | (2,050) | 6,060 | (8,283) | 10,487 |
Income before income taxes | 85,451 | 109,612 | 194,354 | 243,737 |
Income taxes | 15,380 | 22,596 | 35,538 | 39,203 |
Net income | $ 70,071 | $ 87,016 | $ 158,816 | $ 204,534 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.82 | $ 3.52 | $ 6.40 | $ 8.28 |
Diluted (in dollars per share) | $ 2.79 | $ 3.48 | $ 6.33 | $ 8.19 |
Weighted-average shares and equivalent shares outstanding: | ||||
Basic (in shares) | 24,839 | 24,734 | 24,810 | 24,712 |
Diluted (in shares) | 25,095 | 24,985 | 25,078 | 24,986 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 70,071 | $ 87,016 | $ 158,816 | $ 204,534 |
Other comprehensive (loss) income: | ||||
Pension and postemployment adjustment, net of tax | (159) | 639 | (153) | 949 |
Cash flow hedge, net of tax | 3,113 | (541) | 595 | (541) |
Foreign currency translation adjustments | (17,865) | (31,447) | (2,070) | (33,960) |
Comprehensive income | $ 55,160 | $ 55,667 | $ 157,188 | $ 170,982 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parentheticals) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jul. 01, 2023 |
Apr. 01, 2023 |
Jul. 02, 2022 |
Apr. 02, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid, per share (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.53 | $ 0.53 |
Summary of Significant Accounting Policies and Other Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies and Other Information | Summary of Significant Accounting Policies and Other Information Nature of Operations Founded in 1927, Littelfuse is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 18,000 global associates, the Company partners with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, the Company’s products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Basis of Presentation The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statements of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results. Revenue Recognition Revenue Disaggregation The following tables disaggregate the Company’s revenue by primary business units for the three and six months ended July 1, 2023 and July 2, 2022:
See Note 15, Segment Information for net sales by segment and countries. Revenue Recognition The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors. The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Revenue and Billing The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. Ship and Debit Program Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historical activity, distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue. Return to Stock The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historical activity. Sales revenue and cost of sales are reduced to anticipate estimated returns. Volume Rebates The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash at July 1, 2023 and December 31, 2022 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.
Recently Issued Accounting Standards In March 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-01, "Leases (Topic 842): Common Control Arrangements". The standard requires that leasehold improvements associated with common control leases be: 1) Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2) Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment. This standard is effective on January 1, 2024. The Company does not expect any material effect on the Company's Condensed Consolidated Financial Statements.
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Condensed Consolidated Financial Statements from the date of the acquisition. Western Automation On February 3, 2023, the Company completed the acquisition of Western Automation Research and Development Limited (“Western Automation”) for approximately $162 million in cash. Headquartered in Galway, Ireland, Western Automation is a designer and manufacturer of electrical shock protection devices used across a broad range of high-growth end markets, including e-Mobility off-board charging infrastructure, industrial safety and renewables. At the time the Company and Western Automation entered into the definitive agreement, Western Automation had annualized sales of approximately $25 million. The business is reported within the Company’s Industrial segment. The acquisition was funded with cash on hand. The total purchase consideration of $158.3 million, net of cash, has been allocated, on a preliminary basis, to assets acquired and liabilities assumed, as of the completion of the acquisition, based on preliminary estimated fair values. The purchase price allocation is preliminary because the evaluations necessary to assess the fair values of the net assets acquired are still in process. The primary area not yet finalized relates to the completion of the valuation of certain acquired income tax assets and liabilities. As a result, these allocations are subject to change during the purchase price allocation period as the valuations are finalized. The following table summarizes the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the Western Automation acquisition:
All Western Automation assets and liabilities were recorded in the Industrial segment and are primarily reflected in the Europe geographic area. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Western Automation’s products and technology with the Company’s existing Industrial products portfolio. Goodwill resulting from the Western Automation acquisition is not expected to be deductible for tax purposes. Included in the Company’s Condensed Consolidated Statements of Net Income for the three and six months ended July 1, 2023 are net sales of approximately $4.8 million and $7.5 million respectively, and an income before income taxes of $0.3 million and $0.2 million, respectively, since the February 3, 2023 acquisition of Western Automation. During the six months ended July 1, 2023, the Company incurred approximately $1.4 million of legal and professional fees related to the Western Automation acquisition recognized as Selling, general, and administrative expenses. These costs were reflected as other non-segment costs. C&K Switches On July 19, 2022, the Company completed the previously announced acquisition of C&K Switches (“C&K”) for $540 million in cash. Founded in 1928, C&K is a leading designer and manufacturer of high-performance electromechanical switches and interconnect solutions with a strong global presence across a broad range of end markets, including industrial, transportation, datacom, and aerospace. At the time the Company and C&K entered into the definitive agreement, C&K had annualized sales of over $200 million. The business is reported as part of the electronics-passive products and sensors business within the Company's Electronics segment. The acquisition was funded through a combination of cash on hand and debt. The total purchase consideration of $523.0 million, net of cash acquired, has been allocated, on a preliminary basis, to assets acquired and liabilities assumed, as of the completion of the acquisition, based on preliminary estimated fair values. The purchase price allocation is preliminary because the evaluations necessary to assess the fair values of the net assets acquired are still in process. The primary area not yet finalized relates to the completion of the valuation of certain acquired income tax assets and liabilities. As a result, these allocations are subject to change during the purchase price allocation period as the valuations are finalized. The following table summarizes the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the C&K acquisition:
All C&K goodwill, other assets and liabilities were recorded in the Electronics segment and are reflected in the Americas, Europe and Asia-Pacific geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining C&K’s products and technology with the Company’s existing Electronics products portfolio. Goodwill resulting from the C&K acquisition is not expected to be deductible for tax purposes. During the three months ended July 1, 2023, the Company recorded measurement period adjustments to increase other non-current liabilities of $4.2 million associated with uncertain tax positions, income taxes payable of $0.2 million, and reduce accrued liabilities of $0.3 million and deferred tax liabilities of $0.2 million. As a result of these adjustments, goodwill was increased by $3.9 million. As required by purchase accounting rules, the Company recorded a $10.8 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of sales during the third and fourth quarter of 2022 as the acquired inventory was sold and reflected as other non-segment costs. Embed On April 12, 2022, the Company acquired Embed Ltd. (“Embed”). Founded in 2005, Embed is a proven provider of embedded software and firmware developed for a broad range of applications serving transportation end markets, primarily including commercial vehicle electrification and eMobility. The business is included in the commercial vehicle business within the Company's Transportation segment. The acquisition was funded with the Company’s cash on hand. The total purchase consideration was $9.2 million, net of cash. Pro Forma Results The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Western Automation as though the acquisition had occurred as of January 2, 2022, and C&K as though the acquisition had occurred as of December 27, 2020, and Carling business acquired on November 30, 2021 as though the acquisition had occurred as of December 29, 2019. The Company has not included pro forma results of operations for Embed as its operations were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Western Automation acquisition occurred as of January 2, 2022, and had the C&K acquisition occurred as of December 27, 2020 and had Carling acquisition occurred as of December 29, 2019 or of future consolidated operating results.
Pro forma results presented above primarily reflect the following adjustments:
(a) The amortization adjustment for the six months ended July 1, 2023 and three and six months ended July 2, 2022 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values. (b) The transaction cost adjustments reflect the reversal of certain legal and professional fees from the three and six months ended July 1, 2023 and three and six months ended July 2, 2022, and recognition of those fees during the three and six months ended July 1, 2023. (c) The amortization of inventory step-up adjustment reflects the reversal of the amount recognized related to the Carling acquisition during the three months ended April 2, 2022. The inventory step-up was amortized over four months as the inventory was sold. (d) The interest expense adjustment reflects incremental interest expense related to the financing of the C&K acquisition.
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Inventories |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of inventories at July 1, 2023 and December 31, 2022 are as follows:
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Property, Plant, and Equipment |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment | Property, Plant, and Equipment The components of net property, plant, and equipment at July 1, 2023 and December 31, 2022 are as follows:
The Company recorded depreciation expense of $18.0 million and $15.7 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and $35.6 million and $31.3 million for the six months ended July 1, 2023 and July 2, 2022, respectively.
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Goodwill and Other Intangible Assets |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying value of goodwill by segment for the six months ended July 1, 2023 are as follows:
(a) The additions resulted from the acquisitions of Western Automation and measurement period adjustment related to the C&K acquisition. The components of other intangible assets as of July 1, 2023 and December 31, 2022 are as follows:
During the three months ended July 1, 2023 and July 2, 2022, the Company recorded amortization expense of $16.9 million and $11.6 million, respectively. During the six months ended July 1, 2023 and July 2, 2022, the Company recorded amortization expense of 33.8 million and $24.3 million, respectively. During the six months ended July 1, 2023, the Company recorded additions to intangible assets of $68.0 million, related to the Western Automation acquisition, the components of which were as follows:
Estimated annual amortization expense related to intangible assets with definite lives as of July 1, 2023 is as follows:
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Accrued Liabilities |
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Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities as of July 1, 2023 and December 31, 2022 are as follows:
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Restructuring, Impairment and Other Charges |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, Impairment and Other Charges | Restructuring, Impairment, and Other Charges The Company recorded restructuring, impairment, and other charges for the three and six months ended July 1, 2023 and July 2, 2022 as follows:
2023 For the three and six months ended July 1, 2023, the Company recorded total restructuring charges of $2.9 million and $4.8 million, respectively, primarily for employee termination costs. These charges primarily related to the reorganization of certain selling and administrative functions within the Electronics segment due to the C&K acquisition and the reorganization of certain manufacturing, selling and administrative functions within the Transportation segment’s commercial vehicle business. In addition, during the second quarter of 2023, the Company recognized a $3.9 million impairment charge related to the land and building of a property in the commercial vehicle business within the Transportation segment that the Company made the decision to donate. 2022 For the three and six months ended July 2, 2022, the Company recorded total restructuring charges of $0.6 million and $0.9 million, respectively. primarily for employee termination costs. These charges are primarily related to the reorganization of certain manufacturing, selling, and administrative functions within the Electronics segment. The restructuring liability as of July 1, 2023 and December 31, 2022 is $1.7 million and $2.4 million, respectively. The restructuring liability is included within accrued liabilities in the Condensed Consolidated Balance Sheets. The Company anticipates the remaining payments associated with employee terminations will primarily be completed in fiscal year 2023.
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The carrying amounts of debt at July 1, 2023 and December 31, 2022 are as follows:
Revolving Credit Facility and Term Loan On June 30, 2022, the Company amended and restated its Credit Agreement, dated as of April 3, 2020 (the “Credit Agreement”) to effect certain changes, including, among other changes: (i) adding a $300 million unsecured term loan credit facility; (ii) making certain financial and non-financial covenants less restrictive on the Company and its subsidiaries; (iii) replacing LIBOR-based interest rate benchmarks and modifying performance-based interest rate margins; and (iv) extending the maturity date to June 30, 2027 (the “Maturity Date”). Pursuant to the Credit Agreement, the Company may, from time to time, increase the size of the revolving credit facility or enter into one or more tranches of term loans in minimum increments of $25 million if there is no event of default and the Company is in compliance with certain financial covenants. Loans made under the available credit facility pursuant to the Credit Agreement ("the Credit Facility") bear interest at the Company’s option, at either Secured Overnight Financing Rate ("SOFR"), fixed for interest periods of one, two, three or six-month periods, plus 1.00% to 1.75%, plus a SOFR adjustment of 0.10% or at the bank’s Base Rate, as defined in the Credit Agreement, plus —% to 0.75%, based upon the Company’s Consolidated Leverage Ratio, as defined in the Credit Agreement. The Company is also required to pay commitment fees on unused portions of the Credit Facility ranging from 0.10% to 0.175%, based on the Consolidated Leverage Ratio, as defined in the Credit Agreement. The Credit Agreement includes representations, covenants and events of default that are customary for financing transactions of this nature. Under the Credit Agreement, revolving loans may be borrowed, repaid and reborrowed until the Maturity Date, at which time all amounts borrowed must be repaid. The Company borrowed $300.0 million under a term loan on June 30, 2022. The principal balance of the term loans must be repaid in quarterly installments on the last day of each calendar quarter in the amount of $1.9 million commencing September 30, 2022, through June 30, 2024, and in the amount of $3.8 million commencing September 30, 2024, through March 31, 2027, with the remaining outstanding principal balance payable in full on the Maturity Date. Accrued interest on the loans is payable in arrears on each interest payment date applicable thereto and at such other times as may be specified in the Credit Agreement. Subject to certain conditions, (i) the Company may terminate or reduce the Aggregate Revolving Commitments, as defined in the Credit Agreement, in whole or in part, and (ii) the Company may prepay the revolving loans or the term loans at any time, without premium or penalty. During the three and six months ended July 1, 2023, the Company made payments of $1.9 million and $3.8 million on its term loan, respectively. The revolving loan and term loan balance under the Credit Facility was $100.0 million and $292.5 million, respectively, as of July 1, 2023. On May 12, 2022, the Company entered into an interest rate swap agreement to manage interest rate risk exposure, effectively converting the interest rate on the Company's SOFR based floating-rate loans to a fixed-rate. The interest rate swap, with a notional value of $200 million, was designated as a cash flow hedge against the variability of cash flows associated with the Company's SOFR based loans scheduled to mature on June 30, 2027. As of July 1, 2023, the effective interest rate on revolving loan and term loan outstanding borrowings was 6.45%. As of July 1, 2023, the Company had $0.2 million outstanding letters of credit under the Credit Facility and had $599.8 million of borrowing capacity available under the revolving Credit Facility. As of July 1, 2023, the Company was in compliance with all covenants under the Credit Agreement. Senior Notes On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017. On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) were funded. During the first quarter of 2022, the Company paid off $25 million of U.S. Senior Notes, Series A due on February 15, 2022. Interest on the U.S. Senior Notes due 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017. On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together, the “U.S. Senior Notes due 2025 and 2030”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 is payable semiannually on February 15 and August 15, commencing on August 15, 2018. On May 18, 2022, the above note purchase agreements were amended to, among other things, update certain terms, including financial covenants to be consistent with the terms of the restated Credit Agreement and the 2022 Purchase Agreement, as defined below. On May 18, 2022, the Company entered into a Note Purchase Agreement (“2022 Purchase Agreement”) pursuant to which the Company issued and funded on July 18, 2022 $100 million in aggregate principal amount of 4.33% Senior Notes, due June 30, 2032 (“U.S. Senior Notes, due 2032”) (together with the U.S. Senior Notes due 2025 and 2030, the Euro Senior Notes and the U.S. Senior Notes due 2022 and 2027, the “Senior Notes”). Interest on the U.S. Senior Notes due 2032 is payable semiannually on June 30 and December 30, commencing on December 30, 2022. The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company. The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At July 1, 2023, the Company was in compliance with all covenants under the Senior Notes. The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control. Interest paid on all Company debt was $10.3 million and $2.3 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and $21.3 million and $8.4 million for the six months ended July 1, 2023 and July 2, 2022, respectively.
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Fair Value of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows: Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets; Level 2—Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and Level 3—Valuations based upon one or more significant unobservable inputs . There were no transfers in or out of Level 1, Level 2 and Level 3 during the period. Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy. Cash Equivalents Cash equivalents primarily consist of money market funds, which are held with an institution with sound credit rating and are highly liquid. The Company classified cash equivalents as Level 1 and are valued at cost which approximates fair value. Investments in Equity Securities Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy and recorded in Investments and Other long-term assets. Derivatives Designated as Hedging Instruments On May 12, 2022, the Company entered into an interest rate swap agreement to manage interest rate risk exposure, effectively converting the interest rate on the Company's SOFR based floating-rate loans to a fixed-rate. The interest rate swap, with a notional value of $200 million, was designated as a cash flow hedge against the variability of cash flows associated with the Company's SOFR based loans scheduled to mature on June 30, 2027. The fair value of the interest rate swap was valued using an independent third-party valuation model. Pursuant to this model, changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other comprehensive loss until the underlying transactions are recognized in earnings. The primary inputs into the valuation of the interest rate swap are interest yield curves, interest rate volatility, credit risk, credit spreads and other market information. The interest rate swap is classified within Level 2 of the fair value hierarchy, since all significant inputs are corroborated by market observable data. The use of derivatives creates exposure to credit risk relating to potential losses that could be recognized in the event that the counterparties to these instruments fail to perform their obligations under the contracts. The Company seeks to minimize this risk by limiting our counterparties to major financial institutions with acceptable credit ratings and monitoring the total value of positions with individual counterparties. In the event of a default by one of our counterparties, the Company may not receive payments provided for under the terms of our derivatives. Derivatives Not Designated as Hedging Instruments On July 14, 2022, the Company entered into a foreign currency exchange forward contract to mitigate the currency fluctuation risk between the Euro and U.S. dollar on its Euro denominated Senior Notes, Series A due 2023. The notional value of the forward contract at July 1, 2023 was €117.0 million and expires on December 7, 2023. The foreign currency contract was not designated as a hedge instrument and is marked to market on a monthly basis. As a result, changes in fair value are reported in Foreign exchange (gain) loss in the Condensed Consolidated Statements of Operations. The fair value of the foreign currency forward contract was valued using market exchange rates by a third party and classified as a Level 2 input under the fair value hierarchy. As of July 1, 2023 and December 31, 2022, the fair values of our derivative financial instrument and their classifications on the Condensed Consolidated Balance Sheets were as follows:
The pre-tax (gains) losses recognized on derivative financial instruments in the Condensed Consolidated Statements of Operations for the three and six months ended July 1, 2023 and July 2, 2022 were as follows:
The pre-tax (gains) losses recognized on derivative financial instruments in the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 1, 2023 and July 2, 2022 was as follows:
The pre-tax gain of $4.8 million from accumulated other comprehensive loss to earnings is expected to be recognized during the next twelve months. Mutual Funds The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value and recorded in Other long-term assets. There were no changes during the quarter ended July 1, 2023 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of July 1, 2023 and December 31, 2022, the Company did not hold any non-financial assets or liabilities that are required to be measured at fair value on a recurring basis. The following table presents assets measured at fair value by classification within the fair value hierarchy as of July 1, 2023:
The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 31, 2022:
In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, accounts receivable and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and accounts receivable approximate their fair values. The Company’s revolving and term loan debt facilities' fair values approximate book value at July 1, 2023 and December 31, 2022, as the rates on these borrowings are variable in nature. The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of July 1, 2023 and December 31, 2022 were as follows:
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Benefit Plans |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans The Company has Company-sponsored and mandatory defined benefit pension plans covering employees in the United Kingdom ("U.K."), Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is generally based on years of service and final average pay. The Company recognizes interest cost, expected return on plan assets, and amortization of prior service, net within Other (income) expense, net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three and six months ended July 1, 2023 and July 2, 2022 were as follows:
The Company expects to make approximately $2.0 million of contributions to the plans and pay $1.9 million of benefits directly in 2023. The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. The Company recorded expense of $0.4 million and $0.5 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and of $0.8 million and $0.5 million for the six months ended July 1, 2023 and July 2, 2022, respectively, in Cost of Sales and Other (income) expense, net within the Condensed Consolidated Statements of Net Income. The pre-tax amounts recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were nominal and $0.1 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and nominal and $0.2 million for the six months ended July 1, 2023 and July 2, 2022, respectively.
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Other Comprehensive (Loss) Income |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income Changes in other comprehensive (loss) income by component were as follows:
(a) The tax shown above within the foreign currency translation adjustments is the U.S. tax associated with the foreign currency translation adjustments of earnings of non-U.S. subsidiaries which have been previously taxed in the U.S. and are not permanently reinvested. The following tables set forth the changes in accumulated other comprehensive loss by component for the six months ended July 1, 2023 and July 2, 2022:
Amounts reclassified from accumulated other comprehensive loss to earnings for the three and six months ended July 1, 2023 and July 2, 2022 were as follows:
The Company recognizes the amortization of prior service costs in Other (income) expense, net within the Condensed Consolidated Statements of Net Income.
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Income Taxes |
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Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three and six months ended July 1, 2023 was 18.0% and 18.3%, respectively, compared to the effective tax rate for the three and six months ended July 2, 2022 of 20.6% and 16.1%, respectively. The effective tax rate for the second quarter of 2023 is lower than the effective tax rate for the comparable 2022 period, primarily due to the impact of foreign exchange losses with no related tax benefit in the 2022 period. The effective tax rate for the first six months of 2023 is higher than the effective tax rate for the comparable 2022 period, primarily due to the impact of a one-time deduction in the first quarter of 2022 that resulted in a net benefit of $7.2 million from the dissolution of one of the Company’s affiliates. The effective tax rates for both periods were lower than the applicable U.S. statutory tax rate primarily due to income earned in lower tax jurisdictions, while for the 2022 period, the effective tax rate was also lower due to the impact of the one-time deduction previously noted.
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Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share:
Potential shares of common stock relating to stock options and restricted share units excluded from the earnings per share calculation because their effect would be anti-dilutive were 110,598 and 88,130 for the three months ended July 1, 2023 and July 2, 2022, respectively, and 102,283 and 72,970 for the six months ended July 1, 2023 and July 2, 2022, respectively. Share Repurchase Program On April 28, 2021, the Company announced that the Board of Directors authorized a new three year program to repurchase up to $300.0 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 to replace its previous 2020 program. The Company did not repurchase shares of its common stock for the three and six months ended July 1, 2023, and July 2, 2022.
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions The Company has equity ownership in various investments that are accounted for under the equity method. 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. 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. 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. One member of the Company's Board of Directors serves on the Board of Directors of ATEC.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company and its subsidiaries design, manufacture and sell component, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety. The Company reports its operations by the following segments: Electronics, Transportation, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information. Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole. •Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon and silicon carbide metal-oxide-semiconductor field effect transistors (“MOSFETs”) and diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics. •Transportation Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy-duty truck and bus, off-road and recreational vehicles, material handling equipment, agricultural machinery, construction equipment and other commercial vehicle end markets. Passenger vehicle products are used in internal combustion engine, hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products designed to monitor the occupant’s safety and environment as well as the vehicle’s powertrain. Commercial vehicle products include fuses, switches, circuit breakers, relays, and power distribution modules and units used in applications serving a number of end markets, including heavy-duty truck and bus, construction, agriculture, material handling and marine. •Industrial Segment: Consists of industrial circuit protection (industrial fuses), industrial controls (protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, and arc fault detection devices) and temperature sensors for use in various applications such as renewable energy and energy storage systems, industrial safety, factory automation, electric vehicle infrastructure, HVAC systems, non-residential construction, MRO, and mining. Segment information is summarized as follows:
(a) Included in “Other” Operating income for the second quarter of 2023 was $3.9 million ($7.2 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $2.9 million ($4.8 million year-to-date) of restructuring charges, primarily related to employee termination costs. In addition, during the second quarter of 2023, the Company recognized a $3.9 million impairment charge related to the land and building in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. Included in “Other” Operating income for the second quarter of 2022 was $4.8 million ($8.6 million year-to-date) of legal and professional fees and other integration expenses related to the acquisition of C&K and other integration expenses related to completed and contemplated acquisitions, and $0.6 million ($0.8 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs, and $4.8 million year-to-date of purchase accounting inventory step-up charges. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. The Company’s net sales by country were as follows:
The Company’s long-lived assets by country were as follows:
The Company’s additions to long-lived assets by country were as follows:
(a)Each country included in other countries is less than 10% of net sales.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Jul. 01, 2023 |
Apr. 01, 2023 |
Jul. 02, 2022 |
Apr. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
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Pay vs Performance Disclosure | ||||||
Net income | $ 70,071 | $ 88,745 | $ 87,016 | $ 117,518 | $ 158,816 | $ 204,534 |
Insider Trading Arrangements |
3 Months Ended |
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Jul. 01, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies and Other Information (Policies) |
6 Months Ended |
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Jul. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the consolidated balance sheets, statements of net income and comprehensive income, statements of cash flows, and statements of stockholders' equity prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. They have been prepared in accordance with accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which should be read in conjunction with the disclosures therein. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for interim periods are not necessarily indicative of annual operating results.
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Revenue Recognition | Revenue Recognition The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors. The Company elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Revenue and Billing The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. Ship and Debit Program Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historical activity, distributor inventory levels and actual authorizations for the debit and recognizes these debits as a reduction of revenue. Return to Stock The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historical activity. Sales revenue and cost of sales are reduced to anticipate estimated returns. Volume Rebates The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.
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Recently Issued Accounting Standards | In March 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-01, "Leases (Topic 842): Common Control Arrangements". The standard requires that leasehold improvements associated with common control leases be: 1) Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2) Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment. This standard is effective on January 1, 2024. The Company does not expect any material effect on the Company's Condensed Consolidated Financial Statements. |
Summary of Significant Accounting Policies and Other Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue Disaggregation | The following tables disaggregate the Company’s revenue by primary business units for the three and six months ended July 1, 2023 and July 2, 2022:
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Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash at July 1, 2023 and December 31, 2022 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.
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Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash at July 1, 2023 and December 31, 2022 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.
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Acquisitions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the Western Automation acquisition:
The following table summarizes the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the C&K acquisition:
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Schedule of Business Acquisition, Pro Forma Information | The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and Western Automation as though the acquisition had occurred as of January 2, 2022, and C&K as though the acquisition had occurred as of December 27, 2020, and Carling business acquired on November 30, 2021 as though the acquisition had occurred as of December 29, 2019. The Company has not included pro forma results of operations for Embed as its operations were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Western Automation acquisition occurred as of January 2, 2022, and had the C&K acquisition occurred as of December 27, 2020 and had Carling acquisition occurred as of December 29, 2019 or of future consolidated operating results.
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Schedule of Business Acquisition, Pro Forma Information, Non-recurring Adjustments | Pro forma results presented above primarily reflect the following adjustments:
(a) The amortization adjustment for the six months ended July 1, 2023 and three and six months ended July 2, 2022 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values. (b) The transaction cost adjustments reflect the reversal of certain legal and professional fees from the three and six months ended July 1, 2023 and three and six months ended July 2, 2022, and recognition of those fees during the three and six months ended July 1, 2023. (c) The amortization of inventory step-up adjustment reflects the reversal of the amount recognized related to the Carling acquisition during the three months ended April 2, 2022. The inventory step-up was amortized over four months as the inventory was sold. (d) The interest expense adjustment reflects incremental interest expense related to the financing of the C&K acquisition.
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Inventories (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | The components of inventories at July 1, 2023 and December 31, 2022 are as follows:
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Property, Plant, and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Property, Plant, and Equipment | The components of net property, plant, and equipment at July 1, 2023 and December 31, 2022 are as follows:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying value of goodwill by segment for the six months ended July 1, 2023 are as follows:
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Schedule of Finite-Lived Intangible Assets | The components of other intangible assets as of July 1, 2023 and December 31, 2022 are as follows:
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Schedule of Finite-Lived Intangible Assets Acquired | During the six months ended July 1, 2023, the Company recorded additions to intangible assets of $68.0 million, related to the Western Automation acquisition, the components of which were as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated annual amortization expense related to intangible assets with definite lives as of July 1, 2023 is as follows:
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Accrued Liabilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accrued Liabilities | The components of accrued liabilities as of July 1, 2023 and December 31, 2022 are as follows:
|
Restructuring, Impairment and Other Charges (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring, Impairment and Other Charges | The Company recorded restructuring, impairment, and other charges for the three and six months ended July 1, 2023 and July 2, 2022 as follows:
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Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt Instruments | The carrying amounts of debt at July 1, 2023 and December 31, 2022 are as follows:
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Fair Value of Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | As of July 1, 2023 and December 31, 2022, the fair values of our derivative financial instrument and their classifications on the Condensed Consolidated Balance Sheets were as follows:
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Derivative Instruments, Pre-Tax Gains | The pre-tax (gains) losses recognized on derivative financial instruments in the Condensed Consolidated Statements of Operations for the three and six months ended July 1, 2023 and July 2, 2022 were as follows:
The pre-tax (gains) losses recognized on derivative financial instruments in the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 1, 2023 and July 2, 2022 was as follows:
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Schedule of Fair Value, Assets Measured on Recurring Basis | The following table presents assets measured at fair value by classification within the fair value hierarchy as of July 1, 2023:
The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 31, 2022:
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Schedule of Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of July 1, 2023 and December 31, 2022 were as follows:
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Benefit Plans (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The components of net periodic benefit cost for the three and six months ended July 1, 2023 and July 2, 2022 were as follows:
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Other Comprehensive (Loss) Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Comprehensive (Loss) Income | Changes in other comprehensive (loss) income by component were as follows:
(a) The tax shown above within the foreign currency translation adjustments is the U.S. tax associated with the foreign currency translation adjustments of earnings of non-U.S. subsidiaries which have been previously taxed in the U.S. and are not permanently reinvested.
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Schedule of Accumulated Other Comprehensive (Loss) Income | The following tables set forth the changes in accumulated other comprehensive loss by component for the six months ended July 1, 2023 and July 2, 2022:
Amounts reclassified from accumulated other comprehensive loss to earnings for the three and six months ended July 1, 2023 and July 2, 2022 were as follows:
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Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share:
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Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions |
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Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment information is summarized as follows:
(a) Included in “Other” Operating income for the second quarter of 2023 was $3.9 million ($7.2 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $2.9 million ($4.8 million year-to-date) of restructuring charges, primarily related to employee termination costs. In addition, during the second quarter of 2023, the Company recognized a $3.9 million impairment charge related to the land and building in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion.
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Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The Company’s net sales by country were as follows:
The Company’s long-lived assets by country were as follows:
The Company’s additions to long-lived assets by country were as follows:
(a)Each country included in other countries is less than 10% of net sales.
|
Summary of Significant Accounting Policies and Other Information- Narrative (Details) customer in Thousands, associate in Thousands |
6 Months Ended |
---|---|
Jul. 01, 2023
country
customer
associate
| |
Accounting Policies [Abstract] | |
Countries where product is used (country) | country | 20 |
Global associates (associate) | associate | 18 |
Number of customers (over) | customer | 100 |
Summary of Significant Accounting Policies and Other Information - Cash and cash equivalents (Details) - USD ($) $ in Thousands |
Jul. 01, 2023 |
Dec. 31, 2022 |
Jul. 02, 2022 |
Jan. 01, 2022 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 480,743 | $ 562,588 | $ 809,122 | |
Restricted cash included in prepaid expenses and other current assets | 771 | 802 | 1,653 | |
Restricted cash included in other long-term assets | 1,580 | 1,549 | 1,522 | |
Total cash, cash equivalents, and restricted cash | $ 483,094 | $ 564,939 | $ 812,297 | $ 482,836 |
Acquisitions - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 03, 2023 |
Jul. 19, 2022 |
Apr. 12, 2022 |
Jul. 01, 2023 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Business Acquisition | ||||||
Cash, net of cash acquired | $ 158,260 | $ 9,758 | ||||
Western Automation | ||||||
Business Acquisition | ||||||
Cash | $ 162,000 | |||||
Annualized sales | 25,000 | |||||
Cash, net of cash acquired | $ 158,260 | |||||
Net sales | $ 4,800 | 7,500 | ||||
Income (loss) before income taxes | 300 | 200 | ||||
Acquisition related costs | $ 1,400 | |||||
C&K | ||||||
Business Acquisition | ||||||
Cash | $ 540,000 | |||||
Annualized sales | 200,000 | |||||
Cash, net of cash acquired | 523,014 | |||||
Other non-current liability adjustments | 4,200 | |||||
Income tax payable adjustments | 200 | |||||
Accrued liabilities adjustments | (300) | |||||
Accrued liabilities adjustments | (200) | |||||
Goodwill increase | $ 3,900 | |||||
Inventory adjustment | $ 10,800 | |||||
Embed | ||||||
Business Acquisition | ||||||
Cash, net of cash acquired | $ 9,200 |
Acquisitions - Business Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Business Combination and Asset Acquisition [Abstract] | ||||
Net sales | $ 611,997 | $ 684,835 | $ 1,223,665 | $ 1,376,586 |
Income before income taxes | 85,481 | 121,995 | 196,094 | 271,474 |
Net income | $ 70,098 | $ 93,818 | $ 160,339 | $ 222,514 |
Net income per share — basic (in dollars per share) | $ 2.82 | $ 3.79 | $ 6.46 | $ 9.00 |
Net income per share — diluted (in dollars per share) | $ 2.79 | $ 3.75 | $ 6.39 | $ 8.91 |
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 229,813 | $ 231,043 |
Work in process | 142,420 | 134,792 |
Finished goods | 209,520 | 226,215 |
Inventory reserves | (54,602) | (44,360) |
Total | $ 527,151 | $ 547,690 |
Property, Plant, and Equipment- Components of Net Property, Plant, and Equipment (Details) - USD ($) $ in Thousands |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment | ||
Accumulated depreciation | $ (572,566) | $ (545,252) |
Total | 481,567 | 481,110 |
Land and land improvements | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 21,970 | 22,089 |
Building and building improvements | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | 193,254 | 191,733 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant, and equipment, gross | $ 838,909 | $ 812,540 |
Property, Plant, and Equipment - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | $ 18,000 | $ 15,700 | $ 35,623 | $ 31,302 |
Goodwill and Other Intangible Assets - Amounts for Goodwill and Changes in Carrying Value by Operating Segment (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jul. 01, 2023 |
Dec. 31, 2022 |
|
Goodwill | ||
Gross goodwill | $ 1,331,430 | $ 1,228,849 |
Accumulated impairment losses | (42,242) | (41,927) |
Net goodwill | 1,289,188 | 1,186,922 |
Additions | 98,702 | |
Currency translation | 3,564 | |
Electronics | ||
Goodwill | ||
Gross goodwill | 916,430 | 909,167 |
Accumulated impairment losses | 0 | 0 |
Net goodwill | 916,430 | 909,167 |
Additions | 3,879 | |
Currency translation | 3,384 | |
Transportation | ||
Goodwill | ||
Gross goodwill | 235,281 | 234,793 |
Accumulated impairment losses | (33,524) | (33,401) |
Net goodwill | 201,757 | 201,392 |
Additions | 0 | |
Currency translation | 365 | |
Industrial | ||
Goodwill | ||
Gross goodwill | 179,719 | 84,889 |
Accumulated impairment losses | (8,718) | (8,526) |
Net goodwill | 171,001 | $ 76,363 |
Additions | 94,823 | |
Currency translation | $ (185) |
Goodwill and Other Intangible Assets - Details of Other Intangible Assets and Related Future Amortization Expense (Details) - USD ($) $ in Thousands |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets | ||
Gross Carrying Value | $ 1,012,494 | $ 942,995 |
Accumulated Amortization | 384,161 | 349,025 |
Net Book Value | 628,333 | 593,970 |
Land use rights | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 17,275 | 17,938 |
Accumulated Amortization | 2,470 | 2,299 |
Net Book Value | 14,805 | 15,639 |
Patents, licenses, and software | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 271,310 | 259,603 |
Accumulated Amortization | 151,514 | 140,208 |
Net Book Value | 119,796 | 119,395 |
Distribution network | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 43,089 | 41,733 |
Accumulated Amortization | 43,089 | 40,955 |
Net Book Value | 0 | 778 |
Customer relationships, trademarks, and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Value | 680,820 | 623,721 |
Accumulated Amortization | 187,088 | 165,563 |
Net Book Value | $ 493,732 | $ 458,158 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangibles | $ 16,885 | $ 11,592 | $ 33,751 | $ 24,316 |
Goodwill and Other Intangible Assets- Schedule of Intangible Assets Related to Acquisition (Details) - Western Automation - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jul. 01, 2023 |
Feb. 03, 2023 |
|
Finite-Lived Intangible Assets | ||
Intangible assets | $ 68,000 | $ 68,000 |
Finite-lived intangible assets acquired | $ 68,000 | |
Patents, licenses, and software | ||
Finite-Lived Intangible Assets | ||
Weighted Average Useful Life | 6 years 8 months 12 days | |
Finite-lived intangible assets acquired | $ 11,500 | |
Customer relationships, trademarks, and tradenames | ||
Finite-Lived Intangible Assets | ||
Weighted Average Useful Life | 14 years 8 months 12 days | |
Finite-lived intangible assets acquired | $ 56,500 |
Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets with Definite Lives (Details) $ in Thousands |
Jul. 01, 2023
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2023 | $ 65,730 |
2024 | 62,859 |
2025 | 62,536 |
2026 | 51,576 |
2027 | 49,529 |
2028 and thereafter | 369,854 |
Total | $ 662,084 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Employee-related liabilities | $ 63,644 | $ 99,089 |
Current lease liability | 12,559 | 12,841 |
Other non-income taxes | 8,373 | 10,594 |
Professional services | 6,619 | 7,160 |
Other customer reserves | 4,575 | 5,064 |
Interest | 4,205 | 4,449 |
Deferred revenue | 2,488 | 2,593 |
Restructuring liability | 1,744 | 2,434 |
Current benefit liability | 1,318 | 1,318 |
Other | 38,318 | 41,515 |
Total | $ 143,843 | $ 187,057 |
Fair Value of Assets and Liabilities - Narrative (Details) € in Millions, $ in Millions |
Jul. 01, 2023
USD ($)
|
Apr. 01, 2023
EUR (€)
|
May 12, 2022
USD ($)
|
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Pre-tax gain from AOCI expected to be recognized in next twelve months | $ 4.8 | ||
Interest rate swap agreement | Designated as cash flow hedge | Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Notional amount of derivatives | $ 200.0 | ||
Foreign exchange forward contract | Designated as cash flow hedge | Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Notional amount of derivatives | € | € 117.0 |
Fair Value of Assets and Liabilities-Fair Values of Derivatives and Classifications on the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Foreign exchange forward contract | Not Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | $ 7,245 | $ 6,186 |
Prepaid expenses and other current assets | Interest rate swap agreement | Designated as cash flow hedge | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 4,794 | 3,939 |
Other long-term assets | Interest rate swap agreement | Designated as cash flow hedge | Designated as Hedging Instrument | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | $ 4,668 | $ 4,740 |
Benefit Plans - Benefit Plan Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 695 | $ 750 | $ 1,387 | $ 1,518 |
Interest cost | 952 | 628 | 1,889 | 1,272 |
Expected return on plan assets | (470) | (380) | (939) | (783) |
Amortization of prior service and net actuarial loss | 11 | 96 | 22 | 197 |
Net periodic benefit cost | $ 1,188 | $ 1,094 | $ 2,359 | $ 2,204 |
Benefit Plans - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Defined Benefit Plan Disclosure | ||||
Contributions expected | $ 2,000 | $ 2,000 | ||
Expected direct payments | 1,900 | 1,900 | ||
Defined benefit plan expense | 1,188 | $ 1,094 | 2,359 | $ 2,204 |
Foreign Plan | ||||
Defined Benefit Plan Disclosure | ||||
Defined benefit plan expense | 400 | 500 | 800 | 500 |
Other comprehensive income (loss) as component of net period benefit cost, before tax | $ 0 | $ 100 | $ 0 | $ 200 |
Other Comprehensive (Loss) Income - Components of Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 01, 2023 |
Apr. 01, 2023 |
Jul. 02, 2022 |
Apr. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Other Comprehensive Income (Loss) | ||||||
Pre-tax | $ (13,915) | $ (32,157) | $ (1,136) | $ (35,049) | ||
Tax | (996) | 808 | (492) | 1,497 | ||
Total change in other comprehensive (loss) income | (14,911) | $ 13,283 | (31,349) | $ (2,203) | (1,628) | (33,552) |
Defined benefit pension plan and other adjustments | ||||||
Other Comprehensive Income (Loss) | ||||||
Pre-tax | (146) | 722 | (122) | 1,045 | ||
Tax | (13) | (83) | (31) | (96) | ||
Total change in other comprehensive (loss) income | (159) | 639 | (153) | 949 | ||
Cash flow hedge | ||||||
Other Comprehensive Income (Loss) | ||||||
Pre-tax | 4,096 | (712) | 783 | (712) | ||
Tax | (983) | 171 | (188) | 171 | ||
Total change in other comprehensive (loss) income | 3,113 | (541) | 595 | (541) | ||
Foreign currency translation adjustment | ||||||
Other Comprehensive Income (Loss) | ||||||
Pre-tax | (17,865) | (32,167) | (1,797) | (35,382) | ||
Tax | 0 | 720 | (273) | 1,422 | ||
Total change in other comprehensive (loss) income | $ (17,865) | $ (31,447) | $ (2,070) | $ (33,960) |
Other Comprehensive (Loss) Income - Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 01, 2023 |
Apr. 01, 2023 |
Jul. 02, 2022 |
Apr. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Balance at the beginning | $ 2,307,476 | $ 2,211,378 | $ 2,000,652 | $ 1,893,520 | $ 2,211,378 | $ 1,893,520 |
Activity in the period | (14,911) | 13,283 | (31,349) | (2,203) | (1,628) | (33,552) |
Balance at the end | 2,357,251 | 2,307,476 | 2,051,943 | 2,000,652 | 2,357,251 | 2,051,943 |
Accumulated other comprehensive loss | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Balance at the beginning | (82,481) | (95,764) | (75,666) | (73,463) | (95,764) | (73,463) |
Activity in the period | (14,911) | 13,283 | (31,349) | (2,203) | ||
Balance at the end | (97,392) | (82,481) | (107,015) | (75,666) | (97,392) | (107,015) |
Defined benefit pension plan and other adjustments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Balance at the beginning | (2,193) | (11,928) | (2,193) | (11,928) | ||
Activity in the period | (159) | 639 | (153) | 949 | ||
Balance at the end | (2,346) | (10,979) | (2,346) | (10,979) | ||
Cash flow hedge | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Balance at the beginning | 6,596 | 0 | 6,596 | 0 | ||
Activity in the period | 3,113 | (541) | 595 | (541) | ||
Balance at the end | 7,191 | (541) | 7,191 | (541) | ||
Foreign currency translation adjustment | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||
Balance at the beginning | $ (100,167) | $ (61,535) | (100,167) | (61,535) | ||
Activity in the period | (17,865) | (31,447) | (2,070) | (33,960) | ||
Balance at the end | $ (102,237) | $ (95,495) | $ (102,237) | $ (95,495) |
Other Comprehensive (Loss) Income - Reclassification out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service and net actuarial (gain) loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Amortization of prior service and net actuarial (gain) loss | $ (11) | $ 198 | $ (22) | $ 395 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Apr. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (as a percent) | 18.00% | 20.60% | 18.30% | 16.10% | |
One-time deduction resulted in benefit | $ 7.2 |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 01, 2023 |
Apr. 01, 2023 |
Jul. 02, 2022 |
Apr. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Numerator: | ||||||
Net income as reported | $ 70,071 | $ 88,745 | $ 87,016 | $ 117,518 | $ 158,816 | $ 204,534 |
Weighted average shares outstanding | ||||||
Basic (in shares) | 24,839 | 24,734 | 24,810 | 24,712 | ||
Effect of dilutive securities (in shares) | 256 | 251 | 268 | 274 | ||
Diluted (in shares) | 25,095 | 24,985 | 25,078 | 24,986 | ||
Earnings Per Share: | ||||||
Basic earnings per share (in dollars per share) | $ 2.82 | $ 3.52 | $ 6.40 | $ 8.28 | ||
Diluted earnings per share (in dollars per share) | $ 2.79 | $ 3.48 | $ 6.33 | $ 8.19 |
Earnings Per Share - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
Apr. 28, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||
Antidilutive securities excluded (in shares) | 110,598 | 88,130 | 102,283 | 72,970 | |
Shares repurchased (in shares) | 0 | 0 | 0 | 0 | |
2020 Share Repurchase Program | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||
Repurchase authorized | $ 300,000,000 |
Segment Information- Narrative (Details) |
6 Months Ended |
---|---|
Jul. 01, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 3 |
Segment Information - Revenues and Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
Dec. 31, 2022 |
|
Segment Reporting Information | |||||
Net sales | $ 611,997 | $ 618,436 | $ 1,221,779 | $ 1,241,766 | |
Long-lived assets | 481,567 | 481,567 | $ 481,110 | ||
Additions to long-lived assets | 39,959 | 51,522 | |||
United States | |||||
Segment Reporting Information | |||||
Net sales | 205,793 | 224,743 | 417,988 | 444,981 | |
Long-lived assets | 75,381 | 75,381 | 76,325 | ||
Additions to long-lived assets | 5,482 | 6,527 | |||
China | |||||
Segment Reporting Information | |||||
Net sales | 143,570 | 162,322 | 277,037 | 327,104 | |
Long-lived assets | 130,154 | 130,154 | 129,094 | ||
Additions to long-lived assets | 15,228 | 15,623 | |||
Mexico | |||||
Segment Reporting Information | |||||
Long-lived assets | 104,293 | 104,293 | 107,119 | ||
Additions to long-lived assets | 7,176 | 14,244 | |||
Germany | |||||
Segment Reporting Information | |||||
Long-lived assets | 41,890 | 41,890 | 39,635 | ||
Additions to long-lived assets | 3,269 | 2,432 | |||
Philippines | |||||
Segment Reporting Information | |||||
Long-lived assets | 75,216 | 75,216 | 77,240 | ||
Additions to long-lived assets | 3,202 | 10,138 | |||
Other countries | |||||
Segment Reporting Information | |||||
Net sales | 262,634 | $ 231,371 | 526,754 | 469,681 | |
Long-lived assets | $ 54,633 | 54,633 | $ 51,697 | ||
Additions to long-lived assets | $ 5,602 | $ 2,558 |
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