|
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 1, 2011
|
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
|
Delaware
|
36-3795742
|
(State or other jurisdiction
|
(I.R.S. Employer Identification No.)
|
of incorporation or organization)
|
|
8755 W. Higgins Road, Suite 500
|
|
Chicago, Illinois
|
60631
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer [ ] | Accelerated filer [X] | Non-accelerated filer [ ] | Smaller reporting company [ ] |
PART I - FINANCIAL INFORMATION
|
|||
Item 1.
|
Financial Statements.
|
Page
|
|
Condensed Consolidated Balance Sheets as of October 1, 2011 (unaudited) and January 1, 2011
|
1
|
||
Consolidated Statements of Income for the three and nine months ended October 1, 2011 and October 2, 2010 (unaudited)
|
2
|
||
Consolidated Statements of Cash Flows for the nine months ended October 1, 2011 and October 2, 2010 (unaudited)
|
3
|
||
Notes to Condensed Consolidated Financial Statements (unaudited)
|
4
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
15
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
20
|
|
Item 4.
|
Controls and Procedures.
|
21
|
|
PART II - OTHER INFORMATION
|
|||
Item 1A.
|
Risk Factors
|
22
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
22
|
|
Item 6.
|
Exhibits
|
23
|
|
Signatures
|
24
|
October 1, 2011
|
January 1, 2011
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 163,424 | $ | 109,720 | ||||
Accounts receivable, less allowances
|
110,689 | 97,753 | ||||||
Inventories
|
82,412 | 80,182 | ||||||
Deferred income taxes
|
9,962 | 10,588 | ||||||
Prepaid expenses and other current assets
|
15,189 | 13,882 | ||||||
Assets held for sale
|
6,567 | 6,831 | ||||||
Total current assets
|
388,243 | 318,956 | ||||||
Property, plant and equipment:
|
||||||||
Land
|
4,890 | 5,688 | ||||||
Buildings
|
52,288 | 53,089 | ||||||
Equipment
|
278,399 | 276,371 | ||||||
335,577 | 335,148 | |||||||
Accumulated depreciation
|
(215,307 | ) | (205,001 | ) | ||||
Net property, plant and equipment
|
120,270 | 130,147 | ||||||
Intangible assets, net of amortization:
|
||||||||
Patents, licenses and software
|
9,831 | 11,211 | ||||||
Distribution network
|
19,567 | 9,752 | ||||||
Customer lists, trademarks and tradenames
|
12,131 | 20,865 | ||||||
Goodwill
|
119,582 | 112,687 | ||||||
161,111 | 154,515 | |||||||
Investments
|
12,209 | 11,660 | ||||||
Deferred income taxes
|
2,859 | 3,271 | ||||||
Other assets
|
2,368 | 2,580 | ||||||
Total assets
|
$ | 687,060 | $ | 621,129 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 26,215 | $ | 24,079 | ||||
Accrued payroll
|
21,294 | 24,186 | ||||||
Accrued expenses
|
9,191 | 10,307 | ||||||
Accrued severance
|
1,871 | 3,279 | ||||||
Accrued income taxes
|
19,942 | 14,997 | ||||||
Current portion of long-term debt
|
93,000 | 33,000 | ||||||
Total current liabilities
|
171,513 | 109,848 | ||||||
Long-term debt, less current portion
|
— | 41,000 | ||||||
Accrued severance
|
47 | 486 | ||||||
Accrued post-retirement benefits
|
5,356 | 5,564 | ||||||
Other long-term liabilities
|
13,698 | 11,571 | ||||||
Total equity
|
496,446 | 452,660 | ||||||
Total liabilities and equity
|
$ | 687,060 | $ | 621,129 |
See accompanying notes.
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
October 1, 2011
|
October 2, 2010
|
October 1, 2011
|
October 2, 2010
|
|||||||||||||
Net sales
|
$ | 173,987 | $ | 163,465 | $ | 517,762 | $ | 465,375 | ||||||||
Cost of sales
|
105,516 | 96,212 | 314,594 | 285,459 | ||||||||||||
Gross profit
|
68,471 | 67,253 | 203,168 | 179,916 | ||||||||||||
Selling, general and administrative expenses
|
32,015 | 27,553 | 87,851 | 80,208 | ||||||||||||
Research and development expenses
|
5,297 | 4,345 | 14,754 | 12,698 | ||||||||||||
Amortization of intangibles
|
1,585 | 1,247 | 4,780 | 3,752 | ||||||||||||
38,897 | 33,145 | 107,385 | 96,658 | |||||||||||||
Operating income
|
29,574 | 34,108 | 95,783 | 83,258 | ||||||||||||
Interest expense
|
414 | 313 | 1,271 | 1,096 | ||||||||||||
Other (income) expense, net
|
(1,897 | ) | (29 | ) | (1,934 | ) | (1,328 | ) | ||||||||
Income before income taxes
|
31,057 | 33,824 | 96,446 | 83,490 | ||||||||||||
Income taxes
|
6,118 | 10,486 | 24,660 | 24,405 | ||||||||||||
Net income
|
$ | 24,939 | $ | 23,338 | $ | 71,786 | $ | 59,085 | ||||||||
Net income per share (see note 9):
|
||||||||||||||||
Basic
|
$ | 1.13 | $ | 1.06 | $ | 3.25 | $ | 2.68 | ||||||||
Diluted
|
$ | 1.12 | $ | 1.04 | $ | 3.19 | $ | 2.64 | ||||||||
Weighted average shares and equivalent shares outstanding:
|
||||||||||||||||
Basic
|
22,000 | 21,968 | 22,023 | 21,945 | ||||||||||||
Diluted
|
22,287 | 22,344 | 22,407 | 22,316 |
See accompanying notes.
|
For the Nine Months Ended
|
||||||||
October 1, 2011
|
October 2, 2010
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 71,786 | $ | 59,085 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
19,030 | 20,706 | ||||||
Amortization of intangibles
|
4,780 | 3,752 | ||||||
Impairment of assets
|
2,320 | 2,988 | ||||||
Stock-based compensation
|
4,501 | 4,043 | ||||||
Non-cash inventory charge (see note 3)
|
3,678 | — | ||||||
Excess tax benefit on stock-based compensation
|
(3,873 | ) | (947 | ) | ||||
(Gain) on sale of assets
|
(258 | ) | (334 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(12,266 | ) | (28,603 | ) | ||||
Inventories
|
(4,370 | ) | (12,859 | ) | ||||
Accounts payable
|
1,023 | 3,015 | ||||||
Accrued expenses (including post-retirement)
|
(28 | ) | (4,866 | ) | ||||
Accrued payroll and severance
|
(4,918 | ) | 300 | |||||
Accrued taxes
|
4,052 | 19,919 | ||||||
Prepaid expenses and other
|
(1,504 | ) | 8,732 | |||||
Net cash provided by operating activities
|
83,953 | 74,931 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Purchases of property, plant, and equipment
|
(12,381 | ) | (15,740 | ) | ||||
Business acquisition settlement
|
50 | — | ||||||
Business acquisition, net of cash acquired
|
(11,127 | ) | — | |||||
Investment
|
(3,000 | ) | — | |||||
Proceeds from sale of assets
|
574 | 4,748 | ||||||
Net cash (used in) investing activities
|
(25,884 | ) | (10,992 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from debt
|
110,000 | 13,345 | ||||||
Payments of term debt
|
(49,000 | ) | (6,000 | ) | ||||
Payments of revolving credit facility
|
(42,000 | ) | (13,124 | ) | ||||
Purchases of common stock
|
(37,091 | ) | (22,287 | ) | ||||
Debt issuance costs
|
(716 | ) | — | |||||
Cash dividends paid
|
(10,633 | ) | — | |||||
Proceeds from exercise of stock options
|
21,738 | 11,734 | ||||||
Excess tax benefit on stock-based compensation
|
3,873 | 947 | ||||||
Net cash (used in) financing activities.
|
(3,829 | ) | (15,385 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
|
(536 | ) | 19 | |||||
Increase in cash and cash equivalents
|
53,704 | 48,573 | ||||||
Cash and cash equivalents at beginning of period
|
109,720 | 70,354 | ||||||
Cash and cash equivalents at end of period
|
$ | 163,424 | $ | 118,927 |
See accompanying notes.
|
Cole Hersee preliminary purchase price allocation (in thousands):
|
||||
Cash
|
$ | 1,708 | ||
Current assets, net
|
17,628 | |||
Property, plant and equipment, net
|
5,368 | |||
Goodwill
|
15,564 | |||
Other intangibles
|
14,100 | |||
Other assets
|
533 | |||
Current liabilities
|
(2,575 | ) | ||
Other long-term liabilities
|
(2,376 | ) | ||
$ | 49,950 |
Selco’s preliminary purchase price allocation (in thousands):
|
||||
Cash
|
$ | 5 | ||
Current assets, net
|
3,806 | |||
Property, plant and equipment, net
|
216 | |||
Goodwill
|
9,778 | |||
Current liabilities
|
(2,673 | ) | ||
$ | 11,132 |
October 1, 2011
|
January 1, 2011
|
|||||||
Raw material
|
$ | 30,272 | $ | 20,994 | ||||
Work in process
|
10,856 | 9,719 | ||||||
Finished goods
|
41,284 | 49,469 | ||||||
Total inventories
|
$ | 82,412 | $ | 80,182 |
October 1, 2011
|
January 1, 2011
|
|||||||
Term loan
|
$ | - | $ | 49,000 | ||||
Revolving credit facility
|
93,000 | 25,000 | ||||||
93,000 | 74,000 | |||||||
Less: Current maturities
|
93,000 | 33,000 | ||||||
Total long-term debt
|
$ | - | $ | 41,000 |
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income (Loss)
(Effective Portion)
|
Location of Gain (Loss)
Reclassified from
Other Comprehensive
Income (Loss)
|
Amount of Gain (Loss) Reclassified
from Other Comprehensive Income
(Loss) into Income (Loss)
(Effective Portion)
|
|||||||||||||||
Nine Months Ended
|
into Income (Loss)
|
Nine Months Ended
|
|||||||||||||||
October 1, 2011
|
October 2, 2010
|
(Effective Portion)
|
October 1, 2011
|
October 2, 2010
|
|||||||||||||
Foreign exchange contracts
|
$ | - | $ | 92 |
Cost of Sales
|
$ | - | $ | (191 | ) | |||||||
Total
|
$ | - | $ | 92 | $ | - | $ | (191 | ) |
Fair Value Measurements Using
|
||||||||||||||||
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||||
Available-for-sale securities
|
$ | 9,209 | $ | — | $ | — | $ | 9,209 | ||||||||
Total
|
$ | 9,209 | $ | — | $ | — | $ | 9,209 |
Fair Value Measurements Using
|
||||||||||||||||
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||||
Available-for-sale securities
|
$ | 11,660 | $ | — | $ | — | $ | 11,660 | ||||||||
Total
|
$ | 11,660 | $ | — | $ | — | $ | 11,660 |
For the Three Months
Ended
|
For the Nine Months
Ended
|
|||||||||||||||
(in thousands except per share amounts)
|
October 1,
2011
|
October 2,
2010
|
October 1,
2011
|
October 2,
2010
|
||||||||||||
Net income as reported
|
$ | 24,939 | $ | 23,338 | $ | 71,786 | $ | 59,085 | ||||||||
Less: Distributed earnings available to participating securities
|
(6 | ) | — | (11 | ) | — | ||||||||||
Less: Undistributed earnings available to participating securities
|
(68 | ) | 129 | (257 | ) | 319 | ||||||||||
Numerator for basic earnings per share —
|
||||||||||||||||
Undistributed and distributed earnings available to common shareholders
|
$ | 24,865 | $ | 23,209 | $ | 71,518 | $ | 58,766 | ||||||||
Add: Undistributed earnings allocated to participating securities
|
68 | 129 | 257 | 319 | ||||||||||||
Less: Undistributed earnings reallocated to participating securities
|
(67 | ) | (127 | ) | (253 | ) | (315 | ) | ||||||||
Numerator for diluted earnings per share —
|
||||||||||||||||
Undistributed and distributed earnings available to common shareholders
|
$ | 24,866 | $ | 23,211 | $ | 71,522 | $ | 58,770 | ||||||||
Denominator for basic earnings per share —
|
||||||||||||||||
Weighted-average shares
|
22,000 | 21,968 | 22,023 | 21,945 | ||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Common stock equivalents
|
287 | 303 | 384 | 289 | ||||||||||||
Numerator for basic earnings per share —
|
||||||||||||||||
Adjusted for weighted-average shares & assumed conversions
|
22,287 | 22,271 | 22,407 | 22,234 | ||||||||||||
Basic earnings per share
|
$ | 1.13 | $ | 1.06 | $ | 3.25 | $ | 2.68 | ||||||||
Diluted earnings per share
|
$ | 1.12 | $ | 1.04 | $ | 3.19 | $ | 2.64 |
Balance at December 27, 2008
|
$ | 12,093 | ||
Additions
|
11,196 | |||
Payments
|
(12,472 | ) | ||
Exchange rate impact
|
100 | |||
Balance at January 2, 2010
|
10,917 | |||
Additions
|
1,687 | |||
Payments
|
(8,732 | ) | ||
Exchange rate impact
|
(107 | ) | ||
Balance at January 1, 2011
|
3,765 | |||
Additions
|
277 | |||
Payments
|
(938 | ) | ||
Exchange rate impact
|
86 | |||
Balance at April 2, 2011
|
3,190 | |||
Additions
|
190 | |||
Payments
|
(1,177 | ) | ||
Exchange rate impact
|
(9 | ) | ||
Balance at July 2, 2011
|
2,194 | |||
Additions
|
54 | |||
Payments
|
(772 | ) | ||
Exchange rate impact
|
(50 | ) | ||
Balance at October 1, 2011
|
$ | 1,426 |
U.S. Pension Benefits
|
Foreign Plans
|
|||||||||||||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||||||||
October 1, 2011
|
October 2,
2010
|
October 1, 2011
|
October 2,
2010
|
October 1, 2011
|
October 2,
2010
|
October 1, 2011
|
October 2,
2010
|
|||||||||||||||||||||||||
Service cost
|
$ | 140 | $ | 125 | $ | 420 | $ | 375 | $ | 152 | $ | 108 | $ | 458 | $ | 326 | ||||||||||||||||
Interest cost
|
1,277 | 982 | 3,832 | 2,945 | 181 | 195 | 545 | 587 | ||||||||||||||||||||||||
Expected return on plan assets
|
(1,629 | ) | (1,255 | ) | (4,888 | ) | (3,764 | ) | (120 | ) | (3 | ) | (362 | ) | (11 | ) | ||||||||||||||||
Amortization of prior service cost
|
- | - | - | - | - | - | (1 | ) | (1 | ) | ||||||||||||||||||||||
Amortization of net (gain) loss
|
187 | - | 561 | - | 8 | (1 | ) | 23 | (3 | ) | ||||||||||||||||||||||
Net periodic benefit cost
|
$ | (25 | ) | $ | (148 | ) | $ | (75 | ) | $ | (444 | ) | $ | 221 | $ | 299 | $ | 663 | $ | 898 |
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
October 1, 2011
|
October 2, 2010
|
October 1, 2011
|
October 2, 2010
|
|||||||||||||
Net sales
|
||||||||||||||||
Electronics
|
$ | 96,288 | $ | 103,644 | $ | 282,032 | $ | 287,058 | ||||||||
Automotive
|
47,703 | 34,177 | 151,957 | 105,732 | ||||||||||||
Electrical
|
29,996 | 25,644 | 83,773 | 72,585 | ||||||||||||
Total net sales
|
$ | 173,987 | $ | 163,465 | $ | 517,762 | $ | 465,375 | ||||||||
Operating income
|
||||||||||||||||
Electronics
|
$ | 18,610 | $ | 22,830 | $ | 56,974 | $ | 53,237 | ||||||||
Automotive
|
6,456 | 6,401 | 24,580 | 13,538 | ||||||||||||
Electrical
|
7,472 | 7,865 | 21,467 | 19,471 | ||||||||||||
Other(a)
|
(2,964 | ) | (2,988 | ) | (7,238 | ) | (2,988 | ) | ||||||||
Total operating income
|
29,574 | 34,108 | 95,783 | 83,258 | ||||||||||||
Interest expense
|
414 | 313 | 1,271 | 1,096 | ||||||||||||
Other (income) expense, net
|
(1,897 | ) | (29 | ) | (1,934 | ) | (1,328 | ) | ||||||||
Income before income taxes
|
$ | 31,057 | $ | 33,824 | $ | 96,446 | $ | 83,490 | ||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
October 1, 2011
|
October 2, 2010
|
October 1, 2011
|
October 2, 2010
|
|||||||||||||
Net sales
|
||||||||||||||||
Americas
|
$ | 75,721 | $ | 61,734 | $ | 222,195 | $ | 172,989 | ||||||||
Europe
|
27,297 | 29,192 | 90,944 | 88,203 | ||||||||||||
Asia-Pacific
|
70,969 | 72,539 | 204,623 | 204,183 | ||||||||||||
Total net sales
|
$ | 173,987 | $ | 163,465 | $ | 517,762 | $ | 465,375 |
October 1, 2011
|
January 1, 2011
|
|||||||
Long-lived assets
|
||||||||
Americas
|
$ | 54,719 | $ | 58,869 | ||||
Europe
|
715 | 3,080 | ||||||
Asia-Pacific
|
64,836 | 68,198 | ||||||
Consolidated total
|
$ | 120,270 | $ | 130,147 |
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
|
October 1, 2011
|
October 2, 2010
|
October 1, 2011
|
October 2, 2010
|
||||||||||||
Net income
|
$ | 24,939 | $ | 23,338 | $ | 71,786 | $ | 59,085 | ||||||||
Other comprehensive income items:
|
||||||||||||||||
Currency translation adjustments
|
(14,678 | ) | 15,281 | 354 | 4,061 | |||||||||||
Unrealized gain (loss) on available-for-sale securities, net of $0 income taxes
|
(3,037 | ) | (1,387 | ) | (2,759 | ) | 709 | |||||||||
Minimum pension liability adjustment, net tax
|
77 | — | (248 | ) | — | |||||||||||
Gain on derivatives, net of income taxes
|
— | — | — | 92 | ||||||||||||
Comprehensive income
|
$ | 7,301 | $ | 37,232 | $ | 69,133 | $ | 63,947 |
October 1, 2011
|
January 1, 2011
|
|||||||
Minimum pension liability adjustment*
|
$ | (7,123 | ) | $ | (6,875 | ) | ||
Unrealized gain on investments**
|
6,585 | 9,344 | ||||||
Foreign currency translation adjustment
|
19,126 | 18,772 | ||||||
Total
|
$ | 18,588 | $ | 21,241 |
Third Quarter
|
Year-to-Date
|
|||||||||||||||||||||||
2011
|
2010(b)
|
% Change
|
2011
|
2010(b)
|
% Change
|
|||||||||||||||||||
Business Unit
|
||||||||||||||||||||||||
Electronics
|
$ | 96.3 | $ | 103.6 | (7 | %) | $ | 282.0 | $ | 287.1 | (2 | %) | ||||||||||||
Automotive(c)
|
47.7 | 34.2 | 39 | % | 152.0 | 105.7 | 44 | % | ||||||||||||||||
Electrical(d)
|
30.0 | 25.7 | 17 | % | 83.8 | 72.6 | 15 | % | ||||||||||||||||
Total
|
$ | 174.0 | $ | 163.5 | 6 | % | $ | 517.8 | $ | 465.4 | 11 | % | ||||||||||||
Third Quarter
|
Year-to-Date
|
|||||||||||||||||||||||
2011 | 2010 |
% Change
|
2011 | 2010 |
% Change
|
|||||||||||||||||||
Geography(a)
|
||||||||||||||||||||||||
Americas(c)
|
$ | 75.7 | $ | 61.7 | 23 | % | $ | 222.2 | $ | 173.0 | 28 | % | ||||||||||||
Europe(d)
|
27.3 | 29.2 | (6 | %) | 91.0 | 88.2 | 3 | % | ||||||||||||||||
Asia-Pacific
|
71.0 | 72.6 | (2 | %) | 204.6 | 204.2 | 0 | % | ||||||||||||||||
Total
|
$ | 174.0 | $ | 163.5 | 6 | % | $ | 517.8 | $ | 465.4 | 11 | % | ||||||||||||
|
(c)
|
The table below provides information with respect to purchases by the Company of shares of its common stock during each fiscal month of the third quarter of fiscal 2011:
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||||||||||||||
Period
|
Total Number
of Shares
Purchased
|
Average Price
Paid per
Share
|
Total Number of
Shares Purchased
as Part of Publicly Announced Plans
or Programs
|
Maximum Number of
Shares that May Yet
Be Purchased Under
the Plans or Programs
|
||||||||||||
July 2, 2011 to July 30, 2011
|
— | — | — | 1,000,000 | ||||||||||||
July 30, 2011 to Aug. 27, 2011
|
558,646 | $ | 42.51 | 558,646 | 441,354 | |||||||||||
Aug. 27, 2011 to Oct.1, 2011
|
300,383 | 44.42 | 300,383 | 140,971 | ||||||||||||
Total
|
859,029 | $ | 43.18 | 859,029 | 140,971 |
Exhibit | Description |
31.1 | Certification of Gordon Hunter, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Philip G. Franklin, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Littelfuse, Inc.
|
|||
Date: November 3, 2011
|
By:
|
/s/ Philip G. Franklin | |
Philip G. Franklin | |||
Vice President, Operations Support,
Chief Financial Officer and Treasurer
(As duly authorized officer and as
the principal financial and accounting
officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Littelfuse Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Dated: November 3, 2011 | |||
|
|
/s/ GORDON HUNTER | |
Gordon Hunter
|
|||
Chairman, President and
|
|||
Chief Executive Officer |
1.
|
I have reviewed this quarterly report on Form 10-Q of Littelfuse Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Dated: November 3, 2011 | |||
|
|
/s/ PHILIP G. FRANKLIN | |
Philip G. Franklin
|
|||
Vice President, Operations Support,
|
|||
Chief Financial Officer and Treasurer
|
/s/ GORDON HUNTER | /s/ PHILIP G. FRANKLIN | |||
Gordon Hunter | Philip G. Franklin | |||
Chairman, President and | Vice President, Operations Support, | |||
Chief Executive Officer | Chief Financial Officer and Treasurer | |||
Dated: November 3, 2011 | Dated: November 3, 2011 |
Consolidated Statements of Income (unaudited) (USD $) In Thousands, except Per Share data | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2011 | Oct. 02, 2010 | Oct. 01, 2011 | Oct. 02, 2010 | |
Net sales | $ 173,987 | $ 163,465 | $ 517,762 | $ 465,375 |
Cost of sales | 105,516 | 96,212 | 314,594 | 285,459 |
Gross profit | 68,471 | 67,253 | 203,168 | 179,916 |
Selling, general and administrative expenses | 32,015 | 27,553 | 87,851 | 80,208 |
Research and development expenses | 5,297 | 4,345 | 14,754 | 12,698 |
Amortization of intangibles | 1,585 | 1,247 | 4,780 | 3,752 |
[OperatingExpenses] | 38,897 | 33,145 | 107,385 | 96,658 |
Operating income | 29,574 | 34,108 | 95,783 | 83,258 |
Interest expense | 414 | 313 | 1,271 | 1,096 |
Other (income) expense, net | (1,897) | (29) | (1,934) | (1,328) |
Income before income taxes | 31,057 | 33,824 | 96,446 | 83,490 |
Income taxes | 6,118 | 10,486 | 24,660 | 24,405 |
Net income | $ 24,939 | $ 23,338 | $ 71,786 | $ 59,085 |
Net income per share (see note 9): | ||||
Basic (in Dollars per share) | $ 1.13 | $ 1.06 | $ 3.25 | $ 2.68 |
Diluted (in Dollars per share) | $ 1.12 | $ 1.04 | $ 3.19 | $ 2.64 |
Weighted average shares and equivalent shares outstanding: | ||||
Basic (in Shares) | 22,000 | 21,968 | 22,023 | 21,945 |
Diluted (in Shares) | 22,287 | 22,344 | 22,407 | 22,316 |
Document And Entity Information | 9 Months Ended | |
---|---|---|
Oct. 01, 2011 | Oct. 28, 2011 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LITTELFUSE INC /DE | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-01 | |
Entity Common Stock, Shares Outstanding | 23,015,311 | |
Amendment Flag | false | |
Entity Central Index Key | 0000889331 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Oct. 01, 2011 | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q3 |
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Note 8 - Fair Value of Financial Assets and Liabilities | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] |
8.
Fair Value of Financial Assets and Liabilities
In
determining fair value, the company uses various valuation
approaches within the fair value measurement
framework. Fair value measurements are determined
based on the assumptions that market participants would use
in pricing an asset or liability. Applicable accounting
literature establishes a hierarchy for inputs used in
measuring fair value that maximizes the use of observable
inputs and minimizes the use of unobservable inputs by
requiring that the most observable inputs be used when
available. Applicable accounting literature
defines levels within the hierarchy based on the reliability
of inputs as follows:
Level
1—Valuations based on unadjusted quoted prices for
identical assets or liabilities in active markets;
Level
2—Valuations based on quoted prices for similar
assets or liabilities or identical assets or liabilities in
less active markets, such as dealer or broker markets;
and
Level
3—Valuations derived from valuation techniques in
which one or more significant inputs or significant value
drivers are unobservable, such as pricing models,
discounted cash flow models and similar techniques not
based on market, exchange, dealer or broker-traded
transactions.
Following
is a description of the valuation methodologies used for
instruments measured at fair value and their classification
in the valuation hierarchy.
Available-for-sale
securities
Equity
securities listed on a national market or exchange are valued
at the last sales price. Such securities are classified
within Level 1 of the valuation hierarchy.
Derivative
instruments
The
fair value of commodity derivatives are valued based on
quoted futures prices for the underlying commodity and are
categorized as Level 2. The fair values of foreign exchange
rate derivatives are determined based on inputs that are
readily available in public markets or can be derived from
information available in publicly quoted markets and are
categorized as Level 2.
The
company does not have any financial assets or liabilities
measured at fair value on a recurring basis categorized as
Level 3, and there were no transfers in or out of
Level 2 or Level 3 during the nine months ended
October 1, 2011. There were no changes during the nine
months ended October 1, 2011, to the company’s
valuation techniques used to measure asset and liability
fair values on a recurring basis. As of October 1, 2011,
the company held no 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
October 1, 2011 (in thousands):
The
following table presents assets measured at fair value by
classification within the fair value hierarchy as of
January 1, 2011 (in thousands):
The
company’s other financial instruments include cash
and cash equivalents, accounts receivable, accounts
payable, current portion of long-term debt, and long-term
debt. Due to their short-term maturity, the carrying
amounts of cash and cash equivalents, accounts receivable,
accounts payable, and current portion of long-term debt
approximate their fair values. The company’s
long-term debt fair value approximates book value at
October 1, 2011 and January 1, 2011, respectively, as the
long-term debt variable interest rates fluctuate along with
market interest rates.
|
Note 13 - Pensions | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] |
13.
Pensions
The
components of net periodic benefit cost for the three and
nine months ended October 1, 2011, compared with the three
and nine months ended October 2, 2010, were (in
thousands):
The
expected rates of return on US pension assets were 8.2% and
8.5% for 2011 and 2010, respectively. The expected rates of
return on foreign pension assets were 4.5% and 1.5% for 2011
and 2010, respectively.
|
Note 4 - Inventories | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Text Block] |
4.
Inventories
The
components of inventories at October 1, 2011 and January 1,
2011 are as follows (in thousands):
|
Note 10 - Restructuring | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] |
10.
Restructuring
During
2006 through 2009, the company announced the closures of its
facilities in Ireland, Irving, Texas, Des Plaines and Elk
Grove, Illinois and Swindon, U.K. In addition, the
company announced a reduction in workforce at its Des
Plaines, Illinois corporate headquarters and restructurings
of its European and Asian operations. The closure
of the Ireland facility is part of the company’s
strategy to expand operations in the Asia-Pacific region in
order to be closer to customers and take advantage of lower
manufacturing costs. This program is complete with
no further payments expected. The closure of the
Irving, Texas and Des Plaines and Elk Grove, Illinois
facilities are part of planned manufacturing transfers from
Irving, Texas to Wuxi, China and Des Plaines and Elk Grove,
Illinois to the Philippines and Mexico. The
European restructuring included the transfer of manufacturing
from Dünsen, Germany to Piedras Negras, Mexico and the
closure of its distribution facility in Utrecht,
Netherlands. The Asian restructuring includes the
closure of its manufacturing facility in Taiwan and a
consolidation of its Asian sales
offices. Together, these initiatives impacted
approximately 946 employees and resulted in restructuring
charges of $30.6 million, with $26.2 million recorded as cost
of sales and $4.4 million as selling, general and
administrative expenses. The total cost expected to be
incurred for these restructuring programs is $53.8
million. The company has incurred $53.8 million
through October 1, 2011.
A
summary of activity of this liability is as follows:
Littelfuse
restructuring (in thousands)
|
Note 15 - Comprehensive Income | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] |
15.
Comprehensive Income
The
following table sets forth the computation of comprehensive
income for the three and nine months ended October 1, 2011
and October 2, 2010, respectively (in thousands):
|
Note 11 - Asset Impairments | 9 Months Ended |
---|---|
Oct. 01, 2011 | |
Asset Impairment Charges [Text Block] |
11.
Asset Impairments
During
the third quarter of 2011, the company recorded asset
impairment charges of approximately $2.3 million within
selling, general and administrative expenses. These charges
resulted from the shut-down of the company’s
manufacturing facility in Dünsen, Germany during the
third quarter of 2011 and continuing declines in the
commercial real estate market affecting the value of the
company’s previously closed manufacturing sites in Des
Plaines, Illinois and Dundalk, Ireland. The charges were
recognized as an “other” charge for segment
reporting purposes. Impairment charges and fair value
measurements related to these facilities were based on
independent broker valuations (market approach) and are
considered Level 3 measurements within the fair value
hierarchy for financial reporting purposes. The carrying
values of the company’s Assets held for sale are $5.3
million for Des Plaines, $0.4 million for Dundalk and $0.9
million for Dünsen as of October 1, 2011.
|
Note 9 - Earnings Per Share | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] |
9.
Earnings Per Share
In
June 2008, the FASB issued authoritative guidance which
states that unvested share-based payment awards that contain
non-forfeitable rights to dividends or dividend equivalents
(whether paid or unpaid) are participating securities and
shall be included in the computation of earnings per share
pursuant to the two-class method.
Effective
December 28, 2008, the company adopted the authoritative
guidance. The company’s unvested share-based payment
awards, such as certain performance shares, restricted shares
and restricted share units that contain non-forfeitable
rights to dividends, meet the criteria of a participating
security. The adoption changed the methodology of computing
the company’s earnings per share
to the two-class method from the treasury stock method. This
change has not affected previously reported earnings per
share, consolidated net earnings or net cash flows from
operations. Under the two-class method, earnings are
allocated between common stock and participating securities.
The presentation of basic and diluted earnings per share is
required only for each class of common stock and not for
participating securities. As such, the company presents basic
and diluted earnings per share for its one class of common
stock.
The
two-class method includes an earnings allocation formula that
determines earnings per share for each class of common stock
according to dividends declared and undistributed earnings
for the period. The company’s reported net earnings is
reduced by the amount allocated to participating securities
to arrive at the earnings allocated to common stock
shareholders for purposes of calculating earnings per
share.
The
dilutive effect of participating securities is calculated
using the more dilutive of the treasury stock or the
two-class method. The company has determined the two-class
method to be the more dilutive. As such, the earnings
allocated to common stock shareholders in the basic earnings
per share calculation is adjusted for the reallocation of
undistributed earnings to participating securities, as
prescribed by the guidance, to arrive at the earnings
allocated to common stock shareholders for calculating the
diluted earnings per share.
The
following table sets forth the computation of basic and
diluted earnings per share under the two-class method:
|
Note 2 - Reclassification and Restatements | 9 Months Ended |
---|---|
Oct. 01, 2011 | |
Reclassifications [Text Block] |
2.
Reclassification and Restatements
Certain
items in the company’s 2010 financial statements have
been reclassified to conform to the company’s 2011
presentation. During the first quarter of 2011, as previously
reported, the company adjusted its business segment reporting
methodology to report results by product line rather than by
sales organization. The company’s total consolidated
revenues and operating income did not change.
|
Note 5 - Investments | 9 Months Ended |
---|---|
Oct. 01, 2011 | |
Equity Method Investments Disclosure [Text Block] |
5.
Investments
Included
in the company’s investments are shares of Polytronics
Technology Corporation Ltd. (“Polytronics”), a
Taiwanese company whose shares are traded on the Taiwan Stock
Exchange. The Polytronics investment was acquired
as part of the Littelfuse GmbH acquisition. The fair value of
the Polytronics investment was €6.8 million
(approximately $9.2 million) at October 1, 2011 and
€8.8 million (approximately $11.7 million) at January
1, 2011, based on the quoted market price at the close of
business corresponding to each date. Included in Other
Comprehensive Income (Loss) was an unrealized loss of $2.8
million, due to the decrease in fair market value for the
nine months ended October 1, 2011.
The remaining
difference in fair market value of this investment was due to
the impact of changes in exchange rates, which is included as
a component of the currency translation adjustments of
“Other Comprehensive Income
(Loss)”.
On
July 8, 2011, the company invested $3.0 million in certain
preferred stock of Shocking Technologies, Inc., a research
and development company in the electronics industry located
in San Jose, California. Shocking Technologies, Inc. is a
developer of circuit protection products for the computer and
telecommunication markets. The company has accounted for its
investment in Shocking Technologies, Inc., at cost.
|
Note 6 - Debt | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] |
6.
Debt
The
carrying amounts of long-term debt at October 1, 2011 and
January 1, 2011 are as follows (in thousands):
On
June 13, 2011, the company entered into a new credit
agreement with certain commercial banks that provides an
unsecured revolving credit facility in an amount of up to
$150.0 million, with a potential to increase up to $225.0
million. At October 1, 2011, the company had available $56.4
million of borrowing capacity under the revolver credit
agreement at an interest rate of LIBOR plus 1.250% (1.49% as
of October 1, 2011). The credit agreement replaces the
company’s previous credit agreement dated July 21, 2006
and loan agreement dated September 29, 2008, and, unless
terminated earlier, will terminate on June 13, 2016. During
the second quarter of 2011, $0.2 million of non-cash
previously capitalized debt issuance costs were written off
and $0.7 million of new debt issuance costs incurred was
capitalized and will be amortized over the life of
the new credit agreement.
During
the second quarter of 2011, as part of the new refinancing
arrangement discussed above, $47.0 million of indebtedness
that was due on the previous term loan was settled and
rolled-over into the revolving credit facility by the
lender.
|
Note 14 - Business Unit Segment Information | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] |
14.
Business Unit Segment Information
The
company and its subsidiaries design, manufacture and sell
circuit protection devices throughout the world. The company
reports its operations by the following business unit
segments: Electronics, Automotive, and Electrical. Each
operating segment is directly responsible for sales,
marketing and research and development. Manufacturing,
purchasing, logistics, customer service, finance, information
technology and human resources are shared functions that are
allocated back to the three operating segments. The CEO
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. All other functions are
shared by the operating segments and expenses for these
shared functions are allocated to the operating segments and
included in the operating results reported below. The company
does not report inter-segment revenue because the operating
segments do not record it. The company does not allocate
interest and other income, interest expense, or taxes to
operating segments. Although the CEO 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.
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”).
During
the first quarter of 2011, as previously reported, the
company adjusted its business segment reporting methodology
to report results by product line rather than by sales
organization. The company’s total consolidated revenues
and operating income did not change.
Business
unit segment information for the three and nine months ended
October 1, 2011 and October 2, 2010 are summarized as follows
(in thousands):
(a)
Included in “Other” operating income
for the three and nine months ended October 1, 2011 are asset
impairment charges of $2.3 million, as discussed in Note 11.
Included in “Other” operating income for the nine
months ended October 1, 2011 are acquisition related fees of
$1.0 million and a non-cash charge of $3.7 million for the
sale of inventory that had been stepped-up to fair value at
the acquisition date of Cole Hersee in 2010 as required by
purchase accounting rules. As the inventory was sold, the
non-cash charge impacted operating
income. Included in “Other” operating
income for the three and nine months ended October
2, 2010 are asset impairment charges of $3.0 million.
The
company’s net sales by geographical area for the three
and nine months ended October 1, 2011 and October 2, 2010 are
summarized as follows (in thousands):
The
company’s long-lived assets (net property, plant and
equipment) by geographical area as of October 1, 2011 and
January 1, 2011 are summarized as follows (in
thousands):
|
Note 7 - Financial Instruments and Risk Management | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
7.
Financial Instruments and Risk Management
Occasionally,
the company uses financial instruments to manage its
exposures to movements in commodity prices, foreign exchange
and interest rates. The use of these financial instruments
modifies the company’s exposure to these risks with the
goal of reducing the risk or cost to the company. The company
does not use derivatives for trading purposes and is not a
party to leveraged derivative contracts.
The
company recognizes all derivative instruments as either
assets or liabilities at fair value in the Condensed
Consolidated Balance Sheets. The fair value is based upon
either market quotes for actively traded instruments or
independent bids for non-exchange traded instruments. The
company formally documents its hedge relationships, including
identifying the hedging instruments and the hedged items, as
well as its risk management objectives and strategies for
undertaking the hedge transaction. This process includes
linking derivatives that are designated as hedges of specific
assets, liabilities, firm commitments or forecasted
transactions to the hedged risk. On the date the derivative
is entered into, the company designates the derivative as a
fair value hedge, cash flow hedge or a net investment hedge,
and accounts for the derivative in accordance with its
designation. The company also formally assesses, both at
inception and at least quarterly thereafter, whether the
derivatives are highly effective in offsetting changes in
either the fair value or cash flows of the hedged item. If it
is determined that a derivative ceases to be a highly
effective hedge, or if the anticipated transaction is no
longer likely to occur, the company discontinues hedge
accounting, and any deferred gains or losses are recorded in
the respective measurement period. At October 1, 2011, the
company does not have any outstanding derivative
instruments.
Cash
Flow Hedges
A
hedge of a forecasted transaction or of the variability of
cash flows to be received or paid related to a recognized
asset or liability is designated as a cash flow hedge. The
effective portion of the change in the fair value of a
derivative that is designated as a cash flow hedge is
recorded in “Other Comprehensive Income (Loss).”
When the impact of the hedged item is recognized in the
income statement, the gain or loss included in Other
Comprehensive Income (Loss) is reported on the same line in
the Consolidated Statements of Income as the hedged item. The
company’s cash flow hedges expired during the second
quarter ended July 3, 2010.
Net
Derivative Gain or Loss
The
effect of cash flow hedge derivative instruments on the
Consolidated Statements of Income and Other Comprehensive
Income (Loss) is as follows (in thousands):
Derivative
Transactions
There
were no unrealized gains or losses included in Accumulated
Other Comprehensive Income (Loss) at October 1, 2011 and
January 1, 2011, respectively.
|
Note 17 - Recent Accounting Pronouncements | 9 Months Ended |
---|---|
Oct. 01, 2011 | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] |
17.
Recent Accounting Pronouncements
In
May, 2011, the Financial Accounting Standards Board
(“FASB”) issued authoritative guidance that
provides a consistent definition of fair value and ensures
that the fair value measurement and disclosure requirements
are similar between U.S. GAAP and International Financial
Reporting Standards. The new guidance changes certain fair
value measurement principles and enhances the disclosure
requirements particularly for Level 3 fair value
measurements. The new guidance will be effective for the
company as of January 1, 2012 and will be applied
prospectively. The company is evaluating the
impact of adopting the new guidance but currently believes
there will be no significant impact on its consolidated
financial statements.
In
June 2011, the FASB issued authoritative guidance
that will require companies to present the components of net
income and other comprehensive income either as one
continuous statement or as two consecutive statements. It
eliminates the option to present components of other
comprehensive income as part of the statement of changes in
stockholders’ equity. The guidance does not change the
items which must be reported in other comprehensive income,
how such items are measured or when they must be reclassified
to net income. This guidance is effective for interim and
annual periods beginning after December 15, 2011. Because
this guidance impacts presentation only, it will have no
effect on the company’s consolidated financial
statements.
In
September 2011, the FASB issued authoritative guidance on
testing goodwill for impairment. Under the revised
guidance, entities testing goodwill for impairment have the
option of performing a qualitative assessment before
calculating the fair value of the reporting unit (i.e.,
step 1 of the goodwill impairment test). If entities
determine, on the basis of qualitative factors, that
the fair value of the reporting unit is more likely than
not less than the carrying amount, the two-step impairment
test would be required. The guidance does not change how
goodwill is calculated or assigned to reporting units, nor
does it revise the requirement to test goodwill annually
for impairment. In addition, the guidance does not amend
the requirement to test goodwill for impairment between
annual tests if events or circumstances warrant; however,
it does revise the examples of events and circumstances
that an entity should consider. The amendments are
effective for annual and interim goodwill impairment tests
performed for fiscal years beginning after December 15,
2011. Early adoption is permitted. The
company is evaluating the impact of adopting the
new guidance but currently believes there will be no
significant impact on its consolidated financial
statements.
|
Note 1 - Basis of Presentation | 9 Months Ended |
---|---|
Oct. 01, 2011 | |
Basis of Accounting [Text Block] |
1.
Basis of Presentation
The
accompanying unaudited Condensed Consolidated Financial
Statements of Littelfuse, Inc. and its subsidiaries (the
“company”) have been prepared in accordance with
U.S. Generally
Accepted Accounting Principles (GAAP) for interim
financial information. Accordingly, certain information and
disclosures normally included in the statement of financial
information, results of operations and cash flows prepared in
conformity with U.S. GAAP have been condensed or omitted as
permitted by such rules and regulations. In the opinion of
management, all adjustments considered necessary for a fair
presentation have been included. Operating results for the
periods ended October 1, 2011 are not necessarily indicative
of the results that may be expected for the year ending
December 31, 2011. For further information, refer to the
company’s consolidated financial statements and the
notes thereto incorporated by reference in the
company’s Annual Report on Form 10-K for the year ended
January 1, 2011. The company evaluated subsequent events
through the date of its financial statements when filed with
the Securities and Exchange Commission
(“SEC”).
|
S$GP:]M^*>A0]J_N'+@+
M33/9G\[H'#AZ4;F\*"ZG;1&.\(PV>E%YM`BA@E!1#2I*G9A&K%R.]2!65,9*
MS;EEQ(H\>H180:RHAA6E3A&?!U8.,978Q4;"'8[*EZN%&P^?GC8RH$T3ANK-
M%F).CU:2P9P>%Y+3X_E8H2!?QIP>F)M(%F-$CETRQW0#LZPAR<[#')%DETPR
M8S1`DB')SL( :^7C(K(X
MWOB1Z0H113:W:38-@15:)!%KRWG%58>.$4!FQ/;C6Y>&_II[KO@#\.7(HG++.^(A'
M%?=')P*XS.-0`-&B13WGP8P?APS5+_8;4_!A-;$`$2L6A7IW:6OZJ538)R&0
ML/I)?OYB+-S0M-.<0MT?:IZOGZ,\PJXNL6JTG-N9#*M9:Z7:NM4JW>?1S]="
MO&$)-#[[!X.;M]2B2\9Q8\)`WF_>97FPW5M/4@"CTO\*3M#M.#O
&MA&?E]KL8
MG&Y%^[`[UW]V2XB?K
)'J$/R-OD(6-DO(*:>!KYA09+)B4[^2X47W8(
M0A'SYC$R.%[,GK.IQ?HW9._(E;$N!*J\I('E@&`""O\#Z&+36TLS^`.LPIS/
M*5`K>3]S'S%-VUJNC*#I9!70>\>/0^@GACL07;']H1,E%7M;EO47UV25UL@'
MUGF^$_)FO84AENG^`7\-@*B>S;MKK1L/-*C4BJG8G>?\FRL9E$&R^AG]5SZT
M(EC_KK]*"R)S'X9W]([I754G`[KR`RZ051RL?*XS'ZIZRFH[AS\F(JL6LZ0F
MHS_'#0D2]T`BGPD6U"_5"R=M%+DUF>Q\KR@CQ[,IJ*W-WGL;^'_0Y&TFWR]"
MGF<]R,S%M!8O$KU?BVC3;U[HV/`6FWRD]]0E@V+E$IOBW;^M00L';"NP%H]<
M?'/'@V%4HE-5>?%.,X/@<0V.33F\^'"+/26X#LF"NG;25:9+6;O(LU%O()!T
MR@;V55"SC68]Z_>&Q4\3[>)R@@]G#645[96I%U2Z-#;L;0W,:[S))HYH"``$
M(<,'#T1&;\SO@@A#X7BALV#!*`<+B8`)2)ABG+!+G'!3=1DT<2[@?R/S>[*J
MPBR+.9=U("_T<14G]F"&FT?T66_REP0=04)5X+[@75#80._U_T(22*[E:6=>+8?YVLS@ML5Q,UGBEJ#V*+LZHNZ
MH/0TG;G3GH/W*7=ON*_]C1.V9BQ#R#M&WJ;]"=7^.,!1I'U&
75M^U^1R(1!-^#O1'](&DTY<;
MJ+/U!#:KF:"IO=9PM@JRE,LKP)
(,G**BR(+>*/*A*731/):J<;`^UPA]!"_08H$LMR&YY/PU
M2:OWL+S_H=UN_??A\V\G__OO[_K2>7ZT3L^,;V]6L\>-==]WUM=O\-F;3Z_^
MO+_;$//-2O_6-7^QW]Y?W(R,Q_^8)Z?6[T_#B_Y@
+B$KG8/5ESL%AJ$#-3+FB:-I.\,'Q(907M?/.-5@]DU15\C"HG3$:M!-;&J5E)4JJA44:FBTG*I=.09
MVK.,H3T'>(2(C8$-L6N8?WY*6
J3N;,8;,B^N@8%,&XZ"C@T-`]!*
MO4;I`P&"\(I`'$*=&O#=VBD>M419JB%Q0R=\J(1(#KP*;"W&UIZ