Selling, general and administrative

$ 282,084

^[1]

$ 269,654

^[1]

$ 316,629

Cost and expenses:

Cost of sales

187,256

180,616

210,657

Research and development

34,841

33,107

36,018

54,322

51,170

50,551

Gain on sale of facility

(3,198)

276,419

261,695

297,226

Income from operations

5,665

7,959

19,403

Interest income

342

Income from continuing operations before taxes

6,007

8,003

19,433

Income tax provision

2,747

2,211

4,653

Income from continuing operations

3,260

^[1],[2]

5,792

^[1]

14,780

Loss from discontinued operations, net of tax

(221)

(5,542)

(6,072)

Income from continuing operations (in dollars per share)

$ 3,039

^[1],[2]

$ 250

^[1]

$ 8,708

Basic:

$ 0.12

^[1],[2],[3]

$ 0.22

^[1],[3]

$ 0.58

Loss from discontinued operations (in dollars per share)

(0.01)

(0.21)

(0.24)

Net income (in dollars per share)

0.11

^[1],[2],[3]

0.01

^[1],[3]

0.34

Diluted:

Income from continuing operations (in dollars per share)

0.12

^[1],[2]

0.22

^[1]

0.57

Loss from discontinued operations (in dollars per share)

(0.01)

(0.21)

(0.24)

Net income (in dollars per share)

$ 0.11

^[1],[2]

$ 0.01

^[1]

$ 0.33

Weighted average shares used in computing income (loss) per share:

Basic (in shares)

26,659

26,057

25,393

Diluted (in shares)

27,480

26,788

26,006

[1]	All quarters presented above were comprised of 13 weeks, except for the fourth quarter ended December 31, 2016 which was comprised of 14 weeks.
[2]	As a result of the adoption of ASU 2016-09, in the fourth quarter of 2016, certain amounts in the first three quarters have been restated as if the new accounting guidance was adopted starting with the first day of our 2016 fiscal year. The impact of these restatements was not significant.
[3]	The sum of the four quarters may not agree to the year total due to rounding within a quarter and the inclusion or exclusion of common stock equivalents.

Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Other comprehensive loss, net of tax

$ 3,039

^[1],[2]

$ 250

^[1]

$ 8,708

Foreign currency translation adjustments, net of tax

(5,789)

(11,000)

(14,107)

(316)

(58)

(3,258)

Change in unrealized gain/loss on investments

(5)

Other comprehensive loss, net of tax

(6,110)

(11,058)

(17,365)

Comprehensive loss

$ (3,071)

$ (10,808)

$ (8,657)

[1]	All quarters presented above were comprised of 13 weeks, except for the fourth quarter ended December 31, 2016 which was comprised of 14 weeks.
[2]	As a result of the adoption of ASU 2016-09, in the fourth quarter of 2016, certain amounts in the first three quarters have been restated as if the new accounting guidance was adopted starting with the first day of our 2016 fiscal year. The impact of these restatements was not significant.

Consolidated Statements of Stockholders' Equity - USD ($)

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

Total

Balance at Dec. 28, 2013

$ 25,080,000

$ 89,883,000

$ 131,546,000

$ 6,651,000

$ 253,160,000

Changes in cumulative translation adjustment

8,708,000

(14,107,000)

(3,258,000)

Cash dividends - $0.24 per share

(6,102,000)

Exercise of stock options

237,000

1,764,000

2,001,000

Shares issued under employee stock purchase plan

139,000

1,001,000

1,140,000

Shares issued for restricted stock units vested

353,000

(353,000)

Repurchase and retirement of stock

(117,000)

(1,133,000)

(1,250,000)

Change in unrealized gain/loss on investments, net of tax

6,776,000

Balance at Dec. 27, 2014

25,692,000

97,938,000

134,152,000

(10,714,000)

247,068,000

Changes in cumulative translation adjustment

250,000

^[1]

(11,000,000)

(58,000)

Cash dividends - $0.24 per share

(6,249,000)

Exercise of stock options

175,000

1,335,000

1,510,000

Shares issued under employee stock purchase plan

123,000

977,000

1,100,000

Shares issued for restricted stock units vested

377,000

(377,000)

Repurchase and retirement of stock

(127,000)

(1,250,000)

(1,377,000)

Change in unrealized gain/loss on investments, net of tax

6,893,000

Balance at Dec. 26, 2015

26,240,000

105,516,000

128,153,000

(21,772,000)

238,137,000

Changes in cumulative translation adjustment

3,039,000

^[1],[2]

(5,789,000)

(316,000)

Cash dividends - $0.24 per share

(6,384,000)

Exercise of stock options

101,000

694,000

795,000

Shares issued under employee stock purchase plan

111,000

959,000

1,070,000

Shares issued for restricted stock units vested

581,000

(581,000)

Repurchase and retirement of stock

(191,000)

(2,030,000)

(2,221,000)

Change in unrealized gain/loss on investments, net of tax

7,143,000

Balance at Dec. 31, 2016

26,842,000

111,950,000

124,559,000

(27,882,000)

235,469,000

$ (5,000)

(5,000)

Cumulative effect of accounting change (a) | Adjustments for New Accounting Principle, Early Adoption [Member]

$ 249,000

^[3]

$ (249,000)

$ 200,000

[1]	All quarters presented above were comprised of 13 weeks, except for the fourth quarter ended December 31, 2016 which was comprised of 14 weeks.
[2]	As a result of the adoption of ASU 2016-09, in the fourth quarter of 2016, certain amounts in the first three quarters have been restated as if the new accounting guidance was adopted starting with the first day of our 2016 fiscal year. The impact of these restatements was not significant.
[3]	Cumulative effect of accounting change relates to our adoption of ASU 2016-09. Please refer to Note 1 of the Consolidated Financial Statements for further detail on the adoption of this accounting standard.

Consolidated Statements of Cash Flows
$ in Thousands

12 Months Ended

Dec. 31, 2016

USD ($)

Dec. 26, 2015

USD ($)

Dec. 27, 2014

USD ($)

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

$ 3,039

^[1],[2]

$ 250

^[1]

$ 8,708

Gain on sale of facility

(3,198)

Operating cash flows of discontinued operations

(1,039)

9,466

Depreciation and amortization

10,412

11,273

12,607

Loss on disposal and impairment of fixed assets

7,143

6,755

6,388

Accrued retiree benefits

672

2,185

787

Deferred income taxes

(1,065)

222

832

Other assets

415

(326)

311

Other accrued liabilities

162

127

Changes in current assets and liabilities, excluding effects from acquisitions and divestitures:

Accounts receivable

(4,617)

8,970

(18,656)

Inventories

4,608

(5,743)

(3,401)

Accrued compensation, warranty and other liabilities

(1,544)

(3,740)

6,218

Accounts payable

5,678

3,376

139

Deferred profit

3,309

(3,108)

2,181

Other current assets

(1,959)

2,420

(1,294)

Income taxes payable

(1,957)

(828)

137

Net cash provided by operating activities

24,548

21,480

19,678

Cash flows from investing activities, excluding effects from acquisitions and divestitures:

Purchases of short-term investments

(50,568)

(656)

(1,000)

Sales and maturities of short-term investments

20,230

155

1,045

Net cash received from sale of facility and assets

874

33,314

Purchases of property, plant and equipment

(3,452)

(6,586)

(1,457)

Investing cash flows of discontinued operations

(74)

(209)

Net cash provided by (used in) investing activities

(32,916)

31,034

8,637

Cash flows from financing activities:

Cash dividends paid

(6,351)

(6,215)

(6,067)

Net cash provided by (used in) issuance of common stock through employee equity incentive plans

(356)

1,233

1,891

Net cash used in financing activities

(6,707)

(4,982)

(4,176)

Effect of exchange rate changes on cash and cash equivalents

(4,250)

(3,047)

(4,922)

Net increase (decrease) in cash and cash equivalents

(19,325)

44,485

19,217

Cash and cash equivalents at beginning of year

115,370

70,885

51,668

Cash and cash equivalents at end of year

96,045

115,370

70,885

Supplemental disclosure of cash flow information:

Cash paid (refunded) during the year for income taxes

6,808

(253)

971

Inventory capitalized as capital assets

201

315

1,166

Dividends declared but not yet paid

1,606

1,573

1,539

Capitalized facility under build-to-suit lease

682

Broadcast Microwave Services, Inc. (“BMS”) [Member]

Adjustments to reconcile net income to net cash provided by operating activities:

Gain (loss) on disposal of segment

221

3,573

Cash flows from investing activities, excluding effects from acquisitions and divestitures:

Net cash received from sale of segment

4,881

Cohu Electronics [Member]

Adjustments to reconcile net income to net cash provided by operating activities:

Gain (loss) on disposal of segment

(4,434)

Cash flows from investing activities, excluding effects from acquisitions and divestitures:

Net cash received from sale of segment

$ 10,258

[1]	All quarters presented above were comprised of 13 weeks, except for the fourth quarter ended December 31, 2016 which was comprised of 14 weeks.
[2]	As a result of the adoption of ASU 2016-09, in the fourth quarter of 2016, certain amounts in the first three quarters have been restated as if the new accounting guidance was adopted starting with the first day of our 2016 fiscal year. The impact of these restatements was not significant.

Note 1 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Significant Accounting Policies [Text Block]

1.	Summary of Significant Accounting Policies

Basis of Presentation

– Cohu, Inc. (“Cohu”, “we”, “our” and “us”), through our wholly owned subsidiaries, is a provider of semiconductor test equipment. Our Consolidated Financial Statements include the accounts of Cohu and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

Our current fiscal year which ended on

December

31,

2016

consisted of

weeks. Our fiscal years ending on

December

26,

2015

and

December

27,

2014

each consisted of

weeks.

Discontinued Operations

– On

June

10,

2015,

we sold our mobile microwave communications equipment business, Broadcast Microwave Services, Inc. (“BMS”) and on

June

2014,

we completed the sale of our video camera business, Cohu Electronics. The operating results of BMS and Cohu Electronics are being presented as discontinued operations and all prior period amounts have been reclassified accordingly. See Note

“Discontinued Operations

” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

Income (Loss

) Per Share

– Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded.

For the years ended

December

31,

2016,

December

26,

2015

and

December

27,

2014

approximately

697,000,

875,000

and

1,771,000

shares of our common stock were excluded from the computation, respectively.

The following table reconciles the denominators used in computing basic and diluted income (loss) per share

(in thousands)	2016		2015		2014
Weighted average common shares outstanding		26,659		26,057		25,393
Effect of dilutive stock options and restricted stock units		821		731		613
		27,480		26,788		26,006

Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories.

Cash, Cash Equivalents and Short-term Investments

– Highly liquid investments with insignificant interest rate risk and original maturities of

three

months or less are classified as cash and cash equivalents. Investments with maturities greater than

three

months are classified as short-term investments. All of our short-term investments are classified as available-for-sale and are reported at fair value, with any unrealized gains and losses, net of tax, recorded in the statement of comprehensive loss. We manage our cash equivalents and short-term investments as a single portfolio of highly marketable securities. We have the ability and intent, if necessary, to liquidate any of our investments in order to meet the liquidity needs of our current operations during the next

months. Accordingly, investments with contractual maturities greater than

one

year have been classified as current assets in the accompanying consolidated balance sheets.

Fair Value of Financial Instruments

– The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value due to the short maturities of these financial instruments.

Concentration of Credit Risk

– Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any

one

issuer.

Trade accounts receivable are presented net of allowance for doubtful accounts of

$0.1

million at

December

31,

2016

and

$0.1

million at

December

26,

2015.

Our customers primarily include semiconductor manufacturers and semiconductor test subcontractors located throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate of potential loss exposure at

December

31,

2016,

we will continue to monitor customer liquidity and other economic conditions, which

may

result in changes to our estimates regarding collectability.

Inventories

– Inventories are stated at the lower of cost, determined on a

first

-in,

first

-out basis, or market. Cost includes labor, material and overhead costs. Determining market value of inventories involves numerous estimates and judgments including projecting average selling prices and sales volumes for future periods and costs to complete and dispose of inventory. As a result of these analyses, we record a charge to cost of sales in advance of the period when the inventory is sold when estimated market values are below our costs. Charges to cost of sales for excess and obsolete inventories aggregated

$1.1

million,

$2.4

million, and

$2.6

million in

2016,

2015

and

2014,

respectively.

Property, Plant and Equipment

– Depreciation and amortization of property, plant and equipment is calculated principally on the straight-line method based on estimated useful lives of

thirty

forty

years for buildings,

five

fifteen

years for building improvements and

three

ten

years for machinery, equipment and software. Land is not depreciated.

Property, plant and equipment, at cost, consisted of the following

(in thousands)

	December 31,			December 26,
	2016			2015
Land and land improvements	$	4,079		$	4,607
Buildings and building improvements		7,967			8,971
Machinery and equipment		35,157			31,888
		47,203			45,466
Less accumulated depreciation and amortization		(28,969	)		(26,466	)
Property, plant and equipment, net	$	18,234		$	19,000

Depreciation expense was

$3.5

million in

2016,

$4.2

million in

2015

and

$4.8

million

2014.

Segment Information

– We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”),

which sets forth a management approach to segment reporting and establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker and for which discrete financial information is available. Based on the provisions of ASC

280,

we have determined that our identified operating segments qualify for aggregation under ASC

280

due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in

one

segment, semiconductor equipment.

Goodwill, Purchased Intangible Assets and Other Long-lived Assets

–

We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value

may

not be recoverable. We test goodwill for impairment by

first

comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a

second

step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimated the fair values of our reporting units primarily using the income approach valuation methodology that includes the discounted cash flow method, taking into consideration the market approach and certain market multiples as a validation of the values derived using the discounted cash flow methodology. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on customer forecasts, industry trade organization data and general economic conditions.

We conduct our annual impairment test as of

October

1st

of each year, and determined there was

impairment as of

October

2016

as we determined that the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances

may

also require goodwill to be tested for impairment between annual measurement dates. As of

December

31,

2016

we do not believe there have been any events or circumstances that would require us to perform an interim goodwill impairment review. In the event we determine that an interim goodwill impairment review is required, in a future period, the review

may

result in an impairment charge, which would have a negative impact on our results of operations.

Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets

may

not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and estimated fair value.

Product Warranty

– Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from

- to

-months. Parts and labor are typically covered under the terms of the warranty agreement. Our warranty expense accruals are based on historical and estimated costs by product and configuration. From time-to-time we offer customers extended warranties beyond the standard warranty period. In those situations the revenue relating to the extended warranty is deferred at its estimated fair value and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred.

Income Taxes

– We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting dates. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than

percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized and recorded, net of federal and state tax benefits, in income tax expense.

Contingencies and Litigation

– We assess the probability of adverse judgments in connection with current and threatened litigation. We would accrue the cost of an adverse judgment if, in our estimation, the adverse outcome is probable and we can reasonably estimate the ultimate cost.

Revenue Recognition

– Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when there is persuasive evidence of an arrangement, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to our customers upon shipment. In circumstances where either title or risk of loss pass upon destination or acceptance, we defer revenue recognition until such events occur.

Revenue for established products that have previously satisfied a customer’s acceptance requirements and provide for full payment tied to shipment is generally recognized upon shipment and passage of title. In certain instances, customer payment terms

may

provide that a minority portion (e.g. up to

20%)

of the equipment purchase price be paid only upon customer acceptance. In those situations, the majority portion (e.g.

80%)

of revenue where the contingent payment is tied to shipment and the entire product cost of sale are recognized upon shipment and passage of title and the minority portion of the purchase price related to customer acceptance is deferred and recognized upon receipt of customer acceptance. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not determinable and in the case of new products, revenue is deferred until customer acceptance has been received. Our post-shipment obligations typically include installation and standard warranties. The estimated fair value of installation related revenue is recognized in the period the installation is performed. Service revenue is recognized ratably over the period of the related contract or upon completion of the services if they are short-term in nature. Spares and kit revenue is generally recognized upon shipment.

Certain of our equipment sales are accounted for as multiple-element arrangements. A multiple-element arrangement is a transaction which

may

involve the delivery or performance of multiple products, services, or rights to use assets, and performance

may

occur at different points in time or over different periods of time. For arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. We limit the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment.

On shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. In certain instances where customer payments are received prior to product shipment, the customer’s payments are recorded as customer advances. At

December

31,

2016,

we had total deferred revenue of approximately

$9.3

million and deferred profit of

$6.9

million. At

December

26,

2015,

we had total deferred revenue of approximately

$5.0

million and deferred profit of

$3.7

million.

Advertising Costs

– Advertising costs are expensed as incurred and were not material for all periods presented.

Share-based Compensation

– We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options), future forfeitures and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results.

Foreign Currency Translation

– Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. Certain of our foreign subsidiaries have designated the local currency as their functional currency and, as a result, their assets and liabilities are translated at the rate of exchange at the balance sheet date, while revenue and expenses are translated using the average exchange rate for the period. During the years ended

December

31,

2016,

December

26,

2015

and

December

27,

2014

we recognized approximately

$2.6

million

$1.4

million and

$2.0

million, respectively, of foreign exchange gains that are included in our consolidated statement of income. Cumulative translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity.

Comprehensive Loss

– Our accumulated other comprehensive loss totaled approximately

$27.9

million at

December

31,

2016

and

$21.8

million at

December

26,

2015

and was attributed to, net of income taxes where applicable: foreign currency adjustments resulting from the translation of certain accounts into U.S. Dollars, unrealized losses and gains on investments and adjustments to accumulated postretirement benefit obligations. The U.S. Dollar strengthened relative to certain foreign currencies in countries where we have operations as of

December

31,

2016

compared to

December

26,

2015.

Consequently, our comprehensive loss increased by

$5.8

million as a result of the foreign currency translation. In the previous year, strengthening of the U.S. Dollar led to an increase in our comprehensive loss of

$11.0

million. Additional information related to accumulated other comprehensive loss, on an after-tax basis is included in Note

11.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements –

March

2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

09,

Compensation - Stock Compensation (Topic

718):

Improvements to Employee Share-Based Payment Accounting

(ASU

2016

09).

While the effective date of ASU

2016

is for fiscal years beginning after

December

15,

2016,

earlier adoption is permitted and we adopted the amendments in ASU

2016

during the

fourth

quarter of fiscal

2016.

This standard simplifies or clarifies several aspects of the accounting for equity-based payment awards, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Certain of these changes are required to be applied retrospectively, while other changes are required to be applied prospectively.

The impact of the adoption of ASU

2016

resulted in the following:

●

We elected to eliminate the use of an estimated forfeiture rate and recognize actual forfeitures as they occur. We adopted this amendment on a modified retrospective basis and, as a result, we recorded a

$0.2

million cumulative effect adjustment to retained earnings at

December

27,

2015,

the

first

day of our fiscal

2016.

●

We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended

December

31,

2016.

The effect of this change on our diluted earnings per share was not significant.

Recently Issued Accounting Pronouncements

– In

January

2017,

the FASB issued ASU No.

2017

04,

Simplifying the Test for Goodwill Impairment

. It eliminates Step

from the goodwill impairment test and an entity should recognize an impairment charge for the amount by which the carrying amount of goodwill exceeds the reporting unit's fair value, not to exceed the carrying amount of goodwill. This guidance is effective for annual and any interim impairment tests in fiscal years beginning after

December

15,

2019.

We do not expect this guidance to have any impact on our Consolidated Financial Statements.

January

2017,

the FASB issued ASU No.

2017

01,

Clarifying the Definition of a Business.

It revises the definition of a business and provides a framework to evaluate when an input and a substantive process are present in an acquisition to be considered a business. This guidance is effective for annual periods beginning after

December

15,

2017.

We do not expect this guidance to have any impact on our Consolidated Financial Statements.

November

2016,

the FASB issued ASU No.

2016

18,

Restricted Cash.

It requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after

December

15,

2017.

We do not expect this guidance to have a material impact on our Consolidated Financial Statements.

August

2016,

the FASB issued ASU No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments.

It provides guidance on

eight

specific cash flow issues with the objective of reducing the existing diversity in practice in how they are classified in the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after

December

15,

2017.

Early adoption is permitted, provided that all of the amendments are adopted in the same period. We do not expect this guidance to have a material impact on our Consolidated Financial Statements.

February

2016,

the FASB issued ASU No.

2016

02,

Leases (Topic

842).

Under this guidance, lessees will be required to recognize a right-of-use asset and a lease liability for all operating leases defined under previous GAAP. This guidance is effective for interim and annual reporting periods beginning after

December

15,

2018.

The new guidance must be adopted using a modified retrospective transition, and provides for certain practical expedients. We are currently evaluating the impact of this new standard on our financial reporting, but recognizing the lease liabilities and related right-of-use assets will impact our balance sheet.

July

2015,

the FASB issued ASU No.

2015

11,

Simplifying the Measurement of Inventory

. Under this guidance, inventory should be measured at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. This guidance is effective for interim and annual reporting periods beginning after

December

15,

2016.

We do not expect this guidance to have a material impact on our Consolidated Financial Statements.

May

2014,

the FASB issued Accounting Standards Update No.

2014

09,

Revenue from Contracts with Customers (Topic

606)

(ASU

2014

09),

which amends the existing accounting standards for revenue recognition. In

August

2015,

the FASB issued ASU No.

2015

14,

Revenue from Contracts with Customers (Topic

606):

Deferral of the Effective Date

, which delays the effective date of ASU

2014

one

year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In

March

2016,

the FASB issued Accounting Standards Update No.

2016

08,

Revenue from Contracts with Customers (Topic

606):

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

(ASU

2016

08)

which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The new revenue recognition standard will be effective for us in the

first

quarter of

2018,

with the option to adopt it in the

first

quarter of

2017.

We will adopt the new standard effective

December

31,

2017,

which is the

first

day of our

2018

fiscal year. The new standard also permits

two

methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). We currently anticipate adopting the standard using the modified retrospective method. We are still in the process of completing our analysis on the impact this guidance will have on our Consolidated Financial Statements and related disclosures.

Note 2 - Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Text Block]

2.	Subsequent Events

January

2017,

we completed the acquisition of all of the outstanding share capital of Kita Manufacturing Co., LTD. and Kita USA, Inc. (together “Kita”) (the “Acquisition”), pursuant to a Share Purchase Agreement dated

November

15,

2016,

by and among Kita and its shareholders, Rasco GmbH, a wholly owned subsidiary of the Company and Cohu (the “Purchase Agreement”). Kita, headquartered in Osaka, Japan, and with operations in Attleboro, Massachusetts and Kyoto, Japan, designs, manufactures and sells spring probe contacts used in final test contactors, probe cards, PCB test boards and connectors sold to customers worldwide. The aggregate purchase price was approximately

$21.1

million, comprised of an initial cash payment of

$15.0

million and the assumption of operating and expansion debt totaling approximately

$6.1

million, net of cash acquired. To the extent actual working capital and net debt as of the closing is later determined to be different than the estimates, the purchase price will be adjusted accordingly. The Purchase Agreement also provides for up to

$3.0

million of contingent earn-out cash payments based on certain growth targets for revenue and profitability. In connection with the Acquisition, we incurred approximately

$1.8

million in acquisition related costs, which were expensed as selling, general and administrative costs during the year ended

December

31,

2016.

Note 3 - Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Text Block]

3.	Goodwill and Purchased Intangible Assets

Changes in the carrying value of goodwill during the years ended

December

31,

2016

and

December

26,

2015

were as follows

(

in thousands

)

	Total Goodwill
Balance December 27, 2014	$	63,132
Impact of currency exchange		(2,868	)
Balance December 26, 2015		60,264
Impact of currency exchange		(1,415	)
Balance December 31, 2016	$	58,849

Purchased intangible assets, subject to amortization, are as follows

(in thousands)

	December 31, 2016						December 26, 2015
					Remaining
	Gross Carrying		Accumulated		Useful Life		Gross Carrying		Accumulated
	Amount		Amortization		(years)		Amount		Amortization
Rasco technology	$	25,785	$	25,785		-	$	26,904	$	23,776
Ismeca technology		26,191		13,241		4.0		27,043		10,329
Trade names		5,353		468		13.7		5,547		92
	$	57,329	$	39,494			$	59,494	$	34,197

Changes in the carrying values of purchased intangible assets presented above are a result of the impact of fluctuation in currency exchange rates.

Amortization expense related to purchased intangible assets was approximately

$6.9

million in

2016,

$7.0

million in

2015

and

$7.8

million in

2014.

As of

December

31,

2016,

we expect amortization expense in future periods to be as follows:

2017

$3.6

million;

2018

$3.6

million;

2019

$3.6

million;

2020

$3.5

million

2021

$0.4

million; and thereafter

$3.1

million.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Note 4 - Discontinued Operations

12 Months Ended

Dec. 31, 2016

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4.	Discontinued Operations

2015,

we sold all of the outstanding stock of BMS for

$4.9

million in cash and up to

$2.5

million of contingent cash consideration. In

2014,

we sold substantially all the assets of our video camera business, Cohu Electronics for

$10.3

million comprised of

$9.5

million in cash,

$0.5

million in contingent consideration and a working capital adjustment. Our decision to sell these

two

non-core businesses resulted from management’s determination that they were no longer a strategic fit within our organization.

As part of the divestiture of BMS we recorded a long-term contingent consideration receivable that has been classified as Level

in the fair value hierarchy. See Note

“Financial Instruments Measured at Fair Value” for additional information on the

three

-tier fair value hierarchy. The contingent consideration represents the estimated fair value of future payments we are due based on BMS achieving annual revenue targets in certain years as specified in the sale agreement. We determine the value of the contingent consideration using a Monte Carlo simulation model with changes to the fair value of the contingent consideration being recognized in discontinued operations. At

December

31,

2016

and

December

26,

2015,

the fair value of the receivable totaled

$0.3

million and

$0.5

million, respectively.

Operating results of our discontinued operations are summarized as follows

(in thousands)

	December 31,			December 26,			December 27,
	2016			2015			2014

Net sales:
Microwave equipment segment	$	-		$	6,965		$	16,694
Video camera segment		-			-			5,460
	$	-		$	6,965		$	22,154

Operating loss before income taxes:
Microwave equipment segment	$	-		$	(1,963	)	$	(10,305	)
Video camera segment		-			-			(242	)
		-			(1,963	)		(10,547	)
Loss from sale of BMS		(221	)		(3,573	)		-
Gain from sale of Cohu Electronics		-			-			4,434
Loss before taxes		(221	)		(5,536	)		(6,113	)
Income tax provision		-			6			(41	)
Loss, net of tax	$	(221	)	$	(5,542	)	$	(6,072	)

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Note 5 - Financial Instruments Measured at Fair Value

12 Months Ended

Dec. 31, 2016

Fair Value, Measurement Inputs, Disclosure [Text Block]

5.	Financial Instruments Measured at Fair Value

Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. We do not hold investment securities for trading purposes. All short-term investments are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk and we monitor credit risk and attempt to mitigate exposure by making high-quality investments and through investment diversification.

Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not limited to: earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. Gross realized gains and losses on sales of short-term investments are included in interest income. Realized gains and losses for the periods presented were not significant.

Investments that we have classified as short-term, by security type, are as follows

(in thousands)

	At December 31, 2016
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses (1)		Value
Foreign government security	$	623	$	-	$	-	$	623
Corporate debt securities (2)		22,513		1		6		22,508
Government-sponsored enterprise securities		8,109		-		1		8,108
Bank certificates of deposit		750		1		-		751
	$	31,995	$	2	$	7	$	31,990

	At December 26, 2015
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Foreign government security	$	650	$	-	$	-	$	650
Bank certificates of deposit		1,002		-		-		1,002
	$	1,652	$	-	$	-	$	1,652

	(1)	As of December 31, 2016, the cost and fair value of investments with loss positions were approximately $26.6 million. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.

	(2)	Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Effective maturities of short-term investments at

December

31,

2016,

were as follows:

	Amortized		Estimated
(in thousands)	Cost		Fair Value
Due in one year or less	$	31,372	$	31,367
Due after one year through three years		623		623
	$	31,995	$	31,990

Accounting standards pertaining to fair value measurements establish a

three

-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level

defined as observable inputs such as quoted prices in active markets; Level

defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level

defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. When available, we use quoted market prices to determine the fair value of our investments, and they are included in Level

When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information.

The following table summarizes, by major security type, our financial instruments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy

(in thousands)

	Fair value measurements at December 31, 2016 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	70,279	$	-	$	-	$	70,279
Foreign government security		-		623		-		623
Corporate debt securities		-		24,108		-		24,108
Government-sponsored enterprise securities		-		8,108		-		8,108
Money market funds		-		24,166		-		24,166
Bank certificates of deposit		-		751		-		751
	$	70,279	$	57,756	$	-	$	128,035

	Fair value measurements at December 26, 2015 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	73,746	$	-	$	-	$	73,746
Foreign government security		-		650		-		650
Money market funds		-		41,624		-		41,624
Bank certificates of deposit		-		1,002		-		1,002
	$	73,746	$	43,276	$	-	$	117,022

Note 6 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6.	Employee Benefit Plans

Defined Contribution Retirement Plans

– We maintain a defined contribution

401(k)

retirement savings plan covering all salaried and hourly U.S. employees. Participation is voluntary and participants’ contributions are based on their eligible compensation. We match contributions of participants at

50%

of up to

of salary contributed, up to various statutory limits. In

2016

we made matching contributions to the plan of

$0.6

million. In both

2015

and

2014

we made contributions to the plan of

$0.7

million.

Defined Benefit Retirement Plans

– As a result of the acquisition of Ismeca effective

December

31,

2012,

we took over the Ismeca Europe Semiconductor BVG Pension Plan in Switzerland (“the Swiss Plan”) and the following discussion only relates to the Swiss Plan.

Net periodic benefit cost of the Swiss Plan was as follows

(in thousands)	2016			2015			2014
Service cost	$	868		$	856		$	749
Interest cost		245			311			491
Expected return on assets		(147	)		(193	)		(343	)
Settlements		-			235			-
Net periodic costs	$	966		$	1,209		$	897

The following table sets forth the projected benefit obligation, the fair value of plan assets, the funded status and the liability we have recorded in our consolidated balance sheet related to the Swiss Plan:

(in thousands)	2016			2015
Change in projected benefit obligation:

Benefit obligation at beginning of year	$	(25,483	)	$	(26,027	)
Service cost		(868	)		(856	)
Interest cost		(245	)		(311	)
Actuarial loss		(796	)		(660	)
Participant contributions		(719	)		(672	)
Benefits paid		(214	)		296
Plan change		-			558
Settlements		-			2,199
Foreign currency exchange adjustment		826			(10	)
Benefit obligation at end of year		(27,499	)		(25,483	)

Change in plan assets:

Fair value of plan assets at beginning of year		14,716			15,603
Return on assets, net of actuarial loss		189			277
Employer contributions		719			672
Participant contributions		719			672
Benefits paid		214			(296	)
Settlements		-			(2,199	)
Foreign currency exchange adjustment		(480	)		(13	)
Fair value of plan assets at end of year		16,077			14,716
Net liability at end of year	$	(11,422	)	$	(10,767	)

December

31,

2016

and

December

26,

2015,

the Swiss Plan’s net liability is included in noncurrent accrued retirement benefits. Amounts recognized in accumulated other comprehensive income net of tax related to the Swiss Plan consisted of an unrecognized net actuarial loss totaling

$2.4

million at

December

31,

2016

and

$1.8

million at

December

26,

2015.

Weighted-average actuarial assumptions used to determine the projected benefit obligation under the Swiss Plan are as follows

	2016			2015
Discount rate		0.7	%		1.0	%
Compensation increase		1.5	%		1.8	%

Weighted-average assumptions used to determine net periodic benefit cost of the Swiss Plan are as follows

	2016			2015			2014
Discount rate		1.0	%		1.3	%		2.3	%
Rate of return on Assets		1.0	%		1.3	%		2.3	%
Compensation increase		1.8	%		1.8	%		2.0	%

During

2017

employer and employee contributions to the Swiss Plan are expected to total

$0.7

million. Estimated benefit payments are expected to be as follows:

2017

$0.7

million;

2018

$0.7

million;

2019

$0.8

million;

2020

$1.0

million;

2021

$1.0

million; and

$5.2

million thereafter through

2026.

As is customary with Swiss pension plans, the assets of the plan are invested in a collective fund with multiple employers. We have no investment authority over the assets of the plan that are held and invested by a Swiss insurance company. Investment holdings are made with respect to Swiss laws and target allocations for plan assets are

71%

debt securities and cash,

14%

real estate investments,

alternative investments and

equity securities. The valuation of the collective fund assets as a whole is a Level

measurement; however the individual investments of the fund are generally Level

(equity securities), Level

(fixed income) and Level

(real estate and alternative) investments. We determine the fair value of the plan assets based on information provided by the collective fund, through review of the collective fund’s annual financial statements. See Note

“Financial Instruments Measured at Fair Value” for additional information on the

three

-tier fair value hierarchy.

We maintain other defined benefit plans for employees located outside the U.S. for which the majority of the obligations and net periodic benefit cost were determined to be immaterial for all periods presented.

Retiree Medical Benefits

– We provide post-retirement health benefits to certain executives and directors under a noncontributory plan. The net periodic benefit cost was

$0.1

million in both

2016

and

2015

compared to a net periodic benefit income of

$0.1

million in

2014.

We fund benefits as costs are incurred and as a result there are no plan assets.

The weighted average discount rate used in determining the accumulated post-retirement benefit obligation was

3.9%

2016,

4.2%

2015

and

3.8%

2014.

The annual rates of increase of the cost of health benefits was assumed to be

7.7%

2017.

This rate was then assumed to decrease

0.3%

per year to

4.9%

2026

and remain level thereafter. A

one

percent increase (decrease) in health care cost trend rates would increase (decrease) the

2016

net periodic benefit cost by approximately

$18,000

($14,000)

and the accumulated post-retirement benefit obligation as of

December

31,

2016,

by approximately

$338,000

($283,000).

Contributions to the post-retirement health benefit plan are expected to total

$0.1

million in

2017.

Estimated benefit payments are expected to be as follows:

2017

$0.1

million;

2018

$0.1

million;

2019

$0.1

million;

2020

$0.1

million;

2021

$0.1

million and

$0.7

million thereafter through

2026.

The following table sets forth the post-retirement benefit obligation, funded status and the liability we have recorded in our consolidated balance sheets

(in thousands)	2016			2015
Accumulated benefit obligation at beginning of year	$	2,649		$	2,428
Interest cost		109			90
Actuarial (gain) loss		(185	)		187
Benefits paid		(83	)		(56	)
Accumulated benefit obligation at end of year		2,490			2,649
Plan assets at end of year		-			-
Funded status	$	(2,490	)	$	(2,649	)

Deferred Compensation

– The Cohu, Inc. Deferred Compensation Plan allows certain of our officers to defer a portion of their current compensation. We have purchased life insurance policies on the participants with Cohu as the named beneficiary. Participant contributions, distributions and investment earnings and losses are accumulated in a separate account for each participant. At

December

31,

2016,

the payroll liability to participants, included in accrued compensation and benefits in the consolidated balance sheet, was approximately

$2.4

million and the cash surrender value of the related life insurance policies included in other current assets was approximately

$2.2

million. At

December

26,

2015,

the liability totaled

$2.6

million and the corresponding assets were

$2.3

million.

Employee Stock Purchase Plan

– The Cohu, Inc.

1997

Employee Stock Purchase Plan (“the Plan”) provides for the issuance of a maximum of

2,650,000

shares of our common stock. Under the Plan, eligible employees

may

purchase shares of common stock through payroll deductions. The price paid for the common stock is equal to

85%

of the fair market value of our common stock on specified dates. During the last

three

years we issued shares under the Plan as follows:

2016

110,579;

2015

122,528

and

2014

138,831.

December

31,

2016,

there were

700,484

shares reserved for issuance under the Plan.

Stock Options

– At

December

31,

2016,

a total of

1,853,509

shares were available for future equity grants under the Cohu, Inc.

2005

Equity Incentive Plan (“the

2005

Plan”). Under the

2005

Plan stock options

may

be granted to employees, consultants and outside directors to purchase a fixed number of shares of our common stock at prices not less than

100%

of the fair market value at the date of grant. Options generally vest and become exercisable after

one

year or in

four

annual increments beginning

one

year after the grant date and expire

ten

years from the grant date. We have historically issued new shares of Cohu common stock upon share option exercise.

Stock option activity under our share-based compensation plans was as follows:

	2016					2015					2014
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Shares			Ex. Price		Shares			Ex. Price		Shares			Ex. Price
Outstanding, beginning of year		1,965		$	11.25		2,435		$	11.67		3,086		$	11.93
Granted		-		$	-		10		$	10.98		10		$	12.58
Exercised		(101	)	$	7.89		(175	)	$	8.65		(237	)	$	8.43
Cancelled		(223	)	$	16.19		(305	)	$	16.07		(424	)	$	15.37
Outstanding, end of year		1,641		$	10.79		1,965		$	11.25		2,435		$	11.67

Options exercisable at year end		1,537		$	10.85		1,673		$	11.47		1,901		$	12.08

The aggregate intrinsic value of options exercised was

$0.5

million in

2016

and

$0.7

million in both

2015

and

2014.

December

31,

2016,

the aggregate intrinsic value of options outstanding, vested and expected to vest and exercisable was

$5.6

million.

Information about stock options outstanding at

December

31,

2016

is as follows

(options in thousands)

			Options Outstanding						Options Exercisable
					Approximate
					Wt. Avg.
Range of			Number		Remaining		Wt. Avg.		Number		Wt. Avg.
Exercise Prices			Outstanding		Life (in years)		Ex. Price		Exercisable		Ex. Price
$7.32	-	$10.58		1,089		4.4	$	8.92		1,002	$	8.87
$10.59	-	$15.50		466		3.2	$	14.08		449	$	14.20
$15.51	-	$20.73		86		3.2	$	16.55		86	$	16.55
				1,641		4.0	$	10.79		1,537	$	10.85

Restricted Stock Units

– Under our equity incentive plans, restricted stock units

may

be granted to employees, consultants and outside directors. Restricted stock units vest over a

one

-year,

two

-year or a

four

-year period from the date of grant. Prior to vesting, restricted stock units do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted stock units are not considered issued and outstanding. New shares of our common stock will be issued on the date the restricted stock units vest net of the statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding at

December

31,

2016.

Restricted stock unit activity under our share-based compensation plans was as follows

	2016					2015					2014
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		1,078		$	9.93		1,026		$	9.54		887		$	9.46
Granted		471		$	11.25		482		$	10.54		497		$	10.07
Released		(409	)	$	9.90		(339	)	$	9.63		(315	)	$	10.16
Cancelled		(57	)	$	10.25		(91	)	$	9.82		(43	)	$	9.41
Outstanding, end of year		1,083		$	10.50		1,078		$	9.93		1,026		$	9.54

Equity-Based Performance Stock Units

–

We grant performance stock units (“PSUs”) to certain senior executives as a part of our long-term equity compensation program. The performance criteria for the PSUs granted in

2016

and

2015

is based on a combination of the Company’s annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of the Company’s TSR compared with the annualized TSR of certain peer companies for the performance period. The PSU awards granted in

2014

had a

one

-year performance period after which the number of shares of our common stock earned, if any, was determined, subject to certain adjustments resulting from the performance of our TSR relative to a pre-selected comparator group over the

two

-year period following the date of grant. The number of shares of common stock that will ultimately be issued to settle PSUs granted over the last

three

years is as follows:

Year Granted	Range of Awards			Performance Criteria Period (in years)
2016	25%	-	200%		3
2015	25%	-	200%		2
2014	0%	-	150%		2

PSUs granted in

2016

vest

100%

on the

third

anniversary of their grant and PSUs granted in

2015

and

2014

vest

50%

on the

second

and

third

anniversary of their grant, respectively.

We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number PSUs outstanding at

December

31,

2016.

PSU activity under our share-based compensation plans was as follows

	2016					2015					2014
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		376		$	10.80		334		$	10.49		238		$	9.32
Granted		222		$	11.38		156		$	10.69		208		$	11.34
Released		(172	)	$	11.27		(38	)	$	9.52		(38	)	$	9.52
Cancelled		(23	)	$	8.75		(76	)	$	9.86		(74	)	$	9.59
Outstanding, end of year		403		$	11.04		376		$	10.80		334		$	10.49

Share-based Compensation

– We estimate the fair value of each share-based award on the grant date using the Black-Scholes and the Monte Carlo simulation valuation models. Option valuation models require the input of highly subjective assumptions and changes in the assumptions used can materially affect the grant date fair value of an award. These assumptions for the Black-Scholes model include the risk-free rate of interest, expected dividend yield, expected volatility, and the expected life of the award. The risk-free rate of interest is based on the U.S. Treasury rates appropriate for the expected term of the award as of the grant date. Expected dividends are based primarily on historical factors related to our common stock. Expected volatility is based on historic weekly stock price observations of our common stock during the period immediately preceding the share-based award grant that is equal in length to the award’s expected term. We believe that historical volatility is the best estimate of future volatility. Expected life of the award is based on historical option exercise data. The Monte Carlo simulation model incorporates assumptions for the risk-free interest rate, Cohu and the selected peer group price volatility, the correlation between Cohu and the selected index, and dividend yields. Share-based compensation expense related to restricted stock unit awards is calculated based on the market price of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit.

The following weighted average assumptions were used to value share-based awards granted:

Employee Stock Purchase Plan	2016			2015			2014
Dividend yield		2.0	%		2.2	%		2.4	%
Expected volatility		31.2	%		35.3	%		35.3	%
Risk-free interest rate		0.3	%		0.1	%		0.1	%
Expected term (years)		0.5			0.5			0.5
Weighted-average grant date fair value per share	$	2.82		$	2.71		$	2.52

Employee Stock Options		2016	(1)		2015			2014
Dividend yield		N/A			2.1	%		2.0	%
Expected volatility		N/A			39.1	%		42.5	%
Risk-free interest rate		N/A			1.6	%		1.9	%
Expected term (years)		N/A			5.9			5.9
Weighted-average grant date fair value per share		N/A		$	3.46		$	4.39

Restricted Stock Units	2016			2015			2014
Dividend yield		2.0	%		2.1	%		2.2	%

Performance Stock Units	2016			2015			2014
Dividend yield		2.0	%		2.1	%		2.2	%

(1)

There were no employee stock options granted in

2016.

Reported share-based compensation is classified in the Consolidated Financial Statements as follows

(in thousands)	2016			2015			2014
Cost of sales	$	398		$	566		$	491
Research and development		1,292			1,092			1,858
Selling, general and administrative		5,453			5,097			4,039
Share-based compensation of continuing operations		7,143			6,755			6,388
Discontinued operations		-			138			388
Income tax benefit		(269	)		(249	)		(204	)
Total share-based compensation, net of tax	$	6,874		$	6,644		$	6,572

We elected to early adopt ASU

2016

in the

fourth

quarter of

2016,

which among other items, provides an accounting policy election to account for forfeitures as they occur, rather than based on an estimate of expected forfeitures. We elected to account for forfeitures as they occur and therefore, share-based compensation expense for the year ended

December

31,

2016

has been calculated based on actual forfeitures in our consolidated statement of income, rather than our previous approach where the expense was net of estimated forfeitures determined at the grant date. The net cumulative effect of this change was recognized as a

$0.2

million increase to paid-in capital and a decrease to retained earnings as of

December

27,

2015.

Share-based compensation expense for the years ended

December

26,

2015

and

December

27,

2014

was recorded net of estimated forfeitures.

December

31,

2016,

we had approximately

$0.1

million of pre-tax unrecognized compensation cost related to unvested stock options which is expected to be recognized over a weighted-average period of approximately

0.5

years.

December

31,

2016,

we had approximately

$9.3

million of pre-tax unrecognized compensation cost related to unvested restricted stock units and performance stock units which is expected to be recognized over a weighted-average period of approximately

2.3

years.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Note 7 - Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

7.	Income Taxes

Significant components of the provision (benefit) for income taxes for continuing operations are as follows

(in thousands)	2016			2015		2014
Current:
U.S. Federal	$	11		$	5	$	(307	)
U.S. State		8			28		40
Foreign		3,793			1,956		4,088
Total current		3,812			1,989		3,821
Deferred:
U.S. Federal		91			89		112
U.S. State		47			49		(17	)
Foreign		(1,203	)		84		737
Total deferred		(1,065	)		222		832
	$	2,747		$	2,211	$	4,653

Income (loss) before income taxes from continuing operations consisted of the following

(in thousands)	2016			2015			2014
U.S.	$	(13,420	)	$	(5,214	)	$	1,076
Foreign		19,427			13,217			18,357
Total	$	6,007		$	8,003		$	19,433

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of our deferred tax assets and liabilities were as follows:

(in thousands)	2016			2015
Deferred tax assets:
Inventory, receivable and warranty reserves	$	5,868		$	8,207
Net operating loss carryforwards		11,681			7,605
Tax credit carryforwards		13,715			12,291
Accrued employee benefits		5,002			4,993
Deferred profit and gain on facility sale		5,412			6,084
Stock-based compensation		4,189			4,443
Acquisition basis differences		1,334			1,544
Other		103			265
Gross deferred tax assets		47,304			45,432
Less valuation allowance		(44,731	)		(42,289	)
Total deferred tax assets		2,573			3,143
Deferred tax liabilities:
Depreciation and fixed asset related		53			227
Acquisition basis differences		7,423			8,904
Other		662			563
Total deferred tax liabilities		8,138			9,694
Net deferred tax liabilities	$	(5,565	)	$	(6,551	)

Companies are required to assess whether a valuation allowance should be recorded against their deferred tax assets (“DTAs”) based on the consideration of all available evidence, using a “more likely than not” realization standard. The

four

sources of taxable income that must be considered in determining whether DTAs will be realized are,

(1)

future reversals of existing taxable temporary differences (i.e. offset of gross deferred tax assets against gross deferred tax liabilities);

(2)

taxable income in prior carryback years, if carryback is permitted under the tax law;

(3)

tax planning strategies and

(4)

future taxable income exclusive of reversing temporary differences and carryforwards.

In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. We have evaluated our DTAs each reporting period, including an assessment of our cumulative income or loss over the prior

three

-year period and future periods, to determine if a valuation allowance was required. A significant negative factor in our assessment was Cohu's

three

-year cumulative U.S. loss history at the end of various fiscal periods including

2016.

As a result of our cumulative,

three

-year U.S. GAAP pretax loss from continuing operations of approximately

$17.6

million at the end of

2016,

and our U.S. loss in

2016,

we were unable to conclude at

December

31,

2016

that it was “more likely than not” that our U.S. DTAs would be realized. We will evaluate the realizability of our DTAs at the end of each quarterly reporting period in

2017

and should circumstances change it is possible the remaining valuation allowance, or a portion thereof, will be reversed in a future period.

Our valuation allowance on our DTAs at

December

31,

2016

and

December

26,

2015

was approximately

$44.7

million and

$42.3

million, respectively. The remaining gross DTAs for which a valuation allowance was not recorded are realizable through future reversals of existing taxable temporary differences.

As the realization of DTAs is determined by tax jurisdiction, the deferred tax liabilities recorded as part of the

2008

acquisition of Rasco, a German corporation, and the fiscal

2013

acquisition of Ismeca, a Swiss Corporation, were not a source of taxable income in assessing the realization of our DTAs in the U.S.

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the provision for income taxes for continuing operations is as follows:

(in thousands)	2016			2015			2014
Tax provision at U.S. 35% statutory rate	$	2,102		$	2,801		$	6,802
State income taxes, net of federal tax benefit		168			(152	)		119
Settlements, adjustments and releases from statute expirations		(312	)		(104	)		(65	)
Federal tax credits		(183	)		(221	)		(244	)
Stock-based compensation on which no tax benefit provided		168			156			160
Change in valuation allowance		2,430			2,181			437
Non-deductible transaction costs		463			-			-
Foreign income taxed at different rates		(2,378	)		(2,601	)		(2,151	)
Other, net		289			151			(405	)
	$	2,747		$	2,211		$	4,653

State income taxes, net of federal benefit, have been reduced by research tax credits totaling approximately

$0.2

million,

$0.4

million and

$0.5

million in

2016,

2015

and

2014,

respectively.

December

31,

2016,

we had federal, state and foreign net operating loss carryforwards of approximately

$31.0

million,

$22.2

million and

$0.2

million, respectively, that expire in various tax years beginning in

2018

through

2036

or have no expiration date. We also have federal and state tax credit carryforwards at

December

31,

2016

of approximately

$8.2

million and

$13.6

million, respectively, certain of which expire in various tax years beginning in

2017

through

2036

or have no expiration date. The federal and state loss and credit carryforwards are subject to annual limitations under Sections

382

and

383

of the Internal Revenue Code and applicable state tax law.

U.S. income taxes have not been provided on approximately

$49

million of accumulated undistributed earnings of certain foreign subsidiaries, as we currently intend to indefinitely reinvest these earnings in operations outside the U.S. We repatriated

$17.4

million from our Singapore subsidiary in

2016

due to the reduction in business activity of that operation. Our intent is to continue to indefinitely reinvest the remaining funds in our foreign operations and we have no current plans that would require us to repatriate these funds to the U.S. It is not practicable to estimate the amount of tax that might be payable if some or all of such earnings were to be remitted.

We have certain tax holidays with respect to our operations in Malaysia and the Philippines. These holidays require compliance with certain conditions and expire at various dates through

2023.

The impact of these holidays was an increase in net income of approximately

$1.0

million or

$0.04

per share in

2016,

$0.8

million, or

$0.03

per share, in

2015

and not significant in

2014.

A reconciliation of our gross unrecognized tax benefits, excluding accrued interest and penalties, is as follows:

(in thousands)	2016			2015			2014
Balance at beginning of year	$	10,444		$	10,841		$	10,483
Gross additions for tax positions of current year		125			215			761
Gross additions for tax positions of prior years		58			248			365
Reductions due to lapse of the statute of limitations		(446	)		(243	)		(587	)
Foreign exchange rate impact		(106	)		(617	)		(181	)
Balance at end of year	$	10,075		$	10,444		$	10,841

If the unrecognized tax benefits at

December

31,

2016

are ultimately recognized, approximately

$5.2

million

($5.6

million at

December

26,

2015)

would result in a reduction in our income tax expense and effective tax rate. It is reasonably possible that our gross unrecognized tax benefits as of

December

31,

2016

could decrease in

2017

by approximately

$0.8

million as a result of the expiration of certain statutes of limitations.

We recognize interest and penalties related to unrecognized tax benefits in income tax expense. Cohu had approximately

$1.2

million and

$1.4

million accrued for the payment of interest and penalties at

December

31,

2016

and

December

26,

2015,

respectively. Interest expense, net of accrued interest reversed, was not significant in

2016,

$0.1

million in

2015

and not significant in

2014.

Our U.S. federal and state income tax returns for years after

2012

and

2011,

respectively, remain open to examination, subject to the statute of limitations. Net operating loss and credit carryforwards arising prior to these years are also open to examination if and when utilized. The statute of limitations for the assessment and collection of income taxes related to our foreign tax returns varies by country. In the foreign countries where we have significant operations these time periods generally range from

four

ten

years after the year for which the tax return is due or the tax is assessed.

Note 8 - Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Reporting Disclosure [Text Block]

8.	Segment and Geographic Information

We applied the provisions of ASC

280,

which sets forth a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker and for which discrete financial information is available. Based on the provisions of ASC

280,

we have determined that our identified operating segments qualify for aggregation under ASC

280

due to their similarities in customer base, economic characteristics, and the nature of products and services provided and, as a result we report in

one

segment, semiconductor equipment. As a result, the financial information disclosed herein materially represents all of the financial information related to our semiconductor equipment segment.

During the last

three

years, the following customers comprised

10%

or greater of our consolidated net sales:

	2016		2015		2014
Intel		17.2%		18.0%		15.7%
NXP Semiconductors N.V. (1)		13.7%		11.4%		11.4%

(1)	The merger of NXP Semiconductors N.V. and Freescale Semiconductor, Ltd. was completed on December 7, 2015. Sales to these customers have been combined for all periods presented.

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

(in thousands)	2016		2015		2014
Malaysia	$	85,956	$	60,776	$	73,818
China		60,291		52,589		51,662
United States		35,204		50,704		72,266
Rest of the World		100,633		105,585		118,883
Total, net	$	282,084	$	269,654	$	316,629

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

(in thousands)	2016		2015
Property, plant and equipment:
United States	$	2,398	$	3,054
Germany		6,674		6,882
Philippines		4,167		4,171
Malaysia		4,067		4,165
Rest of the World		928		728
Total, net	$	18,234	$	19,000

Goodwill and other intangible assets:
Germany	$	26,892	$	31,337
Switzerland		18,264		22,444
United States		17,242		17,241
Malaysia		6,775		6,995
Singapore		6,558		6,558
Rest of the World		953		986
Total, net	$	76,684	$	85,561

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Note 9 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Contingencies Disclosure [Text Block]

9.	Commitments and Contingencies

We lease certain of our facilities and equipment under non-cancelable operating leases. Rental expense was

$4.4

million in

2016

and

$1.8

million in both

2015

and

2014.

The increase in rent expense in

2016

was a result of the sale lease-back of our headquarters facility on

December

2015.

See Note

13,

“Sale-leaseback of Poway Facility” for additional information.

Future minimum lease payments at

December

31,

2016

are as follows:

(in thousands)		2017				2018				2019				2020				2021				Thereafter				Total
Non-cancelable operating leases		$	3,051			$	2,527			$	2,237			$	2,259			$	2,299			$	8,695			$	21,068

From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our business. The outcome of any litigation is inherently uncertain. While there can be no assurance, at the present time we do not believe that the resolution of the matters described above will have a material adverse effect on our assets, financial position or results of operations.

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

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Note 11 - Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2016

Comprehensive Income (Loss) Note [Text Block]

11.	Accumulated Other Comprehensive Loss

Components of other comprehensive loss, on an after-tax basis, were as follows

(in thousands)	Before Tax amount			Tax (Expense) Benefit			Net of Tax Amount
Year ended December 27, 2014
Foreign currency translation adjustments	$	(14,107	)	$	-		$	(14,107	)
Adjustments related to postretirement benefits		(3,809	)		551			(3,258	)
Other comprehensive income (loss)	$	(17,916	)	$	551		$	(17,365	)
Year ended December 26, 2015
Foreign currency translation adjustments	$	(11,000	)	$	-		$	(11,000	)
Adjustments related to postretirement benefits		(24	)		(34	)		(58	)
Other comprehensive income (loss)	$	(11,024	)	$	(34	)	$	(11,058	)
Year ended December 31, 2016
Foreign currency translation adjustments	$	(5,789	)	$	-		$	(5,789	)
Adjustments related to postretirement benefits		(429	)		113			(316	)
Change in unrealized gain/loss on investments		(5	)		-			(5	)
Other comprehensive income (loss)	$	(6,223	)	$	113		$	(6,110	)

Components of accumulated other comprehensive loss, net of tax, at the end of each period are as follows:

(in thousands)	2016			2015
Accumulated net currency translation adjustments	$	(25,116	)	$	(19,327	)
Accumulated net adjustments related to postretirement benefits		(2,761	)		(2,445	)
Accumulated net unrealized gain/loss on investments		(5	)		-
Total accumulated other comprehensive loss	$	(27,882	)	$	(21,772	)

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

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Note 12 - Related Party Transactions

12 Months Ended

Dec. 31, 2016

12.	Related Party Transactions

December

31,

2016

certain of our cash and short-term investments were held and managed by BlackRock, Inc. which owns

11.5%

of our outstanding common stock as reported in its Form

-G filing made with the Securities and Exchange Commission on

January

12,

2017.

Note 13 - Sale-leaseback of Poway Facility

12 Months Ended

Dec. 31, 2016

Sale Leaseback Transaction Disclosure [Text Block]

13.	Sale-leaseback of Poway Facility

December

2015,

we completed the sale of our headquarters facility located in Poway, California (the “Poway Facility”) for

$34.1

million. After payment of commissions and other fees associated with the sale we realized net cash proceeds of approximately

$33.3

million which resulted in a total gain of

$18.5

million. Concurrent with the closing of the sale, we entered into a lease, with a

ten

-year term through

2025,

that provides for base rent of approximately

$1.6

million per annum, with

annual adjustments for inflation and a pro rata share of property operating costs. The lease covers approximately

43%

of the Poway Facility. This lease also contains

two

five

-year renewal options.

We accounted for this transaction in accordance with ASC subtopic

840

40,

Sale-leaseback transactions

, and recognized a gain on the sale-leaseback totaling

$3.2

million for the year ended

December

26,

2015.

The remaining

$15.3

million portion of the gain not recognized at the time of sale was deferred and is being recognized on a straight-line basis over the

-year lease term in line with the recognition of rental expense related to the lease. During the year ended

December

31,

2016

we amortized

$2.0

million of the deferred gain to income.

Note 14 - Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Text Block]

14.	Quarterly Financial Data (Unaudited)

Quarter			First (a)			Second (a)			Third (a)		Fourth (a)		Year
(in thousands, except per share data)

Net sales:	2016		$	65,778		$	76,353		$	69,259	$	70,694	$	282,084
	2015		$	63,447		$	75,211		$	67,512	$	63,484	$	269,654

Gross profit:	2016	(b)	$	19,282		$	26,739		$	23,280	$	25,527	$	94,828
	2015		$	20,145		$	25,702		$	22,794	$	20,397	$	89,038

Income (loss) from continuing operations	2016	(b)	$	(1,691	)	$	2,517		$	128	$	2,306	$	3,260
	2015		$	(1,720	)	$	3,887		$	1,335	$	2,290	$	5,792

Net income (loss)	2016	(b)	$	(1,691	)	$	2,462		$	179	$	2,089	$	3,039
	2015		$	(2,740	)	$	(72	)	$	1,113	$	1,949	$	250

Income (loss) per share (c):
Basic:
Income (loss) from continuing operations	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.09	$	0.12
	2015		$	(0.07	)	$	0.15		$	0.05	$	0.09	$	0.22

Net income (loss)	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.08	$	0.11
	2015		$	(0.11	)	$	0.00		$	0.04	$	0.07	$	0.01

Diluted:
Income (loss) from continuing operations	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.08	$	0.12
	2015		$	(0.07	)	$	0.15		$	0.05	$	0.08	$	0.22

Net income (loss)	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.08	$	0.11
	2015		$	(0.11	)	$	0.00		$	0.04	$	0.07	$	0.01

(a)

All quarters presented above were comprised of

weeks, except for the

fourth

quarter ended

December

31,

2016

which was comprised of

weeks.

(b)

As a result of the adoption of ASU

2016

09,

in the

fourth

quarter of

2016,

certain amounts in the

first

three

quarters have been restated as if the new accounting guidance was adopted starting with the

first

day of our

2016

fiscal year. The impact of these restatements was not significant.

(c)

The sum of the

four

quarters

may

not agree to the year total due to rounding within a quarter and the inclusion or exclusion of common stock equivalents.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

COHU, INC.

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

(in thousands)

			Additions			Additions
			(Reductions)			(Reductions)
	Balance at		Not			Charged						Balance
	Beginning		Charged			(Credited)			Deductions/			at End
Description	of Year		to Expense			to Expense			Write-offs			of Year

Allowance for doubtful accounts:

Year ended December 27, 2014	$	330	$	(1	) (1)	$	(126	)	$	24		$	179

Year ended December 26, 2015	$	179	$	1	(1)	$	19		$	128		$	71

Year ended December 31, 2016	$	71	$	(4	) (1)	$	13		$	(1	)	$	81

Reserve for excess and obsolete inventories:

Year ended December 27, 2014	$	35,221	$	(762	) (1)	$	2,624		$	9,232		$	27,851

Year ended December 26, 2015	$	27,851	$	(648	) (1)	$	2,409		$	2,959		$	26,653

Year ended December 31, 2016	$	26,653	$	1,789	(2)	$	1,125		$	8,082		$	21,485

All amounts presented above have been restated to exclude the impact of our discontinued operations.

(1)	Changes in reserve balances resulting from foreign currency impact.

(2)	Changes in reserve balances resulting from foreign currency impact and reclassifications from other reserves.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

Our current fiscal year which ended on

December

31,

2016

consisted of

weeks. Our fiscal years ending on

December

26,

2015

and

December

27,

2014

each consisted of

weeks.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

– On

June

10,

2015,

we sold our mobile microwave communications equipment business, Broadcast Microwave Services, Inc. (“BMS”) and on

June

2014,

“Discontinued Operations

” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

Earnings Per Share, Policy [Policy Text Block]

Income (Loss

) Per Share

For the years ended

December

31,

2016,

December

26,

2015

and

December

27,

2014

approximately

697,000,

875,000

and

1,771,000

shares of our common stock were excluded from the computation, respectively.

The following table reconciles the denominators used in computing basic and diluted income (loss) per share

(in thousands)	2016		2015		2014
Weighted average common shares outstanding		26,659		26,057		25,393
Effect of dilutive stock options and restricted stock units		821		731		613
		27,480		26,788		26,006

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash, Cash Equivalents and Short-term Investments

– Highly liquid investments with insignificant interest rate risk and original maturities of

three

months or less are classified as cash and cash equivalents. Investments with maturities greater than

three

months. Accordingly, investments with contractual maturities greater than

one

year have been classified as current assets in the accompanying consolidated balance sheets.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value of Financial Instruments

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

one

issuer.

Trade accounts receivable are presented net of allowance for doubtful accounts of

$0.1

million at

December

31,

2016

and

$0.1

million at

December

26,

2015.

December

31,

2016,

we will continue to monitor customer liquidity and other economic conditions, which

may

result in changes to our estimates regarding collectability.

Inventory, Policy [Policy Text Block]

Inventories

– Inventories are stated at the lower of cost, determined on a

first

-in,

first

$1.1

million,

$2.4

million, and

$2.6

million in

2016,

2015

and

2014,

respectively.

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Plant and Equipment

– Depreciation and amortization of property, plant and equipment is calculated principally on the straight-line method based on estimated useful lives of

thirty

forty

years for buildings,

five

fifteen

years for building improvements and

three

ten

years for machinery, equipment and software. Land is not depreciated.

Property, plant and equipment, at cost, consisted of the following

(in thousands)

	December 31,			December 26,
	2016			2015
Land and land improvements	$	4,079		$	4,607
Buildings and building improvements		7,967			8,971
Machinery and equipment		35,157			31,888
		47,203			45,466
Less accumulated depreciation and amortization		(28,969	)		(26,466	)
Property, plant and equipment, net	$	18,234		$	19,000

Depreciation expense was

$3.5

million in

2016,

$4.2

million in

2015

and

$4.8

million

2014.

Segment Reporting, Policy [Policy Text Block]

Segment Information

– We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”),

280,

we have determined that our identified operating segments qualify for aggregation under ASC

280

due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in

one

segment, semiconductor equipment.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill, Purchased Intangible Assets and Other Long-lived Assets

–

We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value

may

not be recoverable. We test goodwill for impairment by

first

comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a

second

We conduct our annual impairment test as of

October

1st

of each year, and determined there was no impairment as of

October

2016

as we determined that the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances

may

also require goodwill to be tested for impairment between annual measurement dates. As of

December

31,

2016

may

result in an impairment charge, which would have a negative impact on our results of operations.

may

Standard Product Warranty, Policy [Policy Text Block]

Product Warranty

– Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from

- to

Income Tax, Policy [Policy Text Block]

Income Taxes

Commitments and Contingencies, Policy [Policy Text Block]

Contingencies and Litigation

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

may

provide that a minority portion (e.g. up to

20%)

of the equipment purchase price be paid only upon customer acceptance. In those situations, the majority portion (e.g.

80%)

Certain of our equipment sales are accounted for as multiple-element arrangements. A multiple-element arrangement is a transaction which

may

involve the delivery or performance of multiple products, services, or rights to use assets, and performance

may

December

31,

2016,

we had total deferred revenue of approximately

$9.3

million and deferred profit of

$6.9

million. At

December

26,

2015,

we had total deferred revenue of approximately

$5.0

million and deferred profit of

$3.7

million.

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

– Advertising costs are expensed as incurred and were not material for all periods presented.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Share-based Compensation

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

December

31,

2016,

December

26,

2015

and

December

27,

2014

we recognized approximately

$2.6

million

$1.4

million and

$2.0

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Loss

– Our accumulated other comprehensive loss totaled approximately

$27.9

million at

December

31,

2016

and

$21.8

million at

December

26,

2015

December

31,

2016

compared to

December

26,

2015.

Consequently, our comprehensive loss increased by

$5.8

million as a result of the foreign currency translation. In the previous year, strengthening of the U.S. Dollar led to an increase in our comprehensive loss of

$11.0

million. Additional information related to accumulated other comprehensive loss, on an after-tax basis is included in Note

11.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements –

March

2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

09,

Compensation - Stock Compensation (Topic

718):

Improvements to Employee Share-Based Payment Accounting

(ASU

2016

09).

While the effective date of ASU

2016

is for fiscal years beginning after

December

15,

2016,

earlier adoption is permitted and we adopted the amendments in ASU

2016

during the

fourth

quarter of fiscal

2016.

The impact of the adoption of ASU

2016

resulted in the following:

●

$0.2

million cumulative effect adjustment to retained earnings at

December

27,

2015,

the

first

day of our fiscal

2016.

●

We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended

December

31,

2016.

The effect of this change on our diluted earnings per share was not significant.

Recently Issued Accounting Pronouncements

– In

January

2017,

the FASB issued ASU No.

2017

04,

Simplifying the Test for Goodwill Impairment

. It eliminates Step

December

15,

2019.

We do not expect this guidance to have any impact on our Consolidated Financial Statements.

January

2017,

the FASB issued ASU No.

2017

01,

Clarifying the Definition of a Business.

December

15,

2017.

We do not expect this guidance to have any impact on our Consolidated Financial Statements.

November

2016,

the FASB issued ASU No.

2016

18,

Restricted Cash.

December

15,

2017.

We do not expect this guidance to have a material impact on our Consolidated Financial Statements.

August

2016,

the FASB issued ASU No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments.

It provides guidance on

eight

December

15,

2017.

Early adoption is permitted, provided that all of the amendments are adopted in the same period. We do not expect this guidance to have a material impact on our Consolidated Financial Statements.

February

2016,

the FASB issued ASU No.

2016

02,

Leases (Topic

842).

December

15,

2018.

July

2015,

the FASB issued ASU No.

2015

11,

Simplifying the Measurement of Inventory

December

15,

2016.

We do not expect this guidance to have a material impact on our Consolidated Financial Statements.

May

2014,

the FASB issued Accounting Standards Update No.

2014

09,

Revenue from Contracts with Customers (Topic

606)

(ASU

2014

09),

which amends the existing accounting standards for revenue recognition. In

August

2015,

the FASB issued ASU No.

2015

14,

Revenue from Contracts with Customers (Topic

606):

Deferral of the Effective Date

, which delays the effective date of ASU

2014

one

year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In

March

2016,

the FASB issued Accounting Standards Update No.

2016

08,

Revenue from Contracts with Customers (Topic

606):

Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

(ASU

2016

08)

first

quarter of

2018,

with the option to adopt it in the

first

quarter of

2017.

We will adopt the new standard effective

December

31,

2017,

which is the

first

day of our

2018

fiscal year. The new standard also permits

two

Note 1 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

(in thousands)	2016		2015		2014
Weighted average common shares outstanding		26,659		26,057		25,393
Effect of dilutive stock options and restricted stock units		821		731		613
		27,480		26,788		26,006

Property, Plant and Equipment [Table Text Block]

	December 31,			December 26,
	2016			2015
Land and land improvements	$	4,079		$	4,607
Buildings and building improvements		7,967			8,971
Machinery and equipment		35,157			31,888
		47,203			45,466
Less accumulated depreciation and amortization		(28,969	)		(26,466	)
Property, plant and equipment, net	$	18,234		$	19,000

Note 3 - Goodwill and Purchased Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Goodwill [Table Text Block]

	Total Goodwill
Balance December 27, 2014	$	63,132
Impact of currency exchange		(2,868	)
Balance December 26, 2015		60,264
Impact of currency exchange		(1,415	)
Balance December 31, 2016	$	58,849

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	December 31, 2016						December 26, 2015
					Remaining
	Gross Carrying		Accumulated		Useful Life		Gross Carrying		Accumulated
	Amount		Amortization		(years)		Amount		Amortization
Rasco technology	$	25,785	$	25,785		-	$	26,904	$	23,776
Ismeca technology		26,191		13,241		4.0		27,043		10,329
Trade names		5,353		468		13.7		5,547		92
	$	57,329	$	39,494			$	59,494	$	34,197

Note 4 - Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2016

Disposal Groups, Including Discontinued Operations [Table Text Block]

	December 31,			December 26,			December 27,
	2016			2015			2014

Net sales:
Microwave equipment segment	$	-		$	6,965		$	16,694
Video camera segment		-			-			5,460
	$	-		$	6,965		$	22,154

Operating loss before income taxes:
Microwave equipment segment	$	-		$	(1,963	)	$	(10,305	)
Video camera segment		-			-			(242	)
		-			(1,963	)		(10,547	)
Loss from sale of BMS		(221	)		(3,573	)		-
Gain from sale of Cohu Electronics		-			-			4,434
Loss before taxes		(221	)		(5,536	)		(6,113	)
Income tax provision		-			6			(41	)
Loss, net of tax	$	(221	)	$	(5,542	)	$	(6,072	)

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Note 5 - Financial Instruments Measured at Fair Value (Tables)

12 Months Ended

Dec. 31, 2016

Available-for-sale Securities [Table Text Block]

	At December 31, 2016
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses (1)		Value
Foreign government security	$	623	$	-	$	-	$	623
Corporate debt securities (2)		22,513		1		6		22,508
Government-sponsored enterprise securities		8,109		-		1		8,108
Bank certificates of deposit		750		1		-		751
	$	31,995	$	2	$	7	$	31,990

	At December 26, 2015
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Foreign government security	$	650	$	-	$	-	$	650
Bank certificates of deposit		1,002		-		-		1,002
	$	1,652	$	-	$	-	$	1,652

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized		Estimated
(in thousands)	Cost		Fair Value
Due in one year or less	$	31,372	$	31,367
Due after one year through three years		623		623
	$	31,995	$	31,990

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Fair value measurements at December 31, 2016 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	70,279	$	-	$	-	$	70,279
Foreign government security		-		623		-		623
Corporate debt securities		-		24,108		-		24,108
Government-sponsored enterprise securities		-		8,108		-		8,108
Money market funds		-		24,166		-		24,166
Bank certificates of deposit		-		751		-		751
	$	70,279	$	57,756	$	-	$	128,035

	Fair value measurements at December 26, 2015 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	73,746	$	-	$	-	$	73,746
Foreign government security		-		650		-		650
Money market funds		-		41,624		-		41,624
Bank certificates of deposit		-		1,002		-		1,002
	$	73,746	$	43,276	$	-	$	117,022

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

Note 6 - Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Net Benefit Costs [Table Text Block]

(in thousands)	2016			2015			2014
Service cost	$	868		$	856		$	749
Interest cost		245			311			491
Expected return on assets		(147	)		(193	)		(343	)
Settlements		-			235			-
Net periodic costs	$	966		$	1,209		$	897

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]

(in thousands)	2016			2015
Change in projected benefit obligation:

Benefit obligation at beginning of year	$	(25,483	)	$	(26,027	)
Service cost		(868	)		(856	)
Interest cost		(245	)		(311	)
Actuarial loss		(796	)		(660	)
Participant contributions		(719	)		(672	)
Benefits paid		(214	)		296
Plan change		-			558
Settlements		-			2,199
Foreign currency exchange adjustment		826			(10	)
Benefit obligation at end of year		(27,499	)		(25,483	)

Change in plan assets:

Fair value of plan assets at beginning of year		14,716			15,603
Return on assets, net of actuarial loss		189			277
Employer contributions		719			672
Participant contributions		719			672
Benefits paid		214			(296	)
Settlements		-			(2,199	)
Foreign currency exchange adjustment		(480	)		(13	)
Fair value of plan assets at end of year		16,077			14,716
Net liability at end of year	$	(11,422	)	$	(10,767	)

Schedule of Assumptions Used [Table Text Block]

	2016			2015
Discount rate		0.7	%		1.0	%
Compensation increase		1.5	%		1.8	%

	2016			2015			2014
Discount rate		1.0	%		1.3	%		2.3	%
Rate of return on Assets		1.0	%		1.3	%		2.3	%
Compensation increase		1.8	%		1.8	%		2.0	%

Schedule of Net Funded Status [Table Text Block]

(in thousands)	2016			2015
Accumulated benefit obligation at beginning of year	$	2,649		$	2,428
Interest cost		109			90
Actuarial (gain) loss		(185	)		187
Benefits paid		(83	)		(56	)
Accumulated benefit obligation at end of year		2,490			2,649
Plan assets at end of year		-			-
Funded status	$	(2,490	)	$	(2,649	)

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	2016					2015					2014
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Shares			Ex. Price		Shares			Ex. Price		Shares			Ex. Price
Outstanding, beginning of year		1,965		$	11.25		2,435		$	11.67		3,086		$	11.93
Granted		-		$	-		10		$	10.98		10		$	12.58
Exercised		(101	)	$	7.89		(175	)	$	8.65		(237	)	$	8.43
Cancelled		(223	)	$	16.19		(305	)	$	16.07		(424	)	$	15.37
Outstanding, end of year		1,641		$	10.79		1,965		$	11.25		2,435		$	11.67

Options exercisable at year end		1,537		$	10.85		1,673		$	11.47		1,901		$	12.08

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

			Options Outstanding						Options Exercisable
					Approximate
					Wt. Avg.
Range of			Number		Remaining		Wt. Avg.		Number		Wt. Avg.
Exercise Prices			Outstanding		Life (in years)		Ex. Price		Exercisable		Ex. Price
$7.32	-	$10.58		1,089		4.4	$	8.92		1,002	$	8.87
$10.59	-	$15.50		466		3.2	$	14.08		449	$	14.20
$15.51	-	$20.73		86		3.2	$	16.55		86	$	16.55
				1,641		4.0	$	10.79		1,537	$	10.85

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	2016					2015					2014
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		1,078		$	9.93		1,026		$	9.54		887		$	9.46
Granted		471		$	11.25		482		$	10.54		497		$	10.07
Released		(409	)	$	9.90		(339	)	$	9.63		(315	)	$	10.16
Cancelled		(57	)	$	10.25		(91	)	$	9.82		(43	)	$	9.41
Outstanding, end of year		1,083		$	10.50		1,078		$	9.93		1,026		$	9.54

Schedule of Share-based Compensation, Equity-based Performance Stock Units [Table Text Block]

Year Granted	Range of Awards			Performance Criteria Period (in years)
2016	25%	-	200%		3
2015	25%	-	200%		2
2014	0%	-	150%		2

Schedule of Nonvested Performance-based Units Activity [Table Text Block]

	2016					2015					2014
				Wt. Avg.					Wt. Avg.					Wt. Avg.
(in thousands, except per share data)	Units			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding, beginning of year		376		$	10.80		334		$	10.49		238		$	9.32
Granted		222		$	11.38		156		$	10.69		208		$	11.34
Released		(172	)	$	11.27		(38	)	$	9.52		(38	)	$	9.52
Cancelled		(23	)	$	8.75		(76	)	$	9.86		(74	)	$	9.59
Outstanding, end of year		403		$	11.04		376		$	10.80		334		$	10.49

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

Employee Stock Purchase Plan	2016			2015			2014
Dividend yield		2.0	%		2.2	%		2.4	%
Expected volatility		31.2	%		35.3	%		35.3	%
Risk-free interest rate		0.3	%		0.1	%		0.1	%
Expected term (years)		0.5			0.5			0.5
Weighted-average grant date fair value per share	$	2.82		$	2.71		$	2.52

Employee Stock Options		2016	(1)		2015			2014
Dividend yield		N/A			2.1	%		2.0	%
Expected volatility		N/A			39.1	%		42.5	%
Risk-free interest rate		N/A			1.6	%		1.9	%
Expected term (years)		N/A			5.9			5.9
Weighted-average grant date fair value per share		N/A		$	3.46		$	4.39

Restricted Stock Units	2016			2015			2014
Dividend yield		2.0	%		2.1	%		2.2	%

Performance Stock Units	2016			2015			2014
Dividend yield		2.0	%		2.1	%		2.2	%

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

(in thousands)	2016			2015			2014
Cost of sales	$	398		$	566		$	491
Research and development		1,292			1,092			1,858
Selling, general and administrative		5,453			5,097			4,039
Share-based compensation of continuing operations		7,143			6,755			6,388
Discontinued operations		-			138			388
Income tax benefit		(269	)		(249	)		(204	)
Total share-based compensation, net of tax	$	6,874		$	6,644		$	6,572

Note 7 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

(in thousands)	2016			2015		2014
Current:
U.S. Federal	$	11		$	5	$	(307	)
U.S. State		8			28		40
Foreign		3,793			1,956		4,088
Total current		3,812			1,989		3,821
Deferred:
U.S. Federal		91			89		112
U.S. State		47			49		(17	)
Foreign		(1,203	)		84		737
Total deferred		(1,065	)		222		832
	$	2,747		$	2,211	$	4,653

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

(in thousands)	2016			2015			2014
U.S.	$	(13,420	)	$	(5,214	)	$	1,076
Foreign		19,427			13,217			18,357
Total	$	6,007		$	8,003		$	19,433

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(in thousands)	2016			2015
Deferred tax assets:
Inventory, receivable and warranty reserves	$	5,868		$	8,207
Net operating loss carryforwards		11,681			7,605
Tax credit carryforwards		13,715			12,291
Accrued employee benefits		5,002			4,993
Deferred profit and gain on facility sale		5,412			6,084
Stock-based compensation		4,189			4,443
Acquisition basis differences		1,334			1,544
Other		103			265
Gross deferred tax assets		47,304			45,432
Less valuation allowance		(44,731	)		(42,289	)
Total deferred tax assets		2,573			3,143
Deferred tax liabilities:
Depreciation and fixed asset related		53			227
Acquisition basis differences		7,423			8,904
Other		662			563
Total deferred tax liabilities		8,138			9,694
Net deferred tax liabilities	$	(5,565	)	$	(6,551	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

(in thousands)	2016			2015			2014
Tax provision at U.S. 35% statutory rate	$	2,102		$	2,801		$	6,802
State income taxes, net of federal tax benefit		168			(152	)		119
Settlements, adjustments and releases from statute expirations		(312	)		(104	)		(65	)
Federal tax credits		(183	)		(221	)		(244	)
Stock-based compensation on which no tax benefit provided		168			156			160
Change in valuation allowance		2,430			2,181			437
Non-deductible transaction costs		463			-			-
Foreign income taxed at different rates		(2,378	)		(2,601	)		(2,151	)
Other, net		289			151			(405	)
	$	2,747		$	2,211		$	4,653

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

(in thousands)	2016			2015			2014
Balance at beginning of year	$	10,444		$	10,841		$	10,483
Gross additions for tax positions of current year		125			215			761
Gross additions for tax positions of prior years		58			248			365
Reductions due to lapse of the statute of limitations		(446	)		(243	)		(587	)
Foreign exchange rate impact		(106	)		(617	)		(181	)
Balance at end of year	$	10,075		$	10,444		$	10,841

Note 8 - Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

	2016		2015		2014
Intel		17.2%		18.0%		15.7%
NXP Semiconductors N.V. (1)		13.7%		11.4%		11.4%

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

(in thousands)	2016		2015		2014
Malaysia	$	85,956	$	60,776	$	73,818
China		60,291		52,589		51,662
United States		35,204		50,704		72,266
Rest of the World		100,633		105,585		118,883
Total, net	$	282,084	$	269,654	$	316,629

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]

(in thousands)	2016		2015
Property, plant and equipment:
United States	$	2,398	$	3,054
Germany		6,674		6,882
Philippines		4,167		4,171
Malaysia		4,067		4,165
Rest of the World		928		728
Total, net	$	18,234	$	19,000

Goodwill and other intangible assets:
Germany	$	26,892	$	31,337
Switzerland		18,264		22,444
United States		17,242		17,241
Malaysia		6,775		6,995
Singapore		6,558		6,558
Rest of the World		953		986
Total, net	$	76,684	$	85,561

Note 9 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Operating Leases of Lessee Disclosure [Table Text Block]

(in thousands)		2017				2018				2019				2020				2021				Thereafter				Total
Non-cancelable operating leases		$	3,051			$	2,527			$	2,237			$	2,259			$	2,299			$	8,695			$	21,068

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

Note 11 - Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

(in thousands)	Before Tax amount			Tax (Expense) Benefit			Net of Tax Amount
Year ended December 27, 2014
Foreign currency translation adjustments	$	(14,107	)	$	-		$	(14,107	)
Adjustments related to postretirement benefits		(3,809	)		551			(3,258	)
Other comprehensive income (loss)	$	(17,916	)	$	551		$	(17,365	)
Year ended December 26, 2015
Foreign currency translation adjustments	$	(11,000	)	$	-		$	(11,000	)
Adjustments related to postretirement benefits		(24	)		(34	)		(58	)
Other comprehensive income (loss)	$	(11,024	)	$	(34	)	$	(11,058	)
Year ended December 31, 2016
Foreign currency translation adjustments	$	(5,789	)	$	-		$	(5,789	)
Adjustments related to postretirement benefits		(429	)		113			(316	)
Change in unrealized gain/loss on investments		(5	)		-			(5	)
Other comprehensive income (loss)	$	(6,223	)	$	113		$	(6,110	)

Condensed Statement of Comprehensive Income [Table Text Block]

(in thousands)	2016			2015
Accumulated net currency translation adjustments	$	(25,116	)	$	(19,327	)
Accumulated net adjustments related to postretirement benefits		(2,761	)		(2,445	)
Accumulated net unrealized gain/loss on investments		(5	)		-
Total accumulated other comprehensive loss	$	(27,882	)	$	(21,772	)

Note 14 - Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Table Text Block]

Quarter			First (a)			Second (a)			Third (a)		Fourth (a)		Year
(in thousands, except per share data)

Net sales:	2016		$	65,778		$	76,353		$	69,259	$	70,694	$	282,084
	2015		$	63,447		$	75,211		$	67,512	$	63,484	$	269,654

Gross profit:	2016	(b)	$	19,282		$	26,739		$	23,280	$	25,527	$	94,828
	2015		$	20,145		$	25,702		$	22,794	$	20,397	$	89,038

Income (loss) from continuing operations	2016	(b)	$	(1,691	)	$	2,517		$	128	$	2,306	$	3,260
	2015		$	(1,720	)	$	3,887		$	1,335	$	2,290	$	5,792

Net income (loss)	2016	(b)	$	(1,691	)	$	2,462		$	179	$	2,089	$	3,039
	2015		$	(2,740	)	$	(72	)	$	1,113	$	1,949	$	250

Income (loss) per share (c):
Basic:
Income (loss) from continuing operations	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.09	$	0.12
	2015		$	(0.07	)	$	0.15		$	0.05	$	0.09	$	0.22

Net income (loss)	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.08	$	0.11
	2015		$	(0.11	)	$	0.00		$	0.04	$	0.07	$	0.01

Diluted:
Income (loss) from continuing operations	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.08	$	0.12
	2015		$	(0.07	)	$	0.15		$	0.05	$	0.08	$	0.22

Net income (loss)	2016	(b)	$	(0.06	)	$	0.09		$	0.01	$	0.08	$	0.11
	2015		$	(0.11	)	$	0.00		$	0.04	$	0.07	$	0.01

Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Valuation Allowance [Table Text Block]

			Additions			Additions
			(Reductions)			(Reductions)
	Balance at		Not			Charged						Balance
	Beginning		Charged			(Credited)			Deductions/			at End
Description	of Year		to Expense			to Expense			Write-offs			of Year

Allowance for doubtful accounts:

Year ended December 27, 2014	$	330	$	(1	) (1)	$	(126	)	$	24		$	179

Year ended December 26, 2015	$	179	$	1	(1)	$	19		$	128		$	71

Year ended December 31, 2016	$	71	$	(4	) (1)	$	13		$	(1	)	$	81

Reserve for excess and obsolete inventories:

Year ended December 27, 2014	$	35,221	$	(762	) (1)	$	2,624		$	9,232		$	27,851

Year ended December 26, 2015	$	27,851	$	(648	) (1)	$	2,409		$	2,959		$	26,653

Year ended December 31, 2016	$	26,653	$	1,789	(2)	$	1,125		$	8,082		$	21,485

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)		12 Months Ended
	Oct. 01, 2016	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		697,000	875,000	1,771,000
Allowance for Doubtful Accounts Receivable, Current		$ 100,000	$ 100,000
Valuation Allowances and Reserves, Additions for Charges to Cost and Expense		1,100,000	2,400,000	$ 2,600,000
Depreciation		$ 3,500,000	4,200,000	4,800,000
Number of Operating Segments		1
Goodwill, Impairment Loss	$ 0
Percentage of Revenue Recognized upon Customer Acceptance		20.00%
Percentage of Revenue Recognized upon Shipment and Passage of Title		80.00%
Deferred Revenue		$ 9,300,000	5,000,000
Other Deferred Credits, Current		6,886,000	3,730,000
Foreign Currency Transaction Gain (Loss), Realized		2,600,000	1,400,000	$ 2,000,000
Accumulated Other Comprehensive Income (Loss), Net of Tax		(27,882,000)	(21,772,000)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax		5,800,000	$ 11,000,000
Adjustments for New Accounting Principle, Early Adoption [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption		200,000
Adjustments for New Accounting Principle, Early Adoption [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ (249,000)
Minimum [Member]
Standard Product Warranty Term		1 year
Maximum [Member]
Standard Product Warranty Term		3 years
Building [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life		30 years
Building [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life		40 years
Building Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life		5 years
Building Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life		15 years
Machinery, Equipment and Software [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life		3 years
Machinery, Equipment and Software [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life		10 years

Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Weighted average common shares outstanding (in shares)	26,659	26,057	25,393
Effect of dilutive stock options and restricted stock units (in shares)	821	731	613
(in shares)	27,480	26,788	26,006

Note 1 - Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 26, 2015
Property, plant and equipment	$ 47,203	$ 45,466
Less accumulated depreciation and amortization	(28,969)	(26,466)
Property, plant and equipment, net	18,234	19,000
Land and Land Improvements [Member]
Property, plant and equipment	4,079	4,607
Building and Building Improvements [Member]
Property, plant and equipment	7,967	8,971
Machinery and Equipment [Member]
Property, plant and equipment	$ 35,157	$ 31,888

Note 2 - Subsequent Events (Details Textual) - Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member] - USD ($) $ in Millions		12 Months Ended
	Jan. 04, 2017	Dec. 31, 2016
Selling, General and Administrative Expenses [Member]
Business Combination, Acquisition Related Costs		$ 1.8
Subsequent Event [Member]
Business Combination, Consideration Transferred	$ 21.1
Payments to Acquire Businesses, Gross	15.0
Business Combination, Consideration Transferred, Liabilities Incurred	6.1
Subsequent Event [Member] \| Earn-Out Cash Consideration [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 3.0

Note 3 - Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Amortization of Intangible Assets	$ 6.9	$ 7.0	$ 7.8
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	3.6
Finite-Lived Intangible Assets, Amortization Expense, Year Two	3.6
Finite-Lived Intangible Assets, Amortization Expense, Year Three	3.6
Finite-Lived Intangible Assets, Amortization Expense, Year Four	3.5
Finite-Lived Intangible Assets, Amortization Expense, Year Five	0.4
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	$ 3.1

Note 3 - Goodwill and Purchased Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015
Beginning balance	$ 60,264	$ 63,132
Impact of currency exchange	(1,415)	(2,868)
Ending balance	$ 58,849	$ 60,264

Note 3 - Goodwill and Purchased Intangible Assets - Purchased Intangible Assets, Subject to Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015
Gross Carrying Amount	$ 57,329	$ 59,494
Accumulated Amortization	39,494	34,197
Rasco Technology [Member]
Gross Carrying Amount	25,785	26,904
Accumulated Amortization	$ 25,785	23,776
Remaining Useful Life (Year)
Ismeca Technology [Member]
Gross Carrying Amount	$ 26,191	27,043
Accumulated Amortization	$ 13,241	10,329
Remaining Useful Life (Year)	4 years
Trade Names [Member]
Gross Carrying Amount	$ 5,353	5,547
Accumulated Amortization	$ 468	$ 92
Remaining Useful Life (Year)	13 years 255 days

Note 4 - Discontinued Operations (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Broadcast Microwave Services, Inc. (“BMS”) [Member]
Proceeds from Divestiture of Businesses		$ 4,881
Disposal Group, Including Discontinued Operation, Contingent Consideration		2,500
Contingent Consideration Receivable, Fair Value	300	500
Cohu Electronics [Member]
Proceeds from Divestiture of Businesses			10,258
Disposal Group, Including Discontinued Operation, Contingent Consideration			500
Initial Cash Proceeds from Divestiture of Businesses			$ 9,500

Note 4 - Discontinued Operations - Summary of Operating Results (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Net sales		$ 6,965	$ 22,154
Operating income (loss) before income taxes		(1,963)	(10,547)
Gain (loss) from disposal of segment	(221)	(5,536)	(6,113)
Income tax provision		6	(41)
Loss, net of tax	(221)	(5,542)	(6,072)
Broadcast Microwave Services, Inc. (“BMS”) [Member]
Net sales		6,965	16,694
Operating income (loss) before income taxes		(1,963)	(10,305)
Gain (loss) from disposal of segment	(221)	(3,573)
Cohu Electronics [Member]
Net sales			5,460
Operating income (loss) before income taxes			(242)
Gain (loss) from disposal of segment			$ 4,434

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

Amount after tax of income (loss) from a discontinued operation attributable to the parent. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Note 5 - Financial Instruments Measured at Fair Value - Short-term Investments by Security Type (Details) - USD ($)
$ in Thousands

Dec. 31, 2016

Dec. 26, 2015

$ 31,995

$ 1,652

^[1]

Foreign Government Debt Securities [Member]

31,990

1,652

623

650

^[1]

Corporate Debt Securities [Member]

623

650

^[2]

22,513

^[2]

^[1],[2]

Certificates of Deposit [Member]

^[2]

22,508

750

1,002

^[1]

US Government-sponsored Enterprises Debt Securities [Member]

751

$ 1,002

8,109

^[1]

Employee Stock Option [Member]

$ 8,108

[1]

As of December 31, 2016, the cost and fair value of investments with loss positions were approximately $26.6 million. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.

[2]

Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Due in one year or less, amortized cost	$ 31,372
Due in one year or less, estimated fair value	31,367
Due after one year through three years, amortized cost	623
Due after one year through three years, estimated fair value	623
	31,995
	$ 31,990

Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 26, 2015
	$ 128,035	$ 117,022
Foreign Government Debt Securities [Member]
Short-term investments	623	650
Corporate Debt Securities [Member]
Short-term investments	24,108
US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments	8,108
Certificates of Deposit [Member]
Short-term investments	751	1,002
Cash [Member]
Cash and cash equivalents	70,279	73,746
Money Market Funds [Member]
Cash and cash equivalents	24,166	41,624
Fair Value, Inputs, Level 1 [Member]
	70,279	73,746
Fair Value, Inputs, Level 1 [Member] \| Foreign Government Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Corporate Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Certificates of Deposit [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Cash [Member]
Cash and cash equivalents	70,279	73,746
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 2 [Member]
	57,756	43,276
Fair Value, Inputs, Level 2 [Member] \| Foreign Government Debt Securities [Member]
Short-term investments	623	650
Fair Value, Inputs, Level 2 [Member] \| Corporate Debt Securities [Member]
Short-term investments	24,108
Fair Value, Inputs, Level 2 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments	8,108
Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit [Member]
Short-term investments	751	1,002
Fair Value, Inputs, Level 2 [Member] \| Cash [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]
Cash and cash equivalents	24,166	41,624
Fair Value, Inputs, Level 3 [Member]

Fair Value, Inputs, Level 3 [Member] \| Foreign Government Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Corporate Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Certificates of Deposit [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Cash [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 3 [Member] \| Money Market Funds [Member]
Cash and cash equivalents

Note 6 - Employee Benefit Plans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014	May 12, 2015
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	6.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 600,000	$ 700,000	$ 700,000
Deferred Compensation Liability, Current	2,400,000	2,600,000
Cash Surrender Value of Life Insurance	2,200,000	2,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	500,000	$ 700,000	$ 700,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	5,600,000
Adjustments for New Accounting Principle, Early Adoption [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 200,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 100,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	182 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Employee Stock Option [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Employee Stock Option [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Restricted Stock Units (RSUs) [Member] \| Vesting Over One Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Restricted Stock Units (RSUs) [Member] \| Vesting Over Two Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Restricted Stock Units (RSUs) [Member] \| Vesting Over Four Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Equity-based Performance Stock Units Granted in 2016 [Member] \| Vest on the Third Anniversary of Awards Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%
Equity-based Performance Stock Units Granted in 2015 and 2014 [Member] \| Vest on the Second and Third Anniversary of Awards Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 9,300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 109 days
Employee Stock Purchase Plan [Member]
Stock Issued During Period Shares Employee Stock Purchase Plans Future Issuance				2,650,000
Percentage of Fair Value to Determine Price of Common Stock				85.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans	110,579	122,528	138,831
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	700,484
Equity Incentive Plan 2005 [Member]
Percentage of Fair Value to Determine Price of Common Stock	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,853,509
Debt Securities [Member]
Defined Benefit Plan, Target Plan Asset Allocations	71.00%
Real Estate Investments [Member]
Defined Benefit Plan, Target Plan Asset Allocations	14.00%
Alternative Investments [Member]
Defined Benefit Plan, Target Plan Asset Allocations	9.00%
Equity Securities [Member]
Defined Benefit Plan, Target Plan Asset Allocations	6.00%
Swiss Plan [Member]
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Gains (Losses), after Tax	$ 2,400,000	$ 1,800,000
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	700,000
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months	700,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Two	700,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Three	800,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Four	1,000,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Five	1,000,000
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter	5,200,000
Defined Benefit Plan, Net Periodic Benefit Cost	$ 966,000	$ 1,209,000	$ 897,000
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	0.70%	1.00%
Post-retirement Health benefits [Member]
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	$ 100,000
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months	100,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Two	100,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Three	100,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Four	100,000
Defined Benefit Plan, Expected Future Benefit Payments, Year Five	100,000
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter	700,000
Defined Benefit Plan, Net Periodic Benefit Cost	$ 100,000	$ 100,000
Defined Benefit Plan, Net Periodic Benefit Income			$ 100,000
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	3.90%	4.20%	3.80%
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year	7.70%
Defined Benefit Plan, Health Care Cost Trend Rate, Annual Rate of Change	(0.30%)
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate	4.90%
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate	2026
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components	$ 18,000
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components	14,000
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation	338,000
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation	$ 283,000

Note 6 - Employee Benefit Plans - Net Periodic Benefit Cost of Swiss Plan (Details) - Swiss Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Service cost	$ 868	$ 856	$ 749
Interest cost	245	311	491
Expected return on assets	(147)	(193)	(343)
Settlements		235
Net periodic costs	$ 966	$ 1,209	$ 897

Note 6 - Employee Benefit Plans - Benefit Obligation, Fair Value of Plan Assets, Funded Status and Liability of Swiss Plan (Details) - Swiss Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Benefit obligation at beginning of year	$ 25,483	$ 26,027
Service cost	(868)	(856)	$ (749)
Interest cost	(245)	(311)	(491)
Actuarial loss	(796)	(660)
Participant contributions	(719)	(672)
Benefits paid	(214)	296
Plan change		558
Settlements		2,199
Foreign currency exchange adjustment	826	(10)
Benefit obligation at end of year	27,499	25,483	26,027
Fair value of plan assets at beginning of year	14,716	15,603
Return on assets, net of actuarial loss	189	277
Employer contributions	719	672
Participant contributions	719	672
Benefits paid	214	(296)
Settlements		(2,199)
Foreign currency exchange adjustment	(480)	(13)
Fair value of plan assets at end of year	16,077	14,716	$ 15,603
Net liability at end of year	$ (11,422)	$ (10,767)

Note 6 - Employee Benefit Plans - Weighted-average Actuarial Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Details) - Swiss Plan [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Discount rate	0.70%	1.00%
Compensation increase	1.50%	1.80%
Discount rate	1.00%	1.30%	2.30%
Rate of return on Assets	1.00%	1.30%	2.30%
Compensation increase	1.80%	1.80%	2.00%

Note 6 - Employee Stock Benefit Plans - Post-retirement Benefit Obligation to Funded Status and Liability (Details) - Defined Benefit Retirement Plans [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015
Accumulated benefit obligation at beginning of year	$ 2,649	$ 2,428
Interest cost	109	90
Actuarial (gain) loss	(185)	187
Benefits paid	(83)	(56)
Accumulated benefit obligation at end of year	2,490	2,649
Plan assets at end of year
Funded status	$ (2,490)	$ (2,649)

Note 6 - Employee Stock Benefit Plans - Stock Option Activity under Share-based Compensation Plans (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Outstanding, beginning of year (in shares)	1,965	2,435	3,086
Outstanding, beginning of year (in dollars per share)	$ 11.25	$ 11.67	$ 11.93
Granted (in shares)		10	10
Granted (in dollars per share)		$ 10.98	$ 12.58
Exercised (in shares)	(101)	(175)	(237)
Exercised (in dollars per share)	$ 7.89	$ 8.65	$ 8.43
Cancelled (in shares)	(223)	(305)	(424)
Cancelled (in dollars per share)	$ 16.19	$ 16.07	$ 15.37
Outstanding, end of year (in shares)	1,641	1,965	2,435
Outstanding, end of year (in dollars per share)	$ 10.79	$ 11.25	$ 11.67
Options exercisable at year end (in shares)	1,537	1,673	1,901
Options exercisable at year end (in dollars per share)	$ 10.85	$ 11.47	$ 12.08

Note 6 - Employee Stock Benefit Plans - Stock Options Outstanding and Exercisable (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Number Outstanding (in shares)	1,641	1,965	2,435	3,086
Options Outstanding, Weighted Average Remaining Life (Year)	4 years
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 10.79	$ 11.25	$ 11.67	$ 11.93
Options Exercisable (in shares)	1,537	1,673	1,901
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 10.85	$ 11.47	$ 12.08
Range 1 [Member]
Range of Exercise Prices, Lower (in dollars per share)	7.32
Range of Exercise Prices, Upper (in dollars per share)	$ 10.58
Number Outstanding (in shares)	1,089
Options Outstanding, Weighted Average Remaining Life (Year)	4 years 146 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 8.92
Options Exercisable (in shares)	1,002
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 8.87
Range 2 [Member]
Range of Exercise Prices, Lower (in dollars per share)	10.59
Range of Exercise Prices, Upper (in dollars per share)	$ 15.50
Number Outstanding (in shares)	466
Options Outstanding, Weighted Average Remaining Life (Year)	3 years 73 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 14.08
Options Exercisable (in shares)	449
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 14.20
Range 3 [Member]
Range of Exercise Prices, Lower (in dollars per share)	15.51
Range of Exercise Prices, Upper (in dollars per share)	$ 20.73
Number Outstanding (in shares)	86
Options Outstanding, Weighted Average Remaining Life (Year)	3 years 73 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 16.55
Options Exercisable (in shares)	86
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 16.55

Note 6 - Employee Stock Benefit Plans - Restricted Stock Unit Activity under Share-based Compensation Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Outstanding, beginning of year, units (in shares)	1,078	1,026	887
Outstanding, beginning of year, wt. avg. (in dollars per share)	$ 9.93	$ 9.54	$ 9.46
Granted, units (in shares)	471	482	497
Granted, wt. avg. (in dollars per share)	$ 11.25	$ 10.54	$ 10.07
Released, units (in shares)	(409)	(339)	(315)
Released, wt. avg. (in dollars per share)	$ 9.90	$ 9.63	$ 10.16
Cancelled, units (in shares)	(57)	(91)	(43)
Cancelled, wt. avg. (in dollars per share)	$ 10.25	$ 9.82	$ 9.41
Outstanding, end of year, units (in shares)	1,083	1,078	1,026
Outstanding, end of year, wt. avg. (in dollars per share)	$ 10.50	$ 9.93	$ 9.54

Note 6 - Employee Stock Benefit Plans - Equity-based Performance Stock Units (Details)	12 Months Ended
	Dec. 31, 2016
Equity-based Performance Stock Units Granted in 2016 [Member]
Performance Criteria Period (Year)	3 years
Equity-based Performance Stock Units Granted in 2016 [Member] \| Minimum [Member]
Range of Award	25.00%
Equity-based Performance Stock Units Granted in 2016 [Member] \| Maximum [Member]
Range of Award	200.00%
Equity-based Performance Stock Units Granted in 2015 [Member]
Performance Criteria Period (Year)	2 years
Equity-based Performance Stock Units Granted in 2015 [Member] \| Minimum [Member]
Range of Award	25.00%
Equity-based Performance Stock Units Granted in 2015 [Member] \| Maximum [Member]
Range of Award	200.00%
Equity-based Performance Stock Units Granted in 2014 [Member]
Performance Criteria Period (Year)	2 years
Equity-based Performance Stock Units Granted in 2014 [Member] \| Minimum [Member]
Range of Award	0.00%
Equity-based Performance Stock Units Granted in 2014 [Member] \| Maximum [Member]
Range of Award	150.00%

Note 6 - Employee Stock Benefit Plans - Performance Based Stock Unit Activity Under Share-based Compensation Plans (Details) - Equity Based Performance Stock Units [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Outstanding, beginning of year, units (in shares)	376	334	238
Outstanding, beginning of year, wt. avg. (in dollars per share)	$ 10.80	$ 10.49	$ 9.32
Granted, units (in shares)	222	156	208
Granted, wt. avg. (in dollars per share)	$ 11.38	$ 10.69	$ 11.34
Released, units (in shares)	(172)	(38)	(38)
Released, wt. avg. (in dollars per share)	$ 11.27	$ 9.52	$ 9.52
Cancelled, units (in shares)	(23)	(76)	(74)
Cancelled, wt. avg. (in dollars per share)	$ 8.75	$ 9.86	$ 9.59
Outstanding, end of year, units (in shares)	403	376	334
Outstanding, end of year, wt. avg. (in dollars per share)	$ 11.04	$ 10.80	$ 10.49

Note 6 - Employee Stock Benefit Plans - Weighted-average Assumptions to Value Share-based Awards Granted (Details) - $ / shares

12 Months Ended

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Expected term (years) (Year)

^[1]

2.10%

2.00%

Expected volatility

^[1]

39.10%

42.50%

Risk-free interest rate

^[1]

1.60%

1.90%

^[1]

5 years 328 days

Weighted-average grant date fair value per share (in dollars per share)

^[1]

$ 3.46

$ 4.39

Restricted Stock Units (RSUs) [Member]

Performance Stock Units [Member]

2.00%

2.10%

2.20%

Employee Stock Purchase Plan [Member]

2.00%

2.10%

2.20%

Expected term (years) (Year)

2.00%

2.20%

2.40%

Expected volatility

31.20%

35.30%

Risk-free interest rate

0.30%

0.10%

182 days

Weighted-average grant date fair value per share (in dollars per share)

$ 2.82

$ 2.71

$ 2.52

[1]	There were no employee stock options granted in 2016.

Note 6 - Employee Stock Benefit Plans - Reported Share-based Compensation in Consolidated Financial Statements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Share-based compensation of continuing operations	$ 7,143	$ 6,755	$ 6,388
Discontinued operations		138	388
Income tax benefit	(269)	(249)	(204)
Total share-based compensation, net of tax	6,874	6,644	6,572
Cost of Sales [Member]
Share-based compensation of continuing operations	398	566	491
Research and Development Expense [Member]
Share-based compensation of continuing operations	1,292	1,092	1,858
Selling, General and Administrative Expenses [Member]
Share-based compensation of continuing operations	$ 5,453	$ 5,097	$ 4,039

Note 7 - Income Taxes (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Cumulative Three Year Pre-tax Income (Loss)	$ (17,600)
Deferred Tax Assets, Valuation Allowance	44,731	$ 42,289
Income Tax Credits and Adjustments	200	400	$ 500
Undistributed Earnings of Foreign Subsidiaries	49,000
Increase (Decrease) of Net Income Due to Impact of Tax Holidays	$ 1,000	$ 800
Increase (Decrease) of Earning Per Share Due To Impact Of Tax Holidays	$ 0.04	$ 0.03
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 5,200	$ 5,600
Decrease in Unrecognized Tax Benefits is Reasonably Possible	800
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 1,200	1,400
Unrecognized Tax Benefits, Interest Expense, Net of Accrued Interest Reversed		$ 100
Minimum [Member]
Collection Term Range	4 years
Maximum [Member]
Collection Term Range	10 years
SINGAPORE
Foreign Earnings Repatriated	$ 17,400
Domestic Tax Authority [Member]
Operating Loss Carryforwards	31,000
Tax Credit Carryforward, Amount	8,200
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	22,200
Tax Credit Carryforward, Amount	13,600
Foreign Tax Authority [Member]
Operating Loss Carryforwards	$ 200

Note 7 - Income Taxes - Components of Provision (Benefit) for Income Taxes for Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
U.S. Federal	$ 11	$ 5	$ (307)
U.S. State	8	28	40
Foreign	3,793	1,956	4,088
Total current	3,812	1,989	3,821
U.S. Federal	91	89	112
U.S. State	47	49	(17)
Foreign	(1,203)	84	737
Total deferred	(1,065)	222	832
	$ 2,747	$ 2,211	$ 4,653

Note 7 - Income Taxes - Income (Loss) Before Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Income from continuing operations, U.S.	$ (13,420)	$ (5,214)	$ 1,076
Income from continuing operations, Foreign	19,427	13,217	18,357
Income from continuing operations before taxes	$ 6,007	$ 8,003	$ 19,433

Note 7 - Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 26, 2015
Inventory, receivable and warranty reserves	$ 5,868	$ 8,207
Net operating loss carryforwards	11,681	7,605
Tax credit carryforwards	13,715	12,291
Accrued employee benefits	5,002	4,993
Deferred profit and gain on facility sale	5,412	6,084
Stock-based compensation	4,189	4,443
Acquisition basis differences	1,334	1,544
Other	103	265
Gross deferred tax assets	47,304	45,432
Less valuation allowance	(44,731)	(42,289)
Total deferred tax assets	2,573	3,143
Depreciation and fixed asset related	53	227
Acquisition basis differences	7,423	8,904
Other	662	563
Total deferred tax liabilities	8,138	9,694
Net deferred tax liabilities	$ (5,565)	$ (6,551)

Note 7 - Income Taxes - Reconciliation of Income Tax Computed at U.S. Federal Statutory Tax Rate to Provision (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Tax provision at U.S. 35% statutory rate	$ 2,102	$ 2,801	$ 6,802
State income taxes, net of federal tax benefit	168	(152)	119
Settlements, adjustments and releases from statute expirations	(312)	(104)	(65)
Federal tax credits	(183)	(221)	(244)
Stock-based compensation on which no tax benefit provided	168	156	160
Change in valuation allowance	2,430	2,181	437
Non-deductible transaction costs	463
Foreign income taxed at different rates	(2,378)	(2,601)	(2,151)
Other, net	289	151	(405)
	$ 2,747	$ 2,211	$ 4,653

Note 7 - Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Balance at beginning of year	$ 10,444	$ 10,841	$ 10,483
Gross additions for tax positions of current year	125	215	761
Gross additions for tax positions of prior years	58	248	365
Reductions due to lapse of the statute of limitations	(446)	(243)	(587)
Foreign exchange rate impact	(106)	(617)	(181)
Balance at end of year	$ 10,075	$ 10,444	$ 10,841

Note 8 - Segment and Geographic Information - Customers Comprising 10% of Consolidated Sales (Details) - Semiconductor Equipment [Member] - Sales Revenue, Net [Member] - Customer Concentration Risk [Member]

12 Months Ended

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Intel [Member]

Net sales percentage

17.20%

18.00%

15.70%

NXP Semiconductors N.V. [Member]

Net sales percentage

^[1]

13.70%

11.40%

[1]	The merger of NXP Semiconductors N.V. and Freescale Semiconductor, Ltd. was completed on December 7, 2015. Sales to these customers have been combined for all periods presented.

Note 8 - Segment and Geographic Information - Summary of Net Sales to Customers, Attributed to Countries (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

^[1]

Sep. 24, 2016

^[1]

Jun. 25, 2016

^[1]

Mar. 26, 2016

^[1]

Dec. 26, 2015

^[1]

Sep. 26, 2015

^[1]

Jun. 27, 2015

^[1]

Mar. 28, 2015

^[1]

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

$ 70,694

$ 69,259

$ 76,353

$ 65,778

$ 63,484

$ 67,512

$ 75,211

$ 63,447

$ 282,084

^[1]

$ 269,654

^[1]

$ 316,629

Malaysia [Member]

85,956

60,776

73,818

CHINA

60,291

52,589

51,662

UNITED STATES

Rest of the World [Member]

35,204

50,704

72,266

$ 100,633

$ 105,585

$ 118,883

[1]	All quarters presented above were comprised of 13 weeks, except for the fourth quarter ended December 31, 2016 which was comprised of 14 weeks.

Note 8 - Segment and Geographic Information - Summary of Property, Plant and Equipment and Other Long Lived Assets in Geographical Area (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 26, 2015
Property plant and equipment, net	$ 18,234	$ 19,000
Goodwill and other intangible assets	76,684	85,561
UNITED STATES
Property plant and equipment, net	2,398	3,054
Goodwill and other intangible assets	17,242	17,241
GERMANY
Property plant and equipment, net	6,674	6,882
Goodwill and other intangible assets	26,892	31,337
PHILIPPINES
Property plant and equipment, net	4,167	4,171
Malaysia [Member]
Property plant and equipment, net	4,067	4,165
Goodwill and other intangible assets	6,775	6,995
Rest of the World [Member]
Property plant and equipment, net	928	728
Goodwill and other intangible assets	953	986
SWITZERLAND
Goodwill and other intangible assets	18,264	22,444
SINGAPORE
Goodwill and other intangible assets	$ 6,558	$ 6,558

Note 9 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 3,051
2018	2,527
2019	2,237
2020	2,259
2021	2,299
Thereafter	8,695
Total	$ 21,068

Note 10 - Guarantees (Details Textual) $ in Thousands, SFr in Millions	Dec. 31, 2016 USD ($)	Dec. 31, 2016 CHF (SFr)	Dec. 26, 2015 USD ($)
Line of Credit Facility, Maximum Borrowing Capacity \| SFr		SFr 2.5
Long-term Line of Credit	$ 0		$ 0
Non-current Other Accrued Liabilities [Member]
Product Warranty Accrual, Noncurrent	$ 600		$ 1,100

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

Note 10 - Guarantees and Other Obligations - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Beginning balance	$ 4,886	$ 5,848	$ 4,673
Warranty accruals	6,088	6,747	6,176
Warranty payments	(6,624)	(7,709)	(5,001)
Ending balance	$ 4,350	$ 4,886	$ 5,848

Note 11 - Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Foreign currency translation adjustments, before tax	$ (5,789)	$ (11,000)	$ (14,107)
Foreign currency translation adjustments, tax
Foreign currency translation adjustments, net of tax	(5,789)	(11,000)	(14,107)
Adjustments related to postretirement benefits, before tax	(429)	(24)	(3,809)
Adjustments related to postretirement benefits, tax	113	(34)	551
Adjustments related to postretirement benefits, net of tax	(316)	(58)	(3,258)
Other comprehensive income (loss), before tax	(6,223)	(11,024)	(17,916)
Other comprehensive income (loss), tax	113	(34)	551
Other comprehensive income (loss), net of tax	(6,110)	(11,058)	(17,365)
Change in unrealized gain/loss on investments, before tax	(5)
Change in unrealized gain/loss on investments, tax
Change in unrealized gain/loss on investments, net of tax	$ (5)

Note 11 - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 26, 2015
Accumulated net currency translation adjustments	$ (25,116)	$ (19,327)
Accumulated net adjustments related to postretirement benefits	(2,761)	(2,445)
Accumulated net unrealized gain/loss on investments	(5)
Total accumulated other comprehensive loss	$ (27,882)	$ (21,772)

Note 13 - Sale-leaseback of Poway Facility (Details Textual) $ in Thousands		12 Months Ended
	Dec. 04, 2015 USD ($)	Dec. 31, 2016 USD ($)	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)
Sale Leaseback Transaction, Net Proceeds, Investing Activities		$ 874	$ 33,314
Sale Leaseback Transaction, Current Period Gain Recognized			3,198
Sale-leaseback of Poway Facility [Member]
Sale Leaseback Transaction, Gross Proceeds, Investing Activities	$ 34,100
Sale Leaseback Transaction, Net Proceeds, Investing Activities	33,300
Sale Leaseback Transaction, Deferred Gain, Gross	$ 18,500
Lessee Leasing Arrangements, Operating Leases, Term of Contract	10 years
Sale Leaseback Transaction, Current Period Gain Recognized		$ 2,000	$ 3,200
Sale Leaseback Transaction, Deferred Gain, Net	$ 15,300
Sale Leaseback Transaction, Deferred Gain, Amortization Period	10 years
Sale-leaseback of Poway Facility [Member] \| Lease 1 [Member]
Sale Leaseback Transaction, Annual Rental Payments	$ 1,600
Lessee Leasing Arrangements, Operating Leases, Adjustments and Pro Rata Share of Property Operating Costs	3.00%
Percentage of Facility to be Consolidated	43.00%
Lessee Leasing Arrangements, Operating Leases, Number of Renewal Options	2
Lessee Leasing Arrangements, Operating Leases, Renewal Term	5 years

Note 14 - Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 24, 2016

Jun. 25, 2016

Mar. 26, 2016

Dec. 26, 2015

Sep. 26, 2015

Jun. 27, 2015

Mar. 28, 2015

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Income (loss) from continuing operations

$ 70,694

^[1]

$ 69,259

^[1]

$ 76,353

^[1]

$ 65,778

^[1]

$ 63,484

^[1]

$ 67,512

^[1]

$ 75,211

^[1]

$ 63,447

^[1]

$ 282,084

^[1]

$ 269,654

^[1]

$ 316,629

Gross profit

^[1]

25,527

^[2]

23,280

^[2]

26,739

^[2]

19,282

^[2]

20,397

22,794

25,702

20,145

94,828

^[2]

89,038

2,306

^[1],[2]

128

^[1],[2]

2,517

^[1],[2]

(1,691)

^[1],[2]

2,290

^[1]

1,335

^[1]

3,887

^[1]

(1,720)

^[1]

3,260

^[1],[2]

5,792

^[1]

14,780

Net income (loss)

$ 2,089

^[1],[2]

$ 179

^[1],[2]

$ 2,462

^[1],[2]

$ (1,691)

^[1],[2]

$ 1,949

^[1]

$ 1,113

^[1]

$ (72)

^[1]

$ (2,740)

^[1]

$ 3,039

^[1],[2]

$ 250

^[1]

$ 8,708

Income from continuing operations (in dollars per share)

$ 0.09

^[1],[2],[3]

$ 0.01

^[1],[2],[3]

$ 0.09

^[1],[2],[3]

$ (0.06)

^[1],[2],[3]

$ 0.09

^[1],[3]

$ 0.05

^[1],[3]

$ 0.15

^[1],[3]

$ (0.07)

^[1],[3]

$ 0.12

^[1],[2],[3]

$ 0.22

^[1],[3]

$ 0.58

Net income (in dollars per share)

0.08

^[1],[2],[3]

0.01

^[1],[2],[3]

0.09

^[1],[2],[3]

(0.06)

^[1],[2],[3]

0.07

^[1],[3]

0.04

^[1],[3]

(0.11)

^[1],[3]

0.11

^[1],[2],[3]

0.01

^[1],[3]

0.34

Income (loss) from continuing operations (in dollars per share)

0.08

^[1],[2]

0.01

^[1],[2]

0.09

^[1],[2]

(0.06)

^[1],[2]

0.08

^[1]

0.05

^[1]

0.15

^[1]

(0.07)

^[1]

0.12

^[1],[2]

0.22

^[1]

0.57

Net income (loss) (in dollars per share)

$ 0.08

^[1],[2]

$ 0.01

^[1],[2]

$ 0.09

^[1],[2]

$ (0.06)

^[1],[2]

$ 0.07

^[1]

$ 0.04

^[1]

$ 0

^[1]

$ (0.11)

^[1]

$ 0.11

^[1],[2]

$ 0.01

^[1]

$ 0.33

[1]	All quarters presented above were comprised of 13 weeks, except for the fourth quarter ended December 31, 2016 which was comprised of 14 weeks.
[2]	As a result of the adoption of ASU 2016-09, in the fourth quarter of 2016, certain amounts in the first three quarters have been restated as if the new accounting guidance was adopted starting with the first day of our 2016 fiscal year. The impact of these restatements was not significant.
[3]	The sum of the four quarters may not agree to the year total due to rounding within a quarter and the inclusion or exclusion of common stock equivalents.

The amount of net income (loss) from continuing operations per each share of common stock or unit outstanding during the reporting period.

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

Allowance for Doubtful Accounts [Member]

Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Additions (Reductions) Not Charged to Expense

$ 71

$ 179

$ 330

^[1]

(4)

(1)

Additions (Reductions) Charged (Credited) to Expense

(126)

Deductions/Write-offs

(1)

128

Inventory Valuation Reserve [Member]

179

Additions (Reductions) Not Charged to Expense

26,653

27,851

35,221

1,789

^[2]

(648)

^[1]

(762)

^[1]

Additions (Reductions) Charged (Credited) to Expense

1,125

2,409

2,624

Deductions/Write-offs

8,082

2,959

9,232