0001437749-23-030098 | 10-Q | XBRL Viewer

Debt Disclosure [Text Block]

3.	Borrowings and Credit Agreements

The following table is a summary of our borrowings (in thousands):

	September 30,			December 31,
	2023			2022
Bank Term Loan under Credit Agreement	$	30,202		$	66,952
Bank Term Loans-Kita		2,023			2,466
Construction Loan- Cohu GmbH		7,747			8,414
Lines of Credit		1,673			1,907
Total debt		41,645			79,739
Less: financing fees and discount		(282	)		(764	)
Less: current portion		(6,174	)		(6,311	)
Total long-term debt	$	35,189		$	72,664

Credit Agreement

On October 1, 2018, we entered into a Credit Agreement providing for a $350.0 million Term Loan Credit Facility and borrowed the full amount to finance a portion of the Xcerra acquisition. Loans under the Term Loan Credit Facility amortize in equal quarterly installments of 0.25% of the original principal amount, with the balance payable at maturity. All outstanding principal and interest in respect of the Term Loan Credit Facility must be repaid on or before October 1, 2025. The loans under the Term Loan Credit Facility bore interest, at Cohu’s option, at a floating annual rate equal to LIBOR plus a margin of 3.00%. On June 16, 2023, in connection with the discontinuation of LIBOR, we entered into an amendment to our Term Loan Credit Facility, which provided for the transition of the benchmark interest rate from LIBOR to SOFR. Effective with the interest period beginning July 1, 2023, LIBOR was replaced with Adjusted Term SOFR, a floating annual rate equal to SOFR plus a margin of 3.0%. At September 30, 2023, the outstanding loan balance, net of discount and deferred financing costs, was $29.9 million and $3.4 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 31, 2022, the outstanding loan balance, net of discount and deferred financing costs, was $66.2 million and $3.2 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. As of September 30, 2023, the fair value of the debt was $30.2 million. The measurement of the fair value of debt is based on the average of the bid and ask trading quotes as of September 30, 2023 and is considered a Level 2 fair value measurement.

Under the terms of the Credit Agreement, the lender may accelerate the payment terms upon the occurrence of certain events of default set forth therein, which include: the failure of Cohu to make timely payments of amounts due under the Credit Agreement, the failure of Cohu to adhere to the representations and covenants set forth in the Credit Agreement, the failure to provide notice of any event that causes a material adverse effect or to provide other required notices, upon the event that related collateral agreements become ineffective, upon the event that certain legal judgments are entered against Cohu, the insolvency of Cohu, or upon the change of control of Cohu. As of September 30, 2023, we believe no such events of default have occurred.

During the first nine months of 2023, we prepaid $34.1 million in principal of our Term Loan Credit Facility for $34.1 million in cash. We accounted for the prepayment as a debt extinguishment, which resulted in a loss of $0.4 million reflected in other expense, net, in our condensed consolidated statement of income and a $0.4 million reduction in debt discounts and deferred financing costs in our condensed consolidated balance sheets. During the first nine months of 2022, we repurchased $31.8 million in principal of our Term Loan Credit Facility for $31.7 million in cash. This resulted in a loss of $0.3 million reflected in other expense in our condensed consolidated statement of income and a $0.4 million reduction in debt discounts and deferred financing costs in our condensed consolidated balance sheets. Approximately $30.2 million in principal of the Term Loan Credit Facility remains outstanding as of September 30, 2023.

Kita Term Loans

We have a series of term loans with Japanese financial institutions primarily related to the expansion of our facility in Osaka, Japan. The loans are collateralized by the facility and land, carry interest rates ranging from 0.05% to 0.44%, and expire at various dates through 2034. At September 30, 2023, the outstanding loan balance was $2.0 million and $0.2 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 31, 2022, the outstanding loan balance was $2.5 million and $0.2 million of the outstanding balance is presented as current installments of long-term debt in our condensed consolidated balance sheets. The fair value of the debt approximates the carrying value at September 30, 2023.

The term loans are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates.

Construction Loans

In July 2019 and June 2020, one of our wholly owned subsidiaries located in Germany entered into a series of construction loans (“Loan Facilities”) with a German financial institution initially providing it with total borrowings of up to €10.1 million. In May 2022, one of the construction loans was amended, reducing total borrowings provided under the loans to up to €9.5 million. The Loan Facilities were utilized to finance the expansion of our facility in Kolbermoor, Germany and are secured by the land and the existing building on the site. The Loan Facilities bear interest at agreed upon rates based on the facility amounts as discussed below.

The first facility totaling €3.4 million has been fully drawn and is payable over 10 years at a fixed annual interest rate of 0.8%. Principal and interest payments are due each quarter over the duration of the facility ending in September 2029. The second facility totaling €5.2 million has been fully drawn and is payable over 15 years at an annual interest rate of 1.05%, which is fixed until April 2027. Principal and interest payments are due each month over the duration of the facility ending in January 2034. The third facility totaling €0.9 million has been fully drawn and is payable over 10 years at an annual interest rate of 1.2%. Principal and interest payments are due each month over the duration of the facility ending in May 2030.

At September 30, 2023, total outstanding borrowings under the Loan Facilities was $7.7 million with $0.9 million of the total outstanding balance being presented as current installments of long-term debt in our condensed consolidated balance sheets. At December 31, 2022, total outstanding borrowings under the Loan Facilities was $8.4 million with $1.0 million of the total outstanding balance being presented as current installments of long-term debt in our condensed consolidated balance sheets. The loans are denominated in Euros and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. The fair value of the debt approximates the carrying value at September 30, 2023.

Lines of Credit

As a result of our acquisition of Kita, we assumed a series of revolving credit facilities with various financial institutions in Japan. The credit facilities renew monthly and provide Kita with access to working capital totaling up to 960 million Japanese Yen of which 250 million Japanese Yen was drawn as of September 30, 2023. At September 30, 2023, total borrowings outstanding under the revolving lines of credit were $1.7 million. As these credit facility agreements renew monthly, they have been included in short-term borrowings in our condensed consolidated balance sheets.

The revolving lines of credit are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates.

Our wholly owned subsidiary in Switzerland has one line of credit which provides borrowings of up to a total of 2.0 million Swiss Francs, a portion of which is reserved for tax guarantees. At September 30, 2023 and December 31, 2022 no amounts were outstanding under this line of credit.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Impact of currency exchange

Note 10 - Leases - Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022
Operating cash flows from operating leases	$ 5,005	$ 4,946
Operating cash flows from finance leases	1	1
Financing cash flows from finance leases	48	126
Leased assets obtained in exchange for new operating lease liabilities	664	1,308
MCT Worldwide, LLC [Member]
Financing lease assets acquired in MCT acquisition	19	0
Operating lease assets acquired in MCT acquisition	$ 130	$ 0

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2023	Oct. 25, 2023
Document Information [Line Items]
Entity Central Index Key	0000021535
Entity Registrant Name	COHU INC
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-04298
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-1934119
Entity Address, Address Line One	12367 Crosthwaite Circle
Entity Address, City or Town	Poway
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92064-6817
City Area Code	858
Local Phone Number	848-8100
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	COHU
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,505,132

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2023

Dec. 31, 2022

Beginning balance

$ 213,539

^[1]

$ 219,791

(1,610)

(6,252)

Additions

8,755

Ending balance

$ 220,684

$ 213,539

^[1]

[1]	Derived from December 31, 2022 audited financial statements

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

Note 10 - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
2023, operating lease	$ 1,490
2023, finance lease	4
2023, total	1,494
2024, operating lease	5,822
2024, finance lease	11
2024, total	5,833
2025, operating lease	4,948
2025, finance lease	11
2025, total	4,959
2026, operating lease	2,446
2026, finance lease	3
2026, total	2,449
2027, operating lease	1,493
2027, finance lease	0
2027, total	1,493
Thereafter, operating leases	6,796
Thereafter, finance leases	0
Thereafter, total	6,796
Total lease payments, operating leases	22,995
Total lease payments, finance leases	29
Total lease payments, total	23,024
Less: Interest, operating leases	(4,142)
Less: Interest, finance leases	(1)
Less: Interest, total	(4,143)
Present value of lease liabilities, finance leases	28
Present value of lease liabilities, total	18,881	$ 24,185
Other Accrued Liabilities and Long-term Lease Liabilities [Member]
Present value of lease liabilities, operating leases	$ 18,853

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Preliminary Allocation of Intangible Assets (Details) - MCT Worldwide, LLC [Member] $ in Millions	Jan. 30, 2023 USD ($)
Intangible assets, estimated fair value	$ 12.0
Developed Technology Rights [Member]
Finite-lived intangible assets, estimated fair value	$ 7.5
Finite-lived intangible assets, average useful life (Year)	7 years
Customer Relationships [Member]
Finite-lived intangible assets, estimated fair value	$ 4.0
Finite-lived intangible assets, average useful life (Year)	10 years
Order or Production Backlog [Member]
Finite-lived intangible assets, estimated fair value	$ 0.5
Finite-lived intangible assets, average useful life (Year)	6 months

Note 5 - Financial Instruments Measured at Fair Value

9 Months Ended

Sep. 30, 2023

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [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 in debt securities 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.

We assess whether unrealized loss positions on available-for-sale debt securities are due to credit-related factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in earnings through an allowance account. Unrealized gains and losses that are not due to credit-related factors are included in accumulated other comprehensive income (loss). 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):

	September 30, 2023
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities⁽²⁾	$	40,601	$	2	$	75	$	40,528
Bank certificates of deposit		22,640		6		7		22,639
U.S. treasury securities		21,918		-		251		21,667
Asset-backed securities		8,652		-		31		8,621
Foreign government security		725		-		-		725
	$	94,536	$	8	$	364	$	94,180

	December 31, 2022
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses⁽¹⁾		Value
Corporate debt securities ⁽²⁾	$	59,283	$	30	$	240	$	59,073
Bank certificates of deposit		36,500		20		41		36,479
U.S. treasury securities		34,614		1		418		34,197
Asset-backed securities		12,727		10		79		12,658
Foreign government security		828		-		-		828
	$	143,952	$	61	$	778	$	143,235

(1)

As of September 30, 2023, the cost and fair value of investments with loss positions was approximately $75.8 million and $75.4 million, respectively. As of December 31, 2022, the cost and fair value of investments with loss positions was approximately $86.3 million and $85.5 million, respectively. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if a credit loss exists. 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 are as follows (in thousands):

	September 30, 2023				December 31, 2022
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	70,275	$	70,012	$	112,956	$	112,683
Due after one year through five years		23,536		23,443		30,996		30,552
Due after five years through ten years		725		725		-		-
	$	94,536	$	94,180	$	143,952	$	143,235

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 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, 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 1. When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information, and they are included in Level 2.

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 September 30, 2023 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	243,956	$	-	$	-	$	243,956
U.S. treasury securities		-		21,667		-		21,667
Corporate debt securities		-		41,523		-		41,523
Asset-backed securities		-		8,621		-		8,621
Money market funds		-		48,435		-		48,435
Bank certificates of deposit		-		22,639		-		22,639
Foreign government security		-		725		-		725
	$	243,956	$	143,610	$	-	$	387,566

	Fair value measurements at December 31, 2022 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	190,371	$	-	$	-	$	190,371
Corporate debt securities		-		69,753		-		69,753
Money market funds		-		40,290		-		40,290
Bank certificates of deposit		-		37,480		-		37,480
U.S. treasury securities		-		34,196		-		34,196
Asset-backed securities		-		12,658		-		12,658
Foreign government security		-		828		-		828
	$	190,371	$	195,205	$	-	$	385,576

Note 8 - Equity

9 Months Ended

Sep. 30, 2023

Equity [Text Block]

8.	Equity

Share Repurchase Program

On October 28, 2021, we announced that our Board of Directors authorized a $70 million share repurchase program. On October 25, 2022, our Board of Directors authorized an additional $70 million under the share repurchase program. This share repurchase program was effective as of November 2, 2021 and has no expiration date, and the timing of share repurchases and the number of shares of common stock to be repurchased will depend upon prevailing market conditions and other factors. Repurchases under this program will be made using our existing cash resources and may be commenced or suspended from time-to-time at our discretion without prior notice. Repurchases may be made in the open market, through 10b5-1 programs, or in privately negotiated transactions at prevailing market rates in accordance with federal securities laws. During the three months ended September 30, 2023, we repurchased 133,100 shares of our common stock for $4.7 million to be held as treasury stock. During the nine months ended September 30, 2023, we repurchased 309,985 shares of our common stock for $10.9 million to be held as treasury stock. During the three months ended September 24, 2022, we repurchased 637,700 shares of our common stock for $17.7 million to be held as treasury stock. During the nine months ended September 24, 2022, we repurchased 1,355,508 shares of our common stock for $38.1 million to be held as treasury stock. As of September 30, 2023, $71.1 million of shares of our common stock remained available for us to repurchase under our share repurchase program.

The entire disclosure for equity.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets

9 Months Ended

Sep. 30, 2023

Business Combination, Goodwill, and Intangible Assets Disclosure [Text Block]

2.	Business Acquisitions, Goodwill and Purchased Intangible Assets

MCT

On January 30, 2023, we completed the acquisition of all the outstanding membership units of MCT Worldwide, LLC. (“MCT”), pursuant to a membership unit purchase agreement dated January 30, 2023, by and among MCT Worldwide, LLC, Arise Acquisition Co., LLC, The Seaport Group LLC Profit Sharing Plan, and Delta Design, Inc., a wholly owned subsidiary of Cohu (the “Acquisition”). MCT is a U.S. based company with its principal manufacturing site in Penang Malaysia. MCT provides automated solutions for the semiconductor industry and designs, manufactures, markets, services and distributes strip test handlers, film frame handlers and laser mark handlers. On January 30, 2023, we made a cash payment totaling approximately $28.0 million for MCT. The Acquisition is a debt free transaction and was subject to a working capital adjustment which was finalized during the second quarter of 2023 resulting in a cash payment of $0.6 million received from the sellers. Taking into consideration the impact of our working capital adjustment and certain acquisition-related costs that were included in the transaction proceeds, the purchase price for MCT is $26.8 million. During the three and nine-month period ended September 30, 2023, we incurred acquisition-related costs totaling $33,000 and $0.5 million, respectively, which were expensed as selling, general and administrative costs. During the prior year period ended September 24, 2022, no acquisition-related costs were incurred. The Acquisition has been accounted for in conformity with ASC Topic 805, Business Combinations, (“ASC 805”).

We have not finalized the purchase price allocation. Accordingly, the preliminary purchase price allocation shown below could materially change as we are still in the process of finalizing the fair values of the tangible and intangible assets acquired and liabilities assumed, and the related income tax effects may still be adjusted as they are finalized during the remainder of the measurement period (which will not exceed 12 months from the acquisition closing date). The transaction was an asset acquisition for tax purposes. Consequently, we will record a stepped-up tax basis in the acquired assets, including goodwill and intangibles. The acquired assets and liabilities of MCT were recorded at their respective fair values including an amount for goodwill representing the difference between the Acquisition consideration and the fair value of the identifiable net assets. During the second quarter of 2023, we settled the working capital adjustment with the sellers resulting in an immaterial change to purchase consideration, current assets and goodwill. There were no changes to intangible assets and we expect to finalize the purchase accounting for MCT in the fourth quarter of 2023.

The table below summarizes the assets acquired and liabilities assumed as of January 30, 2023 (in thousands):

Current assets, including cash received	$	9,505
Property, plant and equipment		197
Other assets		356
Intangible assets		12,000
Goodwill		8,755
Total assets acquired		30,813
Liabilities assumed		(4,024	)
Net assets acquired	$	26,789

The preliminary allocation of the intangible assets subject to amortization is as follows (in thousands):

	Estimated Fair Value		Weighted Average Useful Life (years)
Developed technology	$	7,500		7.0
Customer relationships		4,000		10.0
Product backlog		500		0.5
Total intangible assets	$	12,000

Acquired intangible assets reported above are being amortized using the straight-line method over their estimated useful lives which approximates the pattern of how the economic benefit is expected to be used. This includes amounts allocated to customer relationships because of anticipated high customer retention rates that are common in the semiconductor capital equipment industry.

The preliminary value assigned to developed technology was determined by using the using the relief from royalty method under the income approach, which included assumptions related to revenue growth rates, royalty rates, and discount rates. Developed technology, which comprises products that have reached technological feasibility, includes the products in MCT’s product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by MCT and competitors. The estimated after-tax cash flows were based on a hypothetical royalty rate applied to the revenues for the developed technology. The discount rate utilized to discount the net cash flows of the developed technology to present value was based on the risk associated with the respective cash flows taking into consideration the perceived risk of the technology relative to the other acquired assets, the weighted average cost of capital, the internal rate of return, and the weighted average return on assets.

The preliminary value assigned to customer relationships was determined by using the multi-period excess earnings method under the income approach. The estimated cash flows were based on revenues from the existing customers net of operating expenses and net of contributory asset charges. The discount rate utilized to discount the net cash flows of the customer relationships to present value was based on the respective cash flows taking into consideration the perceived risks.

The preliminary value assigned to backlog acquired was estimated based upon the contractual nature of the backlog as of January 30, 2023, using the multi-period excess earnings method under the income approach to discount back to present value the cash flows attributable to the backlog at a discount rate commensurate with the expected risks of the backlog cash flows.

MCT’s results of operations have been included starting January 30, 2023. The impact of MCT on our condensed consolidated statements of income and comprehensive income was not material.

Goodwill and Intangible Assets

Changes in the carrying value of goodwill during the year ended December 31, 2022, and the nine-month period ended September 30, 2023 were as follows (in thousands):

	Goodwill
Balance, December 25, 2021	$	219,791
Impact of currency exchange		(6,252	)
Balance, December 31, 2022		213,539
Additions		8,755
Impact of currency exchange		(1,610	)
Balance, September 30, 2023	$	220,684

Purchased intangible assets subject to amortization are as follows (in thousands):

	September 30, 2023						December 31, 2022
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (Years)		Amount		Amort.
Developed technology	$	209,377	$	127,332		3.5	$	224,253	$	128,938
Customer relationships		59,959		26,721		6.3		64,632		31,015
Trade names		20,061		10,412		5.7		20,461		9,397
Covenant not-to-compete		235		159		3.3		269		161
Total intangible assets	$	289,632	$	164,624			$	309,615	$	169,511

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

Amortization expense related to intangible assets was approximately $8.9 million in the third quarter of fiscal 2023 and $26.6 million in the first nine months of fiscal 2023. Amortization expense related to intangible assets was approximately $8.2 million in the third quarter of fiscal 2022 and $25.1 million in the first nine months of fiscal 2022.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

Our fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. The condensed consolidated balance sheet at December 31, 2022, has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of September 30, 2023, (also referred to as “the third quarter of fiscal 2023” and “the first nine months of fiscal 2023”) and September 24, 2022, (also referred to as “the third quarter of fiscal 2022” and “the first nine months of fiscal 2022”) are unaudited. However, in management’s opinion, these financial statements reflect all adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. Both the three- and nine-month periods ended September 30, 2023 and September 24, 2022 were comprised of 13 and 39 weeks, respectively.

Our interim results are not necessarily indicative of the results that should be expected for the full year. The condensed consolidated financial statements presented herein reflect estimates and assumptions made by management at September 30, 2023 and for the three- and nine-month periods ended September 30, 2023. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended December 31, 2022, which are included in our 2022 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”.

All significant consolidated transactions and balances have been eliminated in consolidation.

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

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.

Our trade accounts receivable are presented net of allowance for credit losses, which is determined in accordance with the guidance provided by Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments-Credit Losses, (“ASC 326”). At September 30, 2023 and December 31, 2022, our allowance for credit losses was $0.3 million and $0.2 million, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors throughout many areas of the world. While we believe that our allowance for credit losses is adequate and represents our best estimate at September 30, 2023, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding expected credit losses.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Cost includes labor, material and overhead costs. Determining net realizable 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, which occurs when estimated net realizable values are below our costs.

Inventories by category were as follows (in thousands):

	September 30,		December 31,
	2023		2022
Raw materials and purchased parts	$	106,466	$	106,041
Work in process		32,738		36,024
Finished goods		27,469		28,076
Total inventories	$	166,673	$	170,141

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

Property, Plant and Equipment

Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of thirty to forty years for buildings, five to fifteen years for building improvements and three to ten years for machinery, equipment and software. Land is not depreciated.

Property, plant and equipment, at cost, consisted of the following (in thousands):

	September 30,			December 31,
	2023			2022
Land and land improvements	$	6,830		$	7,066
Buildings and building improvements		37,272			31,161
Machinery and equipment		107,139			105,109
		151,241			143,336
Less accumulated depreciation and amortization		(84,636	)		(78,325	)
Property, plant and equipment, net	$	66,605		$	65,011

Internal Use Software, Policy [Policy Text Block]

Cloud-based Enterprise Resource Planning Implementation Costs

We have capitalized certain costs associated with the implementation of our new cloud-based Enterprise Resource Planning (“ERP”) system in accordance with ASC Topic 350, Intangibles—Goodwill and Other, (“ASC 350”). Capitalized costs include only external direct costs of materials and services consumed in developing the system and interest costs incurred, when material, while developing the system.

Unamortized capitalized cloud computing implementation costs totaled $12.8 million and $14.7 million at September 30, 2023, and December 31, 2022, respectively. These amounts are recorded within other current assets and other assets in our condensed consolidated balance sheets. Implementation costs are amortized using the straight-line method over seven years and we recorded amortization expense of $0.7 million and $2.1 million during the three and nine months ended September 30, 2023, respectively, and amortization expense of $0.4 million and $1.4 million during the three and nine months ended September 24, 2022, respectively.

Segment Reporting, Policy [Policy Text Block]

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. We have determined that our three identified operating segments are: Test Handler Group (“THG”), Semiconductor Tester Group (“STG”) and Interface Solutions Group (“ISG”). Our THG, STG and ISG 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 Test and Inspection Equipment (“Semiconductor Test & Inspection”).

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Other Intangible 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 unit. 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 fair value of the reporting unit and its carrying value, not to exceed the carrying value of goodwill. We estimated the fair values of our reporting units using a weighting of the income and market approaches. Under the income approach, we use a discounted cash flow methodology to derive an indication of value, which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, we use the guideline public company method. Under this method we utilize information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance metrics of the reporting unit being tested, to obtain an indication of value. We then apply a 50/50 weighting to the indicated values from the income and market approaches to derive the fair values of the reporting units. 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. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors.

We conduct our annual impairment test as of October 1^st of each year and have determined there was no impairment as of October 1, 2022 as 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.

Other intangible assets 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 other intangible 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.

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 12- to 36-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 relative standalone selling price and recognized on a straight-line basis over the contract period. Costs associated with our extended warranty contracts are expensed as incurred.

Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block]

Restructuring Costs

We record restructuring activities including costs for one-time termination benefits in accordance with ASC Topic 420, Exit or Disposal Cost Obligations (“ASC 420”). The timing of recognition for severance costs accounted for under ASC 420 depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefits covered by existing benefit arrangements are recorded in accordance with ASC Topic 712, Nonretirement Postemployment Benefits. These costs are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable. See Note 4, “Restructuring Charges” for additional information.

Debt, Policy [Policy Text Block]

Debt Issuance Costs

We capitalize costs related to the issuance of debt. Debt issuance costs directly related to our Term Loan Credit Facility are presented within noncurrent liabilities as a reduction of long-term debt in our condensed consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $32,000 and $0.1 million for the three and nine months ended September 30, 2023, respectively. Amortization related to deferred debt issuance costs and original discount costs was $0.1 million and $0.3 million for the three and nine months ended September 24, 2022, respectively.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Remeasurement and 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. During the three and nine months ended September 30, 2023, we recognized foreign exchange losses of $1.2 million and $2.3 million, respectively, in our condensed consolidated statements of income. During the three and nine months ended September 24, 2022, we recognized foreign exchange gains of $1.3 million and $4.0 million, respectively, in our condensed consolidated statements of income. 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. Cumulative foreign currency translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity.

Derivatives, Policy [Policy Text Block]

Foreign Exchange Derivative Contracts

We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We enter into foreign currency forward contracts with a financial institution to hedge against future movements in foreign exchange rates that affect certain existing U.S. Dollar denominated assets and liabilities held at our subsidiaries whose functional currency is the local currency. For accounting purposes, our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our condensed consolidated balance sheets with changes in fair value recorded within foreign transaction gain (loss) in our condensed consolidated statements of income for both realized and unrealized gains and losses. See Note 7, “Derivative Financial Instruments” for additional information.

Share-Based Payment Arrangement [Policy Text Block]

Share-Based Compensation

We measure and recognize all share-based compensation under the fair value method.

Reported share-based compensation is classified, in our condensed consolidated financial statements, as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Cost of sales	$	223		$	161		$	619		$	478
Research and development		849			755			2,534			2,333
Selling, general and administrative		3,262			2,824			9,527			8,284
Total share-based compensation		4,334			3,740			12,680			11,095
Income tax benefit		(45	)		(770	)		(2,883	)		(3,232	)
Total share-based compensation, net	$	4,289		$	2,970		$	9,797		$	7,863

Earnings Per Share, Policy [Policy Text Block]

Income Per Share

Basic income per common share is computed by dividing net income 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 and performance 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 three and nine months ended September 30, 2023, stock options and awards to issue approximately 186,000 and 206,000 shares of common stock were excluded from the computation, respectively. For the three and nine months ended September 24, 2022, stock options and awards to issue approximately 325,000 and 300,000 shares of common stock were excluded from the computation, respectively. All shares repurchased and held as treasury stock are reflected as a reduction to our basic weighted average shares outstanding based on the trade date of the share repurchase.

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

	Three Months Ended				Nine Months Ended
	September 30,		September 24,		September 30,		September 24,
	2023		2022		2023		2022
Weighted average common shares		47,615		47,984		47,525		48,412
Effect of dilutive securities		492		542		577		596
		48,107		48,526		48,102		49,008

Lessee, Leases [Policy Text Block]

Leases

We determine if a contract contains a lease at inception. Operating leases are included in operating lease right of use (“ROU”) assets, current other accrued liabilities, and long-term lease liabilities on our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, other current accrued liabilities, and long-term lease liabilities on our condensed consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rates for the remaining lease terms based on the information available at the adoption date or commencement date in determining the present value of future payments.

The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments, as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may include renewal options to extend the lease when it is reasonably certain that we will exercise those options. In addition, we include purchase option amounts in our calculations when it is reasonably certain that we will exercise those options. Rent expense for minimum payments under operating leases is recognized on a straight-line basis over the term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet but recognized in our condensed consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component and include both in our calculation of the ROU assets and lease liabilities.

We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities. None of our subleases contain extension options. Variable lease payments in our subleases include tax payments that are based on prevailing rates. We account for lease and non-lease components as a single lease component.

Revenue [Policy Text Block]

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 the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not transferred until destination or acceptance, we defer revenue recognition until such events occur.

Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. 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 and cost of sales are deferred until customer acceptance has been received. Our post-shipment obligations typically include installation and standard warranties. The relative standalone selling price of installation related revenue is recognized in the period the installation is performed. Service revenue is recognized over time as we transfer control to our customer for the related contract or upon completion of the services if they are short-term in nature. Spares, contactor and kit revenue is generally recognized upon shipment.

Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations may occur at different points in time or over different periods of time. For arrangements containing multiple performance obligations, the revenue relating to the undelivered performance obligation is deferred using the relative standalone selling price method utilizing estimated sales prices until satisfaction of the deferred performance obligation.

Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At September 30, 2023, we had $6.4 million of revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) for contracts with original expected durations of over one year. As allowed under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), we have opted to not disclose unsatisfied performance obligations for contracts with original expected durations of less than one year.

We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC Topic 460, Guarantees (“ASC 460”), and not as a separate performance obligation.

The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to customers that are known as of the end of the reporting period. Variable consideration includes sales in which the amount of consideration that we will receive is unknown as of the end of a reporting period. Such consideration primarily includes sales made to certain customers with cumulative tier volume discounts offered. Variable consideration arrangements are rare; however, when they occur, we estimate variable consideration as the expected value to which we expect to be entitled. Included in the transaction price estimate are amounts in which it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration that does not meet revenue recognition criteria is deferred.

Our contracts are typically less than one year in duration and we have elected to use the practical expedient available in ASC 606 to expense cost to obtain contracts as they are incurred because they would be amortized over less than one year.

Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not exceed one year from the invoice date and therefore do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on our condensed consolidated balance sheet in any of the periods presented.

On shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our condensed consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. At September 30, 2023, we had deferred revenue totaling approximately $10.6 million, current deferred profit of $4.5 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $5.1 million. At December 31, 2022, we had deferred revenue totaling approximately $16.1 million, current deferred profit of $8.0 million and deferred profit expected to be recognized after one year included in noncurrent other accrued liabilities of $5.5 million.

Net sales by type are as follows (in thousands):

	Three Months Ended				Nine Months Ended
Disaggregated Net Sales	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Systems	$	73,173	$	120,672	$	263,469	$	369,972
Non-systems		77,631		86,015		235,627		251,698
Total net sales	$	150,804	$	206,687	$	499,096	$	621,670

Revenue by geographic area based upon product shipment destination (in thousands):

	Three Months Ended				Nine Months Ended
Disaggregated Net Sales	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Malaysia	$	23,550	$	24,060	$	78,703	$	73,033
Philippines		19,983		38,852		77,132		84,799
China		19,689		31,477		69,193		116,715
United States		23,604		19,510		58,097		62,826
Rest of the World		63,978		92,788		215,971		284,297
Total net sales	$	150,804	$	206,687	$	499,096	$	621,670

A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information is as follows:

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Customers individually accounting for more than 10% of net sales	two			one			one				*
Percentage of net sales		22	%		13	%		13	%		*

No single customer represented more than 10% of consolidated net sales.

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately $47.0 million and $40.0 million at September 30, 2023 and December 31, 2022, respectively, and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain of our subsidiary accounts where the functional currency is not the U.S. Dollar, unrealized loss on investments and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss during the first nine months of fiscal 2023 and 2022 were not significant.

Pension and Other Postretirement Plans, Policy [Policy Text Block]

Retiree Medical Benefits

We provide post-retirement health benefits to certain retired executives, one director (who is a former executive) and their eligible dependents under a noncontributory plan. These benefits are no longer offered to any other retired Cohu employees. The net periodic benefit cost incurred during the first nine months of fiscal 2023 and 2022 was not significant.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848.

Effective June 16, 2023, we adopted ASC 848. Our Term Loan B Credit and Guaranty Agreement is our only contract where interest expense is based on LIBOR. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing certain LIBOR settings and is expected to stop publishing the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings in 2023. In anticipation of that cessation, we commenced the transition of our LIBOR-based contract to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). The optional expedients under ASC 848 have allowed and will allow us to account for contract modifications as continuations of the existing contract without further reassessments or remeasurements that would otherwise be required under the applicable U.S. GAAP.

Note 8 - Equity (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Note 8 - Equity (Details Textual) - USD ($) $ in Millions	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022	Oct. 25, 2022	Oct. 28, 2021
Stock Repurchase Program, Authorized Amount						$ 70.0
Stock Repurchase Program, Additional Authorized Amount					$ 70.0
Stock Repurchased During Period, Shares (in shares)	133,100	637,700	309,985	1,355,508
Stock Repurchased During Period, Value	$ 4.7	$ 17.7	$ 10.9	$ 38.1
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 71.1		$ 71.1

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

Accounts Receivable, Allowance for Credit Loss

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Details Textual) - USD ($)		3 Months Ended			9 Months Ended
	Jan. 30, 2023	Sep. 30, 2023	Jul. 01, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Amortization of Intangible Assets		$ 8,857,000		$ 8,206,000	$ 26,617,000	$ 25,082,000
MCT Worldwide, LLC [Member]
Payments to Acquire Businesses, Gross	$ 28,000,000
Cash Acquired from Acquisition			$ 600,000
Business Combination, Consideration Transferred	$ 26,800,000
Business Combination, Acquisition Related Costs		$ 33,000			$ 500,000	$ 0

Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Amortization of cost	$ 6,948	$ 6,433	$ 20,941	$ 19,673

Note 1 - Summary of Significant Accounting Policies (Details Textual)

3 Months Ended

9 Months Ended

Oct. 01, 2022

USD ($)

Sep. 30, 2023

USD ($)

Sep. 24, 2022

USD ($)

Sep. 30, 2023

USD ($)

Sep. 24, 2022

USD ($)

Dec. 31, 2022

USD ($)

$ 300,000

$ 200,000

Capitalized Computer Software, Gross

12,800,000

14,700,000

Capitalized Computer Software, Amortization

700,000

$ 400,000

$ 2,100,000

$ 1,434,000

Number of Operating Segments

Number of Reportable Segments

Goodwill and Intangible Asset Impairment, Total

$ 0

Amortization of Debt Issuance Costs

32,000

100,000

$ 100,000

300,000

Gain (Loss), Foreign Currency Transaction, before Tax

$ (1,200,000)

$ 1,344,000

$ (2,285,000)

$ 3,979,000

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares

186,000

325,000

206,000

300,000

Revenue, Remaining Performance Obligation, Amount

$ 6,400,000

Provision for Doubtful Accounts

Contract with Customer, Asset, after Allowance for Credit Loss, Total

Contract with Customer, Liability

10,600,000

16,100,000

Deferred Profit

4,544,000

8,022,000

^[1]

Deferred Profit Long-term

5,100,000

5,500,000

Accumulated Other Comprehensive Income (Loss), Net of Tax

$ (46,965,000)

$ (40,012,000)

^[1]

Computer Software, Intangible Asset [Member]

Finite-Lived Intangible Asset, Useful Life (Year)

7 years

Minimum [Member]

Standard Product Warranty Term (Month)

12 months

Maximum [Member]

Standard Product Warranty Term (Month)

36 months

Building [Member] | Minimum [Member]

Building [Member] | Maximum [Member]

30 years

Building Improvements [Member] | Minimum [Member]

40 years

Building Improvements [Member] | Maximum [Member]

5 years

Machinery, Equipment and Software [Member] | Minimum [Member]

15 years

Machinery, Equipment and Software [Member] | Maximum [Member]

3 years

MCT Worldwide, LLC [Member]

10 years

[1]	Derived from December 31, 2022 audited financial statements

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Purchase Price Allocation (Details) - USD ($)
$ in Thousands

Sep. 30, 2023

Jan. 30, 2023

Dec. 31, 2022

^[1]

Dec. 25, 2021

Goodwill

$ 220,684

$ 213,539

$ 219,791

Current assets, including cash received

$ 9,505

197

Other assets

356

Intangible assets

12,000

Goodwill

8,755

Total assets acquired

30,813

Liabilities assumed

(4,024)

Net assets acquired

$ 26,789

[1]	Derived from December 31, 2022 audited financial statements

Note 5 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale, Unrealized Loss Position, Amortized Cost	$ 75.8	$ 86.3
Debt Securities, Available-for-Sale, Unrealized Loss Position	$ 75.4	$ 85.5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022
Cash flows from operating activities:
Net income	$ 30,184	$ 75,219
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on extinguishment of debt	369	312
Net accretion on investments	(998)	(411)
Gain from sale of property, plant and equipment	(7)	(191)
Depreciation and amortization	36,634	34,645
Share-based compensation expense	12,680	11,095
Non-cash inventory related charges	4,222	4,826
Deferred income taxes	(514)	1,979
Changes in accrued retiree medical benefits	(727)	(650)
Changes in other accrued liabilities	(416)	(822)
Changes in other assets	(353)	(4,542)
Amortization of cloud-based software implementation costs	2,100	1,434
Interest capitalized associated with cloud computing implementation	0	(122)
Amortization of debt discounts and issuance costs	114	247
Operating lease right-of-use assets	6,328	3,954
Changes in assets and liabilities, excluding effects from acquisitions:
Customer advances	(201)	2,241
Accounts receivable	50,249	(5,783)
Inventories	857	(12,678)
Other current assets	(467)	(9,955)
Accounts payable	(17,534)	(14,464)
Deferred profit	(3,457)	(3,027)
Income taxes payable	(3,898)	8,764
Accrued compensation, warranty and other liabilities	(10,424)	(2,980)
Current and long-term operating lease liabilities	(5,972)	(3,796)
Net cash provided by operating activities	98,769	85,295
Cash flows from investing activities, excluding effects from acquisitions:
Purchases of short-term investments	(73,322)	(154,446)
Sales and maturities of short-term investments	123,863	106,525
Purchases of property, plant and equipment	(12,148)	(10,700)
Cash received from sale of property, plant and equipment	193	296
Payment for purchase of MCT, net of cash received	(26,331)	0
Net cash provided by (used in) investing activities	12,255	(58,325)
Cash flows from financing activities:
Payments on current and long-term finance lease liabilities	(48)	(126)
Repurchases of common stock, net	(7,637)	(3,546)
Repayments of long-term debt	(37,467)	(36,935)
Acquisition of treasury stock	(10,855)	(38,078)
Net cash used in financing activities	(56,007)	(78,685)
Effect of exchange rate changes on cash and cash equivalents	(3,972)	(6,088)
Net increase (decrease) in cash and cash equivalents	51,045	(57,803)
Cash and cash equivalents at beginning of period	242,341	290,201
Cash and cash equivalents at end of period	293,386	232,398
Supplemental disclosure of cash flow information:
Cash paid for income taxes	14,414	16,189
Inventory capitalized as property, plant and equipment	709	1,500
Property, plant and equipment purchases included in accounts payable	245	640
Cash paid for interest	$ 2,707	$ 2,261

Note 7 - Derivative Financial Instruments - Locations and Amounts of Gains (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Foreign Currency Gain (Loss) [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Foreign exchange forward contracts	$ (6,885)	$ (8,236)	$ (5,672)	$ (12,577)

Note 10 - Leases

9 Months Ended

Sep. 30, 2023

Lessee, Leases [Text Block]

10.

Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms of 12 months or less are not recorded on the condensed consolidated balance sheet, but we recognize those lease payments in the condensed consolidated statements of income on a straight-line basis over the lease term. Lease and non-lease components are included in the calculation of the ROU asset and lease liabilities.

Our leases have remaining lease terms of 1 year to 34 years, some of which include one or more options to extend the leases for up to 25 years. Our lease term includes renewal terms when we are reasonably certain we will exercise the renewal options. We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities.

Supplemental balance sheet information related to leases was as follows:

(in thousands)	Classification	September 30, 2023			December 31, 2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	17,287		$	22,804
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		255			323
Total lease assets		$	17,542		$	23,127
Liabilities
Current
Operating	Other accrued liabilities	$	4,971		$	4,927
Finance	Other accrued liabilities		12			49
Noncurrent
Operating	Long-term lease liabilities		13,882			19,185
Finance	Long-term lease liabilities		16			24
Total lease liabilities		$	18,881		$	24,185

Weighted-average remaining lease term (years)
Operating leases			5.6			6.2
Finance leases			2.3			1.7

Weighted-average discount rate
Operating leases			6.4	%		6.2	%
Finance leases			3.8	%		2.2	%

(1)

Finance lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million as of September 30, 2023 and December 31, 2022, respectively.

The components of lease expense were as follows:

	Three Months Ended						Nine Months Ended
(in thousands)	September 30, 2023			September 24, 2022			September 30, 2023			September 24, 2022
Operating leases	$	1,642		$	1,654		$	5,001		$	5,046
Variable lease expense		561			520			1,683			1,583
Short-term operating leases		6			1			19			3
Finance leases
Amortization of leased assets		12			11			66			69
Interest on lease liabilities		-			-			1			1
Sublease income		(7	)		(16	)		(25	)		(54	)
Net lease cost	$	2,214		$	2,170		$	6,745		$	6,648

Future minimum lease payments at September 30, 2023, are as follows:

	Operating			Finance
(in thousands)	leases			leases			Total
2023	$	1,490		$	4		$	1,494
2024		5,822			11			5,833
2025		4,948			11			4,959
2026		2,446			3			2,449
2027		1,493			-			1,493
Thereafter		6,796			-			6,796
Total lease payments		22,995			29			23,024
Less: Interest		(4,142	)		(1	)		(4,143	)
Present value of lease liabilities	$	18,853		$	28		$	18,881

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended
(in thousands)	September 30, 2023		September 24, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,005	$	4,946
Operating cash flows from finance leases	$	1	$	1
Financing cash flows from finance leases	$	48	$	126
Leased assets obtained in exchange for new operating lease liabilities	$	664	$	1,308
Financing lease assets acquired in MCT acquisition	$	19	$	-
Operating lease assets acquired in MCT acquisition	$	130	$	-

Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2023

Sep. 24, 2022

Sep. 30, 2023

Sep. 24, 2022

Net sales

$ 150,804

$ 206,687

$ 499,096

$ 621,670

Cost and expenses:

Cost of sales (1)

^[1]

79,909

108,621

261,638

331,495

Research and development

21,478

23,372

66,454

69,638

Selling, general and administrative

32,416

32,764

99,403

96,541

Amortization of purchased intangible assets

8,857

8,206

26,617

25,082

Restructuring charges

742

2,046

600

Costs and Expenses

143,402

172,980

456,158

523,356

Income from operations

7,402

33,707

42,938

98,314

Other (expense) income:

Interest expense

(773)

(1,028)

(2,628)

(2,928)

Interest income

3,207

1,132

8,657

1,551

Foreign transaction gain (loss)

(1,200)

1,344

(2,285)

3,979

Loss on extinguishment of debt

(80)

(369)

(312)

Income before taxes

8,636

35,075

46,313

100,604

Income tax provision

4,721

10,193

16,129

25,385

Net income

$ 3,915

$ 24,882

$ 30,184

$ 75,219

Basic (in dollars per share)

$ 0.08

$ 0.52

$ 0.64

$ 1.55

Diluted (in dollars per share)

$ 0.08

$ 0.51

$ 0.63

$ 1.53

Weighted average shares used in computing income per share:

Basic (in shares)

47,615

47,984

47,525

48,412

Diluted (in shares)

48,107

48,526

48,102

49,008

[1]	Excludes amortization of $6,948 and $6,433 for the three months ended September 30, 2023 and September 24, 2022, respectively, and $20,941 and $19,673 for the nine months ended September 30, 2023 and September 24, 2022, respectively.

Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation in Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Share-based compensation of continuing operations	$ 4,334	$ 3,740	$ 12,680	$ 11,095
Income tax benefit	(45)	(770)	(2,883)	(3,232)
Total share-based compensation, net	4,289	2,970	9,797	7,863
Cost of Sales [Member]
Share-based compensation of continuing operations	223	161	619	478
Research and Development Expense [Member]
Share-based compensation of continuing operations	849	755	2,534	2,333
Selling, General and Administrative Expenses [Member]
Share-based compensation of continuing operations	$ 3,262	$ 2,824	$ 9,527	$ 8,284

Note 6 - Employee Stock Benefit Plans

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Text Block]

6.	Employee Stock Benefit Plans

Our 2005 Equity Incentive Plan (“2005 Plan”) is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. Awards that may be granted under the program include, but are not limited to, non-qualified and incentive stock options, restricted stock units, and performance stock units. We settle employee stock option exercises, employee stock purchase plan purchases, and the vesting of restricted stock units, and performance stock units with newly issued common shares. On September 30, 2023, there were 3,534,994 shares available for future equity grants under the 2005 Plan. On May 10, 2023, our stockholders approved amendments to the 2005 Plan which increased the shares of stock available for issuance by 3,200,000, specified an annual limit of $750,000 on our non-employee director compensation, increased the amounts permitted for cash payouts of performance awards from current limit of $2,000,000 to $4,000,000 per each fiscal year and provided updated criteria for performance awards.

Stock Options

Stock options may be granted to employees, consultants and non-employee directors to purchase a fixed number of shares of our common stock. The exercise prices of options granted are at least equal to the fair market value of our common stock on the dates of grant and options vest and become exercisable in annual increments that range from one to four years from the date of grant. Stock options granted under the 2005 Plan have a maximum contractual term of ten years. In the first nine months of fiscal 2023, we did not grant any stock options and did not issue any shares of our common stock on the exercise of options that were granted previously. On September 30, 2023, no stock options were exercisable and outstanding.

Restricted Stock Units

We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from one to four years from the date of grant. Prior to vesting, RSUs do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued and outstanding. Shares of our common stock will be issued on the date the RSUs 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 of RSUs outstanding at September 30, 2023.

In the first nine months of fiscal 2023, we awarded 350,070 RSUs and issued 424,917 shares of our common stock on vesting of previously granted awards and 17,977 shares were forfeited. On September 30, 2023, we had 876,418 RSUs outstanding with an aggregate intrinsic value of approximately $30.2 million and the weighted average remaining vesting period was approximately 1.3 years.

Performance Stock Units

We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted ranges from 0% to 200% of the number granted and is determined based on certain performance criteria over a three-year measurement period. The performance criteria for the PSUs are based on a combination of our annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of our TSR compared with the Russell 2000 Index (RUT) for the performance period. PSUs granted vest 100% on the third anniversary of their grant, assuming achievement of the applicable performance criteria.

We estimate the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the explicit service period. To the extent applicable performance conditions are satisfied, shares of our common stock are 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.

In the first nine months of fiscal 2023, we awarded 256,073 PSUs, we issued 257,845 shares of our common stock on vesting of previously granted awards and 7,430 shares were forfeited. On September 30, 2023, we had 394,022 PSUs outstanding with an aggregate intrinsic value of approximately $13.6 million and the weighted average remaining vesting period was approximately 1.7 years.

Employee Stock Purchase Plan

The Cohu, Inc. 1997 Employee Stock Purchase Plan (“ESPP”) provides for the issuance of shares of our common stock. Under the ESPP, eligible employees may purchase shares of Cohu common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Cohu common stock at the beginning or end of each 6-month purchase period, subject to certain limits. During the first nine months of fiscal 2023, 67,642 shares of our common stock were sold to our employees under the ESPP leaving 878,856 shares available for future issuance as of September 30, 2023. On May 10, 2023, our stockholders approved an amendment to the ESPP which increased the number of ESPP shares that may be issued by 600,000 and eliminated the requirement that no participant may purchase shares for any offering period with a value exceeding $12,500 divided by the share value on the first date of the offering period.

Note 9 - Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Text Block]

9.	Income Taxes

We account for income taxes in accordance with ASC Topic 740, Income Taxes, (“ASC 740”). The provision or benefit for income taxes is attributable to U.S. federal, state, and foreign income taxes. Our effective tax rate (“ETR”) used for interim periods is based on an estimated annual effective tax rate, including the tax effect of items required to be recorded discretely in the interim periods in which those items occur. Our ETR is different than the statutory rate in the U.S. due to foreign income taxed at different rates than the U.S., generation of tax credits, changes in uncertain tax benefit positions, changes to valuation allowances, and the impact of Global Intangible Low-Taxed Income (“GILTI”) and the Base Erosion and Anti-abuse Tax (“BEAT”). In addition, we have numerous tax holidays related to our manufacturing operations in Malaysia and the Philippines. The tax holiday periods expire at various times in the future; however, we actively seek to obtain new tax holidays.

We conduct business globally and as a result, Cohu or one or more of its subsidiaries files income tax returns in the US and various state and foreign jurisdictions. In the normal course of business, we are subject to examinations by taxing authorities throughout the world and are currently under examination in Germany, the Philippines, Malaysia, Singapore, and Thailand. We believe our financial statement accruals for income taxes are appropriate.

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 at 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.

Based on the evidence available, including a lack of sustainable earnings and history of expiring unused NOLs, and tax credits, we continue to maintain our judgment that a previously recorded valuation allowance against substantially all of our net deferred tax assets in the United States is still required. If a change in judgment regarding this valuation allowance were to occur in the future, we will record a potentially material deferred tax benefit, which could result in a favorable impact on the effective tax rate in that period.

In accordance with the disclosure requirements as described in ASC 740, we have classified unrecognized tax benefits as non-current income tax liabilities, or a reduction in non-current deferred tax assets, unless expected to be paid within one year. Our continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. There were no material changes to our unrecognized tax benefits and interest accrued related to unrecognized tax benefits during the three and nine months ended September 30, 2023. There were no material changes to our unrecognized tax benefits and interest accrued related to unrecognized tax benefits during the three and nine months ended September 24, 2022.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

Note 10 - Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases, Balance Sheet Information [Table Text Block]

(in thousands)	Classification	September 30, 2023			December 31, 2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	17,287		$	22,804
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		255			323
Total lease assets		$	17,542		$	23,127
Liabilities
Current
Operating	Other accrued liabilities	$	4,971		$	4,927
Finance	Other accrued liabilities		12			49
Noncurrent
Operating	Long-term lease liabilities		13,882			19,185
Finance	Long-term lease liabilities		16			24
Total lease liabilities		$	18,881		$	24,185

Weighted-average remaining lease term (years)
Operating leases			5.6			6.2
Finance leases			2.3			1.7

Weighted-average discount rate
Operating leases			6.4	%		6.2	%
Finance leases			3.8	%		2.2	%

Lease, Cost [Table Text Block]

	Three Months Ended						Nine Months Ended
(in thousands)	September 30, 2023			September 24, 2022			September 30, 2023			September 24, 2022
Operating leases	$	1,642		$	1,654		$	5,001		$	5,046
Variable lease expense		561			520			1,683			1,583
Short-term operating leases		6			1			19			3
Finance leases
Amortization of leased assets		12			11			66			69
Interest on lease liabilities		-			-			1			1
Sublease income		(7	)		(16	)		(25	)		(54	)
Net lease cost	$	2,214		$	2,170		$	6,745		$	6,648

Lessee, Lease, Liability, Maturity [Table Text Block]

	Operating			Finance
(in thousands)	leases			leases			Total
2023	$	1,490		$	4		$	1,494
2024		5,822			11			5,833
2025		4,948			11			4,959
2026		2,446			3			2,449
2027		1,493			-			1,493
Thereafter		6,796			-			6,796
Total lease payments		22,995			29			23,024
Less: Interest		(4,142	)		(1	)		(4,143	)
Present value of lease liabilities	$	18,853		$	28		$	18,881

Lease, Cash Flow Information [Table Text Block]

	Nine Months Ended
(in thousands)	September 30, 2023		September 24, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,005	$	4,946
Operating cash flows from finance leases	$	1	$	1
Financing cash flows from finance leases	$	48	$	126
Leased assets obtained in exchange for new operating lease liabilities	$	664	$	1,308
Financing lease assets acquired in MCT acquisition	$	19	$	-
Operating lease assets acquired in MCT acquisition	$	130	$	-

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Current assets, including cash received	$	9,505
Property, plant and equipment		197
Other assets		356
Intangible assets		12,000
Goodwill		8,755
Total assets acquired		30,813
Liabilities assumed		(4,024	)
Net assets acquired	$	26,789

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

	Estimated Fair Value		Weighted Average Useful Life (years)
Developed technology	$	7,500		7.0
Customer relationships		4,000		10.0
Product backlog		500		0.5
Total intangible assets	$	12,000

Schedule of Goodwill [Table Text Block]

	Goodwill
Balance, December 25, 2021	$	219,791
Impact of currency exchange		(6,252	)
Balance, December 31, 2022		213,539
Additions		8,755
Impact of currency exchange		(1,610	)
Balance, September 30, 2023	$	220,684

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

	September 30, 2023						December 31, 2022
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (Years)		Amount		Amort.
Developed technology	$	209,377	$	127,332		3.5	$	224,253	$	128,938
Customer relationships		59,959		26,721		6.3		64,632		31,015
Trade names		20,061		10,412		5.7		20,461		9,397
Covenant not-to-compete		235		159		3.3		269		161
Total intangible assets	$	289,632	$	164,624			$	309,615	$	169,511

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

Note 6 - Employee Stock Benefit Plans (Details Textual) - USD ($)		3 Months Ended	9 Months Ended
	May 10, 2023	Sep. 30, 2023	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)			0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares)			0
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)			350,070
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)			424,917
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)			17,977
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)		876,418	876,418
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding		$ 30,200,000	$ 30,200,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms (Year)			1 year 3 months 18 days
Restricted Stock Units (RSUs) [Member] \| Vesting Over One Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			1 year
Restricted Stock Units (RSUs) [Member] \| Vesting Over Four Year Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			4 years
Equity Based Performance Stock Units Granted in 2023, 2022, 2021, and 2020 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)			256,073
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)			257,845
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)			7,430
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)		394,022	394,022
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding		$ 13,600,000	$ 13,600,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms (Year)			1 year 8 months 12 days
Equity Based Performance Stock Units Granted in 2023, 2022, 2021, and 2020 [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%
Minimum [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue		0.00%	0.00%
Maximum [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue		200.00%	200.00%
Equity Incentive Plan 2005 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)	3,200,000	3,534,994	3,534,994
Cash Payout of Performance Awards Limitation Per Year	$ 2,000,000	$ 4,000,000
Equity Incentive Plan 2005 [Member] \| Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)			10 years
Equity Incentive Plan 2005 [Member] \| Minimum [Member] \| Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			1 year
Equity Incentive Plan 2005 [Member] \| Maximum [Member] \| Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			4 years
Equity Incentive Plan 2005 [Member] \| Director [Member]
Annual Limitation on Compensation	$ 750,000
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)	600,000	878,856	878,856
Percentage of Fair Value to Determine Price of Common Stock		85.00%	85.00%
Stock Issued During Period, Shares, New Issues (in shares)			67,642
Share-Based Compensation Arrangement by Share-Based Payment Award, Share Value	$ 12,500

Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Gross Carrying Amount, finite-lived intangible assets	$ 289,632	$ 309,615
Accumulated Amortization	164,624	169,511
Developed Technology Rights [Member]
Gross Carrying Amount, finite-lived intangible assets	209,377	224,253
Accumulated Amortization	$ 127,332	128,938
Remaining Useful Life (Year)	3 years 6 months
Customer Relationships [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 59,959	64,632
Accumulated Amortization	$ 26,721	31,015
Remaining Useful Life (Year)	6 years 3 months 18 days
Trade Names [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 20,061	20,461
Accumulated Amortization	$ 10,412	9,397
Remaining Useful Life (Year)	5 years 8 months 12 days
Noncompete Agreements [Member]
Gross Carrying Amount, finite-lived intangible assets	$ 235	269
Accumulated Amortization	$ 159	$ 161
Remaining Useful Life (Year)	3 years 3 months 18 days

Note 1 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Net sales	$ 150,804	$ 206,687	$ 499,096	$ 621,670
Malaysia [Member]
Net sales	23,550	24,060	78,703	73,033
PHILIPPINES
Net sales	19,983	38,852	77,132	84,799
CHINA
Net sales	19,689	31,477	69,193	116,715
UNITED STATES
Net sales	23,604	19,510	58,097	62,826
Rest of the World [Member]
Net sales	63,978	92,788	215,971	284,297
Systems [Member]
Net sales	73,173	120,672	263,469	369,972
Non-systems [Member]
Net sales	$ 77,631	$ 86,015	$ 235,627	$ 251,698

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

US Treasury Securities [Member]

$ 94,180

$ 143,235

Corporate Debt Securities [Member]

21,667

34,197

Asset-Backed Securities [Member]

^[1]

40,528

59,073

Certificates of Deposit [Member]

8,621

12,658

Debt Security, Government, Non-US [Member]

22,639

36,479

Fair Value, Recurring [Member]

725

828

Fair Value, Recurring [Member] | US Treasury Securities [Member]

387,566

385,576

Fair Value, Recurring [Member] | Corporate Debt Securities [Member]

21,667

34,196

Fair Value, Recurring [Member] | Asset-Backed Securities [Member]

41,523

69,753

Fair Value, Recurring [Member] | Certificates of Deposit [Member]

8,621

12,658

Fair Value, Recurring [Member] | Debt Security, Government, Non-US [Member]

22,639

37,480

Fair Value, Recurring [Member] | Cash [Member]

725

828

Fair Value, Recurring [Member] | Money Market Funds [Member]

243,956

190,371

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]

48,435

40,290

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]

243,956

190,371

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Asset-Backed Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Security, Government, Non-US [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Cash [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]

243,956

190,371

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member]

143,610

195,205

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]

21,667

34,196

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-Backed Securities [Member]

41,523

69,753

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member]

8,621

12,658

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Security, Government, Non-US [Member]

22,639

37,480

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Cash [Member]

725

828

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]

48,435

40,290

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset-Backed Securities [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Security, Government, Non-US [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Cash [Member]

Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]

$ 0

[1]	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 3 - Borrowings and Credit Agreements (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Debt [Table Text Block]

	September 30,			December 31,
	2023			2022
Bank Term Loan under Credit Agreement	$	30,202		$	66,952
Bank Term Loans-Kita		2,023			2,466
Construction Loan- Cohu GmbH		7,747			8,414
Lines of Credit		1,673			1,907
Total debt		41,645			79,739
Less: financing fees and discount		(282	)		(764	)
Less: current portion		(6,174	)		(6,311	)
Total long-term debt	$	35,189		$	72,664

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

Sep. 30, 2023

Dec. 31, 2022

$ 94,536

$ 143,952

^[1]

364

778

Corporate Debt Securities [Member]

94,180

143,235

^[2]

40,601

59,283

^[2]

^[1],[2]

240

Certificates of Deposit [Member]

^[2]

40,528

59,073

22,640

36,500

^[1]

US Treasury Securities [Member]

22,639

36,479

21,918

34,614

^[1]

251

418

Asset-Backed Securities [Member]

21,667

34,197

8,652

12,727

^[1]

Debt Security, Government, Non-US [Member]

8,621

12,658

725

828

^[1]

$ 725

$ 828

[1]

As of September 30, 2023, the cost and fair value of investments with loss positions was approximately $75.8 million and $75.4 million, respectively. As of December 31, 2022, the cost and fair value of investments with loss positions was approximately $86.3 million and $85.5 million, respectively. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if a credit loss exists. 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 7 - Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Derivative Instruments [Table Text Block]

		Contract Amount		Contract Amount
Currency	Contract Position	(Local Currency)		(U.S. Dollars)
Euro	Buy		58,637	$	62,000
Swiss Franc	Buy		11,874		13,000
Malaysian Ringgit	Buy		9,356		2,000
South Korean Won	Buy		2,699,700		2,000
Japanese Yen	Buy		148,930		1,000
				$	80,000

Derivative Instruments, Gain (Loss) [Table Text Block]

		Three months ended						Nine months ended
Derivatives not designated	Location of loss	Sept. 30,			Sept. 24,			Sept. 30,			Sept. 24,
as hedging instruments	recognized on derivatives	2023			2022			2023			2022
Foreign exchange forward contracts	Foreign transaction loss	$	(6,885	)	$	(8,236	)	$	(5,672	)		(12,577	)

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Raw materials and purchased parts

Note 13 - Subsequent Event (Details Textual) - Oct. 02, 2023 - Subsequent Event [Member] - Equiptest Engineering Pte Ltd. (“EQT”) [Member] $ in Millions, $ in Millions	USD ($)	SGD ($)
Payments to Acquire Businesses, Gross		$ 66
Business Combination, Acquisition Related Costs	$ 0.8

Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

$ 106,466

$ 106,041

Work in process

32,738

36,024

Finished goods

27,469

28,076

Total inventories

$ 166,673

$ 170,141

^[1]

[1]	Derived from December 31, 2022 audited financial statements

Note 4 - Restructuring Charges (Tables)

9 Months Ended

Sep. 30, 2023

Restructuring and Related Costs [Table Text Block]

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 31, 2022	$	-		$	-		$	-
Costs accrued		1,810			236			2,046
Amounts paid or charged		(1,358	)		(236	)		(1,594	)
Balance, September 30, 2023	$	452		$	-		$	452

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 25, 2021	$	348		$	-		$	348
Costs accrued		(15	)		615			600
Amounts paid or charged		(269	)		(615	)		(884	)
Impact of currency exchange		(9	)		-			(9	)
Balance, September 24, 2022	$	55		$	-		$	55

Insider Trading Arrangements

3 Months Ended

9 Months Ended

Sep. 30, 2023

Insider Trading Arr Line Items

Material Terms of Trading Arrangement [Text Block]

Item 5.

Other Information.

Rule 10b5-1 Trading Plans

Our directors and executive officers may purchase or sell shares of our common stock in the market from time to time, including pursuant to equity trading plans adopted in accordance with Rule 10b5-1 under the Exchange Act and in compliance with guidelines specified by our insider trading policy. In accordance with Rule 10b5-1 and our insider trading policy, directors, officers and certain employees who, at such time, are not in possession of material non-public information are permitted to enter into written plans that pre-establish amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of our stock, including shares acquired pursuant to our equity incentive plans. Under a Rule 10b5-1 trading plan, a broker executes trades pursuant to parameters established by the director or executive officer when entering into the plan, without further direction from them. The use of these trading plans permits asset diversification as well as personal financial and tax planning. Our directors and executive officers also may buy or sell additional shares outside of a Rule 10b5-1 plan when they are not in possession of material nonpublic information, subject to compliance with SEC rules, the terms of our insider trading policy and certain minimum holding requirements. During the three months ended September 30, 2023, none of our directors or executive officers adopted, modified or terminated a Rule 10b5-1 trading plan.

Transactions by Section 16 directors and officers will be disclosed publicly through Form 144 and Form 4 filings with the SEC to the extent required by law. No non-Rule 10b5-1 trading arrangements (as defined by Item 408(a) of Regulation S-K) were entered into, adopted or terminated by any Section 16 director or officer during the third quarter of 2023.

Rule 10b5-1 Arrangement Adopted [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

Note 1 - Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Inventory, Current [Table Text Block]

	September 30,		December 31,
	2023		2022
Raw materials and purchased parts	$	106,466	$	106,041
Work in process		32,738		36,024
Finished goods		27,469		28,076
Total inventories	$	166,673	$	170,141

Property, Plant and Equipment [Table Text Block]

	September 30,			December 31,
	2023			2022
Land and land improvements	$	6,830		$	7,066
Buildings and building improvements		37,272			31,161
Machinery and equipment		107,139			105,109
		151,241			143,336
Less accumulated depreciation and amortization		(84,636	)		(78,325	)
Property, plant and equipment, net	$	66,605		$	65,011

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Cost of sales	$	223		$	161		$	619		$	478
Research and development		849			755			2,534			2,333
Selling, general and administrative		3,262			2,824			9,527			8,284
Total share-based compensation		4,334			3,740			12,680			11,095
Income tax benefit		(45	)		(770	)		(2,883	)		(3,232	)
Total share-based compensation, net	$	4,289		$	2,970		$	9,797		$	7,863

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

	Three Months Ended				Nine Months Ended
	September 30,		September 24,		September 30,		September 24,
	2023		2022		2023		2022
Weighted average common shares		47,615		47,984		47,525		48,412
Effect of dilutive securities		492		542		577		596
		48,107		48,526		48,102		49,008

Disaggregation of Revenue [Table Text Block]

	Three Months Ended				Nine Months Ended
Disaggregated Net Sales	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Systems	$	73,173	$	120,672	$	263,469	$	369,972
Non-systems		77,631		86,015		235,627		251,698
Total net sales	$	150,804	$	206,687	$	499,096	$	621,670

	Three Months Ended				Nine Months Ended
Disaggregated Net Sales	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Malaysia	$	23,550	$	24,060	$	78,703	$	73,033
Philippines		19,983		38,852		77,132		84,799
China		19,689		31,477		69,193		116,715
United States		23,604		19,510		58,097		62,826
Rest of the World		63,978		92,788		215,971		284,297
Total net sales	$	150,804	$	206,687	$	499,096	$	621,670

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Customers individually accounting for more than 10% of net sales	two			one			one				*
Percentage of net sales		22	%		13	%		13	%		*

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Net income	$ 3,915	$ 24,882	$ 30,184	$ 75,219
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(10,436)	(22,520)	(7,377)	(43,960)
Adjustments related to postretirement benefits	(123)	(129)	63	(302)
Change in unrealized gain/loss on investments	153	(372)	361	(882)
Other comprehensive loss, net of tax	(10,406)	(23,021)	(6,953)	(45,144)
Comprehensive income (loss)	$ (6,491)	$ 1,861	$ 23,231	$ 30,075

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-8

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

Preferred stock, par value (in dollars per share)

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
shares in Thousands

Sep. 30, 2023

Dec. 31, 2022

^[1]

$ 1

Preferred stock, shares authorized (in shares)

1,000

Preferred stock, shares issued (in shares)

Common stock, par value (in dollars per share)

$ 1

Common stock, shares authorized (in shares)

90,000

Common stock, shares issued (in shares)

49,350

49,276

Common stock, shares outstanding (in shares)

49,350

49,276

Treasury stock, shares (in shares)

1,865

1,767

[1]	Derived from December 31, 2022 audited financial statements

Note 11 - Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Text Block]

11.

Contingencies

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, we do not believe at the present time that the resolution of these matters will have a material adverse effect on our assets, financial position or results of operations.

Note 7 - Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Text Block]

7.	Derivative Financial Instruments

Foreign Exchange Derivative Contracts

We operate and sell our products in various global markets and, as a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to offset future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts to reduce the risks and volatility associated with foreign currency transaction gains or losses.

We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our condensed consolidated balance sheets with changes in fair value recorded within foreign transaction gain (loss) in our condensed consolidated statements of income for both realized and unrealized gains and losses. The cash flows associated with the foreign currency forward contracts are reported in net cash provided by operating activities in our condensed consolidated statements of cash flows.

The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All our foreign exchange derivative contracts outstanding at September 30, 2023 will mature during the fourth quarter of fiscal 2023.

The following table provides information about our foreign currency forward contracts outstanding as of September 30, 2023 (in thousands):

		Contract Amount		Contract Amount
Currency	Contract Position	(Local Currency)		(U.S. Dollars)
Euro	Buy		58,637	$	62,000
Swiss Franc	Buy		11,874		13,000
Malaysian Ringgit	Buy		9,356		2,000
South Korean Won	Buy		2,699,700		2,000
Japanese Yen	Buy		148,930		1,000
				$	80,000

Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. The fair values of foreign currency contracts outstanding on September 30, 2023 were immaterial.

The location and amount of gains and losses related to non-designated derivative instruments in the condensed consolidated statements of income were as follows (in thousands):

		Three months ended						Nine months ended
Derivatives not designated	Location of loss	Sept. 30,			Sept. 24,			Sept. 30,			Sept. 24,
as hedging instruments	recognized on derivatives	2023			2022			2023			2022
Foreign exchange forward contracts	Foreign transaction loss	$	(6,885	)	$	(8,236	)	$	(5,672	)		(12,577	)

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

^[1]

Current assets:

$ 293,386

$ 242,341

Property, plant and equipment, net

94,180

143,235

Accounts receivable, net

130,432

176,148

Inventories

166,673

170,141

Prepaid expenses

31,179

24,017

Other current assets

2,717

8,969

Total current assets

718,567

764,851

66,605

65,011

Goodwill

220,684

213,539

Intangible assets, net

125,008

140,104

Other assets

19,367

21,105

Operating lease right of use assets

17,287

22,804

Assets

1,167,518

1,227,414

Current liabilities:

Short-term borrowings

1,673

1,907

Current installments of long-term debt

4,501

4,404

Accounts payable

36,931

51,763

Customer advances

6,741

6,886

Accrued compensation and benefits

31,894

38,348

Deferred profit

4,544

8,022

Accrued warranty

4,542

5,614

Income taxes payable

22,641

26,648

Other accrued liabilities

14,977

17,280

Total current liabilities

128,444

160,872

Long-term debt

35,189

72,664

Deferred income taxes

22,352

21,359

Noncurrent income tax liabilities

6,296

6,486

Accrued retirement benefits

7,936

10,363

Long-term lease liabilities

13,899

19,209

Other accrued liabilities

7,166

7,620

Stockholders’ equity

Preferred stock, $1 par value; 1,000 shares authorized, none issued

Common stock, $1 par value; 90,000 shares authorized, 49,350 shares issued and outstanding in 2023 and 49,276 shares in 2022

49,350

49,276

Paid-in capital

679,734

687,218

Treasury stock, at cost; 1,865 shares in 2023 and 1,767 shares in 2022

(56,469)

(58,043)

Retained earnings

320,586

290,402

Accumulated other comprehensive loss

(46,965)

(40,012)

Total stockholders’ equity

946,236

928,841

Liabilities and Equity

$ 1,167,518

$ 1,227,414

[1]	Derived from December 31, 2022 audited financial statements

Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Due in one year or less, amortized cost	$ 70,275	$ 112,956
Due in one year or less, fair value	70,012	112,683
Due after one year through five years, amortized cost	23,536	30,996
Due after one year through five years, fair value	23,443	30,552
Due after five years through ten years, amortized cost	725	0
Due after five years through ten years, fair value	725	0
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost, Total	94,536	143,952
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value, Total	$ 94,180	$ 143,235

Note 10 - Leases (Details Textual) - USD ($) $ in Millions	9 Months Ended
Note 10 - Leases (Details Textual) - USD ($) $ in Millions	Sep. 30, 2023	Apr. 01, 2023
Lessee, Operating Lease, Renewal Term (Year)	25 years
Finance Lease, Right-of-Use Asset, Accumulated Amortization	$ 0.3	$ 0.2
Minimum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	1 year
Maximum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	34 years

Note 4 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Restructuring Charges	$ 742	$ 17	$ 2,046	$ 600
Integration Program [Member]
Restructuring Charges	$ 700		$ 2,000	$ 600

Note 4 - Restructuring Charges

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities Disclosure [Text Block]

4.	Restructuring Charges

MCT Integration Program

During the first quarter of 2023, we began a strategic restructuring and integration program in connection with the acquisition of MCT (“MCT Integration Program”). See Note 2, “Business Acquisitions, Goodwill and Purchased Intangible Assets” for additional information regarding the acquisition of MCT. As part of this program, we intend to consolidate MCT’s Penang, Malaysia manufacturing operations into Cohu’s Melaka, Malaysia manufacturing operations by the end of 2023. Relating to the facility consolidation actions, we notified certain impacted employees of a reduction in force program and the facility consolidation and reduction in force programs are being implemented as part of a comprehensive review of our operations and are intended to reduce our operating cost structure and capitalize on acquisition synergies.

As a result of the activities described above, we recognized total pretax charges of $0.7 million and $2.0 million during the three and nine months ended September 30, 2023, that are within the scope of ASC 420.

The following table summarizes the activity within the restructuring related accounts for the MCT Integration Program during the first nine months ended September 30, 2023 (in thousands):

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 31, 2022	$	-		$	-		$	-
Costs accrued		1,810			236			2,046
Amounts paid or charged		(1,358	)		(236	)		(1,594	)
Balance, September 30, 2023	$	452		$	-		$	452

Xcerra Integration Program

Subsequent to the acquisition of Xcerra on October 1, 2018, during the fourth quarter of 2018, we began a strategic restructuring program designed to reposition our organization and improve our cost structure as part of our targeted integration plan regarding Xcerra (“Xcerra Integration Program”). As part of the Xcerra Integration Program we consolidated our global handler and contactor manufacturing operations and closed our manufacturing operations in Penang, Malaysia and Fontana, California in 2019.

In the second quarter of 2019, we entered into a social plan (“Plan”) with the German labor organization representing certain of the employees of our wholly owned subsidiary, Multitest elektronische Systeme GmbH, as part of our Xcerra Integration Program. During the fourth quarter of 2020 we implemented a voluntary program and termination agreements with certain employees of our wholly owned subsidiary, Cohu GmbH. These programs collectively reduced headcount, enabled us to consolidate the facilities of our multiple operations located near Kolbermoor and Rosenheim, Germany, as well as transitioned certain manufacturing to other lower cost regions. The facility consolidations and reduction in force programs were implemented as part of a comprehensive review of our operations and were intended to streamline and reduce our operating cost structure and capitalize on acquisition synergies.

As a result of the activities described above, we recognized total pretax charges of $0.6 million for the first nine months ended September 24, 2022, that are within the scope of ASC 420. Total pretax charges for the first nine months ended September 30, 2023 were not material.

Costs associated with restructuring activities are presented in our condensed consolidated statements of income as restructuring charges, except for certain costs associated with inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products, which are classified within cost of sales. Other restructuring costs include expenses for professional fees associated with employee severance, impairments of fixed assets and building close expenses. As of December 31, 2022, restructuring activities associated with the Xcerra Integration Program were materially complete.

The following table summarizes the activity within the restructuring related accounts for the Xcerra Integration Program during the first nine months ended September 24, 2022 (in thousands):

	Severance and			Other Exit
	Other Payroll			Costs			Total
Balance, December 25, 2021	$	348		$	-		$	348
Costs accrued		(15	)		615			600
Amounts paid or charged		(269	)		(615	)		(884	)
Impact of currency exchange		(9	)		-			(9	)
Balance, September 24, 2022	$	55		$	-		$	55

At September 30, 2023, our total accrual for both the MCT and Xcerra Integration Programs are reflected within current liabilities of our condensed consolidated balance sheets as these amounts are expected to be paid out within a year. The estimated costs associated with the employee severance and facility consolidation actions will be paid predominantly in cash.

Note 1 - Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Significant Accounting Policies [Text Block]

1.	Summary of Significant Accounting Policies

Basis of Presentation

All significant consolidated transactions and balances have been eliminated in consolidation.

Concentration of Credit Risk

Inventories

Inventories by category were as follows (in thousands):

	September 30,		December 31,
	2023		2022
Raw materials and purchased parts	$	106,466	$	106,041
Work in process		32,738		36,024
Finished goods		27,469		28,076
Total inventories	$	166,673	$	170,141

Property, Plant and Equipment

Property, plant and equipment, at cost, consisted of the following (in thousands):

	September 30,			December 31,
	2023			2022
Land and land improvements	$	6,830		$	7,066
Buildings and building improvements		37,272			31,161
Machinery and equipment		107,139			105,109
		151,241			143,336
Less accumulated depreciation and amortization		(84,636	)		(78,325	)
Property, plant and equipment, net	$	66,605		$	65,011

Cloud-based Enterprise Resource Planning Implementation Costs

Segment Information

Goodwill and Other Intangible Assets

Product Warranty

Restructuring Costs

Debt Issuance Costs

Foreign Remeasurement and Currency Translation

Foreign Exchange Derivative Contracts

Share-Based Compensation

We measure and recognize all share-based compensation under the fair value method.

Reported share-based compensation is classified, in our condensed consolidated financial statements, as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Cost of sales	$	223		$	161		$	619		$	478
Research and development		849			755			2,534			2,333
Selling, general and administrative		3,262			2,824			9,527			8,284
Total share-based compensation		4,334			3,740			12,680			11,095
Income tax benefit		(45	)		(770	)		(2,883	)		(3,232	)
Total share-based compensation, net	$	4,289		$	2,970		$	9,797		$	7,863

Income Per Share

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

	Three Months Ended				Nine Months Ended
	September 30,		September 24,		September 30,		September 24,
	2023		2022		2023		2022
Weighted average common shares		47,615		47,984		47,525		48,412
Effect of dilutive securities		492		542		577		596
		48,107		48,526		48,102		49,008

Leases

Revenue Recognition

Net sales by type are as follows (in thousands):

	Three Months Ended				Nine Months Ended
Disaggregated Net Sales	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Systems	$	73,173	$	120,672	$	263,469	$	369,972
Non-systems		77,631		86,015		235,627		251,698
Total net sales	$	150,804	$	206,687	$	499,096	$	621,670

Revenue by geographic area based upon product shipment destination (in thousands):

	Three Months Ended				Nine Months Ended
Disaggregated Net Sales	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Malaysia	$	23,550	$	24,060	$	78,703	$	73,033
Philippines		19,983		38,852		77,132		84,799
China		19,689		31,477		69,193		116,715
United States		23,604		19,510		58,097		62,826
Rest of the World		63,978		92,788		215,971		284,297
Total net sales	$	150,804	$	206,687	$	499,096	$	621,670

A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information is as follows:

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Customers individually accounting for more than 10% of net sales	two			one			one				*
Percentage of net sales		22	%		13	%		13	%		*

No single customer represented more than 10% of consolidated net sales.

Accumulated Other Comprehensive Loss

Retiree Medical Benefits

New Accounting Pronouncements

Note 13 - Subsequent Event

9 Months Ended

Sep. 30, 2023

Subsequent Events [Text Block]

13.

Subsequent Event

EQT Acquisition

On October 2, 2023, we completed the acquisition of all of the outstanding share capital of Equiptest Engineering Pte Ltd. (“EQT”), pursuant to a Share Purchase Agreement dated October 2, 2023, by and among EQT and its shareholders, and Cohu Interface Solutions LLC., a wholly owned subsidiary of Cohu (the “Acquisition”). EQT is a provider of semiconductor test contactors and other test consumables. On October 2, 2023, we made a cash payment totaling 66.0 million Singapore dollars for EQT. The Acquisition is a cash free debt free transaction and is subject to a working capital adjustment for the difference between the actual and estimated net working capital. In connection with the Acquisition, we incurred approximately $0.8 million in acquisition-related costs, which were expensed as selling, general and administrative costs during the course of fiscal 2023.

Note 3 - Borrowings and Credit Agreements (Details Textual) $ in Thousands, € in Millions, ¥ in Millions, SFr in Millions			3 Months Ended		9 Months Ended
	Jul. 01, 2023	Oct. 01, 2018 USD ($)	Sep. 30, 2023 USD ($)	Sep. 24, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 24, 2022 USD ($)	Sep. 30, 2023 EUR (€)	Sep. 30, 2023 JPY (¥)	Sep. 30, 2023 CHF (SFr)	Dec. 31, 2022 USD ($)	May 31, 2022 EUR (€)	Jun. 30, 2020 EUR (€)
Long-Term Debt, Current Maturities			$ 6,174		$ 6,174					$ 6,311
Repayments of Long-Term Debt					37,467	$ 36,935
Gain (Loss) on Extinguishment of Debt			0	$ (80)	(369)	(312)
Long-Term Line of Credit, Total			1,673		1,673					1,907
Ismeca [Member]
Line of Credit Facility, Maximum Borrowing Capacity \| SFr									SFr 2
Long-Term Line of Credit, Total			$ 0		$ 0					0
Number of Available Lines of Credit			1		1		1	1	1
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity \| ¥								¥ 960
Long-Term Line of Credit, Total			$ 1,700		$ 1,700			¥ 250
Secured Term Loan Facility [Member]
Debt Instrument, Face Amount		$ 350,000
Debt Instrument, Amortization, Percentage of Principal Amount		0.25%
Long-Term Debt			29,900		29,900					66,200
Long-Term Debt, Current Maturities			3,400		3,400					3,200
Long-Term Debt, Fair Value			30,200		30,200
Extinguishment of Debt, Amount					34,100	31,800
Repayments of Long-Term Debt					34,100	31,700
Gain (Loss) on Extinguishment of Debt					(400)	(300)
Extinguishment of Debt Decrease Deferred Financing Costs					400	$ 400
Long-Term Debt, Gross			30,202		30,202					66,952
Secured Term Loan Facility [Member] \| London Interbank Offered Rate (LIBOR) 1 [Member]
Debt Instrument, Basis Spread on Variable Rate		3.00%
Secured Term Loan Facility [Member] \| Secured Overnight Financing Rate (SOFR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Kita Term Loans [Member]
Long-Term Debt			2,000		2,000					2,500
Long-Term Debt, Current Maturities			200		200					200
Long-Term Debt, Gross			$ 2,023		$ 2,023					2,466
Kita Term Loans [Member] \| Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage			0.05%		0.05%		0.05%	0.05%	0.05%
Kita Term Loans [Member] \| Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage			0.44%		0.44%		0.44%	0.44%	0.44%
Loan Facilities [Member] \| Construction Loans [Member]
Debt Instrument, Face Amount \| €											€ 9.5	€ 10.1
Long-Term Debt			$ 7,700		$ 7,700					8,400
Long-Term Debt, Current Maturities			$ 900		$ 900					$ 1,000
First Facility [Member] \| Construction Loans [Member]
Debt Instrument, Face Amount \| €							€ 3.4
Debt Instrument, Interest Rate, Stated Percentage			0.80%		0.80%		0.80%	0.80%	0.80%
Debt Instrument, Term (Year)					10 years
Second Facility [Member] \| Construction Loans [Member]
Debt Instrument, Face Amount \| €							€ 5.2
Debt Instrument, Interest Rate, Stated Percentage			1.05%		1.05%		1.05%	1.05%	1.05%
Debt Instrument, Term (Year)					15 years
Third Facility [Member] \| Construction Loans [Member]
Debt Instrument, Interest Rate, Stated Percentage			1.20%		1.20%		1.20%	1.20%	1.20%
Debt Instrument, Term (Year)					10 years
Debt Instrument, Collateral Amount \| €							€ 0.9

Note 4 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Costs accrued	$ 742	$ 17	$ 2,046	$ 600
Employee Severance [Member] \| MCT Integration Program [Member]
Accrued restructuring, balance			0
Costs accrued			1,810
Amounts paid or charged			(1,358)
Accrued restructuring, balance	452		452
Employee Severance [Member] \| Xcerra Integration Program [Member]
Accrued restructuring, balance				348
Costs accrued				(15)
Amounts paid or charged				(269)
Impact of currency exchange				(9)
Accrued restructuring, balance		55		55
Other Restructuring [Member] \| MCT Integration Program [Member]
Accrued restructuring, balance			0
Costs accrued			236
Amounts paid or charged			(236)
Accrued restructuring, balance	0		0
Other Restructuring [Member] \| Xcerra Integration Program [Member]
Accrued restructuring, balance				0
Costs accrued				615
Amounts paid or charged				(615)
Impact of currency exchange				0
Accrued restructuring, balance		0		0
Employee Severance and Other Exit Costs [Member] \| MCT Integration Program [Member]
Accrued restructuring, balance			0
Costs accrued			2,046
Amounts paid or charged			(1,594)
Accrued restructuring, balance	$ 452		$ 452
Employee Severance and Other Exit Costs [Member] \| Xcerra Integration Program [Member]
Accrued restructuring, balance				348
Costs accrued				600
Amounts paid or charged				(884)
Impact of currency exchange				(9)
Accrued restructuring, balance		$ 55		$ 55

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

Treasury Stock, Common [Member]

Total

Balance at Dec. 25, 2021

$ 48,756

$ 674,777

$ 193,555

$ (27,262)

$ (7,324)

$ 882,502

75,219

Changes in unrealized gains and losses on investments, net of tax

(43,960)

(302)

(882)

521

(521)

(180)

(5,467)

(5,647)

(38,078)

Exercise of stock options

11,095

Shares issued under ESPP

1,669

1,746

105

118

Balance at Sep. 24, 2022

49,187

681,658

268,774

(72,406)

(45,402)

881,811

Balance at Jun. 25, 2022

49,152

678,495

243,892

(49,385)

(27,702)

894,452

24,882

Changes in unrealized gains and losses on investments, net of tax

(22,520)

(129)

(372)

(55)

(20)

(522)

(542)

(17,700)

3,740

Balance at Sep. 24, 2022

49,187

681,658

268,774

(72,406)

(45,402)

881,811

Balance at Dec. 31, 2022

49,276

687,218

290,402

(40,012)

(58,043)

928,841

^[1]

30,184

Changes in unrealized gains and losses on investments, net of tax

(7,377)

361

(20,083)

20,076

(1,918)

(9,566)

(7,648)

(10,854)

12,680

Shares issued under ESPP

1,837

1,904

Balance at Sep. 30, 2023

49,350

679,734

320,586

(46,965)

(56,469)

946,236

Balance at Jul. 01, 2023

49,350

676,309

316,671

(36,559)

(52,378)

953,393

3,915

Changes in unrealized gains and losses on investments, net of tax

(10,436)

(123)

153

(858)

858

(51)

(326)

(275)

(4,674)

4,334

Balance at Sep. 30, 2023

$ 49,350

$ 679,734

$ 320,586

$ (46,965)

$ (56,469)

$ 946,236

[1]	Derived from December 31, 2022 audited financial statements

Note 12 - Guarantees (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Balance at beginning of period	$	5,534		$	7,015		$	6,214		$	7,691
Warranty expense accruals		1,508			2,090			5,229			6,733
Warranty payments		(1,956	)		(2,605	)		(6,424	)		(7,924	)
Liability acquired		-			-			67			-
Balance at end of period	$	5,086		$	6,500		$	5,086		$	6,500

Note 12 - Guarantees (Details Textual) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Non-current Other Accrued Liabilities [Member]
Product Warranty Accrual, Noncurrent	$ 0.5	$ 0.6
Minimum [Member]
Standard Product Warranty Term (Month)	12 months
Maximum [Member]
Standard Product Warranty Term (Month)	36 months

Note 10 - Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Operating leases	$ 1,642	$ 1,654	$ 5,001	$ 5,046
Variable lease expense	561	520	1,683	1,583
Short-term operating leases	6	1	19	3
Amortization of leased assets	12	11	66	69
Interest on lease liabilities	0	0	1	1
Sublease income	(7)	(16)	(25)	(54)
Net lease cost	$ 2,214	$ 2,170	$ 6,745	$ 6,648

Note 12 - Guarantees

9 Months Ended

Sep. 30, 2023

Guarantees [Text Block]

12.

Guarantees

Product Warranty

Our products are generally sold with warranty periods that range from 12 to 36 months following sale or acceptance. The product warranty promises customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, and not as a separate performance obligation. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical and projected experience by product and configuration.

Changes in accrued warranty were as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2023			2022			2023			2022
Balance at beginning of period	$	5,534		$	7,015		$	6,214		$	7,691
Warranty expense accruals		1,508			2,090			5,229			6,733
Warranty payments		(1,956	)		(2,605	)		(6,424	)		(7,924	)
Liability acquired		-			-			67			-
Balance at end of period	$	5,086		$	6,500		$	5,086		$	6,500

Accrued warranty amounts expected to be incurred after one year are included in noncurrent other accrued liabilities in the condensed consolidated balance sheet. These amounts totaled $0.5 million and $0.6 million at September 30, 2023 and December 31, 2022, respectively.

The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

Property, Plant and Equipment, Net [Member]

Note 10 - Leases - Balance Sheet Information (Details) - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

Operating lease assets

$ 17,287

$ 22,804

^[1]

Total lease assets

17,542

23,127

Total lease liabilities

$ 18,881

$ 24,185

Operating leases (Year)

5 years 7 months 6 days

6 years 2 months 12 days

Finance leases (Year)

2 years 3 months 18 days

1 year 8 months 12 days

Operating leases

6.40%

6.20%

Finance leases

3.80%

2.20%

Finance lease assets

^[2]

$ 255

$ 323

Other Accrued Liabilities [Member]

Operating, current

4,971

4,927

Finance, current

Long-term Lease Liabilities [Member]

Operating, noncurrent

13,882

19,185

Finance, noncurrent

$ 16

$ 24

[1]	Derived from December 31, 2022 audited financial statements
[2]	Finance lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million as of September 30, 2023 and December 31, 2022, respectively.

Note 1 - Summary of Significant Accounting Policies - Significant Customer Concentration Information (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] - Semiconductor Test and Inspection [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023
Customers individually accounting for more than 10% of net sales	2	1	1
One Customer [Member]
Percentage of net sales	22.00%	13.00%	13.00%

Note 12 - Guarantees - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Balance at beginning of period	$ 5,534	$ 7,015	$ 6,214	$ 7,691
Warranty expense accruals	1,508	2,090	5,229	6,733
Warranty payments	(1,956)	(2,605)	(6,424)	(7,924)
Liability acquired	0	0	67	0
Balance at end of period	$ 5,086	$ 6,500	$ 5,086	$ 6,500

Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 24, 2022	Sep. 30, 2023	Sep. 24, 2022
Weighted average common shares (in shares)	47,615	47,984	47,525	48,412
Effect of dilutive securities (in shares)	492	542	577	596
Weighted Average Number of Shares Outstanding, Diluted	48,107	48,526	48,102	49,008

Note 7 - Derivative Financial Instruments - Foreign Currency Forward Contracts Outstanding (Details) - Sep. 30, 2023 - Not Designated as Hedging Instrument [Member] € in Thousands, ¥ in Thousands, SFr in Thousands, RM in Thousands, ₩ in Millions, $ in Millions	USD ($)	EUR (€)	JPY (¥)	CHF (SFr)	MYR (RM)	KRW (₩)
Euro Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	$ 62	€ 58,637
Swiss Franc Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	13			SFr 11,874
Malaysian Ringgit Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	2				RM 9,356
South Korean Won Forward Exchange Forward [Member] \| Long [Member]
Contract amount	2					₩ 2,699.7
Japanese Yen Foreign Exchange Forward [Member] \| Long [Member]
Contract amount	1		¥ 148,930
Foreign Exchange Forward [Member]
Contract amount	$ 80

Fair value, after the effects of master netting arrangements, of a financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes assets not subject to a master netting arrangement and not elected to be offset.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-12

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 55
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480493/946-210-55-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(3)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5C
-Subparagraph (SX 210.12-13C(Column H)(Footnote 7))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480032/946-320-S99-5C

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(3)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5
-Subparagraph (SX 210.12-13(Column A)(Footnote 3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480032/946-320-S99-5

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5C
-Subparagraph (SX 210.12-13C(Column H))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480032/946-320-S99-5C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5A
-Subparagraph (SX 210.12-13A(Column E))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480032/946-320-S99-5A

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5B
-Subparagraph (SX 210.12-13B(Column E))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480032/946-320-S99-5B

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5B
-Subparagraph (SX 210.12-13B(Column E)(Footnote 4))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480032/946-320-S99-5B

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483466/210-20-50-3

Reference 22: http://www.xbrl.org/2003/role/exampleRef
-Topic 210
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483444/210-20-55-22

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483444/210-20-55-10

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-10

Note 1 - Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

Less accumulated depreciation and amortization

$ 151,241

$ 143,336

(84,636)

(78,325)

Property, plant and equipment, net

66,605

65,011

^[1]

Land and Land Improvements [Member]

Building and Building Improvements [Member]

6,830

7,066

Machinery and Equipment [Member]

37,272

31,161

$ 107,139

$ 105,109

[1]	Derived from December 31, 2022 audited financial statements

Note 3 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Lines of Credit	$ 1,673	$ 1,907
Total debt	41,645	79,739
Less: financing fees and discount	(282)	(764)
Less: current portion	(6,174)	(6,311)
Total long-term debt	35,189	72,664
Secured Term Loan Facility [Member]
Long term Debt	30,202	66,952
Less: current portion	(3,400)	(3,200)
Kita Term Loans [Member]
Long term Debt	2,023	2,466
Less: current portion	(200)	(200)
Construction Loan [Member]
Long term Debt	$ 7,747	$ 8,414

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.