10-K

United States

Securities and Exchange Commission

Washington, D.C. 20549 

FORM 10-K

	[X]	Annual Report Pursuant to Section 13 or 15(d)
		of the Securities Exchange Act of 1934
(Mark one)		for the fiscal year ended December 29, 2018
		Or
	[   ]	Transition Report Pursuant to Section 13 or 15(d)
		of the Securities Exchange Act of 1934
		for the transition period from to

 Commission file number 0-20388

LITTELFUSE, INC.

(Exact name of registrant as specified in its charter)

Delaware	36-3795742
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)
8755 West Higgins Road, Suite 500
Chicago, Illinois	60631
(Address of principal executive offices)	(ZIP Code)

 773-628-1000

 (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

	Name of Each Exchange
Title of Each Class	On Which Registered
Common Stock, $0.01 par value	NASDAQ Global Select MarketSM

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [X] No [ ] 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X] 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ] 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “small reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer [X] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [ ] Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

The aggregate market value of 24,414,037 shares of voting stock held by non-affiliates of the registrant was approximately $4,409,178,694 based on the last reported sale price of the registrant’s Common Stock as reported on the NASDAQ Global Select Market^SM on June 30, 2018.

As of February 18, 2019, the registrant had outstanding 24,706,335 shares of Common Stock, net of Treasury Shares.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Littelfuse, Inc. Proxy Statement for the 2018 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference into Part III of this Form 10-K. 

TABLE OF CONTENTS

		Page
FORWARD-LOOKING STATEMENTS		3
PART I
Item 1.	Business	3
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	14
Item 2.	Properties	14
Item 3.	Legal Proceedings	14
Item 4.	Mine Safety Disclosures	14
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	15
Item 6.	Selected Financial Data	17
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 8.	Financial Statements and Supplementary Data	35
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	82
Item 9A.	Controls and Procedures	82
Item 9B.	Other Information	83
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	84
Item 11.	Executive Compensation	85
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	86
Item 13.	Certain Relationships and Related Transactions, and Director Independence	86
Item 14.	Principal Accounting Fees and Services	86
PART IV
Item 15.	Exhibits, Financial Statement Schedules.	87
Item 16.	Form 10-K Summary	87
	Schedule II – Valuation and Qualifying Accounts and Reserves	88
	Signatures	89
	Exhibit Index	90

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FORWARD-LOOKING STATEMENTS

Certain statements contained in this Annual Report on Form 10-K that are not historical facts are intended to constitute “forward-looking statements” entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995 (“PSRLA”). These statements may involve risks and uncertainties, including, but not limited to, risks relating to product demand and market acceptance; economic conditions; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity price fluctuations; the effect of the company’s accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; uncertainties related to political and regulatory changes; integration of acquisitions including the integration of the recently acquired business of IXYS Corporation (“IXYS”) and the risk that expected benefits, synergies and growth prospects of the acquisition of IXYS may not be achieved in a timely manner, or at all; and other risks that may be detailed in “Item 1A. Risk Factors” below and in the company’s other Securities and Exchange Commission filings.

AVAILABLE INFORMATION

The Company is subject to the reporting and information requirements of the Securities Exchange Act of 1934, as amended and as a result, are obligated to file annual, quarterly, and current reports, proxy statements, and other information with the United States Securities and Exchange Commission (“SEC”). The Company makes these filings available free of charge on its website (http://www.littelfuse.com) as soon as reasonably practicable after it electronically files them with, or furnish them to, the SEC. Information on the Company’s website does not constitute part of this Annual Report on Form 10-K. In addition, the SEC maintains a website (http://www.sec.gov) that contains the Company’s annual, quarterly, and current reports, proxy and information statements, and other information the Company electronically files with, or furnishes to, the SEC. The Company’s website and the information contained therein or connected thereto are not incorporated into this Annual Report on Form 10-K.

PART I

ITEM 1. BUSINESS.

GENERAL

Littelfuse, Inc., was incorporated under the laws of the State of Delaware in 1991. References herein to the “Company,” “we,” “our” or “Littelfuse” refer to Littelfuse, Inc. and its subsidiaries. References herein to “2018”, “fiscal 2018” or “fiscal year 2018” refer to the fiscal year ended December 29, 2018. References herein to “2017”, “fiscal 2017” or “fiscal year 2017” refer to the fiscal year ended December 30, 2017. References herein to “2016”, “fiscal 2016” or “fiscal year 2016” refer to the fiscal year ended December 31, 2016. The Company operates on a 52-53 week fiscal year (4-4-5 basis) ending on the Saturday closest to December 31.

OVERVIEW

Founded in 1927, Littelfuse is a global manufacturer of leading technologies in circuit protection, power control and sensing. Sold in over 150 countries, the Company’s products are found in automotive and commercial vehicles, industrial applications, data and telecommunications, medical devices, consumer electronics and appliances. With its broad product portfolio of fuses, semiconductors, polymers, ceramics, relays and sensors, and extensive global infrastructure, the Company’s worldwide associates partner with its customers to design, manufacture and deliver innovative, high-quality solutions for a safer, greener and increasingly connected world.

Segments

The Company conducts its business through three reportable segments: Electronics, Automotive, and Industrial. Within these segments, the Company designs, manufactures and sells components and modules for circuit protection, power control and sensing

products throughout the world. The circuit protection products protect against electrostatic discharge, power surges, short circuits, voltage spikes and other harmful occurrences; our power control products safely and efficiently control power to mitigate equipment damage, minimize electrical hazards and improve productivity and our sensor products are used to identify and detect temperature, proximity, flow speed and fluid level in various applications. For segment and geographical information and consolidated net sales and operating income see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 16, Segment Information, of the Notes to Consolidated Financial Statements included in this Annual Report.

• Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors,

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reed switch based magnetic sensing, gas discharge tubes; semiconductor and power semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon carbide, metal-oxide-semiconductor field-effect transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial and automotive electronics, electric vehicle infrastructure, data and telecommunications, medical devices, LED lighting, consumer electronics and appliances.

• Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle industries. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain, emissions, speed and suspension.

• Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy - solar and wind, electric vehicle infrastructure, construction, HVAC systems, elevator and other industrial equipment.

Strategy

In December 2016, the Company announced its five-year strategic plan. Building upon its achievements from its previous five-year plan and leveraging the global mega trends of safety, energy efficiency and the connected world, the Company is targeting an average annual accelerated organic growth of 5-7 percent and growth from strategic acquisitions of 5-7 percent. The Company’s strategic goals include growing its circuit protection platform, accelerating growth in its power control platform and doubling its sensor platform. The Company expects to do this through content and share gains, targeting underpenetrated geographies and markets, leveraging investments in its people, innovations and operating systems, and capitalizing on growth opportunities where technologies and applications are converging across its segments, while continuing to acquire and integrate businesses that fit its strategic focus areas.

Recent Acquisitions 

• IXYS Corporation: On January 17, 2018, the Company acquired IXYS, a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power semiconductors across the industrial, communications, consumer and medical markets. IXYS has a broad customer base, serving more than 3,500 customers through its direct sales force and global distribution partners. The purchase price for IXYS was $856.5 million, which included consideration of cash, Littelfuse common stock, and the value of converted, or cash settled IXYS equity awards. The operations of IXYS are included in the Electronics segment.

• U.S. Sensor: On July 7, 2017, the Company acquired the assets of U.S. Sensor Corporation (“U.S. Sensor”) for $24.3 million. U.S. Sensor manufactures a variety of high quality negative temperature coefficient thermistor probes and assemblies. The acquisition expands the Company’s existing sensor portfolio in several key electronics and industrial end markets. The operations of U.S. Sensor are included in the Electronics segment.

• Monolith Semiconductor Inc.: On February 28, 2017, pursuant to a Securities Purchase Agreement between the Company and the stockholders of Monolith Semiconductor Inc. (“Monolith”), a U.S. start-up Company developing silicon carbide technology, the Company increased its investment in Monolith by acquiring approximately 62% of the outstanding common stock of Monolith for $15.0 million. During 2018, the Company acquired the remaining outstanding stock of Monolith for $9.0 million based on Monolith meeting certain technical and sales targets, and now owns 100% of Monolith. The operations of Monolith are included in the Electronics segment.

• ON Portfolio: On August 29, 2016, the Company acquired certain assets of select businesses (the “ON Portfolio”) of ON Semiconductor Corporation for $104.0 million. The acquired business, which is included in the Electronics segment, consists of a product portfolio that includes transient voltage suppression (“TVS”) diodes, switching thyristors, and IGBTs for automotive ignition applications. The acquisition expands the Company’s offerings in power semiconductor applications as well as increases its presence in the automotive electronics market. The ON Portfolio products have strong

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synergies with the Company’s existing circuit protection business, will strengthen its channel partnerships and customer engagement, and expand its power semiconductor portfolio.

• Menber’s: On April 4, 2016, the Company completed the acquisition of Menber’s S.p.A. (“Menber’s”) headquartered in Legnago, Italy for $19.2 million (net of cash acquired and after settlement of a working capital adjustment). The acquired business is part of the Company's commercial vehicle product business within the Automotive segment and specializes in the design, manufacturing, and selling of manual and electrical high current switches and trailer connectors for commercial vehicles. The transaction expands the Company’s commercial vehicle products business globally.

• PolySwitch: On March 25, 2016, the Company acquired 100% of the circuit protection business (“PolySwitch”) of TE Connectivity Ltd. for $348.3 million (net of cash acquired and after settlement of certain post-closing adjustments). The PolySwitch business, which is split between the Automotive and Electronics segments, has a leading position in polymer based resettable circuit protection devices, with a strong global presence in the automotive, battery, industrial, communications and mobile computing markets. PolySwitch has manufacturing facilities in Shanghai and Kunshan, China, and Tsukuba, Japan. The acquisition allows the Company to strengthen its global circuit protection product portfolio, as well as expands its presence in the automotive electronics and battery protection end markets. The acquisition also significantly increases the Company’s presence in Japan.

Sales and Operations

The Company operates in three geographic regions: Asia-Pacific, the Americas, and Europe. The Company manufactures products and sells to customers in all three regions.

Net sales by segment for the periods indicated are as follows:

	Fiscal Year
(in millions)	2018		2017		2016
Electronics	$	1,124.3	$	661.9	$	535.2
Automotive	479.8		453.2		415.2
Industrial	114.4		106.4		105.8
Total	$	1,718.5	$	1,221.5	$	1,056.2

Net sales in the Company’s three geographic regions, based upon the shipped-to destination, are as follows:

	Fiscal Year
(in millions)	2018		2017		2016
Asia-Pacific	$	753.3	$	541.1	$	444.8
Americas	578.6		436.5		411.1
Europe	386.6		243.9		200.3
Total	$	1,718.5	$	1,221.5	$	1,056.2

The Company’s products are sold worldwide through distributors, a direct sales force and manufacturers’ representatives in certain regions. For the fiscal year 2018, approximately 70% of the Company’s net sales were to customers outside the United States (“U.S.”), including approximately 27% to China.

The Company manufactures many of its products on fully integrated manufacturing and assembly equipment. The Company maintains product quality through a Global Quality Management System with most manufacturing sites certified under ISO 9001:2000. In addition, several of the Littelfuse manufacturing sites are also certified under IATF 16949 and ISO 14001.

Additional information regarding the Company’s sales by geographic area and long-lived assets in different geographic areas is in Note 16, Segment Information, of the Notes to Consolidated Financial Statements included in this Annual Report.

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BUSINESS ENVIRONMENT

Electronics Segment

The Company designs, develops and manufactures a wide range of components and modules that provide circuit protection, power control and sensing for a multitude of electronic and industrial applications. Circuit protection technologies in the Electronics Segment are designed to protect against harmful occurrences like voltage spikes, short circuits, power surges and electrostatic discharge. Products include a vast array of fuses and other circuit protection technologies used in a variety of electronic products including consumer electronics, automotive electronics, IT and telecommunications equipment, medical devices, lighting products, and white goods.

The Company also offers a wide range of power control products used to convert and regulate energy and safely and efficiently control power across a broad spectrum of applications including industrial and automotive power systems, motor drives and power conversion applications. Products include a comprehensive portfolio of semiconductor components including thyristors, rectifiers and fast recovery diodes, IGBTs and wide band gap devices. The acquisition of IXYS is expected to accelerate the Company’s growth across the power control market driven by IXYS’s extensive power semiconductor portfolio in medium and high-power applications and technology expertise. The Company expects to continue to diversify and expand its presence within industrial electronics markets, leveraging the strong IXYS industrial OEM customer base. The Company also expects to increase long-term penetration of its power semiconductor portfolio in automotive markets, expanding its global content per vehicle.

Another strategic area of focus in the Electronics Segment is the Company’s continued investment in silicon carbide, a promising semiconductor material that enables more efficient power conversion than traditional silicon-based devices. In October, the Company completed the acquisition of Monolith and now owns 100% of the company. The Monolith silicon carbide technology provides a very broad portfolio of products to address the medium- to high-end side of the growing power semiconductor electronics market.

As products become increasingly sophisticated, smarter and more connected, the need for complex sensor technologies continues to grow. Sensors products in the Electronics Segment are used in a wide variety of applications including appliances, security systems, medical equipment, and consumer and industrial controls.

Automotive Segment

The Company is a primary supplier of fuses and circuit protection technologies to global automotive OEMs, through sales made to Tier One automotive suppliers, main-fuse box, and wire harness manufacturers that incorporate the fuses into their products, as well as automotive component parts manufacturers, and automotive parts distributors. The Company also sells its fuses in the replacement parts market, with its products being sold through merchandisers, discount stores, and service stations, as well as under private label by national firms.

Circuit protection needs in the automotive space are expected to generate additional content-per-vehicle exceeding global auto production, with the increased electronification of vehicles, as well as the continued electrification of vehicles with the development and market penetration of hybrid and electric vehicles.

Over the past several years, the Company has expanded the Automotive segment into the commercial vehicle market with various acquisitions, also expanding the Company’s portfolio of power control products. Additional products in this market include:  power distribution modules, low and high current switches, solenoids and relays, battery management products, ignition key switches, and trailer connectors. Custom and market products are sold directly to a mix of OEMs, Tier One suppliers, aftermarket channels, as well as through general distribution.

The Company also continues to expand its automotive sensor business and products and expects this market to provide future long-term growth opportunities. Products sold into the market include a wide range of automotive and commercial vehicle sensors designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain, emissions, speed and suspension. A majority of the Company’s automotive sensor sales are made to Tier One suppliers.

Industrial Segment

The Company manufactures and sells a broad range of low-voltage and medium-voltage circuit protection products to electrical distributors and their customers in the construction, OEM and industrial maintenance, repair and operating supplies (“MRO”) markets. The Company also designs and manufactures protection relays for the global oil, gas and mining, and general industrial

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markets. The Company sees growth opportunities by expanding both the end markets it serves and channel partnerships, as well as continuing to invest in new product development.

Power fuses are used to protect circuits in various types of industrial equipment and in industrial and commercial buildings. Protection relays are used to protect personnel and equipment in harsh environments such as oil, gas and mining, and industrial environments from excessive currents, over voltages, and electrical shock hazards called ground faults. Major applications for protection relays include protection of motor, transformer, and power-line distribution circuits. Ground-fault relays are used to protect personnel and equipment in wet environments such as underground mining or water treatment applications where there is a greater risk for electricity to come in contact with water and create a shock hazard.

PRODUCT DESIGN AND DEVELOPMENT

The Company employs scientific, engineering, and other personnel to continually improve its existing product lines and to develop new products at its research, product design, and development (“R&D”) and engineering facilities with primary locations in China, Germany, Italy, Japan, Lithuania, Mexico, Philippines, Taiwan, United Kingdom, and the United States. The Company maintains a staff of engineers, chemists, material scientists and technicians whose primary responsibility is to design and develop new products.

Proposals for the development of new products are initiated primarily by sales, marketing, and product management personnel with input from customers. The entire product development process usually ranges from a few months to a few years based on the complexity of development, with continuous efforts to reduce the development cycle. During fiscal years 2018, 2017, and 2016, the Company expended $87.3 million, $50.5 million, and $42.2 million, respectively, on R&D.

PATENTS, TRADEMARKS, AND OTHER INTELLECTUAL PROPERTY

The Company generally relies on patents, trademarks, licenses, and nondisclosure agreements to protect its intellectual property and proprietary products. In cases where it is deemed necessary by management, key employees are required to sign an agreement that they will maintain the confidentiality of the Company’s proprietary information and trade secrets.

The Company owns a large portfolio of patents worldwide and new products are continually being developed to replace older products. The Company regularly applies for patent protection on such new products. While, in the aggregate, the Company’s patents are important in the operation of its businesses, the Company believes that the loss by expiration or otherwise of any one patent or group of patents would not materially affect its business.

MANUFACTURING

The Company’s manufacturing facilities are in China, Germany, Italy, Japan, Lithuania, Mexico, Philippines, Portugal, the United Kingdom, and the United States. The Company performs the majority of its own fabrication and maintains in-house capabilities for metal stamping, surface mount assembly, plating (silver, nickel, zinc, and oxides) and thermoplastic molding. In addition, the Company fabricates semiconductor wafers for certain applications and maintains in-house capability for epitaxy fabrication, die attach, and wafer probe testing. After sub-components are readied for assembly, final assembly is accomplished on fully automatic and semi-automatic assembly machines. Quality assurance and operations personnel, using techniques such as statistical process control, perform tests, checks and measurements during the production process to maintain the highest levels of product quality, including safety and reliability, and customer satisfaction. Additionally, the Company utilizes external wafer foundries and subcontracted test and assembly facilities for a portion of its semiconductor business.

The principal raw materials for the Company’s products include copper and copper alloys, heat-resistant plastics, zinc, melamine, glass, silver, gold, raw silicon, solder, and various gases. The Company uses a single source for several heat-resistant plastics and for zinc but has specifically identified capable alternative heat-resistant plastics and zinc sources. All other raw materials are purchased from a number of readily available outside sources.

MARKETING

The Company goes to market through a worldwide selling organization consisting of direct sales personnel, distribution partners and manufacturers’ representatives. The direct sales force closely works with global OEM, Tier One automotive, consulting engineers, and major end user customers to design-in and sell the Company’s circuit protection, power control and sensing products. The distributors provide fulfillment for a majority of customers including those partnered with electronic manufacturing services (EMS). The direct sales force is supplemented with manufacturers’ representatives. The Company has sales offices and direct sales channels in all major regions of the world.

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Electronics Segment

Most Electronics segment products are sold through distribution partners, including global distributors such as Arrow Electronics, Inc., Future Electronics and TTI, Inc, and regional and high service distributors. Many of our products are incorporated into applications with complex design technical support requirements. These may be sold through our direct salesforce and fulfilled through our distribution partners. The Company is leveraging IXYS sales channels to continue growing OEM sales and customer relationships, and well as driving opportunities to cross-sell products.

Automotive Segment

The Company maintains a direct sales force to service all of the major automotive and commercial vehicle OEMs, system suppliers, and Tier One automotive and aftermarket customers globally.

The Company also leverages its automotive customer relationships to sell products from the Electronics segment into automotive end markets, primarily to Tier One automotive customers. These revenues are reported in the Electronics segment.

Industrial Segment

The Company markets and sells its power fuses and protection relays through a direct sales force, manufacturers’ representatives, and electronics, industrial and electrical distributors, primarily across North America. The electrical and industrial distribution network is comprised of over 2,500 distributor branch locations. These distributors have customers that include electrical contractors, municipalities, utilities and factories.

CUSTOMERS

The Company sells to nearly 7,000 customers and distributors worldwide. Sales to Arrow Electronics, Inc., which were reported in our Electronics, Automotive and Industrial segments were 10.7% and 10.6% of consolidated net sales in 2018 and 2017, respectively, but less than 10% in 2016. No other single customer accounted for more than 10% of net sales during any of the last three years. During fiscal 2018, 2017, and 2016, net sales to customers outside the U.S. accounted for approximately 70%, 69%, and 66%, respectively, of the Company’s total net sales.

COMPETITION

The Company’s products compete with similar products of other manufacturers, some of which may have substantially greater financial resources than the Company. In the Electronics segment, the Company’s competitors include Eaton Corporation, Bel Fuse Inc., Bourns Inc., EPCOS, ON Semiconductor Corporation, Infineon Technologies, STMicroelectronics NV, Semtech Corporation, and Vishay Intertechnology Inc. In the Automotive segment, the Company’s competitors include Eaton Corporation, Pacific Engineering, MTA, CTS Corporation, Amphenol Corporation, Sensata Technologies Holding NV, and TE Connectivity Ltd. In the Industrial segment, the Company’s major competitors include Eaton Corporation, GE Multilin, and Mersen. The Company believes that it competes on the basis of innovative products, the breadth of its product line, the quality and design of its products, and the responsiveness of its customer service, in addition to price.

BACKLOG

The backlog of unfilled orders at December 29, 2018 was approximately $405.7 million, compared to $676.1 million at December 30, 2017 with the decrease primarily driven by the Automotive segment, partially offset by an increase from the Electronics segment. Substantially all the orders currently in backlog are scheduled for delivery in 2019.

EMPLOYEES

As of December 29, 2018, the Company employed approximately 12,300 employees worldwide. Approximately 20% of the Company's total workforce was employed under collective bargaining agreements at December 29, 2018. In Mexico, the Company has two separate collective bargaining agreements, one for 1,500 employees in Piedras Negras, expiring January 31, 2020 and the second for 650 employees in Matamoros, expiring January 1, 2020. In Germany, the Company has collective bargaining agreements with approximately 340 employees in Lampertheim and Essen, expiring March 31, 2020. In the United Kingdom, the Company has a collective bargaining agreement with some of the employees in Chippenham. Overall, the Company has historically maintained satisfactory employee relations and considers employee relations to be good.

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ENVIRONMENTAL REGULATION

The Company is subject to numerous foreign, federal, state, and local regulations relating to air and water quality, the disposal of hazardous waste materials, safety and health. Compliance with applicable environmental regulations has not significantly changed the Company’s competitive position, capital spending or earnings in the past and the Company does not presently anticipate that compliance with such regulations will change its competitive position, capital spending or earnings for the foreseeable future.

The Company employs chemical engineers to monitor regulatory matters and believes that it is currently in compliance in all material respects with applicable environmental laws and regulations.

Littelfuse GmbH, which was acquired by the Company in May 2004, is responsible for maintaining closed coal mines in Germany from legacy operations. The Company is compliant with German regulations pertaining to the maintenance of the mines and has an accrual related to certain of these coal mine shafts based on an engineering study estimating the cost of remediating the dangers (such as a shaft collapse) of certain of these closed coal mine shafts in Germany. The accrual is reviewed annually and calculated based upon the estimated costs of remediating the shafts. Further information regarding the coal mine liability accrual is provided in Note 1, Summary of Significant Accounting Policies and Other Information, of the Notes to Consolidated Financial Statements included in this Annual Report.

ITEM 1A. RISK FACTORS.

The Company’s business, financial condition, and results of operations are subject to various risks and uncertainties, including the risk factors it has identified below. Any of the following risk factors could materially and adversely affect the Company’s business, financial condition, or results of operations. These factors are not necessarily listed in order of importance.

The Company’sindustry is subject to intense competitive pressures.

The Company operates in markets that are highly competitive. The Company competes on the basis of price, product performance and quality, service, and / or brand name across the industries and markets it serves. Competitive pressures could affect the prices the Company is able to charge its customers or demand for its products.

The Company may not always be able to compete on price, particularly when compared to manufacturers with lower cost structures. Some of the Company’s competitors have substantially greater sales, financial and manufacturing resources and may have greater access to capital than the Company. As other companies enter its markets or develop new products, competition may further intensify. The Company’s failure to compete effectively could materially adversely affect its business, financial condition, and results of operations.

The Company engages in strategic acquisitions and may not realize the anticipated benefits of the acquisitions and / or may encounter difficulties in integrating these businesses.

The Company seeks to grow through strategic acquisitions. In the past, the Company has acquired a number of businesses or companies and additional product lines and assets. The Company intends to continue to expand and diversify its operations with additional future acquisitions.

An acquired business, technology, service or product could under-perform relative to the Company’s expectations and the price paid for it, or not perform in accordance with the Company’s anticipated timetable. This could cause the Company’s financial results to differ from expectations in any given fiscal period, or over the long term. The success of these transactions also depends on the Company’s ability to integrate the assets, operations, and personnel associated with these acquisitions. The Company may encounter difficulties in integrating acquisitions with the Company’s operations and may not realize the degree or timing of the benefits that are anticipated from an acquisition.

The Company may also discover liabilities or deficiencies associated with the companies or assets it acquires that were not identified in advance, which may result in significant unanticipated costs. The effectiveness of the Company’s due diligence review and its ability to evaluate the results of such due diligence are dependent upon the accuracy and completeness of statements and disclosures made or actions taken by the companies acquired or their representatives, as well as the limited amount of time in which acquisitions are executed. In addition, the Company may fail to accurately forecast the financial impact of an acquisition transaction, including tax and accounting charges. Acquisitions may also result in recording of significant additional expenses to the results of operations and recording of substantial intangible assets on the balance sheet upon closing. Any of these factors may adversely affect the Company’s financial condition and results of operations.

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Reorganization activities may lead to additional costs and material adverse effects.

In the past, the Company has taken actions to restructure and optimize its production and manufacturing capabilities and efficiencies through relocations, consolidations, plant closings or asset sales. In the future, the Company may take additional restructuring actions including the consolidating, closing or selling of additional facilities. These actions could result in impairment charges and various charges for such items as idle capacity, disposition costs and severance costs, in addition to normal or attendant risks and uncertainties. The Company may be unsuccessful in any of its current or future efforts to restructure or consolidate its business. Plans to minimize or eliminate any loss of revenues during restructuring or consolidation may not be achieved. These activities may have a material adverse effect upon the Company’s business, financial condition and results of operations.

The Companymay be unable to manufacture and deliver products in a manner that is responsive toitscustomers’ needs.

The end markets for the Company’s products are characterized by technological change, frequent new product introductions and enhancements, changes in customer requirements and emerging industry standards. The introduction of products embodying new technologies and the emergence of new industry standards could render its existing products obsolete and unmarketable before it can recover any or all of its research, development, and commercialization expenses on capital investments. Furthermore, the life cycles of its products may change and are difficult to estimate.

The Company’s future success will depend upon its ability to manufacture and deliver products in a manner that is responsive to its customers’ needs. The Company will need to develop and introduce new products and product enhancements on a timely basis that keep pace with technological developments and emerging industry standards and address increasingly sophisticated requirements of its customers. The Company invests heavily in research and development without knowing that it will recover these costs. The Company’s competitors may develop products or technologies that will render its products non-competitive or obsolete. If it cannot develop and market new products or product enhancements in a timely and cost-effective manner, its business, financial condition and results of operations could be materially adversely affected.

The Company’sability to manage currency or commodity price fluctuations or supply shortages is limited.

As a resource-intensive manufacturing operation, the Company is exposed to a variety of market and asset risks, including the effects of changes in commodity prices, foreign currency exchange rates, and interest rates. The Company has multiple sources of supply for the majority of its commodity requirements. However, significant shortages that disrupt the supply of raw materials or result in price increases could affect prices the Company charges its customers, its product costs, and the competitive position of its products and services. The Company monitors and manages these exposures as an integral part of its overall risk management program, which recognizes the unpredictability of markets and seeks to reduce the potentially adverse effects on its results. Nevertheless, changes in currency exchange rates, commodity prices and interest rates cannot always be predicted. In addition, because of intense price competition and the Company’s high level of fixed costs, it may not be able to address such changes even if they are foreseeable. Substantial changes in these rates and prices could have a material adverse effect on the Company’s results of operations and financial condition. In addition, significant portions of its revenues and earnings are exposed to changes in foreign currency rates. As it operates in multiple foreign currencies, changes in those currencies relative to the U.S. dollar will impact its revenues and expenses. The impact of possible currency devaluation in countries experiencing high inflation rates or significant exchange fluctuations can impact the Company’s results and financial guidance. For additional discussion of interest rate, currency or commodity price risk, see Item 7A, Quantitative and Qualitative Disclosures about Market Risk.

The Company’s effective tax rate could materially increase as a consequence of various factors, includinginterpretations and administrative guidance in regard to the Tax Act (defined below),U.S. and/or international tax legislation, mix of the Company’s earnings by jurisdiction, and U.S. and non-U.S. jurisdictional tax audits.

On December 22, 2017, the U.S. enacted legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). Although certain administrative guidance has been issued, the appropriate application of many provisions of the Tax Act remain uncertain. As discussed more fully in Note 14, Income Taxes, of the Notes to Consolidated Financial Statements included in this Annual Report, adjustments to income tax expense may be necessary in future periods if provisions of the Tax Act, and their interaction with other provisions of the U.S. Internal Revenue Code, are interpreted differently than interpretations made by the Company, whether through issuance of additional administrative guidance, or through further review of the Tax Act by the Company and its advisors. Such adjustments could have a material adverse effect on the Company’s effective tax rate and cash flows.

 The Company is subject to taxes in the U.S. and numerous non-U.S. jurisdictions. Therefore, it is subject to changes in tax laws in each of these jurisdictions. The Company’s income tax rate in certain non-U.S. jurisdictions is substantially lower than the U.S. statutory tax rate. Legislative proposals have been made from time to time to reduce these tax benefits, in some cases with the tax increase phased in over a multi-year transition period. In addition, certain non-U.S. jurisdictions are considering tax legislation

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based upon recommendations made by the Organization for Economic Co-operation and Development in connection with its Base Erosion and Profit Shifting study. The outcome of these and other legislative developments could have a material adverse effect on the Company’s effective tax rate and cash flows.

The tax rates applicable in the jurisdictions within which the Company operates vary widely. Therefore, the Company’s effective tax rate may be adversely affected by changes in the mix of its earnings by jurisdiction.

The Company’s tax returns are subject to examination by various U.S. and non-U.S. tax authorities, including the U.S. Internal Revenue Service. The Company regularly assesses the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of its provision for income taxes. However, there can be no assurance as to the outcome of these examinations. 

Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business and results of operations.

The U.S. government has adopted a new approach to trade policy and in some cases to renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements. It has also imposed tariffs on certain foreign goods and products. These measures may materially increase costs for goods imported into the United States. This in turn could require us to materially increase prices to our customers which may reduce demand, or, if we do not or are unable to increase prices, could result in lower margins on products sold. Changes in U.S. trade policy have resulted in, and could result in more, U.S. trading partners adopting responsive trade policies making it more difficult or costly for us to export our products to those countries.

A decline in expected profitability of the Company or individual reporting units of the Company could result in the impairment of assets, including goodwill and other long-lived assets.

The Company holds material amounts of goodwill and other long-lived assets on its balance sheet. A decline in expected profitability, particularly if there is a decline in the global economy, could call into question the recoverability of the Company’s related goodwill and other long-lived tangible and intangible assets and require the write down or write off of these assets. Such an occurrence has had and could continue to have a material adverse effect on the Company’s consolidated results of operations, financial position and cash flows.

A significant fluctuation between the U.S.dollar and other currencies could adversely impact theCompany's revenue and earnings.

Although the Company's financial results are reported in U.S. dollars, the majority of the Company’s operations consist of manufacturing and sales activities in foreign countries. The Company’s most significant net long exposure is to the euro. The Company’s most significant net short exposures are to the Chinese renminbi, Mexican peso, and Philippine peso. Changes in foreign exchange rates could have an adverse effect on the Company's results of operations, financial position and cash flows.

The Company’srevenues may vary significantly from period to period.

The Company’s revenues may vary significantly from one accounting period to another due to a variety of factors including:

• changes in customers’ buying decisions;

• changes in demand for its products;

• changes in its distributor inventory stocking;

• the Company’s product mix;

• the Company’s effectiveness in managing manufacturing processes;

• costs and timing of its component purchases;

• the effectiveness of its inventory control;

• the degree to which it is able to utilize its available manufacturing capacity;

• the Company’s ability to meet delivery schedules;

• general economic and industry conditions;

• local conditions and events that may affect its production volumes, such as labor conditions and political instability; and

• seasonality of certain product lines.

The bankruptcy or insolvency of a major customer could adversely affectthe Company.

The bankruptcy or insolvency of a major customer could result in lower sales revenue and cause a material adverse effect on the Company’s business, financial condition, and results of operations. In addition, the bankruptcy or insolvency of a major auto

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manufacturer or significant supplier likely could lead to substantial disruptions in the automotive supply base, resulting in lower demand for the Company’s products, which likely would cause a decrease in sales revenue and have a substantial adverse impact on the Company’s business, financial condition and results of operations.

The Company isexposed to political, economic, and other risks that arise from operating a multinational business.

The Company has significant operating activities in numerous countries around the globe that contribute significantly to its revenues and earnings. Sales to customers outside the United States constituted approximately 70% of the Company's net sales in fiscal 2018. Serving a global customer base and remaining competitive in the global marketplace requires the Company to place its production in countries outside the U.S., including emerging markets, to capitalize on market opportunities and maintain a cost-efficient structure. In addition, the Company sources a significant amount of raw materials and other components from third-party suppliers in low-cost countries. The Company’s operating activities are subject to a number of risks generally associated with multi-national operations, including risks relating to the following:

• general economic conditions;

• currency fluctuations and exchange restrictions;

• import and export duties and restrictions;

• the imposition of tariffs and other import or export barriers;

• compliance with regulations governing import and export activities;

• current and changing regulatory requirements;

• political and economic instability;

• potentially adverse income tax consequences;

• transportation delays and interruptions;

• labor unrest;

• natural disasters;

• terrorist activities;

• public health concerns;

• difficulties in staffing and managing multi-national operations; and

• limitations on the Company’s ability to enforce legal rights and remedies.

Any of these factors could have a material adverse effect on the Company’s business, financial condition and results of operations.

Disruptions inthe Company’smanufacturing, supply or distribution chain could result in an adverse impact on results of operations.

The Company sources materials and sell product through various international network channels. A disruption could occur within the Company’s manufacturing, distribution or supply chain network. This could include damage or destruction due to various causes including natural disasters or political instability which would cause one or more of these network channels to become non-operational. This could adversely affect the Company’s ability to manufacture or deliver its products in a timely manner, impair its ability to meet customer demand for products and result in lost sales or damage to its reputation. Such a disruption could have a material adverse effect on the Company’s business, financial condition and results of operations.

The inability to maintain access to capital markets may adversely affectthe Company’sbusiness and financial results.

The Company’s ability to invest in its businesses, make strategic acquisitions, and refinance maturing debt obligations may require access to the capital markets and sufficient bank credit lines to support short-term borrowings. If the Company is unable to access the capital markets or bank credit facilities, it could experience a material adverse effect on its business, financial condition and results of operations.

Fixed costs may reduce operating results if sales fall below expectations.

The Company’s expense levels are based, in part, on its expectations for future sales. Many of the Company’s expenses, particularly those relating to capital equipment and manufacturing overhead, are relatively fixed. The Company might be unable to reduce spending quickly enough to compensate for reductions in sales. Accordingly, shortfalls in sales could materially and adversely affect the Company’s business, financial condition and results of operations.

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The volatility ofthe Company’sstock price could affect the value of an investment inthe Company’sstock and future financial position.

The market price of the Company’s stock can fluctuate widely. Between December 30, 2017 and December 29, 2018, the closing sale price of the Company’s common stock ranged between a low of $155.15 and a high of $238.11. The volatility of the stock price may be related to any number of factors, such as volatility in the financial markets, general macroeconomic conditions, industry conditions, analysts’ expectations concerning the Company’s results of operations, or the volatility of its revenues as discussed above under “The Company’s Revenues May Vary Significantly from Period to Period.” The historic market price of the Company’s common stock may not be indicative of future market prices. The Company may not be able to sustain or increase the value of its common stock. Declines in the market price of the Company’s stock could adversely affect the Company’s ability to retain personnel with stock incentives, to acquire businesses or assets in exchange for stock and/or to conduct future financing activities with or involving the Company’s common stock.

The Company isexposed to, and may be adversely affected by, potential security breaches or other disruptions toitsinformation technology systems and data security.

The Company relies on its information technology systems and networks in connection with many of its business activities. Some of these networks and systems are managed directly by the Company, while others are managed by third-party service providers and are not under the Company’s direct control. The Company’s operations routinely involve receiving, storing, processing and transmitting sensitive information pertaining to its business, customers, dealers, suppliers, employees, and other sensitive matters. As with most companies, the Company has experienced cyber-attacks, attempts to breach its systems, and other similar incidents, none of which have been material. Any future cyber incidents could, however, materially disrupt operational systems; result in loss of trade secrets or other proprietary or competitively sensitive information; compromise personally identifiable information regarding employees or customers or other third parties; and jeopardize the security of the Company’s facilities. A cyber incident could be caused by malicious outsiders using sophisticated methods to circumvent firewalls, encryption, and other security defenses. Because techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until they are launched against a target, the Company may be unable to anticipate these techniques or to implement adequate preventative measures. Information technology security threats, including security breaches, computer malware, and other cyber-attacks are increasing in both frequency and sophistication and could create financial liability, subject the Company to legal or regulatory sanctions or damage the Company’s reputation with customers, dealers, suppliers, and other stakeholders. The Company continuously seeks to maintain a robust program of information security and controls, but the impact of a material information technology event could have a material adverse effect on the Company’s competitive position, reputation, results of operations, financial condition and cash flows.

The Company’sbusiness may be interrupted by labor disputes or other interruptions of supplies.

A work stoppage could occur at certain Company facilities, most likely as a result of disputes under collective bargaining agreements or in connection with negotiations of new collective bargaining agreements. In addition, the Company may experience a shortage of supplies for various reasons, such as financial distress, work stoppages, natural disasters or production difficulties that may affect one of its suppliers. A significant work stoppage, or an interruption or shortage of supplies for any reason, if protracted, could substantially adversely affect the Company’s business, financial condition and results of operations. The transfer of the Company’s manufacturing operations and changes in its distribution model could disrupt operations for a limited time.

Failure to attract and retain qualified personnel could affectthe Company’sbusiness results.

The Company’s success, both generally and in connection with mergers and acquisitions, depends on the Company’s ability to attract, retain, and motivate a highly-skilled and diverse management team and workforce. Failure to ensure that the Company has the depth and breadth of personnel with the necessary skill set and experience could impede its ability to deliver growth objectives and execute the Company’s strategy. Competition for qualified employees among companies that rely heavily upon engineering and technology is at times intense, and the loss of qualified employees could hinder the Company’s ability to conduct research activities successfully and develop marketable products.

Environmental liabilities could adversely impactthe Company’sfinancial position.

Foreign, federal, state and local laws and regulations impose various restrictions and controls on the discharge of materials, chemicals and gases used in the Company’s manufacturing processes or in its finished goods. These environmental regulations have required the Company to expend a portion of its resources and capital on relevant compliance programs. Under these laws and regulations, the Company could be held financially responsible for remedial measures if its current or former properties are contaminated or if it sends waste to a landfill or recycling facility that becomes contaminated, even if the Company did not cause

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the contamination. The Company may be subject to additional common law claims if it releases substances that damage or harm third parties. In addition, future changes in environmental laws or regulations may require additional investments in capital equipment or the implementation of additional compliance programs. Any failure to comply with new or existing environmental laws or regulations could subject the Company to significant liabilities and could have a material adverse effect on its business, financial condition and results of operations.

In the conduct of manufacturing operations, the Company has handled and does handle materials that are considered hazardous, toxic or volatile under federal, state, and local laws. The risk of accidental release of such materials cannot be completely eliminated. In addition, the Company operates or owns facilities located on or near real property that was formerly owned and operated by others. Certain of these properties were used in ways that involved hazardous materials. Contaminants may migrate from, within or through these properties. These releases or migrations may give rise to claims. Where third parties are responsible for contamination, the third parties may not have funds, or not make funds available when needed, to pay remediation costs imposed upon the Company under environmental laws and regulations.

The Company is responsible for the maintenance of discontinued coal mining operations in Germany. The risk of environmental remediation exists and the Company is in the process of remediating the mines considered to be the most at risk.

Customer demands and regulations related to conflict-free minerals may forcethe Companyto incur additional expenses.

The Dodd-Frank Wall Street Reform and Consumer Protection Act requires disclosure of use of “conflict” minerals mined from the Democratic Republic of Congo and adjoining countries and efforts to prevent the use of such minerals. In the semiconductor industry, these minerals are most commonly found in metals. As there may be only a limited number of suppliers offering “conflict free” metals, the Company cannot be certain that it will be able to obtain necessary metals in sufficient quantities or at competitive prices. Also, the Company may face challenges with its customers and suppliers if it is unable to sufficiently verify that the metals used in its products are “conflict free.”

The Companymay not besuccessful protectingitspatents and trademarks.

The Company considers its intellectual property, including patents, trade names, and trademarks, to be of significant value to its business as a whole. The Company’s products are manufactured, marketed, and sold under a portfolio of patents, trademarks, licenses, and other forms of intellectual property, some of which expire or are allowed to lapse at various dates in the future. The Company develops and acquires new intellectual property on an ongoing basis and considers all of its intellectual property to be valuable. The Company's policy is to file applications and obtain patents for the great majority of its novel and innovative new products including product modifications and improvements. Based on the broad scope of its product lines, the Company believes that the loss or expiration of any single intellectual property right would not have a material adverse effect upon its business, financial condition or results of operations; however, multiple losses or expirations could have a material adverse effect upon the Company’s business, financial condition or results of operations.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

None.

ITEM 2. PROPERTIES. 

The Company’s engineering and research and development, manufacturing, sales, and distribution centers are located in approximately 65 owned or leased facilities worldwide with primary operations in China, Germany, Italy, Japan, Lithuania, Mexico, Netherlands, Philippines, South Korea, Taiwan, United Kingdom, and the United States totaling approximately 3.2 million square feet. The Company’s owned facilities include approximately 2.0 million square feet and the Company’s leased facilities include approximately 1.2 million square feet. The Company’s corporate headquarters is located in the U.S. in Chicago, Illinois.

The Company believes its facilities are adequate to meet its requirements for the foreseeable future.

ITEM 3. LEGAL PROCEEDINGS.

The Company is not a party to any material legal proceedings, other than routine litigation incidental to its business.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS,AND ISSUER PURCHASES OF EQUITY SECURITIES.

 Shares of the Company’s common stock are traded under the symbol “LFUS” on the NASDAQ Global Select Market^SM.

Number of Holders

As of February 18, 2019, there were 75 holders of record of the Company’s common stock.

Dividend Policy

The future dividend policy will be determined by the Board of Directors based upon its evaluation of earnings, cash availability, and general business prospects. Currently, there are restrictions on the payment of dividends contained in the Company’s credit agreements that relate to the maintenance of certain financial ratios. However, the Company expects to continue paying cash dividends on a quarterly basis for the foreseeable future.

Recent Sales of Unregistered Securities

There were no sales of unregistered securities by us or affiliates during the fiscal year ended December 29, 2018.

Purchases of Equity Securities

The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019. The Company repurchased 391,972 shares of its common stock during fiscal 2018 and 608,028 shares may yet be purchased under the program as of December 29, 2018. As of February 18, 2019, the Company has repurchased 79,916 shares of its common stock since the fiscal year ended December 29, 2018.

The table below presents shares of the Company’s common stock which were acquired by the Company during fiscal year ended December 29, 2018:

Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
October 1 through October 31	200,000	179.55	200,000	800,000
November 1 through November 30	100	175.00	100	799,900
December 1 through December 29	191,872	166.64	191,872	608,028
Total	391,972	—	—	608,028

Stock Performance Graph

The following stock performance graph and related information shall not be deemed “soliciting material” or “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filings under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that theCompanyspecifically incorporates it by reference into such filing.

During June, 2018 Littelfuse common stock was moved from the Russell 2000 Index to Russell 1000 Index. The Company has included the Russell 1000 Index and Russell 2000 Index for the fiscal year ended December 29, 2018. The following stock performance graph compares the five-year cumulative total return on Littelfuse common stock to the five-year cumulative total returns on the Russell 1000 Index and the Dow Jones Electrical Components and Equipment Industry Group Index. The Company believes that the Russell 1000 Index and the Dow Jones Electrical Components and Equipment Industry Group Index represent a

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broad market index and peer industry group for total return performance comparison. The stock performance shown on the graph below represents historical stock performance and is not necessarily indicative of future stock price performance.

	12/13		12/14		12/15		12/16		12/17		12/18
Littelfuse, Inc.	$	100	$	105	$	118	$	169	$	221	$	193
Russell 1000	100		113		114		128		156		148
Russell 2000	100		105		100		122		139		124
Dow Jones US Electrical Components & Equipment	100		108		102		123		157		138

The Dow Jones Electrical Components and Equipment Industry Group Index includes the common stock of A. O. Smith Corp.; AAON, Inc.; American Superconductor Corp.; AMETEK, Inc.; Amphenol Corp.; Arrow Electronics, Inc.; Avnet, Inc.; AVX Corp.; Capstone Turbine Corp.; CTS Corp.; General Cable Corp.; Hubbell Inc. Class B; Jabil Circuit, Inc.; KEMET Corp.; Littelfuse, Inc.; Methode Electronics, Inc.; Plexus Corp.; Powerwave Technologies, Inc.; Regal-Beloit Corp.; Vicor Corp.; and Vishay Intertechnology, Inc. 

For Littelfuse, Inc. and all indexes noted above, a $100 investment made on December 28, 2013 and reinvestment of all dividends is assumed. Returns for the Company’s fiscal years presented above are as of the last day of the respective fiscal year which was December 27, 2014, January 2, 2016, December 31, 2016, December 30, 2017, and December 29, 2018 for the fiscal years 2014, 2015, 2016, 2017, and 2018, respectively.

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ITEM 6. SELECTED FINANCIAL DATA.

The information presented below provides selected financial data of the Company during the past five fiscal years and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Item 8, Financial Statements and Supplementary Data, for the respective years presented:

(in thousands, except per share data)	2018		2017		2016		2015		2014
Net sales	$	1,718,468	$	1,221,534	$	1,056,159	$	867,864	$	851,995
Gross profit	652,541		506,533		413,117		330,499		324,428
Operating income	225,049		218,511		130,644		104,157		133,830
Net income	164,565		119,519		104,488		80,866		98,100
Per share of common stock:
Income from continuing operations
- Basic	6.62		5.27		4.63		3.58		4.35
- Diluted	6.52		5.21		4.60		3.56		4.32
Cash dividends paid	1.60		1.40		1.24		1.08		0.94
Cash and cash equivalents	489,733		429,676		275,124		328,786		297,571
Total assets	2,614,306		1,740,102		1,491,194		1,065,475		1,069,859
Short-term debt	10,000		6,250		6,250		87,000		88,500
Long-term debt, less current portion	684,730		489,361		447,892		83,753		105,691

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion of Littelfuse’s financial condition and results of operations should be read together with the Consolidated Financial Statements and notes to those statements included in Item 8 of Part II of this Annual Report on Form 10-K.

BUSINESS

For a description of the Company’s business, segments and product offerings, see Item 1, Business.

2018 EXECUTIVE OVERVIEW

Net sales increased by $496.9 million, or 40.7%, in 2018 compared to 2017. The increase was primarily driven by the acquisition of IXYS, which added $378.2 million in net sales and higher volume in Electronics segment due to strong demand across various end markets and geographies within the segment. Additionally, net sales increased by $16.7 million due to favorable changes in foreign exchange rates. The Company recognized net income of $164.6 million, or $6.52 per diluted share for the year ended December 29, 2018 compared to net income of $119.5 million, or $5.21 per diluted share, for the year ended December 30, 2017. The increase in net income reflects operating income increases in both the Electronics and Automotive segments and lower income tax expense driven by a one-time tax charge (the "Toll Charge") of $49.0 million in 2017 due to the enactment of the Tax Cuts and Jobs Act, partially offset by $36.9 million of purchase accounting inventory step-up charges, higher amortization expense and acquisition-related and integration charges related to the IXYS acquisition. Additionally, the per share results reflect an increase of 2.1 million shares in the weighted average diluted shares outstanding resulting from the shares issued in conjunction with the acquisition of IXYS.

Net cash provided by operating activities was $331.8 million for the year ended December 29, 2018 as compared to $269.2 million for the year ended December 30, 2017. The increase in net cash provided by operating activities reflected higher earnings and favorable working capital management, which more than offset higher payments related to cash taxes and acquisition and integration costs.

On January 17, 2018, the Company acquired IXYS, a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power semiconductors across the industrial, communications, consumer and medical markets. IXYS has a broad customer base, serving more than 3,500 customers through its direct sales force and global distribution partners. The purchase price for IXYS was $856.5 million, which included consideration of cash, Littelfuse common stock, and the value of converted or cash settled IXYS equity awards. IXYS’ operations are included in the Electronics segment.

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On July 6, 2018, the Trump administration imposed Section 301 tariffs on certain products (known as List 1) that are imported into the United States where the country of origin is China. Additionally, on August 23, 2018, List 2 was put into effect which imposed an additional 25% tariff to products on the list items. These tariffs primarily impact the Electronics segment and, to a lesser extent, our Automotive segment. The Company continues to evaluate the impact on our future results of operations.

OUTLOOK

Vision and Strategy

The Company works with its customers to design and develop technologies that help them build safer, more reliable and more efficient products for a safer, greener and increasingly connected world in virtually every market that uses electrical energy, including automotive and commercial vehicles, industrial applications, data and telecommunications, medical devices, consumer electronics and appliances. Built upon that framework, the Company’s strategy is centered on growing its core circuit protection business, accelerating its growth in power control, and doubling its sensor platform.

The Company’s strategic plan is focused on maximizing shareholder value by driving profitable sales growth, earnings per share growth, strong cash flow generation, and maintaining a balanced approach to capital allocation. The Company pursues the following major strategic initiatives, which are summarized below, along with more specific areas of focus.

Strategic Objective	2019 and Future Priorities
Double digit sales growth	●	Grow through increased product content with existing customers and increased market share
	●	Expand portfolio into new and underpenetrated geographies and end markets
	●	Increase innovation capabilities and investments
	●	Expand presence in products and applications that are converging across business segments
	●	Targeted mergers and acquisitions
EPS growth	●	Focus on higher profitability growth opportunities
	●	Grow operating margins through operational excellence
	●	Disciplined approach to managing costs
Cash flow and liquidity	●	Disciplined management of working capital
	●	Prudent deployment of capital
	●	Disciplined approach to mergers and acquisitions
	●	Grow dividend in line with earnings
	●	Periodic share repurchases

The Company’s strategy is to generate profitable sales growth. In order to accomplish this, the Company is focusing on accelerating organic growth by increasing its content and share gains, enhancing technology efforts to drive innovation, capitalizing on cross segment opportunities, and gaining traction in underpenetrated geographies and markets. The Company will continue to make targeted strategic acquisitions that align to its strategy and financial targets to support new business, products, markets, and technologies while leveraging existing customers.

Management believes that sustaining profitability through a combination of profitable organic growth and acquisitions is critical to the Company’s competitiveness, while enhancing value the Company delivers to its customers. In addition, the Company continues to implement initiatives across all platforms to enhance productivity while managing its cost structure, including integration of operations and streamlining administrative and support activities to drive operating margins.

The Company seeks to deploy its capital using a balanced approach. Priorities for capital deployment, over time, include investments to drive increased organic growth, targeted acquisitions that align to the Company’s strategic and financial metrics and returning capital to shareholders through dividends and periodic share repurchases.

The Company uses several key indicators to gauge progress toward achieving these objectives. These indicators include organic sales growth, operating margins, cash flow from operations and capital expenditures. Through cycles, the Company targets double-

18

digit long-term (2017-2021) sales growth, split between 5-7% accelerated organic sales growth and 5-7% growth from strategic acquisitions, while targeting operating margins between 17% and 19% and double-digit earnings per share growth. Cash flow from operations less capital expenditures is targeted to approximate or exceed net income but in any given year can be significantly impacted by the timing of non-recurring or infrequent expenditures.

Significant Accounting Policies and Critical Estimates

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s most critical accounting policies are those that are most important to the portrayal of its financial condition and results of operations, and which require the Company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The Company has identified the following as its most critical accounting policies and judgments. Although management believes that its estimates and assumptions are reasonable, they are based upon information available when they are made, and therefore, actual results may differ from these estimates under different assumptions or conditions. The Company has reviewed these critical accounting policies and related disclosures with the Audit Committee of its Board of Directors. Significant accounting policies are more fully described in the Notes to Consolidated Financial Statements included elsewhere in this Annual Report.

Revenue Recognition

 On December 31, 2017, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method. The adoption did not have a significant impact on the Company’s consolidated financial statements.

Revenue Disaggregation

The following table disaggregates the Company’s revenue by primary business units for the fiscal year ended December 29, 2018:

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Semiconductor	$	648,967	$	—	$	—	$	648,967
Electronics – Passive Products and Sensors	475,329		—		—		475,329
Passenger Car Products	—		240,501		—		240,501
Commercial Vehicle Products	—		121,562		—		121,562
Automotive Sensors	—		117,728		—		117,728
Industrial Products	—		—		114,381		114,381
Total	$	1,124,296	$	479,791	$	114,381	$	1,718,468

See Note 16, Segment Information, for net sales by segment and countries.

Revenue Recognition

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

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The Company has elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. This is similar to the Company’s prior practice and therefore the effect of the new guidance is immaterial.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

Return to Stock

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Allowance for Doubtful Accounts:

The Company evaluates the collectability of its trade receivables based on a combination of factors. The Company regularly analyzes its significant customer accounts and, when the Company becomes aware of a specific customer’s inability to meet its financial obligations, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also records allowances for all other customers based on a variety of factors including the length of time the receivables are past due, the financial health of the customer, macroeconomic considerations and past experience. Historically, the allowance for doubtful accounts has been adequate to cover bad debts. If circumstances related to specific customers change, the estimates of the recoverability of receivables could be further adjusted.

Inventory

The Company performs regular detailed assessments of inventory, which include a review of, among other factors, demand requirements, product life cycle and development plans, component cost trends, product pricing, shelf life, and quality issues. Based on the analysis, the Company records adjustments to inventory for excess quantities, obsolescence or impairment when appropriate to reflect inventory at net realizable value. Historically, inventory reserves have been adequate to reflect inventory at net realizable values.

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Goodwill

The Company’s methodology for allocating the purchase price of acquisitions is based on established valuation techniques that reflect the consideration of a number of factors, including valuations performed by third-party appraisers when appropriate. Goodwill is measured as the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. Based on its current organization structure, the Company has seven reporting units for which cash flows are determinable and to which goodwill has been allocated. Goodwill is either assigned to a specific reporting unit or allocated between reporting units based on the relative excess fair value of each reporting unit.

The Company annually tests goodwill for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test, could be impacted by changes in market conditions and economic events. Based on the interim assessments, management concluded that no events or changes in circumstances indicated that it was more likely than not that the fair value for any reporting unit had declined below its carrying value.

Quantitative Assessment for Impairment

For the seven reporting units with goodwill, the Company compared the estimated fair value of each reporting unit to its carrying value. If the carrying value of a reporting unit exceeded the estimated fair value, the difference between the estimated fair value and carrying value is recorded as the amount of the goodwill impairment charge. The results of the goodwill impairment test as of October 1, 2018 indicated that the estimated fair values for each of the seven reporting units exceeded their respective carrying values. Accordingly, there were no goodwill impairment charges recorded as part of the Company’s 2018 annual goodwill impairment test.

As part of its impairment test for these reporting units, the Company engaged a third-party appraisal firm to assist in the Company’s determination of the estimated fair values. This determination included estimating the fair value of each reporting unit using both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected operating results, economic projections, anticipated future cash flows, discount rates and the allocation of shared or corporate items. The market approach estimates fair values using comparable marketplace fair value data from within a comparable industry grouping. The Company weighted both the income and market approach equally to estimate the concluded fair value of each reporting unit. The determination of fair value requires the Company to make significant estimates and assumptions, which primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in which the Company competes; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization and capital expenditures.

Goodwill Impairment Assumptions

Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on the fair value of the reporting units. Future declines in the overall market value of the Company’s equity may also result in a conclusion that the fair value of one or more reporting units has declined below its carrying value.

One measure of the sensitivity of the amount of goodwill impairment charges to key assumptions is the amount by which each reporting unit “passed” (fair value exceeds the carrying value) the goodwill impairment test. All seven of the reporting units passed the goodwill impairment test, with fair values that exceeded the carrying values by between 63% and 370% of their respective estimated fair values. As of the most recent annual test conducted on October 1, 2018, the Company noted that the excess of fair value over the carrying value, was 176%, 80%, 233%, 202%, 63%, 114%, and 370% for its reporting units: Electronics-Passive Products and Sensors, Electronics-Semiconductor, Passenger Car Products, Commercial Vehicle Products, Automotive Sensors, Relays, and Power Fuse, respectively. Relatively small changes in the Company’s key assumptions would not have resulted in any reporting units failing the goodwill impairment test.

Generally, changes in estimates of expected future cash flows would have a similar effect on the estimated fair value of the reporting unit. That is, a 1.0% decrease in estimated annual future cash flows would decrease the estimated fair value of the reporting unit by approximately 1.0%. The estimated long-term net sales growth rate can have a significant impact on the estimated future cash

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flows, and therefore, the fair value of each reporting unit. A 1.0% decrease in the long-term net sales growth rate would have resulted in no reporting units failing the goodwill impairment test. Of the other key assumptions that impact the estimated fair values, most reporting units have the greatest sensitivity to changes in the estimated discount rate. The estimated discount rate was 11.7% for the Electronics-Passive Products and Sensors, Commercial Vehicle Products, Automotive Sensors and Power Fuse reporting units, 9.7% for the Electronics-Semiconductor and Passenger Car Products reporting units, and 12.7% for Relays. A 1.0% increase in the estimated discount rates would have resulted in no reporting units failing the annual goodwill impairment test. The Company believes that its estimates of future cash flows and discount rates are reasonable, but future changes in the underlying assumptions could differ due to the inherent uncertainty in making such estimates. Additionally, price deterioration or lower volume could have a significant impact on the fair values of the reporting units.

Long-Lived Assets

The Company evaluates the recoverability of other long-lived assets, including property, plant and equipment and certain identifiable intangible assets, whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. Factors which could trigger an impairment review include significant underperformance relative to historical or projected operating results, significant changes in the manner of use of the assets or the strategy for the overall business, a significant decrease in the market value of the assets or significant negative industry or economic trends. When the Company determines that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the indicators, the assets are assessed for impairment based on the estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the carrying value of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying value over its fair value. During the year ended December 29, 2018, the Company recognized non-cash impairment charges of $1.6 million and $0.5 million related to a building for sale and the Custom Products reporting unit trade name, respectively, associated with the exit of the Custom business within the Industrial Segment. During the year ended December 30, 2017, the Company recognized a loss of $2.9 million related to certain machinery and equipment in the Electronics and Automotive segments due to changes in the expected use of these certain assets.

Environmental Liabilities

Environmental liabilities are accrued based on estimates of the probability of potential future environmental exposure. Costs related to on-going maintenance of environmental sites are expensed as incurred. If actual or estimated probable future losses exceed the Company’s recorded liability for such claims, it would record additional charges as other expense during the period in which the actual loss or change in estimate occurred. The Company evaluates its reserve for coal mine remediation annually utilizing a third-party expert.

Pension andSupplemental Executive Retirement Plan

The Company records annual income and expense amounts relating to its pension and postretirement benefits plans based on calculations which include various actuarial assumptions including discount rates, expected long-term rates of return and compensation increases. The Company reviews its actuarial assumptions on an annual basis as of the fiscal year-end balance sheet date (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumption based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the Consolidated Balance Sheets but are generally amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive income (loss). The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors. The Company maintains several pension plans in international locations. The expected returns on plan assets and discount rates are determined based on each plan’s investment approach, local interest rates and plan participant profiles. The discount rates for the Company’s defined benefit plans primarily in Europe and the Asia-Pacific regions at December 29, 2018 and December 30, 2017 were 3.1% and 3.1%, respectively.

A 50 basis point change in the discount rates at December 29, 2018 would have the following effect on the projected benefit obligation:

(in millions)	0.5% Increase			0.5% Decrease
Projected benefit obligation	$	(7.4	)	$	8.1

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Equity-based Compensation

Equity-based compensation expense is recorded for stock-option awards and restricted share units based upon the fair values of the awards. The fair value of stock-option awards is estimated at the grant date using the Black-Scholes option pricing model, which includes assumptions for volatility, expected term, risk-free interest rate and dividend yield. Expected volatility is based on implied volatilities from traded options on Littelfuse stock, historical volatility of Littelfuse stock and other factors. Historical data is used to estimate employee termination experience and the expected term of the options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company initiated a quarterly cash dividend in 2010 and expects to continue making cash dividend payments in the foreseeable future.

Total equity-based compensation expense for all equity compensation plans was $28.2 million, $17.3 million, and $12.8 million in 2018, 2017, and 2016, respectively. Further information regarding this expense is provided in Note 12, Stock-Based Compensation, of the Notes to Consolidated Financial Statements included in this Annual Report.

Income Taxes

The Company accounts for income taxes using the liability method. Deferred taxes are recognized for the future effects of temporary differences between financial and income tax reporting using tax rates in effect for the years in which the differences are expected to reverse. The Company recognizes deferred taxes for temporary differences, operating loss carryforwards and tax credit and other tax attribute carryforwards (excluding carryforwards where usage has been determined to be remote). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. U.S. state and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to the U.S. and be taxable (and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to an upper-tier non-U.S. entity). Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Deferred income taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. Management regularly evaluates whether non-U.S. earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its non-U.S. subsidiaries. Changes in economic and business conditions, non-U.S. or U.S. tax laws (such as the Tax Act), or the Company’s financial situation could result in changes to these judgments and the need to record additional tax liabilities.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

On December 22, 2017, the U.S. enacted legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). Among other things, the Tax Act reduces the U.S. corporate federal income tax rate from 35% to 21%, adds base broadening provisions which limit deductions and address excessive international tax planning, imposes a one-time tax (the “Toll Charge”) on accumulated earnings of certain non-U.S. subsidiaries and enables repatriation of earnings of non-U.S. subsidiaries free of U.S. federal income tax. Other than the Toll Charge (which, except for the IXYS impact, was applicable to the Company for 2017), the provisions are generally applicable to the Company in 2018 and beyond.

In accordance with the guidance provided in SEC Staff Accounting Bulletin (“SAB”) No. 118, in the fourth quarter of 2017 the Company recorded a charge of $47.0 million as a provisional reasonable estimate of the impact of the Tax Act, including $49.0 million for the Toll Charge net of $2.0 million for other net tax benefits. In the fourth quarter of 2018, within the measurement period outlined in SAB No. 118, the Company finalized its estimates of the impact of the Tax Act as of December 30, 2017 and recorded a charge of $3.2 million, including $2.3 million for the Toll Charge and $0.9 million for the net impact of other items. In addition, the Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation. This was reflected in the opening balance sheet as an increase to goodwill and other long-term liabilities.

One of the base broadening provisions of the Tax Act is commonly referred to as the tax on global intangible low-taxed income provisions (the "GILTI"). In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

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Further information regarding income taxes, including a detailed reconciliation of current year activity, is provided in Note 14, Income Taxes, of the Notes to Consolidated Financial Statements included in this Annual Report.

Off-Balance Sheet Arrangements

Other than non-cancellable operating lease commitments, the Company does not have off-balance sheet arrangements, financings or special purpose entities.

In the financial review that follows, the Company discusses its consolidated results of operations, financial position, cash flows and certain other information. This discussion should be read in conjunction with the Company’s Consolidated Financial Statements and related notes.

RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 29, 2018 AS COMPARED TO THE YEAR ENDED DECEMBER 30,2017

The following table summarizes the Company’s consolidated results of operations for periods presented. The fiscal year 2018 includes approximately $88.7 million of non-segment charges, of which $82.9 million of charges are primarily related to the IXYS acquisition as described in Note 2, Acquisitions and Dispositions, of the Notes to Consolidated Financial Statements included in this Annual Report. These charges include $36.9 million of purchase accounting inventory step-up charges, $18.7 million in acquisition-related and integration costs primarily related to legal, accounting and other expenses, $12.4 million in backlog amortization costs, $8.3 million of employee termination costs and other restructuring charges, $4.5 million of stock compensation expense recognized immediately upon close for converted IXYS options related to prior service periods, and $2.1 million change in control expense related to IXYS. In addition, there were $5.8 million of employee termination costs, impairment and other restructuring charges and acquisition-related expenses for other contemplated acquisitions and included charges associated with the exit of the Custom business in the second quarter within the Industrial segment.

The fiscal year 2017 includes approximately $10.3 million of non-segment charges. These included acquisition-related and integration costs related to legal, accounting and other expenses associated with completed or pending acquisitions of approximately $8.0 million, including $1.6 million of purchase accounting inventory charges related to the Company’s 2017 acquisition of U.S. Sensor as described in Note 2, Acquisitions and Dispositions, of the Notes to Consolidated Financial Statements included in this Annual Report, and $2.2 million of charges related to restructuring and production transfers in the Company’s Asia operations.

Fiscal year 2018 also included approximately $0.9 million in foreign currency exchange gains primarily attributable to changes in the value of the euro, Mexico peso, Philippine peso and Chinese renminbi against the U.S. dollar, while fiscal year 2017 also included approximately $2.4 million in foreign currency exchange losses primarily attributable to changes in the value of the euro, Philippine peso and Chinese renminbi against the U.S. dollar.

	Fiscal Year
(in thousands, except % change)	2018			2017			Change			% Change
Net sales	$	1,718,468		$	1,221,534		$	496,934		40.7	%
Gross profit	652,541			506,533			146,008			28.8	%
Operating expenses	427,492			288,022			139,470			48.4	%
Operating income	225,049			218,511			6,538			3.0	%
Other income, net	(1,599		)	(1,282		)	(317		)	24.7	%
Income before income taxes	204,942			204,037			905			0.4	%
Income taxes	40,377			84,518			(44,141		)	(52.2	)%
Net income	164,565			119,519			45,046			37.7	%

Net Sales

Net sales for 2018 of $1,718.5 million increased $496.9 million, or 40.7%, compared to the prior year with increases of $378.2 million and $6.5 million resulting from incremental net sales related to the IXYS and U.S. Sensor acquisitions, respectively, $16.7 million of favorable changes in foreign exchange rates, and volume growth across all three segments.

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Gross Profit

Gross profit was $652.5 million, or 38.0% of net sales, in 2018, compared to $506.5 million, or 41.5% of net sales, in 2017. The increase in gross profit reflects the IXYS acquisition and volume growth and expense leverage across all segments. The decrease in gross margin is primarily due to the purchase accounting inventory charges of $36.9 million, which negatively impacted gross margin by 2.1 percentage points, and an unfavorable mix of products from the IXYS acquisition, which historically had lower gross margins.

Operating Expenses

Total operating expenses were $427.5 million, or 24.9% of net sales, for 2018 compared to $288.0 million, or 23.6% of net sales, for 2017. The increase in operating expenses of $139.5 million was primarily due to the incremental operating expenses related to the IXYS and U.S. Sensor acquisitions, an increase in amortization expense of $27.5 million resulting from the acquisition of IXYS as well as higher acquisition-related and integration costs of $12.1 million. Total operating expenses as a percent of net sales increased from 23.6% in 2017 to 24.9% in 2018 primarily due to the higher amortization expense and acquisition-related and integration charges noted above.

Operating Income

Operating income for 2018 was $225.0 million, an increase of $6.5 million or 3.0% compared to $218.5 million for 2017. The increase in operating income is primarily due to the acquisition of IXYS and volume growth in the Electronics and Industrial segments, partially offset by $36.9 million of purchase accounting inventory charges, higher acquisition-related and integration charges and amortization expense. Operating margins decreased from 17.9% in 2017 to 13.1% in 2018 driven by the purchase accounting inventory charges, higher amortization expense and acquisition-related and integration charges that negatively impacted margins by 2.1%, 1.6% and 0.7%, respectively.

Income Before Income Taxes

Income before income taxes for 2018 was $204.9 million, or 11.9% of net sales compared to $204.0 million, or 16.7% of net sales, for 2017. In addition to the factors impacting comparative results for operating income discussed above, income before income taxes was unfavorably impacted by higher interest expense of $9.2 million mainly resulting from increased borrowings, partially offset by increases in foreign exchange gains of $3.2 million.

Income Taxes

Income tax expense for 2018 was $40.4 million, or an effective tax rate of 19.7% compared to income tax expense of $84.5 million, or an effective tax rate of 41.4%, for 2017. The 2018 income tax expense includes a charge of $3.2 million associated with finalizing the 2017 provisional reasonable estimate, including $2.3 million for the Toll Charge and $0.9 million for the net impact of other items. The 2017 income tax expense includes a charge of $47 million as a provisional reasonable estimate of the impact of the Tax Act, including $49 million for the Toll Charge net of $2 million for other net tax benefits. Additionally, our tax rates are lower than the applicable U.S. statutory tax rate primarily due to income earned in lower tax jurisdictions, partially offset by the impact of taxes on unremitted earnings, and, with respect to 2018, the impact of the GILTI provisions of the Tax Act and non-U.S. losses and expenses with no tax benefit.

Segment Information

The Company reports its operations by the following segments: Electronics, Automotive and Industrial. Segment information is described more fully in Note 16, Segment Information, of the Notes to Consolidated Financial Statements included in this Annual Report.

The following table is a summary of the Company’s net sales by segment:

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	Fiscal Year
(in millions)	2018		2017		Change		% Change
Electronics	$	1,124.3	$	661.9	$	462.4	69.9	%
Automotive	479.8		453.2		26.6		5.9	%
Industrial	114.4		106.4		8.0		7.5	%
Total	$	1,718.5	$	1,221.5	$	497.0	40.7	%

Electronics Segment

The Electronics segment net sales increased $462.4 million, or 69.9%, in 2018 compared to 2017 due to incremental net sales related to the IXYS and U.S. Sensor acquisitions of $378.2 million and $6.5 million, respectively, volume growth driven by the continued strong demand across various end markets and geographies, and favorable foreign exchange impacts of $6.5 million.

Automotive Segment

Net sales in the Automotive segment increased $26.6 million, or 5.9%, in 2018 compared to 2017 due to volume growth across all businesses primarily led by the commercial vehicle and sensor businesses, and favorable foreign exchange impacts of $9.8 million.

Industrial Segment

The Industrial segment net sales increased $8.0 million, or 7.5%, in 2018 compared to 2017 primarily due to volume growth in the power fuse and relay businesses and favorable foreign exchange impacts of $0.4 million, partially offset by a decline in sales from the exit of the Custom business during 2018.

Geographic Net Sales Information

Net sales by geography represent net sales to customer or distributor locations. The following table is a summary of the Company’s net sales by geography:

	Fiscal Year
(in millions)	2018		2017		Change		% Change
Asia-Pacific	$	753.3	$	541.1	$	212.2	39.2	%
Americas	578.6		436.5		142.1		32.6	%
Europe	386.6		243.9		142.7		58.5	%
Total	$	1,718.5	$	1,221.5	$	497.0	40.7	%

Asia-Pacific

Asia-Pacific net sales increased $212.2 million, or 39.2%, in 2018 compared to 2017. The increase in net sales was primarily due to incremental net sales related to the IXYS acquisition of $173.9 million and volume growth across all segments as well as favorable foreign exchange impacts of $3.7 million.

Americas

Net sales in the Americas increased $142.1 million, or 32.6%, in 2018 compared to 2017 driven by incremental net sales related to the IXYS and U.S. Sensor acquisitions of $90.7 million and $5.5 million, respectively, volume growth across all segments and favorable foreign exchange impacts of $0.4 million.

Europe

European net sales increased $142.7 million, or 58.5%, in 2018 compared to 2017. The increase in net sales was primarily due to incremental net sales related to the IXYS acquisition of $113.6 million with volume growth across the Electronics and Automotive segments as well as favorable foreign exchange impacts of $12.6 million. 

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RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 30, 2017 AS COMPARED TO THE YEAR ENDED DECEMBER 31,2016

The following table summarizes the Company’s consolidated results of operations for periods presented. The fiscal year 2017 includes approximately $10.3 million of non-segment charges. These included acquisition-related and integration costs related to legal, accounting and other expenses associated with completed or pending acquisitions of approximately $8.0 million, including $1.6 million of purchase accounting inventory charges related to the Company’s 2017 acquisition of U.S. Sensor as described in Note 2, Acquisitions and Dispositions, of the Notes to Consolidated Financial Statements included in this Annual Report, and $2.2 million of charges related to restructuring and production transfers in the Company’s Asia operations.

The fiscal year 2016 includes approximately $50.0 million of non-segment charges. These included $14.8 million of charges related to the impairment of the Custom Products reporting unit, $21.4 million of acquisition and integration costs associated with the Company’s 2016 acquisitions, primarily PolySwitch, $7.8 million of non-cash fair value step-up inventory charges relating to the Company’s 2016 acquisitions, primarily PolySwitch, as described in Note 2, Acquisitionsand Dispositions, of the Notes to Consolidated Financial Statements included in this Annual Report, $1.9 million in charges related to the closure of the Company’s manufacturing facility in Denmark, $1.6 million related to the Company’s transfer of its reed sensor manufacturing operations from the U.S. and China to the Philippines, and $2.5 million related to restructuring costs.

Fiscal year 2017 also included approximately $2.4 million in foreign currency exchange losses primarily attributable to changes in the value of the euro, Philippine peso and Chinese renminbi against the U.S. dollar, while fiscal year 2016 also included approximately $0.5 million in foreign currency exchange losses primarily attributable to changes in the value of the euro, Philippine peso and Chinese renminbi against the U.S. dollar.

	Fiscal Year
(in thousands, except % change)	2017			2016			Change			% Change
Net sales	$	1,221,534		$	1,056,159		$	165,375		15.7	%
Gross profit	506,533			413,117			93,416			22.6	%
Operating expenses	288,022			282,473			5,549			2.0	%
Operating income	218,511			130,644			87,867			67.3	%
Other income, net	(1,282		)	(1,730		)	(448		)	(25.9	)%
Income before income taxes	204,037			123,274			80,763			65.5	%
Income taxes	84,518			18,786			65,732			349.9	%
Net income	119,519			104,488			15,031			14.4	%

Net Sales

Net sales for 2017 of $1,221.5 million increased $165.4 million, or 15.7%, compared to the prior year, resulting from the prior year acquisitions of PolySwitch, ON Portfolio, and Menber’s and $5.4 million from the current year U.S. Sensor acquisition. The remaining increase in net sales was primarily due to higher volume across all product lines in the Electronics segment and passenger car and commercial vehicle businesses within the Automotive segment partially offset by the divestitures of two non-core product lines within the Industrial segment in 2016.

Gross Profit

Gross profit was $506.5 million, or 41.5% of net sales, in 2017, compared to $413.1 million, or 39.1% of net sales, in 2016. The increase in gross profit and gross margin reflects the incremental net sales and improved leverage in expenses and profits related to the prior year acquisitions, primarily in the Electronics segment.

Operating Expenses

Total operating expenses were $288.0 million, or 23.6% of net sales, for 2017 compared to $282.5 million, or 26.7% of net sales, for 2016. The increase in operating expenses of $5.5 million was primarily due to acquisitions, higher selling costs, higher research and development costs of $8.3 million and an increase of $5.4 million in amortization expense of intangible assets due to the acquisitions, partially offset by the $14.8 million of goodwill and other intangible asset impairment charges recognized in 2016 and lower acquisition-related expenses and integration costs of $13.4 million. Selling, general, and administrative expenses

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increased by $6.7 million to $212.8 million, but decreased from 19.5% to 17.4% as a percentage of net sales for 2017 compared to 2016 primarily as a result of lower acquisition-related expenses and integration costs of $13.4 million and cost control initiatives partially offset by the acquisitions.

Operating Income

Operating income for 2017 was $218.5 million, an increase of $87.9 million or 67.3% compared to $130.6 million for 2016. The increase in operating income was the result of acquisitions and higher volume in the Electronics segment. Operating margins increased from 12.4% in 2016 to 17.9% in 2017 due to the acquisitions, improvement in gross margins primarily driven by the Electronics segment, lower acquisition and integration related costs, the prior year goodwill and other intangible asset impairment charge and operational efficiencies. Also, the prior year goodwill and other intangible asset impairment charge reduced the operating margin by 1.4% in 2016.

Income Before Income Taxes

Income before income taxes for 2017 was $204.0 million, or 16.7% of net sales compared to $123.3 million, or 11.7% of net sales, for 2016. Income before income taxes was impacted by an increase in operating income described above, partially offset by higher interest expense of $4.8 million reflecting increased borrowings and unfavorable changes in foreign exchange rates of $1.9 million primarily as a result of fluctuations in the Chinese renminbi and Philippine peso against the U.S. dollar partially offset by fluctuations in the Euro against the U.S. dollar.

Income Taxes

Income tax expense for 2017 was $84.5 million, or an effective tax rate of 41.4% compared to income tax expense of $18.8 million, or an effective tax rate of 15.2%, for 2016. The increase in 2017 reflects a fourth quarter charge of $47 million as a provisional reasonable estimate of the impact of the Tax Act, including $49 million for the Toll Charge net of $2 million for other net tax benefits. Additionally, the effective tax rates for 2017 and 2016 are lower than the U.S. statutory tax rate primarily due to income earned in lower tax jurisdictions partially offset by the impact of taxes on unremitted earnings, and, with respect to 2016, a one-time deduction with respect to the stock of one of the Company’s affiliates, partially offset by the impact of the impairment of goodwill for which no tax benefit was recorded.

Segment Information

The Company reports its operations by the following segments: Electronics, Automotive and Industrial. Segment information is described more fully in Note 16, Segment Information, of the Notes to Consolidated Financial Statements included in this Annual Report.

The following table is a summary of the Company’s net sales by segment:

	Fiscal Year
(in millions)	2017		2016		Change		% Change
Electronics	$	661.9	$	535.2	$	126.7	23.7	%
Automotive	453.2		415.2		38.0		9.2	%
Industrial	106.4		105.8		0.6		0.6	%
Total	$	1,221.5	$	1,056.2	$	165.3	15.7	%

Electronics Segment

The Electronics segment net sales increased $126.7 million, or 23.7%, in 2017 compared to 2016 primarily due to the PolySwitch, and ON Portfolio acquisitions in 2016, and the U.S Sensor acquisition in 2017 along with higher volume across the passives, sensors and semiconductor product lines.

Automotive Segment

Net sales in the Automotive segment increased $38.0 million, or 9.2%, in 2017 compared to 2016 primarily due to the incremental net sales associated with the PolySwitch and Menber’s acquisitions in 2016, higher volume in passenger car and commercial

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vehicle products and favorable foreign exchange impacts of $1.9 million, partially offset by lower volume in automotive sensor products.

Industrial Segment

The Industrial segment net sales increased $0.6 million, or 0.6%, in 2017 compared to 2016 primarily due to higher volume across all product lines, partially offset by the divestiture of two non-core product lines, one in the fourth quarter of 2016 and the other in the first quarter of 2016.

Geographic Net Sales Information

Net sales by geography represent net sales to customer or distributor locations. The following table is a summary of the Company’s net sales by geography:

	Fiscal Year
(in millions)	2017		2016		Change		% Change
Americas	$	436.5	$	411.1	$	25.4	6.2	%
Europe	243.9		200.3		43.6		21.8	%
Asia-Pacific	541.1		444.8		96.3		21.7	%
Total	$	1,221.5	$	1,056.2	$	165.3	15.7	%

Americas

Net sales in the Americas increased $25.4 million, or 6.2%, in 2017 compared to 2016 resulting from acquisitions and higher volume in the passive and semiconductor product lines in the Electronics segment and the passenger car and commercial vehicle businesses in the Automotive segment that were partially offset by lower volume in sensor products in the Automotive segment and the divestiture of a non-core product line in the Industrial segment.

Europe

European net sales increased $43.6 million, or 21.8%, in 2017 compared to 2016. The increase in net sales was primarily due to acquisitions and increased net sales across all product lines in the Electronics segment and the passenger car and commercial vehicle products businesses in the Automotive segment.

Asia-Pacific

Asia-Pacific net sales increased $96.3 million, or 21.7%, in 2017 compared to 2016, primarily due to incremental net sales from prior year acquisitions and increased volume across all product lines in the Electronics segment.

Liquidity and Capital Resources

Cash and cash equivalents were $489.7 million as of December 29, 2018, an increase of $60.0 million as compared to December 30, 2017.

As of December 29, 2018, $400 million of the Company's $489.7 million cash and cash equivalents was held by non-U.S. subsidiaries. Of the $400 million, at least $200 million can be repatriated with minimal tax consequences, although in certain cases a non-U.S. withholding tax would be payable but subsequently refunded. With respect to the remaining $200 million, the Company has recognized deferred tax liabilities on approximately $91.0 million as of December 29, 2018 because the amounts are not considered to be permanently reinvested, and the Company may access additional amounts through loans and other means. Repatriation of some non-U.S. cash balances is restricted by local laws. Management regularly evaluates whether foreign earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its foreign subsidiaries. Changes in economic and business conditions, non-U.S. or U.S. tax laws could result in changes to these judgments and the need to record additional tax liabilities.

The Company has historically supported its liquidity needs through cash flows from operations. Management expects that the Company’s (i) current level of cash, cash equivalents, and marketable securities, (ii) current and forecasted cash flows from

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operations, (iii) availability under existing funding arrangements, and (iv) access to capital in the capital markets will provide sufficient funds to support the Company’s operations, capital expenditures, investments, and debt obligations on both a short-term and long-term basis.

Revolving Credit Facility/Term Loan

On March 4, 2016, the Company entered into a five-year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million. The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million. In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million, in the aggregate, in each case in minimum increments of $25.0 million, subject to certain conditions and the agreement of participating lenders.

On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022. The Credit Agreement also includes the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million, in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans may be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company is required to make quarterly principal payments of 1.25% of the original term loan ($2.5 million with the second advance on January 16, 2018) through maturity, with the remaining balance due on October 13, 2022. In addition to the quarterly principal payments, the Company paid $35.0 million of additional principal on the Term Loan during the fiscal year ended December 29, 2018.

Outstanding borrowings under the Credit Agreement bear interest, at the Company’s option, at either LIBOR (fixed for interest periods of one, two, three or six-month periods) plus 1.00% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.00% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25%, based on the Consolidated Leverage Ratio, as defined in the agreement. The credit agreement includes representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 3.59% at December 29, 2018.

Senior Notes

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017.

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) (together, the “U.S. Senior Notes due 2022 and 2027”) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017.

On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together, the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes due 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 is payable semiannually on February 15 and August 15, commencing August 15, 2018.

The Company was in compliance with its debt covenants as of December 29, 2018 and expects to remain in compliance based on management’s estimates of operating and financial results for 2019 and the foreseeable future. As of December 29, 2018, the

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Company met all the conditions required to borrow under the Credit Agreement and management expects the Company to continue to meet the applicable borrowing conditions.

Acquisitions

During the year ended December 29, 2018, the Company paid $306.5 million, net of cash acquired, for the acquisition of IXYS. Pursuant to the Securities Purchase Agreement, the Company paid $9.0 million for the acquisition of the remaining 38% outstanding common stock of Monolith during the year ended December 29, 2018. The Company financed the cash portion of the acquisition with a combination of cash on hand and borrowings under the credit facility.

During the year ended December 30, 2017, the Company paid $38.5 million, net of cash acquired, for the acquisitions of U.S Sensor and Monolith. The Company financed the cash portion of the acquisition with a combination of cash on hand and borrowings under the credit facility.

During the year ended December 31, 2016, the Company paid $471.1 million of total purchase prices, net of cash acquired, for the acquisitions of the ON Portfolio, Menber’s and PolySwitch. The Company financed the cash portion of these acquisitions with a combination of cash on hand and borrowings under the credit facility.

Cash Flow Overview

Operating cash inflows are largely attributable to sales of the Company’s products. Operating cash outflows are largely attributable to recurring expenditures for raw materials, labor, rent, interest, taxes and other operating activities.

The following describes the Company’s cash flows for the twelve months ended December 29, 2018 and December 30, 2017:

	Fiscal Year
(in millions)	2018			2017
Net cash provided by operating activities	$	331.8		$	269.2
Net cash used in investing activities	(382.3		)	(96.1		)
Net cash provided by (used in) financing activities	121.9			(24.7		)
Effect of exchange rate changes on cash and cash equivalents	(11.4		)	6.2
Increase in cash and cash equivalents	60.0			154.6
Cash and cash equivalents at beginning of year	429.7			275.1
Cash and cash equivalents at end of year	$	489.7		$	429.7

CashFlowfrom Operating Activities

Net cash provided by operating activities was $331.8 million for 2018, compared to $269.2 million during 2017. The increase in net cash provided by operating activities was primarily driven by higher earnings and favorable working capital management that more than offset higher payments related to cash taxes and acquisition and integration costs.

CashFlowfrom Investing Activities

Net cash used in investing activities was $382.3 million for 2018, compared to $96.1 million during 2017. Net cash used for the acquisition of IXYS was $306.5 million in 2018 compared to acquisitions of $38.5 million in 2017 related to the acquisition of a majority stake in Monolith for $14.2 million and the acquisition of U.S. Sensor for $24.3 million. Capital expenditures were $74.8 million, representing an increase of $8.8 million compared to 2017. The Company also received proceeds of $9.6 million in 2018 primarily as a result of the sale of a building.

CashFlowfrom Financing Activities

Net cash provided by financing activities was $121.9 million for 2018 compared to net cash used in financing activities of $24.7 million for 2017. The Company had $310.0 million of proceeds from the credit facility, term loan and senior notes payable partially offset by payments of $102.5 million on the credit facility and term loan in 2018 as compared to $149.4 million of proceeds from the credit facility, term loan and senior notes payable and $134.7 million of payments on the credit facility and term loan during 2017. The Company repurchased 391,972 shares of its common stock during fiscal 2018 totaling $63.6 million.

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The following describes the Company’s cash flows for the twelve months ended December 30, 2017 and December 31, 2016:

	Fiscal Year
(in millions)	2017			2016
Net cash provided by operating activities	$	269.2		$	180.1
Net cash used in investing activities	(96.1		)	(511.2		)
Net cash (used in) provided by financing activities	(24.7		)	284.2
Effect of exchange rate changes on cash and cash equivalents	6.2			(6.8		)
Increase (decrease) in cash and cash equivalents	154.6			(53.7		)
Cash and cash equivalents at beginning of year	275.1			328.8
Cash and cash equivalents at end of year	$	429.7		$	275.1

CashFlowfrom Operating Activities

Net cash provided by operating activities was $269.2 million for 2017, compared to $180.1 million during 2016. The increase in net cash provided by operating activities was primarily driven by higher earnings, lower cash taxes, reduced acquisition and integration payments and the timing of supplier and customer payments.

CashFlowfrom Investing Activities

Net cash used in investing activities was $96.1 million for 2017, compared to $511.2 million during 2016. Net cash used for acquisitions of $38.5 million in 2017 related to the acquisition of a majority stake in Monolith for $14.2 million and the acquisition of U.S. Sensor for $24.3 million. Net cash used for acquisitions of $471.1 million for 2016 primarily related to the acquisitions of PolySwitch for $344.5 million, the ON Portfolio for $104.0 million and Menber’s for $19.2 million. Capital expenditures were $65.9 million, representing an increase of $19.7 million compared to 2016.

CashFlowfrom Financing Activities

Net cash used in financing activities was $24.7 million for 2017 compared to net cash provided by financing activities of $284.2 million for 2016. The Company had $149.4 million of proceeds from the credit facility, term loan and senior notes payable and $134.7 million of payments on the term loan and credit facility in 2017 as compared to $718.4 million of proceeds from the credit facility, term loan and senior notes payable and $421.2 million of payments on the term loan and credit facility during 2016.

Dividends

Cash dividends paid totaled $40.0 million, $31.8 million and $27.9 million for 2018, 2017 and 2016, respectively. On January 24, 2019, the Board of Directors of the Company declared a quarterly cash dividend of $0.43 per share, payable on March 7, 2019 to stockholders of record as of February 21, 2019.

Capital Resources

The Company expends capital to support its operating and strategic plans. Such expenditures include strategic acquisitions, investments to maintain capital assets, develop new products or improve existing products, and to enhance capacity or productivity. Many of the associated projects have long lead-times and require commitments in advance of actual spending.

Share Repurchase Program

The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019 (“Share Repurchase Program”). During the fiscal year 2018, the Company repurchased 391,972 shares of its common stock. The Company did not repurchase any shares of its common stock during fiscal 2017.

As of February 18, 2019, the Company has repurchased 79,916 shares of its common stock since the fiscal year ended December 29, 2018.

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Contractual Obligations and Commitments

The following table summarizes outstanding contractual obligations and commitments as of December 29, 2018:

(in thousands)	Total		Less than 1 Year		1 to 3  Years		3 to 5  Years		Greater than  5 Years
Long-term debt(a)	$	699,366	$	10,000	$	20,000	$	286,036	$	383,330
Interest payments(b)	135,902		19,124		37,156		29,440		50,182
Operating lease payments(c)	32,607		9,133		13,164		7,536		2,774
Income Tax Obligation(d)	32,364		3,571		5,738		8,045		15,010
Purchase obligations(e)	30,886		27,814		711		700		1,661
Total	$	931,125	$	69,642	$	76,769	$	331,757	$	452,957

(a)Excludes offsetting issuance costs of $4.6 million. Euro denominated debt amounts are converted based on the Euro to U.S. Dollar spot rate at year end. For more information see Note 9, Debt, of the Notes to Consolidated Financial Statements.

(b)Amounts represent estimated contractual interest payments on outstanding debt. Rates in effect as of December 29, 2018 are used for variable rate debt. For more information see Note 9, Debt, of the Notes to Consolidated Financial Statements.

(c)For more information see Note 7, Lease Commitments, of the Notes to Consolidated Financial Statements.

(d)The Income Tax Obligation represents the remaining amounts payable in regard to the 2017 Littelfuse Toll Charge and the 2018 IXYS Toll Charge. The Company has elected to pay the 2017 Littelfuse Toll Charge and will elect to pay the 2018 IXYS Toll Charge over the eight-year period prescribed by the Tax Act. For more information see Note 14, Income Taxes, of the Notes to Consolidated Financial Statements.

(e)Purchase obligations include purchase commitments and commitments for capital expenditures not recognized in the Company’s Consolidated Balance Sheets.

In addition to the above contractual obligations and commitments, the Company had the following obligations at December 29, 2018: 

The Company has Company-sponsored defined benefit pension plans covering employees at various non-U.S. subsidiaries including the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. At December 29, 2018, the Company had a net unfunded status of $32.2 million. The Company expects to make approximately $2.3 million of contributions to the plans in 2019. For additional information, see Note 11, Benefit Plans, of the Notes to Consolidated Financial Statements.

The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. As of December 29, 2018, there was $9.1 million of accrued compensation benefits included in Other long-term liabilities. For additional information, see Note 11, Benefit Plans, of the Notes to Consolidated Financial Statements.

As of December 29, 2018, the Company recognized various accruals related to employee compensation including its annual incentive program that are expected to be paid in 2019.

Due to the uncertainty with respect to the cash outflows, the preceding table excludes unrecognized tax benefits of $18.3 million. The Company does not expect to make significant payments of these liabilities within the next year. For additional information, see Note 14, Income Taxes, of the Notes to Consolidated Financial Statements.

Off-Balance Sheet Arrangements

As of December 29, 2018, the Company did not have any off-balance sheet arrangements, as defined under SEC rules. Specifically, the Company was not liable for guarantees of indebtedness owed by third parties, the Company was not directly liable for the debt of any unconsolidated entity and the Company did not have any retained or contingent interest in assets. The Company does not participate in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities.

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Recent Accounting Pronouncements

Recently issued accounting standards and their estimated effect on the Company’s Consolidated Financial Statements are described in Note 1, Summary of Significant Accounting Policies and Other Information, of the Notes to Consolidated Financial Statements.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The Company is exposed to market risk from changes in interest rates, foreign exchange rates and commodity prices.

Interest Rates

The Company had $155.0 million in debt outstanding at December 29, 2018 related to the unsecured revolving credit facility and term loan. Because 100% of this debt has variable interest rates, the Company is subject to future interest rate fluctuations in relation to these borrowings which could potentially have a negative impact on cash flows of the Company. A prospective increase of 100 basis points in the interest rate applicable to the Company’s outstanding borrowings under its credit facility would result in an increase of approximately $1.6 million in annual interest expense. The Company is not party to any currency exchange or interest rate protection agreements as of December 29, 2018.

Foreign Exchange Rates

The majority of the company’s operations consist of manufacturing and sales activities in foreign countries. The Company hasoperations in China, Germany, Mexico, Philippines, United Kingdom, Japan, Lithuania, Netherlands, Portugal, Singapore, South Korea, Spain, and the United States. During 2018, sales to customers outside the U.S. were approximately 70% of total net sales. During 2017, sales to customers outside the U.S. were approximately 69% of total net sales. Substantially all sales in Europe are denominated in euros and substantially all sales in the Asia-Pacific region are denominated in U.S. dollars, Chinese renminbi, Japanese yen, or Korean won.

The company’s foreign exchange exposures result primarily from inter-company loans, external borrowings, sale of products in foreign currencies, foreign currency denominated purchases, employee-related and other costs of running operations in foreign countries. The company’s most significant foreign currency exposures are to the euro, the Chinese renminbi, Mexican peso, and Philippine peso. Changes in foreign exchange rates could affect the company’s sales, costs, balance sheet values and earnings.

At December 29, 2018, the net value of the Company’s assets with exposure to foreign currency risk was approximately $143 million, with the largest exposure being Japanese yen denominated inter-company loans with a Euro functional currency subsidiary. The reduction in earnings from a hypothetical instantaneous 10% adverse change in quoted foreign currency spot rates applied to foreign currency sensitive asset instruments would be $14 million at December 29, 2018. At December 29, 2018, the net value of the Company’s liabilities with exposure to foreign currency risk was $348 million, with the largest exposure being U.S. Dollar denominated inter-company loans with a Euro functional currency subsidiary. The reduction in earnings from a hypothetical instantaneous 10% adverse change in quoted foreign currency spot rates applied to foreign currency sensitive liability instruments would be $35 million at December 29, 2018. As a result of the mix in currencies impacting the hypothetical 10% changes, the movements in some instruments would offset movements in other instruments reducing the hypothetical exposure to the Company.

CommodityPrices

The Company uses various metals in the manufacturing of its products, including copper, zinc, tin, gold, and silver. Prices of these commodities can rise and result in materially higher costs of producing our products. The Company believes it has adequate primary and secondary sources of supply for each of our key materials and that, in periods of rising prices, the Company expects to recover a majority of the increased cost in the form of higher selling prices. However, recoveries typically lag the effect of cost increases due to the nature of our markets.

The cost of oil has fluctuated dramatically over the past several years. Consequently, there is a risk that a return to high prices for oil and electricity in 2019 could have a significant impact on the Company’s transportation and utility expenses.

 While the Company is exposed to significant changes in certain commodity prices and foreign currency exchange rates, the Company actively monitors these exposures and may take various actions from time to time to mitigate any negative impacts of these exposures. 

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Index		Page
Report of Independent Registered Public Accounting Firm – Consolidated Financial Statements		36
Report of Independent Registered Public Accounting Firm – Internal Control Over Financial Reporting		37
Consolidated Financial Statements
	Consolidated Balance Sheets	38
	Consolidated Statements of Net Income	39
	Consolidated Statements of Comprehensive Income	40
	Consolidated Statements of Cash Flows	41
	Consolidated Statements of Equity	42
Notes to Consolidated Financial Statements
	1. Summary of Significant Accounting Policies and Other Information	43
	2. Acquisitions and Dispositions	51
	3. Inventories	58
	4. Property, Plant, and Equipment	58
	5. Goodwill and Other Intangible Assets	59
	6. Accrued Liabilities	60
	7. Lease Commitments	60
	8. Restructuring, Impairment and Other Charges	61
	9. Debt	62
	10. Fair Value of Assets and Liabilities	64
	11. Benefit Plans	67
	12. Stock-Based Compensation	71
	13. Other Comprehensive (Loss) Income	73
	14. Income Taxes	74
	15. Earnings Per Share	78
	16. Segment Information	78
	17. Selected Quarterly Financial Data (Unaudited)	81
	18. Related Party Transactions	82

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Report of Independent Registered Public Accounting Firm

Board of Directors and Shareholders

Littelfuse, Inc.

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Littelfuse, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 29, 2018 and December 30, 2017, the related consolidated statements of net income, comprehensive income, equity, and cash flows for each of the three years in the period ended December 29, 2018, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 2018 and December 30, 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 29, 2018, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 29, 2018, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 22, 2019, expressed an unqualified opinion.

Basis for opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2014.

Chicago, Illinois

February 22, 2019

36

Report of Independent Registered Public Accounting Firm

Board of Directors and Shareholders

Littelfuse, Inc.

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of Littelfuse, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 29, 2018, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 29, 2018, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 29, 2018, and our report dated February 22, 2019 expressed an unqualified opinion on those financial statements.

Basis for opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting (“Management’s Report”). Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and limitations of internal control over financial reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Chicago, Illinois

February 22, 2019

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LITTELFUSE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)	December 29, 2018			December 30, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	489,733		$	429,676
Short-term investments	34			35
Trade receivables, less allowances of $36,038 and $27,516 at December 29, 2018 and December 30, 2017, respectively	232,892			182,699
Inventories	258,228			140,789
Prepaid income taxes and income taxes receivable	2,339			1,689
Prepaid expenses and other current assets	49,291			37,452
Total current assets	1,032,517			792,340
Net property, plant, and equipment	339,894			250,577
Intangible assets, net of amortization	361,474			203,850
Goodwill	826,715			453,414
Investments	25,405			10,993
Deferred income taxes	7,330			11,858
Other assets	20,971			17,070
Total assets	$	2,614,306		$	1,740,102
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	126,323		$	101,844
Accrued liabilities	138,405			100,415
Accrued income taxes	20,547			16,285
Current portion of long-term debt	10,000			6,250
Total current liabilities	295,275			224,794
Long-term debt, less current portion	684,730			489,361
Deferred income taxes	51,853			17,069
Accrued post-retirement benefits	31,874			18,742
Other long-term liabilities	72,232			62,580
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, 25,641,959 and 23,153,396 in 2018 and 2017, respectively	254			229
Treasury stock, at cost: 868,045 and 439,598 shares, respectively	(116,454		)	(41,294		)
Additional paid-in capital	835,828			310,012
Accumulated other comprehensive loss	(97,924		)	(63,668		)
Retained earnings	856,507			722,140
Littelfuse, Inc. shareholders’ equity	1,478,211			927,419
Non-controlling interest	131			137
Total equity	1,478,342			927,556
Total liabilities and equity	$	2,614,306		$	1,740,102

See accompanying Notes to Consolidated Financial Statements.

38

LITTELFUSE, INC.

CONSOLIDATED STATEMENTS OF NET INCOME

	Fiscal Year Ended
(in thousands, except per share data)	December 29, 2018			December 30, 2017			December 31, 2016
Net sales	$	1,718,468		$	1,221,534		$	1,056,159
Cost of sales	1,065,927			715,001			643,042
Gross profit	652,541			506,533			413,117
Selling, general, and administrative expenses	288,001			212,833			206,129
Research and development expenses	87,301			50,489			42,198
Amortization of intangibles	52,190			24,700			19,337
Impairment of goodwill and intangible assets	—			—			14,809
Total operating expenses	427,492			288,022			282,473
Operating income	225,049			218,511			130,644
Interest expense	22,569			13,380			8,628
Foreign exchange (gain) loss	(863		)	2,376			472
Other income, net	(1,599		)	(1,282		)	(1,730		)
Income before income taxes	204,942			204,037			123,274
Income taxes	40,377			84,518			18,786
Net income	$	164,565		$	119,519		$	104,488
Income per share:
Basic	$	6.62		$	5.27		$	4.63
Diluted	$	6.52		$	5.21		$	4.60
Weighted average shares and equivalent shares outstanding:
Basic	24,870			22,687			22,559
Diluted	25,235			22,931			22,727

See accompanying Notes to Consolidated Financial Statements.

39

LITTELFUSE, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended
(in thousands)	December 29, 2018			December 30, 2017			December 31, 2016
Net income	$	164,565		$	119,519		$	104,488
Other comprehensive income (loss):
Pension and postemployment adjustments, net of tax	877			1,147			(3,261		)
Unrealized loss on investments	—			(974		)	(815		)
Foreign currency translation adjustments	(25,338		)	10,738			(24,832		)
Comprehensive income	$	140,104		$	130,430		$	75,580

See accompanying Notes to Consolidated Financial Statements.

40

LITTELFUSE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended
(in thousands)	December 29, 2018			December 30, 2017			December 31, 2016
OPERATING ACTIVITIES
Net income	$	164,565		$	119,519		$	104,488
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	51,003			38,311			33,800
Amortization of intangibles	52,190			24,700			19,337
Impairment charges	2,218			—			14,809
Deferred revenue	3,965			—			—
Non-cash inventory charges	36,927			1,607			7,834
Stock-based compensation	27,431			16,315			11,987
Excess tax benefit on share-based compensation	—			—			(3,421		)
Deferred income taxes	(4,679		)	17,063			(5,269		)
Other	(50		)	6,048			3,973
Changes in operating assets and liabilities:
Trade receivables	(3,539		)	(11,087		)	(22,779		)
Inventories	(33,971		)	(20,180		)	8,539
Accounts payable	13,708			6,494			19,190
Accrued liabilities and income taxes	29,329			50,626			(9,644		)
Prepaid expenses and other assets	(7,269		)	19,754			(2,711		)
Net cash provided by operating activities	331,828			269,170			180,133
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired	(318,474		)	(38,512		)	(471,118		)
Proceeds from sales and maturities of short-term investments	1,407			3,739			345
Decrease in entrusted loan	—			3,599			5,510
Purchases of property, plant, and equipment	(74,753		)	(65,925		)	(46,228		)
Proceeds from sale of property, plant, and equipment	9,572			962			248
Net cash used in investing activities	(382,248		)	(96,137		)	(511,243		)
FINANCING ACTIVITIES
Proceeds of revolving credit facility	60,000			15,000			367,000
Proceeds of term loan	75,000			9,375			125,000
Proceeds from senior notes payable	175,000			125,000			226,428
Payments of term loan	(42,500		)	(7,188		)	(89,688		)
Payments of revolving credit facility	(60,000		)	(127,500		)	(331,500		)
Net proceeds (payments) related to stock-based award activities	18,857			(2,373		)	20,494
Payments of entrusted loan	—			(3,599		)	(5,510		)
Cash dividends paid	(39,993		)	(31,770		)	(27,866		)
Purchases of common stock	(63,564		)	—			—
Other	(903		)	(1,626		)	(162		)
Net cash provided by (used in) financing activities	121,897			(24,681		)	284,196
Effect of exchange rate changes on cash and cash equivalents	(11,420		)	6,200			(6,748		)
Increase (decrease) in cash and cash equivalents	60,057			154,552			(53,662		)
Cash and cash equivalents at beginning of year	429,676			275,124			328,786
Cash and cash equivalents at end of year	$	489,733		$	429,676		$	275,124

 See accompanying Notes to Consolidated Financial Statements.

41

LITTELFUSE, INC.

CONSOLIDATED STATEMENTS OF EQUITY

	Littelfuse, Inc. Shareholders’ Equity
(in thousands, except share and per share data)	Common Stock		Addl. Paid in Capital		Treasury Stock			Accum. Other Comp. Inc. (Loss)			Retained Earnings			Non-controlling Interest			Total
Balance at January 2, 2016	$	224	$	259,553	$	(32,766	)	$	(45,671	)	$	557,769		$	143		$	739,252
Net income	—		—		—			—			104,488			—			104,488
Other comprehensive income, net of tax								(28,908		)							(28,908		)
Stock-based compensation	—		7,471		—			—			—			—			7,471
Withheld 31,040 shares on restricted share units for withholding taxes	—		—		(3,744		)	—			—			—			(3,744		)
Stock options exercised, including tax impact of ($7,400)	4		24,234		—			—			—			—			24,238
Cash dividends paid ($1.24 per share)	—		—		—			—			(27,866		)	—			(27,866		)
Balance at December 31, 2016	$	228	$	291,258	$	(36,510	)	$	(74,579	)	$	634,391		$	143		$	814,931
Net income	—		—		—			—			119,519			—			119,519
Other comprehensive income, net of tax								10,911									10,911
Stock-based compensation	—		16,315		—			—			—			—			16,315
Non-controlling interest	—		—		—			—			—			(6		)	(6		)
Withheld 30,459 shares on restricted share units for withholding taxes	—		—		(4,784		)	—			—			—			(4,784		)
Stock options exercised	1		2,439		—			—			—			—			2,440
Cash dividends paid ($1.40 per share)	—		—		—			—			(31,770		)	—			(31,770		)
Balance at December 30, 2017	$	229	$	310,012	$	(41,294	)	$	(63,668	)	$	722,140		$	137		$	927,556
Net income	—		—		—			—			164,565			—			164,565
Other comprehensive income, net of tax								(24,461		)							(24,461		)
Cumulative effect adjustment	—		—		—			(9,795		)	9,795			—			—
Stock-based compensation	—		27,431		—			—			—			—			27,431
Non-controlling interest	—		—		—			—			—			(6		)	(6		)
Withheld 36,482 shares on restricted share units for withholding taxes	—		—		(7,252		)	—			—			—			(7,252		)
Stock options exercised	4		26,105		—			—			—			—			26,109
Issuance of common stock	21		472,280		—			—			—			—			472,301
Repurchases of common stock	—		—		(67,908		)	—			—			—			(67,908		)
Cash dividends paid ($1.60 per share)	—		—		—			—			(39,993		)	—			(39,993		)
Balance at December 29, 2018	$	254	$	835,828	$	(116,454	)	$	(97,924	)	$	856,507		$	131		$	1,478,342

See accompanying Notes to Consolidated Financial Statements.

42

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies and Other Information

Nature of Operations

Littelfuse, Inc. and subsidiaries (the “Company”) is a global manufacturer of leading technologies in circuit protection, power control and sensing. The company's products are found in automotive and commercial vehicles, industrial applications, data and telecommunications, medical devices, consumer electronics and appliances. With its broad product portfolio of fuses, semiconductors, polymers, ceramics, relays and sensors, and extensive global infrastructure, the Company’s worldwide associates partner with its customers to design, manufacture and deliver innovative, high-quality solutions for a safer, greener and increasingly connected world.

Fiscal Year

References herein to “2018”, “fiscal 2018” or “fiscal year 2018” refer to the fiscal year ended December 29, 2018. References herein to “2017”, “fiscal 2017” or “fiscal year 2017” refer to the fiscal year ended December 30, 2017. References herein to “2016”, “fiscal 2016” or “fiscal year 2016” refer to the fiscal year ended December 31, 2016. The Company operates on a 52-53 week fiscal year (4-4-5 basis) ending on the Saturday closest to December 31.

Basis of Presentation

The Consolidated Financial Statements include the accounts of Littelfuse, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The company’s Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles in the United States of America and include the assets, liabilities, sales and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control.

Use of Estimates

The process of preparing financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses and the accompanying notes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in its evaluation, as considered necessary. Actual results could differ from those estimates.

Cash Equivalents

All highly liquid investments, with an original maturity of three months or less when purchased, are considered to be cash equivalents.

Short-Term and Long-Term Investments

As of December 29, 2018, the Company has an investment in Polytronics Technology Corporation Ltd. (“Polytronics”). The Company’s Polytronics shares held at the end of fiscal 2018 and 2017 represent approximately 7.2% of total Polytronics shares outstanding. The Polytronics investment is classified as available-for-sale and is carried at fair value. The fair value of the Polytronics investment was €8.9 million (approximately $10.2 million) at December 29, 2018 and €9.2 million (approximately $11.0 million) at December 30, 2017.

As a result of the Company’s acquisition of IXYS, the Company has equity ownerships in various investments that are accounted for under the equity method. The Company owns 45% of the outstanding equity of Powersem GmbH, a module manufacturer based in Germany, approximately 20% of the outstanding equity of EB Tech Ltd., a company with expertise in radiation technology based in South Korea, and approximately 24% of the outstanding common shares of Automated Technology, Inc., a supplier located in the Philippines that provides assembly and test services. All equity-level investments are less than majority owned. The Company recognized $0.7 million in gains from its equity method investments for the fiscal year ended December 29, 2018. The balance of these investments under the equity method was $11.6 million as of the fiscal year ended December 29, 2018. See Note 18, Related Party Transactions, for further discussion.

The Company has certain investments that are accounted for under the cost method that have a balance of investments under the cost method was $7.9 million as of the fiscal year ended December 29, 2018.

43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” which addressed certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The ASU requires the Company to recognize any changes in the fair value of certain equity investments in net income. Previously these changes were recognized in other comprehensive income ("OCI"). The Company adopted the new standard on December 31, 2017, on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. As a result of the adoption of the new standard and change in fair value of our equity investments, for the twelve months ended December 29, 2018, the Company recognized an unrealized loss of $0.7 million in Other income, net in the Consolidated Statements of Net Income.

The Company has investments related to its non-qualified Supplemental Retirement and Savings Plan. The Company maintains accounts for participants through which participants make investment elections. The investment securities are subject to the claims of the Company’s creditors. The investment securities are all mutual funds with readily determinable fair values and are classified as trading securities. The investment securities are measured at fair value. As of December 29, 2018 and December 30, 2017, there was $9.1 million and $8.0 million of marketable securities, respectively, related to the plan included in Other assets on the Consolidated Balance Sheets.

Trade Receivables

The Company performs credit evaluations of customers’ financial condition and generally does not require collateral. Credit losses are provided for in the financial statements based upon specific knowledge of a customer’s inability to meet its financial obligations to the Company. Historically, credit losses have consistently been within management’s expectations and have not been a material amount. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Write-offs are recorded at the time a customer receivable is deemed uncollectible.

The Company also maintains allowances against trade receivables for the settlement of rebates and sales discounts to customers. These allowances are based upon specific customer sales and sales discounts as well as actual historical experience.

Inventories

Inventories are stated at the lower of cost or net realizable value, which approximates current replacement cost. Cost is principally determined using the first-in, first-out method. The Company maintains excess and obsolete allowances against inventory to reduce the carrying value to the expected net realizable value. These allowances are based upon a combination of factors including historical sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory.

Property, Plant,and Equipment

Land, buildings, and equipment are carried at cost. Depreciation is calculated using the straight-line method with useful lives of 21 years for buildings, seven to ten years for equipment, seven years for furniture and fixtures, five years for tooling and three years for computer equipment. Leasehold improvements are depreciated over the lesser of their useful life or the lease term. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized.

Goodwill

The Company annually tests goodwill for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

The Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. For the seven reporting units with goodwill, the Company compared the estimated fair value of each reporting unit to its carrying value. The results of the goodwill impairment test as of October 1, 2018 indicated that the estimated fair values for each of the seven reporting units exceeded their respective carrying values. As of the most recent annual test conducted on October 1, 2018, the Company noted that the excess of fair value over the carrying value, was 176%, 80%, 233%, 202%, 63%, 114%, and 370% for its reporting units; Electronics-Passive Products and Sensors, Electronics-Semiconductor, Passenger Car Products, Commercial Vehicle Products, Automotive Sensors, Relays, and Power Fuse, respectively. Relatively small changes in the Company’s key assumptions would not have resulted in any reporting units failing the goodwill impairment test. See Note 5, Goodwilland Other Intangible Assets, for additional information.

44

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test, could be impacted by changes in market conditions and economic events. Based on the interim assessments as of December 29, 2018, management concluded that no events or changes in circumstances indicated that it was more likely than not that the fair value for any reporting unit had declined below its carrying value.

Long-Lived Assets

Customer relationships, trademarks and tradenames are amortized using the straight-line method over estimated useful lives that have a range of five to 20 years. Patents, licenses and software are amortized using the straight-line method or an accelerated method over estimated useful lives that have a range of five to 17 years. The distribution networks are amortized on either a straight-line or accelerated basis over estimated useful lives that have a range of three to 20 years.

The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of carrying value or the fair market value less the estimated cost to sell.

During the fiscal year ended December 31, 2016, the Company recognized non-cash impairment charges totaling $6.0 million, of which $2.2 million related to the impairment of certain customer relationship intangible assets in the Custom Products reporting unit within the Industrial segment and $3.8 million related to the impairment of the Custom Products tradename. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships while the tradename impairment resulted from lower expectations of future cash flows of the Custom Products reporting unit.

Environmental Liabilities

Environmental liabilities are accrued based on engineering studies estimating the cost of remediating sites. Expenses related to on-going maintenance of environmental sites are expensed as incurred. If actual or estimated probable future losses exceed the Company’s recorded liability for such claims, the Company would record additional charges during the period in which the actual loss or change in estimate occurred.

Pension and Other Post-retirement Benefits

The Company records annual income and expense amounts relating to its pension and post-retirement benefits plans based on calculations which include various actuarial assumptions including discount rates, expected long-term rates of return and compensation increases. The Company reviews its actuarial assumptions on an annual basis as of the fiscal year-end balance sheet date (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumption based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the Consolidated Balance Sheets, but are generally amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive income (loss). The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors.

Revenue Recognition

Adoption

On December 31, 2017, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method. The adoption did not have a significant impact on the Company’s consolidated financial statements.

Revenue Disaggregation

The following table disaggregates the Company’s revenue by primary business units for the fiscal year ended December 29, 2018:

45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Semiconductor	$	648,967	$	—	$	—	$	648,967
Electronics – Passive Products and Sensors	475,329		—		—		475,329
Passenger Car Products	—		240,501		—		240,501
Commercial Vehicle Products	—		121,562		—		121,562
Automotive Sensors	—		117,728		—		117,728
Industrial Products	—		—		114,381		114,381
Total	$	1,124,296	$	479,791	$	114,381	$	1,718,468

See Note 16, Segment Information, for net sales by segment and countries.

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

The Company has elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. This is similar to the Company’s prior practice and therefore the effect of the new guidance is immaterial.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

Return to Stock

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

46

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Allowance for Doubtful Accounts

The Company evaluates the collectability of its trade receivables based on a combination of factors. The Company regularly analyzes its significant customer accounts and, when the Company becomes aware of a specific customer’s inability to meet its financial obligations, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also records allowances for all other customers based on a variety of factors including the length of time the receivables are past due, the financial health of the customer, macroeconomic considerations and past experience. Historically, the allowance for doubtful accounts has been adequate to cover bad debts. If circumstances related to specific customers change, the estimates of the recoverability of receivables could be further adjusted.

Advertising Costs

The Company expenses advertising costs as incurred, which amounted to $2.8 million in fiscal year 2018 and $2.9 million in both fiscal year 2017 and 2016, respectively, and are included as a component of selling, general, and administrative expenses.

Shipping and Handling Fees and Costs

Amounts billed to customers related to shipping and handling is classified as revenue. Costs incurred for shipping and handling of $12.3 million, $10.9 million, and $9.1 million in fiscal year 2018, 2017, and 2016, respectively, are classified in selling, general, and administrative expenses.

Foreign Currency Translation/Remeasurement

The Company’s foreign subsidiaries use the local currency or the U.S. dollar as their functional currency, as appropriate. Assets and liabilities are translated using exchange rates at the balance sheet date, and revenues and expenses are translated at weighted average rates. The amount of foreign currency gain or loss from remeasurement recognized in the income statement was a gain of $0.9 million in fiscal year 2018, a loss of $2.4 million in fiscal year 2017, and a loss of $0.5 million in fiscal year 2016. Adjustments from the translation process are recognized in “Shareholders’ equity” as a component of “Accumulated other comprehensive loss.”

Stock-based Compensation

The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method. Benefits of tax deductions in excess of recognized compensation expense are reported as operating cash flows. See Note 12, Stock-Based Compensation, for additional information on stock-based compensation.

Coal Mining Liability

Included in other long-term liabilities is an accrual related to former coal mining operations at Littelfuse GmbH (formerly known as Heinrich Industries, AG) for the amounts of €1.1 million ($1.3 million) and €0.9 million ($1.1 million) at December 29, 2018 and December 30, 2017, respectively. Management, in conjunction with an independent third-party, performs an annual evaluation of the former coal mining operations in order to develop an estimate of the probable future obligations in regard to remediating the dangers (such as a shaft collapse) of abandoned coal mine shafts in the former coal mining operations. Management accrues for costs associated with such remediation efforts based on management's best estimate when such costs are probable and reasonably able to be estimated. The ultimate determination can only be done after respective investigations because the concrete conditions are mostly unknown at this time.

Other Income, Net

Other income, net generally consists of interest income, royalties, change in fair value of available-for-sale securities, pension non-service costs and other non-operating expense (income).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Income Taxes

The Company accounts for income taxes using the liability method. Deferred taxes are recognized for the future effects of temporary differences between financial and income tax reporting using enacted tax rates in effect for the years in which the differences are expected to reverse. The Company recognizes deferred taxes for temporary differences, operating loss carryforwards, and tax credit and other tax attribute carryforwards (excluding carryforwards where usage has been determined to be remote). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. U.S. state and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to the U.S. and be taxable (and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to an upper-tier non-U.S. entity). Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Deferred U.S. income taxes and non-U.S. taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. Management regularly evaluates whether non-U.S. earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its non-U.S. subsidiaries.  Changes in economic and business conditions, non-U.S. or U.S. tax laws, or the Company’s financial situation could result in changes to these judgments and the need to record additional tax liabilities.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

On December 22, 2017, the U.S. enacted legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). Among other things, the Tax Act reduces the U.S. corporate federal income tax rate from 35% to 21%, adds base broadening provisions which limit deductions and address excessive international tax planning, imposes a one-time tax (the “Toll Charge”) on accumulated earnings of certain non-U.S. subsidiaries and enables repatriation of earnings of non-U.S. subsidiaries free of U.S. federal income tax. Other than the Toll Charge (which, except for the IXYS impact, was applicable to the Company for 2017), the provisions are generally applicable to the Company in 2018 and beyond.

In accordance with the guidance provided in SEC Staff Accounting Bulletin (“SAB”) No. 118, in the fourth quarter of 2017 the Company recorded a charge of $47.0 million as a provisional reasonable estimate of the impact of the Tax Act, including $49.0 million for the Toll Charge net of $2.0 million for other net tax benefits. In the fourth quarter of 2018, within the measurement period outlined in SAB No. 118, the Company finalized its estimates of the impact of the Tax Act as of December 30, 2017 and recorded a charge of $3.2 million, including $2.3 million for the Toll Charge and $0.9 million for the net impact of other items. In addition, the Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation. This was reflected in the opening balance sheet as an increase to goodwill and other long-term liabilities.

Although certain administrative guidance has been issued, including final and proposed regulations, the appropriate application of many provisions of the Tax Act remain uncertain. The Company used its best judgment as to the application of these provisions in determining its final estimates of the impact of the Tax Act as of December 30, 2017, the Toll Charge associated with the IXYS acquisition as well as the Company’s income tax expense for the year ended December 29, 2018. Adjustments to income tax expense may be necessary in future periods if provisions of the Tax Act, and their interaction with other provisions of the U.S. Internal Revenue Code, are interpreted differently than interpretations made by the Company, whether through issuance of additional administrative guidance, or through further review of the Tax Act by the Company and its advisors. In this regard, on January 15, 2019, final regulations were issued addressing the Toll Charge (replacing the proposed regulations issued in August of 2018). The Company is evaluating these final regulations and has yet to determine their impact.

The Company has elected to pay the 2017 Littelfuse Toll Charge and will elect to pay the 2018 IXYS Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of these Toll Charges totaling $28.8 million (which includes the Littelfuse and IXYS Toll Charges, partially offset by foreign tax credits, the tax benefit of current year losses and the actual 2018 and anticipated 2019 annual installment payments) is recorded in Other long-term liabilities on the Consolidated Balance Sheet as of December 29, 2018. The anticipated 2019 annual installment payments are included in accrued income taxes.

One of the base broadening provisions of the Tax Act is the tax on the global intangible low-taxed income ("GILTI") commonly referred to as the “GILTI” provisions. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred

48

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

Fair Value Measurements

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its available-for-sale securities and pension plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 – Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 – Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

RecentlyAdoptedAccounting Standards

In January 2018, the FASB released guidance on the accounting for the GILTI provisions of the 2017 U.S. Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period cost are both acceptable methods subject to an accounting policy election. The Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

In March 2017, the FASB issued ASU No. 2017-07 “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost,” which changed the presentation of net periodic pension and post-retirement benefit cost (net benefit cost) within the Statement of Income. Under the previous guidance, net benefit cost was reported as an employee cost within operating income. The amendment required the bifurcation of net benefit cost, with the service cost component to be presented with other employee compensation costs in operating income while the other components will be reported separately outside of income from operations. ASU No. 2017-07 was effective for the first quarter of 2018 with the Company adopting the new standard on December 31, 2017.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” which addressed certain aspects of the recognition, measurement, presentation and disclosure of financial instruments.The ASU requires the Company to recognize any changes in the fair value of certain equity investments in net income. Previously these changes were recognized in other comprehensive income ("OCI"). The Company adopted the new standard on December 31, 2017, on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. As a result of the adoption of the new standard and change in fair value of our equity investments, for the twelve months ended December 29, 2018, the Company recognized an unrealized loss of $0.7 million in Other income, net in the Consolidated Statements of Net Income.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606) which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” This ASU provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company adopted the new standard on December 31, 2017 using the modified retrospective method, however, no adjustment to retained earnings was needed. The new guidance did not have a material effect on the Company’s Consolidated Statements of Net Income. See the Revenue Recognition section above for further discussion.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes” (Topic 740). This ASU update requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred. The Company adopted the new standard on December 31, 2017 and it did not have a material impact.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Adoption requires using a modified retrospective transition with either 1) periods prior to the adoption date being recast or 2) a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast.The Company adopted the standard on December 30, 2018 under the modified retrospective transition method with the cumulative-effect adjustment recognized to the retained earnings. The new standard provides a number of optional practical expedients in transition. The Company has elected the ‘package of practical expedients’, which permits it not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company has not elected the use-of-hindsight.The Company assessed its portfolio of leases and compiled a central repository of all active leases. Key lease data elements have been evaluated including developing a methodology for determining the incremental borrowing rate across all countries where we have operations. The Company has implemented a new leasing software and is in the process of assessing the design of the future lease process and drafting a policy to address the new standard requirements. While the Company is continuing to assess the potential impacts of ASU 2016-02, the Company estimates that the adoption of ASU 2016-02 will result in the recognition of right-of-use assets of approximately $27 million and related lease liabilities for operating leases on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Net Income.

In February 2018, the FASB issued ASU No. 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the Tax Act. The standard also requires entities to disclose whether or not they elected to reclassify the tax effects related to the Tax Act as well as their policy for releasing income tax effects from accumulated other comprehensive income. The standard allows the option of applying either a retrospective adoption, meaning the standard is applied to all periods in which the effect of the Tax Act is recognized, or applying the amendments in the period of adoption, meaning an adjustment is made to shareholder’s equity as of the beginning of the reporting period. ASU 2018-02 will be effective in the first quarter of 2019; however early adoption is permitted for interim and annual periods, including the reporting period in which the Tax Act was enacted. The adoption of this guidance will not have a material effect on our Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 modified the disclosure requirements in Topic 820, "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The company is currently evaluating the potential effects of this guidance on its Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-14 "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in OCI expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. This guidance will be effective for financial statements issued for fiscal years ending after December 15, 2020. The adoption of this guidance will modify our disclosures but will not have a material effect on our Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred

50

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating this guidance on its Consolidated Financial Statements.

2. Acquisitions and Dispositions

The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Consolidated Financial Statements from the date of the acquisition.

IXYS Corporation

On January 17, 2018, the Company acquired IXYS Corporation (“IXYS”), a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power semiconductors across the industrial, communications, consumer and medical markets. IXYS has a broad customer base, serving more than 3,500 customers through its direct sales force and global distribution partners. The acquisition of IXYS is expected to accelerate the Company’s growth across the power control market driven by IXYS’s extensive power semiconductor portfolio and technology expertise. With IXYS, the Company will be able to diversify and expand its presence within industrial electronics markets, leveraging the strong IXYS industrial OEM customer base. The Company also expects to increase long-term penetration of its power semiconductor portfolio in automotive markets, expanding its global content per vehicle.

Upon completion of the acquisition, at IXYS stockholders’ election and subject to proration, each share of IXYS common stock, par value $0.01 per share, owned immediately prior to the effective time were canceled and extinguished and automatically converted into the right to receive: (i) $23.00 in cash (subject to applicable withholding tax), without interest (referred to as the cash consideration), or (ii) 0.1265 of a share of common stock, par value $0.01 per share, of Littelfuse (referred to as the stock consideration). IXYS stockholders received cash in lieu of any fractional shares of Littelfuse common stock that the IXYS stockholders would otherwise have been entitled to receive. Additionally, each outstanding option to purchase shares of IXYS common stock granted under an IXYS equity plan were assumed by Littelfuse and converted into an option to acquire (i) a number of shares of Littelfuse common stock equal to the number of shares of IXYS common stock subject to such option immediately prior to the effective time multiplied by 0.1265, rounded down to the nearest whole share, with (ii) an exercise price per share of Littelfuse common stock equal to the exercise price of such IXYS stock option immediately prior to the effective time divided by 0.1265, rounded up to the nearest whole cent.

Based on the $207.5 per share opening price of Littelfuse common stock on January 17, 2018, the consideration IXYS stockholders received in exchange of their IXYS common stock in the acquisition had a value of $814.8 million comprised of $380.6 million of cash and $434.2 million of Littelfuse stock. In addition to the consideration transferred related to IXYS common stock, the value of consideration transferred, and included in the purchase price, related to IXYS stock options that were converted to Littelfuse stock options, or cash settled, had a value of $41.7 million. As a result, total consideration was valued at $856.5 million.

The total purchase price of $856.5 million has been allocated to assets acquired and liabilities assumed, as of the completion of the acquisition, based on estimated fair values. The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the IXYS acquisition: 

51

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired	302,865
Cash settled stock options	3,622
Littelfuse stock	434,192
Converted stock options	38,109
Total purchase consideration	778,788
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	155,930
Property, plant, and equipment	77,442
Intangible assets	212,720
Goodwill	382,360
Other non-current assets	28,706
Other non-current liabilities	(78,370	)
	778,788

Approximately $49.1 million of net receivables was included in IXYS’s current assets, All IXYS goodwill, other assets and liabilities were recorded in the Electronics segment and primarily reflected in the Americas and European geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining IXYS’s products and technology with the Company’s existing electronics product portfolio. Goodwill resulting from the IXYS acquisition is not expected to be deductible for tax purposes. The Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation (this reflects a reduction of $1.0 million recorded in the fourth quarter of 2018 and $2.0 million recorded in the third quarter of 2018 as a consequence of revisions to the Company’s original estimates. For additional information, see Note 14, Income Taxes. As a result of the Company completing its fair value analysis, in the fourth quarter of 2018, the company recorded a reduction of $2.6 million in certain investments held by IXYS.

Included in the Company’s Consolidated Statements of Net Income for the fiscal year ended December 29, 2018 are net sales of approximately $378.2 million, and loss before income taxes of $22.2 million, since the January 17, 2018 acquisition of IXYS. The Company recognized approximately $11.9 million of stock compensation expense related to IXYS stock options converted to Littelfuse stock options during the fiscal year ended December 29, 2018, of which $4.5 million was recognized immediately as it related to prior service periods.

As required by purchase accounting rules, the Company recorded a $36.9 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was fully amortized as a non-cash charge to cost of goods sold during the first and second quarters of 2018, as the acquired inventory was sold, and reflected as other non-segment costs.

During the fiscal year ended December 29, 2018, the Company incurred approximately $11.0 million of legal and professional fees related to this acquisition which were primarily recognized as selling, general, and administrative expenses. These costs were reflected as other non-segment costs.

2017 Acquisitions

U.S. Sensor

On July 7, 2017, the Company acquired the assets of U.S. Sensor Corporation (“U.S. Sensor”). The acquisition purchase price of $24.3 million, net of the finalization of an income tax gross up which was settled in the fourth quarter of 2017, was funded with available cash. The acquired business expands the Company’s existing sensor portfolio in several key electronics and industrial end markets. U.S. Sensor manufactures a variety of high quality negative temperature coefficient thermistors as well as thermistor probes and assemblies. Product lines also include thin film platinum resistance temperature detectors (“RTDs”) and RTD assemblies.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the U.S. Sensor acquisition:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash	$	24,340
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	4,635
Patented and unpatented technologies	1,090
Trademarks and tradenames	200
Non-compete agreement	50
Customer relationships	2,830
Goodwill	16,075
Current liabilities	(540		)
	$	24,340

Included in U.S. Sensor’s current assets, net was approximately $1.5 million of receivables. All U.S. Sensor goodwill, other assets and liabilities were recorded in the Electronics segment and reflected in the United States geographic area. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining U.S. Sensor’s products and technology with the Company’s existing electronics product portfolio. Goodwill for the above acquisition is expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $1.6 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during the third quarter of 2017, as the acquired inventory was sold, and reflected as other non-segment costs.

Monolith

In December 2015, the Company invested $3.5 million in the preferred stock of Monolith Semiconductor Inc. (“Monolith”), a U.S. start-up Company developing silicon carbide technology, which represented approximately 12% of the common stock of Monolith on an as-converted basis. The Company accounted for its investment in Monolith under the cost method with any changes in value recorded in other comprehensive income. The value of the Monolith investment was $3.5 million at December 31, 2016.

On February 28, 2017, pursuant to a Securities Purchase Agreement between the Company and the stockholders of Monolith (“Securities Purchase Agreement”) and conditioned on Monolith achieving a product development milestone and other provisions, the Company acquired 62% of the outstanding common stock of Monolith for $15.0 million. The Securities Purchase Agreement includes provisions whereby the Company will acquire the remaining outstanding stock of Monolith (“non-controlling interest”) at a time or times based on Monolith meeting certain technical and sales targets. During the first quarter of 2018, Monolith met the next set of technical and sales targets. As a result, and pursuant to the Securities Purchase Agreement, in April 2018 the Company acquired an additional 19% of the outstanding common stock of Monolith for $5.0 million, of which $4.0 million was paid to the stockholders of Monolith. On October 5, 2018, the Company acquired the remaining 19% outstanding common stock for $5.0 million.

The additional investment, in the first quarter of 2017, resulted in the Company gaining control of Monolith and was accounted for as a step-acquisition with the fair value of the original investment immediately before the acquisition estimated to be approximately $3.5 million. As the fair value of the investment immediately prior to the transaction equaled the carrying value, there was no impact on the Company’s Consolidated Statements of Net Income. As the Securities Purchase Agreement includes an obligation of the Company to mandatorily redeem the non-controlling interest for cash, the fair value of the non-controlling interest was recognized as a liability on the Company’s Consolidated Balance Sheets. The original investment of $3.5 million, additional cash consideration of $14.2 million (net of cash acquired), and the non-cash consideration of the fair value of the commitment to purchase the non-controlling interest of $9.0 million resulted in a purchase price of $26.7 million. Changes in the fair value of the non-controlling interest are recognized in the Company’s Consolidated Statements of Net Income.

Commencing March 1, 2017, Monolith was reflected as a consolidated subsidiary within the Company’s Consolidated Financial Statements. Had the acquisition occurred as of January 1, 2017, the impact on the Company’s consolidated results of operations would not have been material.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the Monolith acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Original investment	$	3,500
Cash, net of cash acquired	14,172
Non-cash, fair value of commitment to purchase non-controlling interest	9,000
Total purchase consideration	$	26,672
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	891
Property, plant, and equipment	789
Patented and unpatented technologies	6,720
Non-compete agreement	140
Goodwill	20,641
Current liabilities	(639		)
Other non-current liabilities	(1,870		)
	$	26,672

Included in Monolith’s current assets, net was approximately $0.7 million of receivables. All Monolith goodwill, other assets and liabilities were recorded in the Electronics segment and reflected in the United States geographic area. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Monolith’s products and technology with the Company’s existing electronics product portfolio. Goodwill for the above acquisition is not expected to be deductible for tax purposes.

2016 Acquisitions

ON Portfolio

On August 29, 2016, the Company acquired certain assets of select businesses (the “ON Portfolio”) of ON Semiconductor Corporation for $104.0 million. The Company funded the acquisition with available cash and proceeds from its credit facility. The acquired business, which is included in the Electronics segment, consists of a product portfolio that includes transient voltage suppression (“TVS”) diodes, switching thyristors and insulated gate bipolar transistors (“IGBTs”) for automotive ignition applications. The acquisition expands the Company’s offerings in power semiconductor applications as well as increases its presence in the automotive electronics market. The ON Portfolio products have strong synergies with the Company’s existing circuit protection business and will strengthen its channel partnerships and customer engagement.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the ON Portfolio acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash	$	104,000
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	4,816
Customer relationships	31,800
Patented and unpatented technologies	8,800
Non-compete agreement	2,500
Goodwill	56,084
	$	104,000

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

All the ON Portfolio business goodwill and other assets were recorded in the Electronics segment and are reflected in the Americas and Europe geographic areas. The customer relationships are being amortized over 13.5 years. The patented and unpatented technologies are being amortized over 6-8.5 years. The non-compete agreement is being amortized over 4 years. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining the ON Portfolio products with the Company’s existing power semiconductor product portfolio. $7.3 million of goodwill for the above acquisition is expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $0.7 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. All of the step-up was amortized as a non-cash charge to cost of goods sold during 2016, as the acquired inventory was sold, and reflected as other non-segment costs.

Included in the Company’s Consolidated Statements of Net Income for the year ended December 31, 2016 are net sales of approximately $21.8 million since the August 29, 2016 acquisition of the ON Portfolio business.

Menber’s

On April 4, 2016, the Company completed the acquisition of Menber’s S.p.A. (“Menber’s”) headquartered in Legnago, Italy for $19.2 million, net of acquired cash and after settlement of a working capital adjustment. The Company funded the acquisition with cash on hand and borrowings under the Company’s revolving credit facility. The acquired business is part of the Company's commercial vehicle product business within the Automotive segment and specializes in the design, manufacturing, and selling of manual and electrical high current switches and trailer connectors for commercial vehicles. The acquisition expands the Company’s commercial vehicle products business globally.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the Menber’s acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of acquired cash	$	19,162
Preliminary allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	12,919
Property, plant, and equipment	1,693
Customer relationships	3,050
Patented and unpatented technologies	224
Trademarks and tradenames	1,849
Goodwill	8,091
Current liabilities	(7,220		)
Other non-current liabilities	(1,444		)
	$	19,162

All Menber’s goodwill and other assets and liabilities were recorded in the Automotive segment and reflected in the Europe geographic area. The customer relationships are being amortized over 10 years. The patented and unpatented technologies are being amortized over 5 years. The trademarks and tradenames are being amortized over 10 years. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Menber’s products with the Company’s existing automotive product portfolio. Goodwill for the above acquisition is not expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $0.2 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during 2016, as the acquired inventory was sold, with the charge reflected as other non-segment costs.

Included in the Company’s Consolidated Statements of Net Income for the year ended December 31, 2016 are net sales of approximately $17.3 million since the April 4, 2016 acquisition of Menber’s.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PolySwitch

On March 25, 2016, the Company acquired 100% of the circuit protection business (“PolySwitch”) of TE Connectivity Ltd. for $348.3 million, net of acquired cash and after settlement of certain post-closing adjustments. The Company funded the acquisition with available cash on hand and borrowings under the Company’s revolving credit facility. The PolySwitch business, which is split between the Automotive and Electronics segments, has a leading position in polymer based resettable circuit protection devices, with a strong global presence in the automotive, battery, industrial, communications and mobile computing markets. PolySwitch has manufacturing facilities in Shanghai and Kunshan, China and Tsukuba, Japan. The acquisition allows the Company to strengthen its global circuit protection product portfolio, as well as strengthen its presence in the automotive electronics and battery protection end markets. The acquisition also significantly increases the Company’s presence in Japan.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the PolySwitch acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Original consideration	$	350,000
Post closing consideration adjustment received	(1,708		)
Acquired cash	(3,810		)
Acquired cash to be returned to seller	3,810
Total purchase consideration	$	348,292
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	60,228
Property, plant, and equipment	51,613
Land lease	4,290
Patented and unpatented technologies	56,425
Customer relationships	39,720
Goodwill	165,088
Other long-term assets	11,228
Current liabilities	(35,280		)
Other non-current liabilities	(5,020		)
	$	348,292

All PolySwitch goodwill and other assets and liabilities were recorded in the Electronics and Automotive segments and reflected in all geographic areas. The customer relationships are being amortized over 15 years. The patented and unpatented technologies are being amortized over 10 years. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining PolySwitch products with the Company’s existing automotive and electronics product portfolio. $103.8 million and $61.3 million of the goodwill for the above acquisition has been assigned to the Electronics and Automotive segments, respectively, with $64.9 million expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $6.9 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during the second quarter of 2016, as the acquired inventory was sold, and reflected as other non-segment costs.

Included in the Company’s Consolidated Statements of Net Income for the year ended December 31, 2016 are net sales of approximately $126.5 million since the March 25, 2016 acquisition of PolySwitch.

2016 Dispositions

During the first quarter of 2016, the Company sold its tangible and intangible assets relating to a marine product line that it acquired as part of its acquisition of Selco A/S in 2011. In connection with this sale, the Company recorded a loss on sale of the product line of $1.4 million reflected within selling, general, and administrative expenses for the year ended December 31, 2016. This loss was recognized as an “other” charge for segment reporting purposes.

56

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pro Forma Results

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and IXYS as though the acquisition had occurred as of January 1, 2017. The Company has not included pro forma results of operations for U.S. Sensor or Monolith as these results were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the IXYS acquisition occurred as of January 1, 2017 or of future consolidated operating results.

	For the Fiscal Year Ended
(in thousands, except per share amounts)	December 29, 2018		December 30, 2017
Net sales	$	1,735,181	$	1,564,956
Income before income taxes	272,724		142,150
Net income	215,228		75,604
Net income per share — basic	8.61		3.05
Net income per share — diluted	8.53		3.00

Pro forma results presented above primarily reflect the following adjustments:

	For the Fiscal Year Ended
(in thousands)	December 29, 2018			December 30, 2017
Amortization(a)	$	12,009		$	(25,203	)
Depreciation	—			556
Transaction costs(b)	9,976			(9,976		)
Amortization of inventory step-up(c)	36,927			(36,927		)
Stock compensation(d)	5,845			(6,635		)
Interest expense(e)	—			(10,326		)
Income tax impact of above items	(15,446		)	29,336

(a) The amortization adjustment for the twelve months ended December 29, 2018 primarily reflects the reduction of amortization expense in the period related to the Order backlog intangible asset. The Order backlog has a useful life of twelve months and will be fully amortized in the fiscal 2017 pro forma results. The amortization adjustment for the twelve months ended December 30, 2017 reflects incremental amortization resulting for the measurement of intangibles at their fair values.

(b) The transaction cost adjustments reflect the reversal of certain bank and attorney fees from the twelve months ended December 29, 2018 and recognition of those fees during the twelve months ended December 30, 2017.

(c) The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the twelve months ended December 29, 2018 and the recognition of the full amortization during the twelve months ended December 30, 2017. The inventory step-up was amortized over five months as the inventory was sold.

(d) The stock compensation adjustment reflects the reversal of the portion of stock compensation for IXYS stock options that were converted to Littelfuse stock options and expensed immediately during the twelve months ended December 29, 2018. The adjustment for the twelve months ended December 30, 2017 reflect the incremental stock compensation for the converted stock options.

(e) The interest expense adjustment reflects incremental interest expense related to the financing of the transaction.

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and the acquired PolySwitch and the ON Portfolio businesses as though the acquisitions had occurred as of December 28, 2014. The Company has not included pro forma results of operations for Menber’s as these results were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the PolySwitch or ON Portfolio acquisitions occurred as of December 28, 2014 or of future consolidated operating results.

57

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	For the Fiscal Year Ended
(in thousands, except per share amounts)	December 31, 2016
Net sales	$	1,130,645
Income before income taxes	143,110
Net income	124,388
Net income per share — basic	5.51
Net income per share — diluted	5.47

Pro forma results presented above primarily reflect: (i) incremental depreciation relating to fair value adjustments to property, plant, and equipment; (ii) amortization adjustments relating to fair value estimates of intangible assets; (iii) incremental interest expense on assumed indebtedness; and (iv) additional cost of goods sold relating to the capitalization of gross profit as part of purchase accounting recognized for purposes of the pro forma as if it was recognized during the Company’s first quarter of 2015. Pro forma adjustments described above have been tax affected using the Company's effective rate during the respective periods.

The historical PolySwitch and ON Portfolio business results for the year ended December 31, 2016 does not include a provision for income taxes. Income tax expense for the historical ON Portfolio business was not provided on a standalone basis.

3. Inventories

The components of inventories at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018		2017
Raw materials	$	69,883	$	39,030
Work in process	88,505		27,454
Finished goods	99,840		74,305
Total	$	258,228	$	140,789

4. Property, Plant, and Equipment

The components of net property, plant, and equipment at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018			2017
Land	$	25,630		$	9,547
Building	114,636			86,599
Equipment	583,043			505,838
Accumulated depreciation and amortization	(383,415		)	(351,407		)
Total	$	339,894		$	250,577

The Company recorded depreciation expense of $51.0 million, $38.3 million, and $33.8 million for the fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively.

58

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5. Goodwill and Other Intangible Assets

The amounts for goodwill and changes in the carrying value by segment are as follows:

(in thousands)	Electronics			Automotive			Industrial			Total
As of December 31, 2016	$	215,765		$	144,585		$	43,194		$	403,544
Additions(a)	36,716			—			—			36,716
Foreign currency translation and other adjustments(b)	26,478			(8,756		)	(4,568		)	13,154
As of December 30, 2017	$	278,959		$	135,829		$	38,626		$	453,414
Additions(c)	382,903			—			—			382,903
Foreign currency translation adjustments	(5,823		)	(3,497		)	(282		)	(9,602		)
As of December 29, 2018	$	656,039		$	132,332		$	38,344		$	826,715

(a)The 2017 additions resulted from the acquisitions of U.S. Sensor and Monolith.

(b)Adjustments in 2017 reflect adjustments to reclass goodwill by segment as well as the impact of changes in foreign exchange rates. The impact of the reclassification was an increase in goodwill to the Electronics segment of $21.6 million and a decrease of goodwill of $16.8 million and $4.8 million to the Automotive segment and the Industrial segment, respectively.

(c)The 2018 additions resulted primarily from the acquisition of IXYS.

The components of other intangible assets at December 29, 2018 and December 30, 2017 are as follows:

	As of December 29, 2018
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	139,413	$	69,431	$	69,982
Distribution network	12.6	43,876		34,564		9,312
Customer relationships, trademarks,tradenames, and other	17.5	374,246		92,066		282,180
Total		$	557,535	$	196,061	$	361,474

	As of December 30, 2017
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	141,520	$	59,609	$	81,911
Distribution network	12.1	46,233		33,361		12,872
Customer relationships, trademarks, and tradenames	15.6	162,679		53,612		109,067
Total		$	350,432	$	146,582	$	203,850

During the years ended December 29, 2018 and December 30, 2017, the Company recorded additions to other intangible assets of $212.7 million and $11.0 million, respectively, for acquisitions during those years, the components of which were as follows:

59

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	2018			2017
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Amount		Weighted Average Useful Life (Years)	Amount
Patents, licenses and software	8.0	$	51,500	9.6	$	7,810
Customer relationships, trademarks, and tradenames	17.2	148,800		9.0	3,220
Order backlog	1.0	12,420		0.0	—
Total		$	212,720		$	11,030

For intangible assets with definite lives, the Company recorded amortization expense of $52.2 million, $24.7 million, and $19.3 million in 2018, 2017, and 2016, respectively.

Estimated annual amortization expense related to intangible assets with definite lives at December 29, 2018 is as follows:

(inthousands)	Amount
2019	$	39,440
2020	39,162
2021	37,164
2022	36,368
2023	31,906
2024 and thereafter	177,434
Total	$	361,474

6. Accrued Liabilities

The components of accrued liabilities at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018		2017
Employee-related liabilities	$	60,640	$	51,239
Other non-income taxes	21,523		15,207
Professional services	6,169		2,214
Interest	5,137		2,477
Accrued share repurchases	4,349		—
Restructuring liability	3,887		1,459
Other	36,700		27,819
Total	$	138,405	$	100,415

Employee-related liabilities consist primarily of payroll, sales commission, bonus, employee benefit accruals and workers’ compensation. Bonus accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals and other client-related liabilities.

7. Lease Commitments

The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $9.6 million, $11.6 million, and $12.6 million in 2018, 2017, and 2016, respectively.

Rent expense is recognized on a straight-line basis over the term of the leases. The difference between straight-line basis rent and the amount paid has been recorded as accrued lease obligations. The Company also has leases that have lease renewal provisions.

60

As of December 29, 2018, all operating leases outstanding were with third parties. The Company did not have any capital leases as of December 29, 2018.

Future minimum payments for all non-cancellable operating leases with initial terms of one year or more at December 29, 2018 are as follows:

(inthousands)	Future Minimum Payments
2019	$	9,133
2020	7,590
2021	5,574
2022	4,590
2023	2,946
2024 and thereafter	2,774
Total	$	32,607

8. Restructuring, Impairment and Other Charges

The Company recorded restructuring, impairment and other charges-net for fiscal years 2018, 2017, and 2016 as follows:

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	8,742	$	634	$	127	$	9,503
Other restructuring charges	670		192		—		862
Total restructuring charges	9,412		826		127		10,365
Impairment	—		88		2,130		2,218
Total	$	9,412	$	914	$	2,257	$	12,583

	Fiscal Year Ended December 30, 2017
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	1,244	$	371	$	378	$	1,993
Other restructuring charges	234		—		—		234
Total restructuring charges	1,478		371		378		2,227
Impairment	—		—		—		—
Total	$	1,478	$	371	$	378	$	2,227

	Fiscal Year Ended December 31, 2016
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	135	$	299	$	1,094	$	1,528
Other restructuring charges	1,609		75		783		2,467
Total restructuring charges	1,744		374		1,877		3,995
Impairment	—		—		14,809		14,809
Total	$	1,744	$	374	$	16,686	$	18,804

2018

For the year ended December 29, 2018, the Company recorded total restructuring charges of $10.4 million for employee termination costs and other restructuring charges related to lease termination and facility closure. These charges primarily related to the integration of IXYS and the reorganization of the IXYS Radio Pulse business within the Electronics segment and the reorganization of operations in the Commercial Vehicle Products business within the Automotive segment.

61

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the year ended December 29, 2018, the Company recorded impairment charges of $2.2 million primarily related to the impairment of a building and a trade name associated with the exit of the Custom business within the Industrial segment.

2017

For the year ended December 30, 2017, the Company recorded total restructuring charges of $2.2 million for employee termination costs and other restructuring charges. The Company recorded $2.0 million for employee termination costs primarily related to the reorganization of selling, general, and administrative functions within the Electronics segments as well as the reorganization of certain operations.

2016

For the year ended December 31, 2016, the Company recorded total restructuring charges of $4.0 million for employee termination costs and other restructuring charges, of which $1.6 million related to a manufacturing product line relocation within the Electronics segment. The Company recorded $1.5 million for employee termination costs primarily related to the reorganization of certain operations in the Industrial and Automotive segments.

Additionally, the Company recognized a charge for goodwill impairment of $8.8 million for its Custom Products reporting unit

within the Industrial segment, and non-cash impairment charges of $6.0 million, of which $3.8 million related to the impairment of the Custom Products tradename and $2.2 million related to the impairment of certain customer relationship intangible assets in the Custom Products reporting unit within the Industrial segment.

The restructuring reserves as of December 29, 2018 and December 30, 2017 are $3.9 million and $1.5 million, respectively. The restructuring reserves are included within accrued liabilities. Payments associated with employee terminations reflected in the above table were substantially completed by December 29, 2018. The Company anticipates the remaining payments associated with employee terminations will be completed in the first quarter of fiscal 2019.

9. Debt

The carrying amounts of debt at December 29, 2018 and December 30, 2017 are as follows:

(inthousands)	2018			2017
Term Loan	$	155,000		$	122,500
Euro Senior Notes, Series A due 2023	133,417			139,623
Euro Senior Notes, Series B due 2028	108,330			113,369
U.S. Senior Notes, Series A due 2022	25,000			25,000
U.S. Senior Notes, Series B due 2027	100,000			100,000
U.S. Senior Notes, Series A due 2025	50,000			—
U.S. Senior Notes, Series B due 2030	125,000			—
Other	2,619			—
Unamortized debt issuance costs	(4,636		)	(4,881		)
Total debt	694,730			495,611
Less: Current maturities	(10,000		)	(6,250		)
Total long-term debt	$	684,730		$	489,361

Revolving Credit Facility / Term Loan

On March 4, 2016, the Company entered into a five-year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million. The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million. In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million, in the aggregate, in each case in minimum increments of $25.0 million, subject to certain conditions and the agreement of participating lenders.

On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March

62

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4, 2021 to October 13, 2022. The Credit Agreement also includes the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million, in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans may be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company is required to make quarterly principal payments of 1.25% of the original term loan ($2.5 million with the second advance on January 16, 2018) through maturity, with the remaining balance due on October 13, 2022. In addition to the quarterly principal payments, the Company paid $35.0 million of principal on the term loan during the fiscal year ended December 29, 2018.

Outstanding borrowings under the Credit Agreement bear interest, at the Company’s option, at either LIBOR(fixed for interest periods of one, two, three or six-month periods) plus 1.00% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.00% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25%, based on the Consolidated Leverage Ratio, as defined in the agreement. The credit agreement includes representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 3.59% at December 29, 2018.

As of December 29, 2018, the Company had $0.1 million outstanding in letters of credit and had available $699.9 million of borrowing capacity under the Revolving Credit Facility. At December 29, 2018, the Company was in compliance with all covenants under the Credit Agreement.

Senior Notes

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017.

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) (together, the “U.S. Senior Notes due 2022 and 2027”) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017.

On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together, the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 will be payable on February 15 and August 15, commencing on August 15, 2018.

The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company.

The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At December 29, 2018, the Company was in compliance with all covenants under the Senior Notes.

The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders, and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control.

63

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Interest paid on all Company debt was approximately $18.5 million, $13.4 million, and $8.6 million in fiscal year ended 2018, 2017, and 2016, respectively.

Debt Issuance Costs

The Company paid debt issuance costs of $0.9 million in relation to the $175 million Note Purchase Agreement that was entered on November 15, 2017. The Company incurred debt issuance costs of $1.6 million in relation to the 2017 amendment to the Credit Agreement which, along with the remaining balance of debt issuance costs of the previous credit facility, are being amortized over the life of the Credit Agreement. The Company incurred aggregate debt issuance costs of $1.8 million in relation to the Senior Notes issued previously which are being amortized over the respective lives of the Series A and B notes.

Debt Maturities

Scheduled maturities of the Company’s long-term debt for each of the five years succeeding December 29, 2018 and thereafter are summarized as follows:

(inthousands)	Scheduled Maturities
2019	$	10,000
2020	10,000
2021	10,000
2022	152,619
2023	133,417
2024 and thereafter	383,330
	$	699,366

10. Fair Value of Assets and Liabilities

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows:

Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;

Level 2—Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

Level 3—Valuations based upon one or more significant unobservable inputs.

Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy.

Investments in Equity Securities

Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy. Such securities are further detailed in Note 1, Summary of Significant Accounting Policies and Other Information.

Defined Benefit Plan Assets / Non-qualified Supplemental Retirement and Savings PlanInvestments

See Note 11, Benefit Plans, for description of valuation methodologies and investment balances for defined benefit plan assets and investments related to the Company’s Non-Qualified Supplemental Retirement and Savings Plan.

64

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

There were no changes during 2018 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of December 29, 2018 and December 30, 2017, the Company held no non-financial assets or liabilities that are required to be measured at fair value on a recurring basis.

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 29, 2018:

	Fair Value Measurements Using
(inthousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,312	$	—	$	—	$	10,312
Mutual funds	9,112		—		—		9,112

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:

	Fair Value Measurements Using
(inthousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,993	$	—	$	—	$	10,993
Mutual funds	7,962		—		—		7,962

In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, trade receivables and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and trade receivables approximate their fair values. The Company’s revolving and term loan debt facilities’ fair values approximate book value at December 29, 2018 and December 30, 2017, as the rates on these borrowings are variable in nature.

The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of December 29, 2018 and December 30, 2017 were as follows:

	December 29, 2018				December 30, 2017
(inthousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	133,417	$	130,888	$	139,623	$	138,294
Euro Senior Notes, Series B due 2028	108,330		103,774		113,369		111,579
USD Senior Notes, Series A due 2022	25,000		24,115		25,000		24,737
USD Senior Notes, Series B due 2027	100,000		94,458		100,000		99,992
USD Senior Notes, Series A due 2025	50,000		47,434		—		—
USD Senior Notes, Series B due 2030	125,000		114,731		—		—

65

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the fiscal years ended December 31, 2016 were as follows:

	Fiscal Year Ended December 31, 2016
(inthousands)	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Goodwill	$	8,794	$	—	$	—
Other intangible assets	6,015		680		660
Total	$	14,809	$	680	$	660

Further information regarding the impairment charges of goodwill and intangible assets is provided in Note 8, Restructuring, Impairment and Other Charges, of the Notes to Consolidated Financial Statements included in this Annual Report.

The company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs. The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the fiscal year ended December 31, 2016:

(inthousands, except rates data)	Fair Value		Valuation Technique	Unobservable Inputs	Rates
Tradename	$	680	Relief from royalty	Discount rate:	18%
				Royalty rate:	1%
Customer relationships	$	—	Excess earnings	Discount rate:	18%
				Attrition rate:	5%

66

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

11. Benefit Plans

The Company has Company-sponsored defined benefit pension plans covering employees in the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay.

IXYS Acquisition

During 2018, as a result of the IXYS acquisition, pension liabilities were assumed by the Company in Germany, Philippines, and U.K.

Benefit plan related information is as follows for the years 2018 and 2017:

(inthousands)	2018			2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	67,268		$	55,606
Service cost	2,266			2,037
Interest cost	3,104			1,887
Net actuarial gain	(7,321		)	(433		)
Benefits paid from the trust	(2,479		)	(1,405		)
Benefits paid directly by the Company	(1,802		)	(1,098		)
Settlements	(1,291		)	(31		)
Acquisitions	48,358			—
Effect of exchange rate movements	(6,918		)	5,477
Other	1,648			5,228
Benefit obligation at end of year	$	102,833		$	67,268
Change in plan assets at fair value:
Fair value of plan assets at beginning of year	$	48,123		$	42,208
Actual return on plan assets	(2,847		)	2,962
Employer contributions	2,341			264
Benefits paid	(2,479		)	(1,405		)
Settlements	(1,291		)	—
Acquisitions	31,954			—
Effect of exchange rate movements	(5,125		)	4,094
Fair value of plan assets at end of year	70,676			48,123
Net amount recognized/(unfunded status)	$	(32,157	)	$	(19,145	)

Amounts recognized in the Consolidated Balance Sheets as of December 29, 2018 and December 30, 2017 consist of the following:

(inthousands)	2018			2017
Amounts recognized in the Consolidated Balance Sheets consist of:
Noncurrent assets	$	811		$	78
Current benefit liability	(1,094		)	(481		)
Noncurrent benefit liability	(31,874		)	(18,742		)
Net liability recognized	$	(32,157	)	$	(19,145	)

67

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net period cost as of December 29, 2018 and December 30, 2017 were as following:

(inthousands)	2018		2017
Net actuarial loss	$	9,777	$	12,261
Prior service cost	1,607		—
Total	$	11,384	$	12,261

The estimated net actuarial loss which will be amortized from accumulated other comprehensive income (loss) into benefit cost in 2019 is approximately $0.2 million.

The pre-tax amounts recognized in other comprehensive income loss in 2018 as components of net periodic benefit costs were as follows:

(inthousands)	2018
Amortization of:
Prior service cost	$	291
Amount arising during the period:
Net actuarial loss	(396		)
Settlement loss	238
Foreign currency adjustments	744
Total	$	877

The components of pension expense for the fiscal years 2018, 2017, and 2016 are as follows: 

(inthousands)	2018			2017			2016
Components of net periodic benefit cost:
Service cost	$	2,266		$	2,037		$	1,509
Interest cost	3,104			1,887			1,662
Expected return on plan assets	(3,222		)	(1,990		)	(1,935		)
Amortization of prior service	291			337			306
Net periodic benefit cost	2,439			2,271			1,542
Settlement loss / curtailment (gain)	238			(25		)	(36		)
Total expense for the year	$	2,677		$	2,246		$	1,506

Weighted average assumptions used to determine net periodic benefit cost for the fiscal years 2018, 2017, and 2016 are as follows:

	2018		2017		2016
Discount rate	2.8	%	3.0	%	3.7	%
Expected return on plan assets	4.2	%	4.5	%	4.9	%
Compensation increase rate	5.0	%	4.5	%	5.3	%

The accumulated benefit obligation for the foreign plans was $99.6 million and $60.5 million at December 29, 2018 and December 30, 2017, respectively.

68

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 29, 2018 and December 30, 2017:

(inthousands)	2018		2017
Projected benefit obligation	$	70,579	$	28,515
Fair value of plan assets	37,611		9,292

The following table provides a summary of under-funded or unfunded pension benefit plans with accumulated benefit obligations in excess of plan assets as of December 29, 2018 and December 30, 2017:

(inthousands)	2018		2017
Accumulated benefit obligation	$	66,049	$	18,990
Fair value of plan assets	36,003		6,003

Weighted average assumptions used to determine benefit obligations as of December 29, 2018, December 30, 2017 and December 31, 2016 are as follows:

	2018		2017		2016
Discount rate	3.1	%	3.1	%	2.6	%
Compensation increase rate	4.6	%	5.0	%	4.5	%

Expected benefit payments to be paid to participants for the fiscal year ending are as follows:

(in thousands)	Expected Benefit Payments
2019	$	4,210
2020	4,243
2021	4,691
2022	4,547
2023	4,884
2024-2028	27,047

The Company expects to make approximately $2.3 million of contributions to the plans in 2019.

Defined Benefit Plan Assets

Based upon analysis of the target asset allocation and historical returns by type of investment, the Company has assumed that the expected long-term rate of return will be 4.5% on plan assets. Assets are invested to maximize long-term return taking into consideration timing of settlement of the retirement liabilities and liquidity needs for benefits payments. Pension plan assets were invested as follows, and were not materially different from the target asset allocation:

	Asset Allocation
	2018		2017
Equity securities	30	%	35	%
Debt securities	66	%	64	%
Cash and cash equivalents, and other	4	%	1	%
	100	%	100	%

The Company segregated its plan assets by the following major categories and level for determining their fair value as of December 29, 2018 and December 30, 2017. All plan assets that are valued using the net asset value per share (“NAV”) practical expedient have not been included within the fair value hierarchy but are separately disclosed.

69

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash and cash equivalents – Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method and at NAV.

Equity – The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. Additionally, the Company invests in certain equity funds that are valued at calculated NAV.

Fixed income – Fixed income securities are typically priced based on a last trade basis and are exchange-traded. Accordingly, the Company classified fixed income securities as Level 1. The Company also invests in certain fixed income funds which are valued at NAV.

Insurance Contracts and other – This category includes insurance contracts that are valued by the re-insurer with the valuation inputs being not highly observable and traded on an open market. Accordingly, insurance contracts was categorized as Level 3. Additionally, this category includes other assets and liabilities including futures or swaps valued at NAV.

For any Level 2 and Level 3 plan assets, management reviews significant investments on a periodic basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates.

The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV.

The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 29, 2018:

	Fair Value Measurements Using
(inthousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,361	$	—	$	—	$	19,528	$	20,889
Fixed income	3,336		—		—		43,134		46,470
Insurance contracts and other	—		—		632		1,161		1,793
Cash and cash equivalents	702		—		—		823		1,525
Total pension plan assets	$	5,399	$	—	$	632	$	64,645	$	70,676

The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:

	Fair Value Measurements Using
(inthousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,031	$	—	$	—	$	16,032	$	17,063
Fixed income	8,088		—		—		22,568		30,656
Cash and cash equivalents	173		—		—		231		404
Total pension plan assets	$	9,292	$	—	$	—	$	38,831	$	48,123

Defined Contribution Plan

The Company also maintains a 401(k) savings plan covering substantially all U.S. employees. The Company matches 100% of the employee’s annual contributions for the first 4% of the employee’s eligible compensation. The Company may provide an additional discretionary match to participants and made discretionary matches of 2% of the employee’s eligible compensation for each of the years ended December 29, 2018, December 30, 2017 and December 31, 2016. Employees are immediately vested in their contributions plus actual earnings thereon, as well as the Company contributions. Company matching contributions amounted to $4.5 million, $3.5 million, and $3.2 million in 2018, 2017, and 2016, respectively.

70

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Non-qualified Supplemental Retirement and Savings Plan

The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The investments are subject to the claims of the Company’s creditors and the Company is responsible for the payment of all benefits under the plan from its general assets. As of December 29, 2018, there was $9.1 million of marketable securities related to the plan included in Other assets and $9.1 million of accrued compensation benefits included in Other long-term liabilities. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value. The Company made matching contributions to the plan of $0.4 million in 2018.

12. Stock-Based Compensation

Equity Plans: The Company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, performance shares and other stock rights to employees and directors. As of December 29, 2018, there were 1.4 million shares available for issuance of future awards under the Company’s equity-based compensation plans.

Stock options generally vest over a three, four or five-year period and are exercisable over either a seven or ten-year period commencing from the date of the grant. Restricted shares and share units granted by the Company generally vest over three to four years. Stock options and restricted share units may have accelerated vesting upon meeting certain qualified conditions.

Upon completion of the IXYS acquisition, IXYS outstanding options were assumed by the Company and converted into options of 499,027 shares. The Company recognized approximately $11.9 million of stock compensation expense related to IXYS stock options converted to Littelfuse stock options during the fiscal year ended December 29, 2018, of which $4.5 million was recognized immediately as it related to prior service periods. See Note 2, Acquisitions and Dispositions, for further discussion.

The following table provides a reconciliation of outstanding stock options for the fiscal year ended December 29, 2018.

	Shares Under Option		Weighted Average Price		Weighted Average Remaining Contract Life (Years)	Aggregate Intrinsic Value (000’s)
Outstanding December 30, 2017	404,301		$	110.04
Granted	78,721		192.59
IXYS converted awards	499,027		92.52
Exercised	(296,914	)	87.85
Forfeited	(15,779	)	120.59
Outstanding December 29, 2018	669,356		116.29		5.4	$	36,494
Exercisable December 29, 2018	420,422		100.14		4.8	28,542

The following table provides a reconciliation of non-vested restricted share and share unit awards for the fiscal year ended December 29, 2018.

	Shares		Weighted Average Grant-Date Fair Value
Nonvested December 30, 2017	199,693		$	130.40
Granted	77,430		194.39
Vested	(104,062	)	123.45
Forfeited	(12,267	)	144.84
Nonvested December 29, 2018	160,794		164.61

71

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The total intrinsic value of options exercised during 2018, 2017, and 2016 was $38.3 million, $2.2 million, and $13.3 million, respectively. The total fair value of shares vested was $20.8 million, $15.0 million, and $10.7 million for 2018, 2017, and 2016, respectively. The total amount of share-based liabilities paid was $1.1 million, $0.9 million and $0.6 million for 2018, 2017, and 2016, respectively.

The Company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At December 29, 2018, the unrecognized compensation cost for options and restricted shares was $22.0 million before tax, and will be recognized over a weighted average period of 1.8 years. Compensation cost included as a component of cost of sales, research and development and selling, general, and administrative expenses for all equity compensation plans discussed above was $28.2 million, $17.3 million, and $12.8 million for 2018, 2017, and 2016, respectively. The total income tax benefit recognized in the Consolidated Statements of Net Income was $6.0 million, $6.0 million and $4.4 million for 2018, 2017, and 2016, respectively.

The Company uses the Black-Scholes option valuation model to determine the fair value of awards granted. The weighted average fair value of and related assumptions for options granted are as follows:

	2018	2017	2016
Weighted average fair value of options granted	$45.19	$30.77	$26.06
Assumptions:
Risk-free interest rate	2.79%	1.79%	1.37%
Expected dividend yield	0.77%	0.86%	0.97%
Expected stock price volatility	25.0%	23.0%	26.0%
Expected life of options (years)	4.4	4.4	4.6

Expected volatilities are based on the historical volatility of the Company’s stock price. The expected life of options is based on historical data for options granted by the Company. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption.

Preferred Stock: The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board may fix by resolution.

Share Repurchase Program

The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019. During the fiscal year 2018, the Company repurchased 391,972 shares of its common stock.

As of February 18, 2019, the Company has repurchased 79,916 shares of its common stock since the fiscal year ended December 29, 2018.

72

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13. Other Comprehensive (Loss) Income

Changes in other comprehensive (loss) income by component for fiscal years 2018, 2017, and 2016 were as follows:

	Fiscal Year Ended
	December 29, 2018								December 30, 2017								December 31, 2016
(in thousands)	Pre-tax			Tax		Net of tax			Pre-tax			Tax		Net of tax			Pre-tax			Tax			Net of tax
Defined benefit pension plan adjustments	$	924		$	47	$	877		$	1,532		$	385	$	1,147		$	(4,563	)	$	(1,302	)	$	(3,261	)
Unrealized loss on investments	—			—		—			(974		)	—		(974		)	(815		)	—			(815		)
Foreign currency translation adjustments	(25,338		)	—		(25,338		)	10,738			—		10,738			(24,832		)	—			(24,832		)
Total change in other comprehensive (loss) income	$	(24,414	)	$	47	$	(24,461	)	$	11,296		$	385	$	10,911		$	(30,210	)	$	(1,302	)	$	(28,908	)

Accumulated Other Comprehensive Income (Loss) (“AOCI”): The following table sets forth the changes in the components of AOCI by component for fiscal years 2018, 2017, and 2016:

(inthousands)	Pension and postretirement liability and reclassification adjustments			Gain (loss) on investments			Foreign currency translation adjustments			Accumulated other comprehensive income (loss)
Balance at January 2, 2016	$	(8,722	)	$	11,584		$	(48,533	)	$	(45,671	)
2016 activity	(3,261		)	(815		)	(24,832		)	(28,908		)
Balance at December 31, 2016	(11,983		)	10,769			(73,365		)	(74,579		)
2017 activity	1,147			(974		)	10,738			10,911
Balance at December 30, 2017	(10,836		)	9,795			(62,627		)	(63,668		)
Cumulative effect adjustment (a)	—			(9,795		)	—			(9,795		)
2018 activity	877			—			(25,338		)	(24,461		)
Balance at December 29, 2018	$	(9,959	)	$	—		$	(87,965	)	$	(97,924	)

(a) The Company adopted ASU 2016-01 on December 31, 2017 on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. See Note 1, Summary of Significant Accounting Policies and Other Information, for further discussion.

Amounts reclassified from accumulated other comprehensive (loss) income to earnings for fiscal years 2018, 2017, and 2016 were as follows:

	Fiscal Year Ended
(in thousands)	December 29, 2018		December 30, 2017			December 31, 2016
Pension and postemployment plans:
Amortization of prior service	$	291	$	337		$	306
Settlement loss/curtailment (gain)	238		(25		)	(36		)
Total	$	529	$	312		$	270

The Company recognizes the amortization of prior service costs and settlement loss and curtailment gain in other income, net within the Consolidated Statements of Net Income.

73

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

14. Income Taxes

On December 22, 2017, the U.S. enacted legislation referred to as the "Tax Act". Among other things, the Tax Act reduces the U.S. corporate federal income tax rate from 35% to 21%, adds base broadening provisions which limit deductions and address excessive international tax planning, imposes a Toll Charge on accumulated earnings of certain non-U.S. subsidiaries and enables repatriation of earnings of non-U.S. subsidiaries free of U.S. federal income tax. Other than the Toll Charge (which, except for the IXYS impact, was applicable to the Company for 2017), the provisions are generally applicable to the Company in 2018 and beyond.

In accordance with the guidance provided in SEC SAB No. 118, in the fourth quarter of 2017 the Company recorded a charge of $47.0 million as a provisional reasonable estimate of the impact of the Tax Act, including $49.0 million for the Toll Charge net of $2.0 million for other net tax benefits. In the fourth quarter of 2018, within the measurement period outlined in SAB No. 118, the Company finalized its estimates of the impact of the Tax Act as of December 30, 2017 and recorded a charge of $3.2 million, including $2.3 million for the Toll Charge and $0.9 million for the net impact of other items. In addition, the Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation. This was reflected in the opening balance sheet as an increase to goodwill and other long-term liabilities.

Although certain administrative guidance has been issued, including final and proposed regulations, the appropriate application of many provisions of the Tax Act remain uncertain. The Company used its best judgment as to the application of these provisions in determining its final estimates of the impact of the Tax Act as of December 30, 2017, the Toll Charge associated with the IXYS acquisition as well as the Company’s income tax expense for the year ended December 29, 2018. Adjustments to income tax expense may be necessary in future periods if provisions of the Tax Act, and their interaction with other provisions of the U.S. Internal Revenue Code, are interpreted differently than interpretations made by the Company, whether through issuance of additional administrative guidance, or through further review of the Tax Act by the Company and its advisors. In this regard, on January 15, 2019, final regulations were issued addressing the Toll Charge (replacing the proposed regulations issued in August of 2018). The Company is evaluating these final regulations and has yet to determine their impact.

The Company has elected to pay the 2017 Littelfuse Toll Charge and will elect to pay the 2018 IXYS Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of these Toll Charges totaling $28.8 million (which includes the Littelfuse and IXYS Toll Charges, partially offset by foreign tax credits, the tax benefit of current year losses and the actual 2018 and anticipated 2019 annual installment payments) is recorded in Other long-term liabilities on the Consolidated Balance Sheet as of December 29, 2018. The anticipated 2019 annual installment payments are included in accrued income taxes.

One of the base broadening provisions of the Tax Act is commonly referred to as the “GILTI” provisions. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

Domestic and foreign income (loss) before income taxes is as follows:

(inthousands)	2018			2017			2015
Domestic	$	(49,995	)	$	(20,496	)	$	(9,563	)
Foreign	254,937			224,533			132,837
Income before income taxes	$	204,942		$	204,037		$	123,274

74

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Federal, state and foreign income tax expense (benefit) consists of the following:

(inthousands)	2018			2017		2016
Current:
Federal	$	(3,193	)	$	34,060	$	(3,992	)
State	119			450		(648		)
Foreign	48,130			32,945		28,695
Subtotal	45,056			67,455		24,055
Deferred:
Federal and State	(3,896		)	16,562		(1,594		)
Foreign	(783		)	501		(3,675		)
Subtotal	(4,679		)	17,063		(5,269		)
Provision for income taxes	$	40,377		$	84,518	$	18,786

The current federal tax benefit for 2018 includes the benefit of current year losses (which served to partially offset the amount of the IXYS Toll Charge that would otherwise have been payable).

The current federal and state income tax expense for 2017 includes the preliminary estimate of $49 million for the Toll Charge as discussed above, partially offset by $13.0 million of foreign tax credits.

The current federal tax benefit for 2016 includes an estimated $3.0 million benefit as a result of the carry-back of the 2016 U.S. federal net operating loss to the 2014 tax year.

A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:

(inthousands)	2018			2017			2016
Tax expense at statutory rate of 21% (35% for 2017 and 2016)	$	43,038		$	71,413		$	43,146
2017 Toll Charge (and 2018 adjustment)	2,278			49,000			—
Provisional Tax Act impact other than Toll Charge (and 2018 adjustment)	966			(1,962		)	—
Net impact associated with the GILTI tax provisions	5,075			—			—
State and local taxes, net of federal tax benefit	(1,238		)	292			(415		)
Non-U.S. income tax rate differential	(20,472		)	(47,077		)	(25,471		)
Impairment of goodwill without tax benefit	—			—			3,088
Tax on unremitted earnings	4,660			12,202			2,747
Non-U.S. losses and expenses with no tax benefit	3,107			—			—
Nondeductible professional fees	1,001			1,240			313
Tax deduction for stock of foreign subsidiary	—			—			(3,896		)
Other, net	1,962			(590		)	(726		)
Provision for income taxes	$	40,377		$	84,518		$	18,786

75

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting bases and the tax bases of the company’s assets and liabilities. Significant components of the company’s deferred tax assets and liabilities at December 29, 2018 and December 30, 2017, are as follows:

(in thousands)	2018			2017
Deferred tax assets:
Accrued expenses and reserves	$	35,597		$	24,094
Foreign tax credit carryforwards	1,506			1,053
Other U.S. tax attribute carryforwards	1,539			—
Accrued restructuring	60			156
Capital loss carryforwards	47			3,165
Domestic and non-U.S. net operating loss and credit carryforwards	8,613			5,778
Gross deferred tax assets	47,362			34,246
Less: Valuation allowance	(4,794		)	(6,203		)
Total deferred tax assets	42,568			28,043
Deferred tax liabilities:
Excess of book basis over the tax basis of assets	74,410			21,254
Tax on unremitted earnings	12,681			12,000
Total deferred tax liabilities	87,091			33,254
Net deferred tax liabilities	$	44,523		$	5,211

The deferred tax asset valuation allowance is related to certain net operating loss and credit carryforwards which are not expected to be realized. The remaining net operating loss and credit carryforwards either have no expiration date or are expected to be utilized prior to expiration (which begin expiring in 2021). The deferred tax asset valuation allowance as of December 30, 2017 also included amounts related to a capital loss carryforward which expired in 2018. No deferred tax asset nor valuation allowance has been recorded for certain U.S. and non-U.S. net operating loss carryforwards for which the possibility of usage has been determined to be remote.

The Company paid income taxes of $46.2 million, $31.8 million, and $35.6 million in 2018, 2017, and 2016, respectively, and received income tax refunds of and $4.3 million and $13.7 million in 2018 and 2017, respectively.

Deferred income taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. The Company believes the determination of the amount of such deferred income taxes is impractical as it would depend upon income tax laws and circumstances at the time of the hypothetical distributions or dispositions. As of December 29, 2018, unremitted earnings of the Company’s non-U.S. subsidiaries was approximately $815 million. A distribution of such earnings will generally not be subject to U.S. federal income tax. The Company recognized deferred tax liabilities of $12.7 million ($12.5 million for non-U.S. taxes net of related U.S. foreign tax credits, and $0.2 million for U.S. state taxes) as of December 29, 2018 and $12.0 million ($11.8 million for non-U.S. taxes and $0.2 million for U.S. state taxes) as of December 30, 2017, related to taxes on certain non-U.S. earnings which are not considered to be permanently reinvested. Some of these non-U.S. taxes will provide a U.S. federal income tax benefit as a foreign tax credit, and the amounts as of December 29, 2018 are net of such benefit (some of which was recorded as part of finalizing the provisional reasonable estimate of the impact of the Tax Act). Due to the uncertainty in regard to the Tax Act’s provisions, no benefit was recorded for these foreign tax credits as of December 30, 2017.

The Company has three subsidiaries in China which benefit from lowered income tax rates due to “tax holidays” which apply for three-year periods, subject to extension. One such tax holiday, which had expired in 2018, was extended in the fourth quarter of 2018, retroactive to the beginning of the year. Such tax holidays contributed $6.1 million in tax benefits, or $0.24 per diluted share, during 2018, with similar amounts expected in future years while such tax holidays are in effect.

76

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 29, 2018, December 30, 2017, and December 31, 2016 is as follows:

(inthousands)	Unrecognized Tax Benefits
Balance at December 31, 2016	$	8,617
Additions for tax positions taken in the current year	370
Other	(1,327		)
Balance at December 30, 2017	$	7,660
Additions for tax positions taken in the current year	2,929
Additions for tax positions related to the pre-acquisition periods of acquired subsidiaries	9,394
Decreases due to a lapse in the statute of limitations	(1,257		)
Other	(467		)
Balance at December 29, 2018	$	18,259

The company recognizes accrued interest and penalties associated with uncertain tax positions as part of income tax expense. The company recognized interest expense of $1.5 million (net of a $0.3 million decrease due to a lapse in the statute of limitations), $0.9 million, and $0.9 million in 2018, 2017, and 2016, respectively. Accrued interest included in Other long-term liabilities within the Consolidated Balance Sheets was $5.9 million and $3.3 million as of December 29, 2018 and December 30, 2017, respectively.

The amount of unrecognized tax benefits at December 29, 2018 was $18.3 million. This total represents the net amount of tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. Of this amount, approximately $3.5 million may be recognized in 2019 based upon the possible lapse in the statute of limitations. None of the positions included in unrecognized tax benefits are related to tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility.

The U.S. federal statute of limitations remains open for the Company for the 2014 tax year and later years, although the Company has been audited for the 2014 through 2016 tax years and the audit concluded in 2018 with no significant adjustments. The U.S. federal statute of limitations remains open for IXYS pre-acquisition tax periods ending March 31, 2016, March 31, 2017 andJanuary 17, 2018. Non-U.S. and U.S. state statutes of limitations generally range from three to seven years, although certain jurisdictions do not have a statute expiration. Non-U.S. tax examinations occur from time to time, including examinations currently in process in Italy, the Philippines and Hong Kong. The company does not expect to recognize a significant amount of additional tax expense as a result of concluding these examinations.

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15. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

(inthousands, except per share amounts)	2018		2017		2016
Numerator:
Net income as reported	$	164,565	$	119,519	$	104,488
Denominator:
Weighted average shares outstanding
Basic	24,870		22,687		22,559
Effect of dilutive securities	365		244		168
Diluted	25,235		22,931		22,727
Earnings Per Share:
Basic earnings per share	$	6.62	$	5.27	$	4.63
Diluted earnings per share	$	6.52	$	5.21	$	4.60

Potential shares of common stock attributable to stock options excluded from the earnings per share calculation because their effect would be anti-dilutive were 42,305, 37,443, and 53,448 shares in 2018, 2017, and 2016, respectively.

On January 17, 2018, the Company acquired IXYS through a combination of cash, Littelfuse common stock, and the value of converted, or cash settled IXYS equity awards. The Company issued approximately 2.1 million shares of Littelfuse common stock and converted IXYS equity awards into approximately 0.5 million Littelfuse equity awards.

16. Segment Information

The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing, and research and development expenses are charged directly into each operating segment. Manufacturing, purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it.  Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.

• Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor and power semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon carbide, metal-oxide-semiconductor field-effect transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial and automotive electronics, electric vehicle infrastructure, data and telecommunications, medical devices, LED lighting, consumer electronics and appliances.

78

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle industries. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain, emissions, speed and suspension.

• Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy - solar and wind, electric vehicle infrastructure, construction, HVAC systems, elevator and other industrial equipment.

The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows:

(inthousands)	2018			2017			2016
Net sales
Electronics	$	1,124,296		$	661,928		$	535,191
Automotive	479,791			453,227			415,200
Industrial	114,381			106,379			105,768
Total net sales	$	1,718,468		$	1,221,534		$	1,056,159
Depreciation and amortization
Electronics	$	61,779		$	35,215		$	29,141
Automotive	23,333			22,459			18,107
Industrial	5,661			5,337			5,889
Other	12,420			—			—
Total depreciation and amortization	$	103,193		$	63,011		$	53,137
Operating income (loss)
Electronics	$	241,426		$	155,880		$	117,088
Automotive	54,982			62,571			59,905
Industrial	17,335			10,334			3,615
Other(a)	(88,694		)	(10,274		)	(49,964		)
Total operating income	225,049			218,511			130,644
Interest expense	22,569			13,380			8,628
Foreign exchange (gain) loss	(863		)	2,376			472
Other income, net	(1,599		)	(1,282		)	(1,730		)
Income before income taxes	$	204,942		$	204,037		$	123,274

(a) Included in “Other” Operating income (loss) for 2018 is $88.7 million of charges primarily related to the IXYS acquisition, which include $36.9 million of purchase accounting inventory step-up charges, $18.7 million in acquisition-related and integration costs primarily related to legal, accounting and other expenses, $12.4 million in backlog amortization costs, $8.3 million of employee termination costs, impairment and other restructuring charges, and $4.5 million in stock compensation expense recognized immediately upon close for converted IXYS options related to prior service periods and $2.1 million change in control expense related to IXYS. In addition, there were $5.8 million of employee termination costs, impairment and other restructuring charges and acquisition-related expenses for other contemplated acquisitions which included $1.1 million of charges associated with the exit of the Custom business in the second quarter.

Included in “Other” Operating income (loss) for 2017 are costs related to acquisition and integration costs associated with the Company’s completed and pending acquisitions in 2017 ($8.0 million in Cost of sales ("COS") and Selling, general, and

79

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

administrative expenses (“SG&A”), and charges related to restructuring and production transfers in the Company’s Asia operations ($2.2 million in SG&A).

Included in “Other” Operating income (loss) for 2016 are costs related to the impairment of the Custom Products reporting unit ($14.8 million), acquisition and integration costs associated with the Company’s 2016 acquisitions ($29.2 million in COS and SG&A), transfer of the Company’s reed switch manufacturing operations from its Lake Mills, Wisconsin and Suzhou, China locations to the Philippines ($1.6 million in COS), impairment and severance costs related to the closure of the Company’s manufacturing facility in Denmark ($1.9 million in SG&A), and restructuring costs ($2.5 million in SG&A and Research and development expenses).

The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2018, 2017, and 2016 are as follows:

(inthousands)	2018		2017		2016
Net sales
United States	$	511,544	$	383,025	$	356,674
China	468,174		321,111		263,701
Other countries(a)	738,750		517,398		435,784
Total net sales	$	1,718,468	$	1,221,534	$	1,056,159
Long-lived assets
United States	$	58,691	$	23,490	$	23,731
China	95,806		86,866		65,345
Mexico	70,495		62,510		52,262
Germany	36,548		1,082		1,313
Philippines	32,459		31,129		33,345
Other countries	45,895		45,500		41,179
Total long-lived assets	$	339,894	$	250,577	$	217,175
Additions to long-lived assets
United States	$	5,567	$	3,518	$	4,694
China	29,286		32,775		13,181
Mexico	18,723		19,395		15,667
Germany	5,208		93		965
Philippines	7,605		2,979		5,096
Other countries	8,364		7,165		6,625
Total additions to long-lived assets	$	74,753	$	65,925	$	46,228

(a) Each country included in other countries are less than 10% of net sales.

For the year ended December 29, 2018, approximately 70% of the Company’s net sales were to customers outside the United States (exports and foreign operations), including approximately 27% to China. For the year ended December 30, 2017, approximately 69% of the Company's net sales were to customers outside the United States (exports and foreign operations), including approximately 26% to China. For the year ended December 31, 2016, approximately 66% of the Company's net sales were to customers outside the United States (exports and foreign operations), including approximately 25% to China. Sales to Arrow Electronics, Inc., which were included in the Electronics, Automotive, and Industrial segments, were 10.7% and 10.6% of consolidated net sales in 2018 and 2017, respectively, but less than 10% for 2016. No other single customer accounted for more than 10% of net sales during the last three years.

80

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

17. Selected Quarterly Financial Data (Unaudited)

The quarterly periods for 2018 are for the 13-weeks ended December 29, 2018, September 29, 2018, June 30, 2018, and March 31, 2018, respectively. The quarterly periods for 2017 are for the 13-weeks ended December 30, 2017, September 30, 2017, July 1, 2017, and April 1, 2017, respectively.

(inthousands, except per share data)
	2018								2017
	4Q(a)		3Q(b)		2Q(c)		1Q(d)		4Q(e)			3Q(f)		2Q(g)		1Q(h)
Net sales	$	402,281	$	439,191	$	459,183	$	417,813	$	304,849		$	317,889	$	313,355	$	285,441
Gross profit	154,337		179,594		168,987		149,623		126,624			133,651		132,608		113,650
Operating income	51,628		76,228		59,622		37,571		50,780			58,609		60,270		48,852
Net income/(loss)	32,665		53,546		42,326		36,029		(10,819		)	42,808		48,638		38,891
Net income/(loss) per share
Basic	$	1.31	$	2.13	$	1.69	$	1.48	$	(0.48	)	$	1.88	$	2.13	$	1.71
Diluted	$	1.29	$	2.10	$	1.67	$	1.45	$	(0.48	)	$	1.87	$	2.11	$	1.69

(a)In the fourth quarter of 2018, the Company recorded an estimated one-time tax charge of $3.2 million related to the finalization of 2017 provisional reasonable estimate in connection with the Tax Act, partially offset by a $1.5 million benefit for previously unrecognized tax benefits in respect of which the statute of limitation has expired, $3.7 million in backlog amortization expense from the IXYS acquisition, $3.2 million in acquisition-related and integration costs and $2.4 million in restructuring, impairment and other costs.

(b)In the third quarter of 2018, the Company recorded $5.2 million in restructuring and impairment charges, $3.1 million in backlog amortization expense from the IXYS acquisition and $2.9 million in acquisition-related and integration costs.

(c)In the second quarter of 2018, the Company recorded $19.0 million for purchase accounting inventory adjustments associated with the acquisition of IXYS, $4.2 million in restructuring and impairment charges, $3.1 million in backlog amortization expense from the IXYS acquisition and $2.4 million in acquisition-related and integration costs.

(d)In the first quarter of 2018, the Company recorded $17.9 million for purchase accounting inventory adjustments associated with the acquisition of IXYS, $11.7 million in acquisition-related and integration costs, $4.5 million of stock compensation expense recognized immediately upon close for converted IXYS options related to prior services periods, $2.5 million in backlog amortization expense, $2.1 million expense related to change in control and $0.8 million in restructuring costs.

(e)In the fourth quarter of 2017, the Company recorded an estimated one-time tax charge of $49.0 million for the enactment of the Tax Act for deemed repatriation of unremitted earnings of foreign subsidiaries, $1.4 million in acquisition-related and integration costs and $0.7 million in restructuring and production costs related to the transfer of Asian operations.

(f)In the third quarter of 2017, the Company recorded $4.8 million in acquisition-related and integration costs and $1.5 million in restructuring and production costs related to the transfer of Asian operations.

(g)In the second quarter of 2017, the Company recorded $0.3 million in acquisition-related and integration costs.

(h)In the first quarter of 2017, the Company recorded $1.5 million in acquisition-related and integration costs.

81

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

18. Related Party Transactions

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

Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (“Powersem”), a module manufacturer based in Germany. For the year ended December 29, 2018, the Company recorded revenues of $0.7 million from sales of products to Powersem for use as components in their products. For the fiscal year ended December 29, 2018, the Company purchased $4.5 million of products from Powersem. At December 29, 2018, the trade receivable balance from Powersem was $0.1 million and the accounts payable balance to Powersem was $0.2 million.

EB Tech Ltd.: The Company owns approximately 20% of the outstanding equity of EB Tech Ltd. (“EB Tech”), a company with expertise in radiation technology based in South Korea. For the year ended December 29, 2018, EB Tech rendered processing services for the Company totaling $0.5 million. As of December 29, 2018, the Company’s accounts payable balance to EB Tech was $0.1 million.

Automated Technology, Inc.: The Company owns approximately 24% of the outstanding common shares of Automated Technology, Inc. (“ATEC”), a supplier located in the Philippines that provides assembly and test services. For the year ended December 29, 2018, ATEC rendered assembly and test services to the Company totaling $9.9 million. As of December 29, 2018, the Company’s accounts payable balance to ATEC was $0.5 million.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLSAND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, the Company recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and the Company is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by SEC Rule 15d-15(b), the Company carried out an evaluation, under the supervision and with the participation of its management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to SEC Rule 13a-15 as of the end of the period covered by this report. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of December 29, 2018.

Management’s Report on Internal Control over Financial Reporting

Section 404 of the Sarbanes-Oxley Act of 2002 requires management to include in this Annual Report on Form 10-K a report on management’s assessment of the effectiveness of the Company’s internal control over financial reporting, as well as an attestation report from the Company’s independent registered public accounting firm on the effectiveness of the Company’s internal control over financial reporting. Management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a-15(f) and 15d-15(f). The Company’s internal control system was designed to provide reasonable assurance to its management and the Board of Directors regarding the preparation and fair presentation of published financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined effective can provide only reasonable assurance with respect to financial statement preparation and presentation. A material

82

weakness is a deficiency, or a combination of deficiencies, in the internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statement will not be prevented or detected on a timely basis.

The Company’s management, including the its Principal Executive Officer and Principal Financial Officer, assessed the effectiveness of the Company’s internal control over financial reporting as of December 29, 2018, based upon the updated framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 1992 and updated in May 2013. Based on this assessment, the Company’s management concluded that, as of December 29, 2018, the Company’s internal control over financial reporting was effective.

Changes in Internal Control over Financial Reporting

There has been no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the 12 months or fiscal quarter ended December 29, 2018, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION.

None.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS,AND CORPORATE GOVERNANCE.

Except as set forth below, the information required by this item will be contained in the Company’s Proxy Statement related to our 2019 Annual Meeting of Stockholders (the "proxy statement") and is incorporated herein by reference.

Information concerning directors and nominees for director is set forth in the section titled “Proposal No. 1 Election of Directors” in the Company’s proxy statement and is incorporated herein by reference.

Information concerning the Company’s Audit Committee and Audit Committee financial expert is set forth in the section titled “Director Independence; Financial Experts” in the Company's proxy statement and is incorporated herein by reference.

Information concerning the procedures by which security holders may recommend nominees to the Company’s Board of Directors is set forth in the section titled “Director Nomination” in the Company’s proxy statement and is incorporated herein by reference.

Information concerning compliance with Section 16 of the Securities Exchange Act of 1934 is set forth in the section titled “Section 16(a) Beneficial Ownership Reporting Compliance” in the Company’s proxy statement and is incorporated herein by reference.

Executive Officers of the Registrant.

The executive officers of the Company are as follows:

Name	Age	Position
David W. Heinzmann	55	President and Chief Executive Officer
Meenal A. Sethna	49	Executive Vice President and Chief Financial Officer
Ryan K. Stafford	51	Executive Vice President, Chief Legal and Human Resources Officer and Corporate Secretary
Matthew J. Cole	47	Senior Vice President, Business Development and Strategy
Alexander Conrad	53	Senior Vice President, Passenger Vehicle Business
Ian Highley	55	Senior Vice President and General Manager, Semiconductor Products and Chief Technology Officer
Deepak Nayar	59	Senior Vice President and General Manager, Electronics and Industrial Business
Michael P. Rutz	47	Senior Vice President and General Manager, Semiconductor Products

David W. Heinzmann, President and Chief Executive Officer and a member of the Board of Directors. Mr. Heinzmann began his career at Littelfuse in 1985 as a manufacturing engineer and has held positions of increasing responsibility since that time, including Vice President, Global Operations, from 2007 to 2014, and Chief Operating Officer from 2014 until assuming his current position in 2017.

Meenal A. Sethna, Executive Vice President and Chief Financial Officer. Ms. Sethna joined Littelfuse in 2015 as Senior Vice President of Finance until assuming her current position in 2016. Prior to joining Littelfuse, Ms. Sethna served from 2011 to 2015 as Vice President and Corporate Controller of Illinois Tool Works Inc., a diversified manufacturer of specialized industrial equipment, consumables, and related service businesses. Ms. Sethna is a Certified Public Accountant in Illinois.

Ryan K. Stafford, Executive Vice President, Chief Legal and Human Resources Officer and Corporate Secretary. Mr. Stafford joined Littelfuse as its first General Counsel in 2007 and became Corporate Secretary in 2017. Prior to joining Littelfuse, Mr. Stafford served in a number of roles at Tyco International Ltd., including Vice President of China Operations and Vice President & General Counsel for its Engineered Products & Services Business Segment.

Matthew J. Cole, Senior Vice President, Business Development and Strategy. Mr. Cole joined Littelfuse in 2015 as Senior Vice President and General Manager, Industrial Business Unit, and held that position until assuming his current position in February 2019. Prior to joining Littelfuse, Mr. Cole served from 2009 to 2015 as Vice President and General Manager of the Advanced Measurement Technology division of AMETEK, a global leader in electronic instruments and electromechanical devices.

84

Alexander Conrad, Senior Vice President and General Manager, Passenger Vehicle Business. Mr. Conrad joined Littelfuse in 2005 as Sales Manager, Germany & Eastern Europe. He then held various positions of increasing responsibility at Littelfuse including Sales Director EMEA; Global Director of Sales; Managing Director, Passenger Car Products from 2013 to 2014; and Vice President, Passenger Car Products, from 2015 until assuming his current position in July 2018.

Ian Highley, Senior Vice President and General Manager, Semiconductor Products and Chief Technology Officer. He joined Littelfuse in 2002 as Product Line Director, Semiconductor Products. Mr. Highley then held various positions of increasing responsibility at Littelfuse including General Manager, Semiconductor Products, and from 2012 until assuming his current position in 2015, Vice President and General Manager, Semiconductor Products.

Deepak Nayar, Senior Vice President and General Manager, Electronics and Industrial Business. Mr. Nayar joined Littelfuse in 2005 as Business Line Director of the Electronics Business Unit. He then held various positions of increasing responsibility at Littelfuse including Vice President, Global Sales, Electronics Business Unit, and from 2011 until assuming his current position in February 2019, Senior Vice President, Electronics Business Unit.

Michael P. Rutz, Senior Vice President and General Manager, Semiconductor Products. He shares this role with Mr. Highley. Mr. Rutz joined Littelfuse in 2014 as Vice President of Supply Chain and Operational Excellence. Mr. Rutz then served as Senior Vice President of Global Operations from 2015 until assuming his current position in February 2019. Prior to joining Littelfuse, Mr. Rutz served from 2011 to 2014 as Senior Vice President Global Supply Chain at WMS Industries Inc., a Chicago-based manufacturer of equipment and software for the gaming industry. 

Code of Ethics

The company has adopted a Code of Conduct (Code of Ethics) that applies to all of the Company’s employees including the Company’s Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer and persons performing similar functions. It has posted the text of the Code of Conduct on its website at http://investor.littelfuse.com/governance.cfm and intends to disclose on such website any amendments to, or waivers from the Code of Conduct. The company’s website is not incorporated by reference into this Annual Report.

ITEM 11. EXECUTIVE COMPENSATION.

Information concerning compensation of the Company’s executive officers and directors for the fiscal year ended December 29, 2018, is set forth in the sections titled “Compensation Discussion & Analysis,” “Compensation Tables” and “Director Compensation” in the Company’s proxy statement and is incorporated herein by reference, except the section titled “Compensation Committee Report” is hereby “furnished” and not “filed” with this Annual Report on Form 10-K.

Information concerning compensation committee interlocks is set forth in the section titled “Compensation Committee Interlocks and Insider Participation” in the Company’s proxy statement and is incorporated herein by reference.

85

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

Information concerning the security ownership of certain beneficial owners, the Company’s directors and executive officers as of March1, 2019, is set forth in the section titled “Ownership of Littelfuse, Inc. Common Stock” in the Company’s proxy statement and is incorporated herein by reference.

Information concerning the Company’s equity compensation plans are set forth in the section titled “Compensation Plan Information” in the Company’s proxy statement and is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE.

Information concerning the independence of the Company’s directors, certain relationships and related transactions during 2018 and the Company’s policies with respect to such transactions is set forth in the sections titled "Director Independence; Financial Experts", “Related Person Transaction Policy” and “Related Party Transactions” in the Company’s proxy statement and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

Information concerning principal accountant fees and services is set forth in the section titled “Audit Related Matters” in the Company’s proxy statement and is incorporated herein by reference.

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PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a)Financial Statements and Schedules

			Page
1.	The following Financial Statements are filed as a part of this report:
	i.	Reports of Independent Registered Public Accounting Firms	36 - 37
	ii.	Consolidated Balance Sheets as of December 29, 2018 and December 30, 2017	38
	iii.	Consolidated Statements of Net Income for the fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016	39
	vi.	Consolidated Statements of Comprehensive Income for the fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016	40
	v.	Consolidated Statements of Cash Flows for the fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016	41
	vi.	Consolidated Statements of Equity for the fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016	42
	vii.	Notes to Consolidated Financial Statements	43 - 82
2.	The following Financial Statement Schedule is submitted herewith for the periods indicated therein.
	i.	Schedule II - Valuation and Qualifying Accounts and Reserves	88
All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and, therefore, have been omitted.
3.	Exhibits. See Exhibit Index		90

Item 16.FORM 10-K SUMMARY

None.

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SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

Description	Balance at Beginning of Year		Charged to Costs and Expenses (a)		Deductions (b)			Other (c)		Balance at End of Year
(inthousands)
Fiscal year ended December 29, 2018
Allowance for losses on accounts receivable	$	1,172	$	319	$	(557	)	$	128	$	1,062
Reserves for sales discounts and allowances	$	26,344	$	124,638	$	(118,438	)	$	2,432	$	34,976
Fiscal year ended December 30, 2017
Allowance for losses on accounts receivable	$	2,079	$	3,068	$	(4,070	)	$	95	$	1,172
Reserves for sales discounts and allowances	$	23,825	$	106,781	$	(104,941	)	$	679	$	26,344
Fiscal year ended December 31, 2016
Allowance for losses on accounts receivable	$	319	$	1,769	$	(42	)	$	33	$	2,079
Reserves for sales discounts and allowances	$	17,168	$	91,632	$	(90,837	)	$	5,862	$	23,825

(a) Includes provision for doubtful accounts, sales returns and sales discounts granted to customers.

(b) Represents uncollectible accounts written off, net of recoveries and credits issued to customers.

(c) Represents business acquisitions and foreign currency translation adjustments.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Littelfuse, Inc.

By: /s/ David W. Heinzmann

David W. Heinzmann,

President and Chief Executive Officer  

Date: February 22, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant on February 22, 2019 and in the capacities indicated.

/s/ Gordon Hunter	Chairman of the Board of Directors
Gordon Hunter
/s/ David W. Heinzmann	Director, President and Chief Executive Officer
David W. Heinzmann	(Principal Executive Officer)
/s/ Kristina A. Cerniglia	Director
Kristina A. Cerniglia
/s/ Tzau-Jin Chung	Director
Tzau-Jin Chung
/s/ Cary T. Fu	Director
Cary T. Fu
/s/ Anthony Grillo	Director
Anthony Grillo
/s/ John E. Major	Director
John E. Major
/s/ William P. Noglows	Director
William P. Noglows
/s/ Ronald L. Schubel	Director
Ronald L. Schubel
/s/ Nathan Zommer	Director
Nathan Zommer
/s/ Meenal A. Sethna	Executive Vice President and Chief Financial Officer
Meenal A. Sethna	(Principal Financial Officer)
/s/ Jeffrey G. Gorski	Corporate Controller and Chief Accounting Officer
Jeffrey G. Gorski	(Principal Accounting Officer)

89

EXHIBIT INDEX

The following documents listed below that have been previously filed with the SEC (1934 Act File No. 0-20388) are incorporated herein by reference:

		Incorporated by Reference Herein
Exhibit No.	Description	Form	Exhibit	Filing Date	File No.
2.1+	Stock Purchase Agreement, dated as of April 15, 2013, by and among Littelfuse, Inc. and Key Safety Systems, Inc.	8-K	2.1	4/15/2013	0-20388
2.2+	Stock and Asset Purchase Agreement, dated November 7, 2015, by and between Littelfuse, Inc. and TE Connectivity Ltd.	8-K	2.1	11/12/2015	0-20388
2.3+	Agreement and Plan of Merger, dated August 25, 2017, as amended by Amendment No. 1, dated December 4, 2017, by and among IXYS Corporation, Littelfuse, Inc., Iron Merger Co., Inc., and IXYS Merger Co., LLC.	S-4/A	Annex A	12/11/2017	333-22114
3.1	Certificate of Incorporation dated November 25, 1991, as amended April 25, 1997.	10-K	3.1	2/27/2017	0-20388
3.2	Certificate of Designations of Series A Preferred Stock.	8-K	4.2	12/1/1995	0-20388
3.3	Bylaws, as amended and restated January 24, 2019.	8-K	3.1	1/25/2019	0-20388
10.1	Form of Non-Qualified Stock Option Agreement under the 1993 Stock Plan for Employees and Directors of Littelfuse, Inc. for employees.++	8-K	99.1	11/12/2004	0-20388
10.2	Form of Non-Qualified Stock Option Agreement under the 1993 Stock Plan for Employees and Directors of Littelfuse, Inc., for non-employee directors. ++	10-K	10.24	3/17/2005	0-20388
10.3	Form of Non-Qualified Stock Option Agreement under the Littelfuse, Inc. Equity Incentive Compensation Plan. ++	8-K	99.4	5/11/2006	0-20388
10.4	Form of Non-Qualified Stock Option Agreement under the Littelfuse, Inc. Outside Directors Stock Option Plan.++	8-K	99.6	5/11/2006	0-20388
10.5	Amended and Restated Employment Agreement dated as of December 31, 2007, between Littelfuse, Inc. and Gordon Hunter .++	10-K	10.1	2/27/2008	0-20388
10.6	Littelfuse, Inc. Retirement Plan as Amended and Restated, effective January 1, 2008 .++	10-K	10.13	2/27/2008	0-20388
10.7	Form of Stock Option Award Agreement under the Littelfuse, Inc. Outside Directors' Equity Plan.++	8-K	99.3	5/1/2008	0-20388
10.8	Form of Restricted Stock Unit Award Agreement under the Littelfuse, Inc. Outside Directors' Equity Plan.++	8-K	99.4	5/1/2008	0-20388
10.9	Amended and Restated, Littelfuse, Inc. Deferred Compensation Plan for Non-Employee Directors.++	10-K	10.4	2/27/2008	0-20388
10.10	Form of Restricted Stock Award Agreement under the Littelfuse, Inc. Equity Incentive Compensation Plan .++	8-K	10.1	4/28/2009	0-20388
10.11	Form of Stock Option Award Agreement under the Littelfuse, Inc. Equity Incentive Compensation Plan .++	8-K	10.2	4/28/2009	0-20388

90

		Incorporated by Reference Herein
Exhibit No.	Description	Form	Exhibit	Filing Date	File No.
10.12	First Amendment to the Amended and Restated Littelfuse, Inc. Retirement Plan, effective March 25, 2009.++	10-K	10.30	2/26/2010	0-20388
10.13	Littelfuse, Inc. Long-Term Incentive Plan, effective February 3, 2010.++	8-K	10.1	5/5/2010	0-20388
10.14	Form of Restricted Stock Unit Award Agreement (Outside Director) under the Littelfuse, Inc. Long-Term Incentive Plan.++	S-8	4.4	5/19/2010	0-20388
10.15	Form of Stock Option Award Agreement under the Littelfuse, Inc. Long-Term Incentive Plan.++	S-8	4.6	5/19/2010	0-20388
10.16	First Amendment to the Littelfuse, Inc. Long-Term Incentive Plan, effective July 27, 2012.++	10-K	10.36	2/27/2013	0-20388
10.17	Credit Agreement, dated as of May 31, 2013, among Littelfuse, Inc., as borrower, JPMorgan Chase Bank, N.A. as Agent, Bank of America, N.A., as Syndication Agent, Wells Fargo Bank, National Association and PNC Bank, National Association, as Co-Documentation Agents, J.P. Morgan Securities LLC, as Sole Bookrunner and Joint Lead Arranger, and Merrill, Lynch, Pierce, Fenner & Smith Incorporated, as Joint Lead Arranger.	8-K	10.1	6/5/2013	0-20388
10.18	Master Increasing Lender Supplement, dated as of January 30, 2014, among Littelfuse, Inc., as borrower, JPMorgan Chase Bank, N.A. as Administrative Agent, and each of the banks, financial institutions and other institutional lenders listed on the respective signature pages thereof.	8-K	10.1	2/4/2014	0-20388
10.19	Littelfuse, Inc. Annual Incentive Plan, effective January 1, 2014. ++	DEF14A	A	3/17/2014	0-20388
10.20	Amended and Restated Employment Agreement, effective as of January 1, 2014, between Littelfuse Europe GmbH and Dieter Roeder .++	10-Q	10.2	5/2/2014	0-20388
10.21	Change of Control Agreement effective as of February 10, 2014, between Littelfuse, Inc. and Michael Rutz.++	10-Q	10.1	5/2/2014	0-20388
10.22	Termination Amendment to the Littelfuse, Inc. Retirement Plan, effective July 31, 2014. ++	10-Q	10.1	10/31/2014	0-20388
10.23	Change of Control Agreement effective as of January 1, 2015, between Littelfuse, Inc. and Gordon Hunter.++	8-K	10.1	12/22/2014	0-20388
10.24	Change of Control Agreement effective as of January 1, 2015, between Littelfuse, Inc. and Philip G. Franklin.++	8-K	10.2	12/22/2014	0-20388
10.25	Change of Control Agreement effective as of January 1, 2015, between Littelfuse, Inc. and Dieter Roeder.++	8-K	10.4	12/22/2014	0-20388
10.26	Change of Control Agreement effective as of January 1, 2015, between Littelfuse, Inc. and Ryan K. Stafford.++	8-K	10.5	12/22/2014	0-20388
10.27	Change of Control Agreement effective as of January 1, 2015, between Littelfuse, Inc. and Ian Highley.++	10-K	10.11	2/24/2015	0-20388

91

		Incorporated by Reference Herein
Exhibit No.	Description	Form	Exhibit	Filing Date	File No.
10.28	Change of Control Agreement effective as of January 1, 2015, between Littelfuse, Inc. and Deepak Nayar.++	10-K	10.12	2/24/2015	0-20388
10.29	Amendment No. 1, dated as of May 2, 2014, to Credit Agreement, dated as of May 30, 2013, by and among Littelfuse, Inc., as borrower, JPMorgan Chase Bank, N.A. as Agent, and each of the banks, financial institutions listed on the respective signature pages thereof.	10-K	10.47	2/24/2015	0-20388
10.30	Amendment No. 2, dated as of January 14, 2015, to Credit Agreement, dated as of May 31, 2013, by and among Littelfuse, Inc., as borrower, JPMorgan Chase Bank, N.A. as Agent, and each of the banks, financial institutions listed on the respective signature pages thereof.	10-K	10.48	2/24/2015	0-20388
10.31	Form of Restricted Stock Unit Award Agreement (Executive) under the Littelfuse, Inc. Long-Term Incentive Plan.++	10-Q	10.2	7/31/2015	0-20388
10.32	Form of Restricted Stock Unit Award Agreement (Tier II Management) under the Littelfuse, Inc. Long-Term Incentive Plan.++	10-Q	10.3	7/31/2015	0-20388
10.33	Amendment No. 3, dated as of May 4, 2015, to Credit Agreement, dated as of May 31, 2013, by and among Littelfuse, Inc., as borrower, JPMorgan Chase Bank, N.A., as Agent, and each of the banks, financial institutions listed on the respective signature pages thereof.	10-Q	10.1	7/31/2015	0-20388
10.34	Change of Control Agreement effective as of February 1, 2016, between Littelfuse, Inc. and Meenal A. Sethna. ++	8-K	10.1	2/3/2016	0-20388
10.35	Change of Control Agreement effective as of May 26, 2015 between Littelfuse, Inc. and Matt Cole.++	10-K	10.13	3/1/2016	0-20388
10.36	Credit Agreement, dated as of March 4, 2016 among Littelfuse, Inc. and Certain Subsidiaries as borrowers, Guarantors party thereto, Bank of America, N.A. as Agent, Swing Line Lender and L/C Issuer and JPMorgan Chase Bank, N.A. as Syndication Agent, BMO Harris Bank, N.A., PNC Bank, National Association and Wells Fargo Bank, National Association as Co-Documentation Agents, Merril, Lynch, Pierce, Fenner & Smith Incorporated, as Sole Bookrunner and Joint Lead Arranger and JPMorgan Chase Bank, N.A., as Joint Lead Arranger.	8-K	10.1	3/10/2016	0-20388
10.37	Form of Stock Option Award Agreement (Executive) under the Littelfuse, Inc. Long-Term Incentive Plan. ++	10-Q	10.3	5/6/2016	0-20388
10.38	Form of Stock Option Award Agreement (Outside Director – 2016 Grant) under the Littelfuse, Inc. Long-Term Incentive Plan. ++	10-Q	10.4	5/6/2016	0-20388
10.39	Form of Restricted Stock Unit Award Agreement (Executive) under the Littelfuse, Inc. Long-Term Incentive Plan. ++	10-Q	10.5	5/6/2016	0-20388

92

		Incorporated by Reference Herein
Exhibit No.	Description	Form	Exhibit	Filing Date	File No.
10.40	Form of Restricted Stock Unit Award Agreement (Tier II Management) under the Littelfuse, Inc. Long-Term Incentive Plan. ++	10-Q	10.6	5/6/2016	0-20388
10.41	Form of Restricted Stock Unit Award Agreement (Outside Director – 2016 Grant) under the Littelfuse, Inc. Long-Term Incentive Plan. ++	10-Q	10.7	5/6/2016	0-20388
10.42	Form of Restricted Stock Unit Award Agreement (Executive) under the Littelfuse Inc. Long-Term Incentive Plan. ++	8-K	10.1	7/26/2016	0-20388
10.43	Executive Retirement Agreement entered into between Littelfuse, Inc. and Gordon Hunter, effective January 1, 2017. ++	8-K	10.1	11/16/2016	0-20388
10.44	Letter Agreement entered into between Littelfuse, Inc. and David W. Heinzmann. Effective January 1, 2017. ++	8-K	10.2	11/16/2016	0-20388
10.45	Change of Control Agreement effective as of January 1, 2017, between Littelfuse, Inc. and David W. Heinzmann. ++	8-K	10.3	11/16/2016	0-20388
10.46	Littelfuse, Inc. 3.03% Senior Note, Series A, due February 15, 2022, and 3.74% Senior Note, Series B, due February 15, 2027 Note Purchase Agreement.	8-K	10.1	12/9/2016	0-20388
10.47	Littelfuse, Netherland C.V. 1.14% Senior Note, Series A, due December 8, 2023, and 1.83% Senior Note, Series B, due December 8, 2028 Note Purchase Agreement.	8-K	10.2	12/9/2016	0-20388
10.48	Subsidiary Guaranty Agreement, dated December 8, 2016.	8-K	10.4	12/9/2016	0-20388
10.49	Subsidiary Guaranty Agreement, dated as of February 15, 2017.	8-K	10.2	2/15/2017	0-20388
10.50	Restated Littelfuse, Inc. Supplemental Retirement and Savings Plan, effective January 1, 2017. ++	10-K	10.50	2/27/2017	0-20388
10.51	Amended and Restated Littelfuse, Inc. 401(k) Retirement and Savings Plan, effective January 1, 2017.++	10-K	10.51	2/27/2017	0-20388
10.52	Amended and Restated Littelfuse, Inc. Long-Term Incentive Plan. ++	8-K	10.1	5/1/2017	0-20388
10.53	Form of 2017 Restricted Stock Unit Award Agreement. ++	8-K	10.2	5/1/2017	0-20388
10.54	Form of 2017 Stock Option Award Agreement. ++	8-K	10.3	5/1/2017	0-20388
10.55	Amended and Restated Employment Agreement, effective as of April 18, 2017, between Littelfuse, Inc. and Dieter Roeder. ++	10-Q	10.1	8/2/2017	0-20388
10.56	Employment offer letter between Littelfuse, Inc. and Jeffrey Gorski, dated June 28, 2017. ++	8-K	10.1	8/14/2017	0-20388

93

		Incorporated by Reference Herein
Exhibit No.	Description	Form	Exhibit	Filing Date	File No.
10.57	Form of Change of Control Agreement (J. Gorski). ++	8-K	10.2	8/14/2017	0-20388
10.58	First Amendment to Credit Agreement, dated as of November 1, 2016, among Littelfuse, Inc., certain subsidiaries of the company, as designated borrowers, certain subsidiaries of the company, as guarantors, the lenders party thereto and Bank of America, N.A., as agent.	8-K	10.1	10/16/2017	0-20388
10.59	Second Amendment to Credit Agreement, dated as of October 13. 2017, among Littelfuse, Inc., certain subsidiaries of the company, as designated borrowers, certain subsidiaries of the company, as guarantors, the lenders party thereto and Bank of America, N.A., as agent.	8-K	10.2	10/16/2017	0-20388
10.60	Joinder Agreement, dated as of October 13, 2017, by and between Iron Merger Co., Inc. and Bank of America, N.A., as agent.	8-K	10.3	10/16/2017	0-20388
10.61	Joinder Agreement, dated as of October 13, 2017, by and between IXYS Merger Co., LLC and Bank of America, N.A., as agent.	8-K	10.4	10/16/2017	0-20388
10.62	U.S. Subsidiary Guarantor Supplement, dated as of October 13, 2017, made by Iron Merger Co., Inc. in favor of the note purchasers and the other holders.	8-K	10.5	10/16/2017	0-20388
10.63	U.S. Subsidiary Guarantor Supplement, dated as of October 13, 2017, made by IXYS Merger Co., LLC in favor of the note purchasers and the other holders.	8-K	10.6	10/16/2017	0-20388
10.64	Cross Border Subsidiary Guarantor Supplement, dated as of October 13, 2017, made by Iron Merger Co., Inc. in favor of the note purchasers and the other holders.	8-K	10.7	10/16/2017	0-20388
10.65	Cross Border Subsidiary Guarantor Supplement, dated as of October 13, 2017, made by IXYS Merger Co., LLC in favor of the note purchasers and the other holders.	8-K	10.8	10/16/2017	0-20388
10.66	Note Purchase Agreement, dated November 15, 2017, among Littelfuse, Inc. and note purchasers listed on the signature pages thereto.	8-K	10.1	11/15/2017	0-20388
10.67	Form of 3.78% Senior Note, Series B, due February 15, 2030.	8-K	4.2	11/15/2017	0-20388
10.68	Form of 3.48% Senior Note, Series A, due February 15, 2025,	8-K	4.1	11/15/2017	0-20388
10.69	Subsidiary Guaranty Agreement, dated as of January 16, 2018, made by LFUS LLC, Littelfuse Commercial Vehicle, LLC, Iron Merger Co., Inc., IXYS Merger Co., LLC and SymCom, Inc. in favor of the note purchasers and the other holders.	8-K	10.2	1/18/2018	0-20388
10.70	Seventh Amended and Restated Employment Agreement, dated as of August 25, 2017, by and between IXYS Corporation and Nathan Zommer. ++	8-K	10.3	1/18/2018	0-20388
10.71	Littelfuse, Inc. Executive Severance Policy. ++	8-K	10.4	1/18/2018	0-20388

94

		Incorporated by Reference Herein
Exhibit No.	Description	Form	Exhibit	Filing Date	File No.
10.72	Form of Tier I Change of Control Agreement.++	8-K	10.1	1/23/2018	0-20388
10.73	First Amendment to Littelfuse Deferred Compensation Plan for Non-Employee Directors, effective as of January 1, 2008.++	10-K	10.73	02/23/2018	0-20388
10.74	Second Amendment to the Littelfuse Deferred Compensation Plan for Non-Employee Directors, effective as of October 25, 2013.++	10-K	10.74	02/23/2018	0-20388
10.75	First Amendment to the Littelfuse, Inc. 401(K) Retirement and Savings Plan, effective January 1, 2018.++	10-K	10.75	02/23/2018	0-20388
10.76	Altra In-Plan Roth Rollover Amendment to the Littelfuse, Inc. 401(K) Retirement and Savings Plan, effective as of February 1, 2018.++	10-K	10.76	02/23/2018	0-20388
10.77	Form of Indemnity Agreement by and between Nathan Zommer and IXYS Corporation,++	10-K	10.3	6/12/2008	000-26124
10.78	IXYS Corporation 1999 Equity Incentive Plan, as amended.++	S-8	4.3	1/19/2018	333-221147
10.79	IXYS Corporation 2009 Equity Incentive Plan++	S-8	4.4	1/19/2018	333-221147
10.80	IXYS Corporation 2011 Equity Incentive Plan++	S-8	4.5	1/19/2018	333-221147
10.81	IXYS Corporation 2013 Equity Incentive Plan++	S-8	4.6	1/19/2018	333-221147
10.82	IXYS Corporation 2016 Equity Incentive Plan++	S-8	4.7	1/19/2018	333-221147
10.83	Zilog, Inc. 2002 Omnibus Stock Incentive Plan++	S-8	4.8	1/19/2018	333-221147
10.84	Zilog, Inc. 2004 Omnibus Stock Incentive Plan++	S-8	4.9	1/19/2018	333-221147
10.85	Form of Stock Option Agreement for the IXYS Corporation 1999 Equity Incentive Plan++	10-Q	10.3	11/9/2004	000-26124
10.86	Form of Stock Option Agreement for the IXYS Corporation 1999 Equity Incentive Plan with net exercise provision.++	10-K	10.23	6/22/2006	000-26124
10.87	Form of Stock Option Agreement for the IXYS Corporation 1999 Equity Incentive Plan for non-employee directors++	10-K	10.24	6/22/2006	000-26124
10.88	Notice of Stock Option Grant and Agreement for the IXYS Corporation 2009 Equity Incentive Plan++	10-Q	10.4	8/10/2009	000-26124
10.89	Form of Nonqualified Stock Option Agreement for Stock Options pursuant to the Zilog, Inc. 2002 Omnibus Stock Incentive Plan++	10-K	10.26	6/11/2010	000-26124

95

		Incorporated by Reference Herein
Exhibit No.	Description	Form	Exhibit	Filing Date	File No.
10.90	Form of Nonqualified Stock Option Agreement for Stock Options pursuant to the Zilog, Inc. 2004 Omnibus Stock Incentive Plan++	10-K	10.28	6/11/2010	000-26124
10.91	Notice of Stock Option Grant and Agreement for IXYS Corporation 2011 Equity Incentive Plan++	10-Q	10.2	8/5/2011	000-26124
10.92	Notice of Stock Option Grant and Agreement for IXYS Corporation 2013 Equity Incentive Plan++	10-Q	10.6	8/9/2013	000-26124
10.93	Notice of Stock Option Grant and Agreement for IXYS Corporation 2016 Equity Incentive Plan++	10-Q	10.1	11/3/2016	000-26124
10.94	Joinder Agreement, dated as of March 14, 2018, by and between Clare Capital, Inc., Clare Components, Inc., Clare Electronics, Inc., Clare Instruments, Inc., Clare Services, Inc., Clare Technologies, Inc., Directed Energy, Inc., IXYS Buckeye, LLC, IXYS Integrated Circuits Division AV Inc., IXYS Integrated Circuits Divisions Inc., IXYS Long Beach, Inc., IXYS USA, Inc., Microwave Technology, Inc., Pele Technology, Inc., Reaction Technology Incorporation, Zilog, Inc., and Bank of America, N.A., as agent.	10-Q	10.1	05/02/2018	0-20388
10.95	U.S. Subsidiary Guarantor Supplement, dated as of March 14, 2018, made by Clare Capital, Inc., Clare Components, Inc., Clare Electronics, Inc., Clare Instruments, Inc., Clare Services, Inc., Clare Technologies, Inc., Directed Energy, Inc., IXYS Buckeye, LLC, IXYS Integrated Circuits Division AV Inc., IXYS Integrated Circuits Divisions Inc., IXYS Long Beach, Inc., IXYS USA, Inc., Microwave Technology, Inc., Pele Technology, Inc., Reaction Technology Incorporation and Zilog, Inc. in favor of the note purchasers and the other holders.	10-Q	10.2	05/02/2018	0-20388
10.96	Cross Border Subsidiary Guarantor Supplement, dated as of March 14, 2018, made by Clare Capital, Inc., Clare Components, Inc., Clare Electronics, Inc., Clare Instruments, Inc., Clare Services, Inc., Clare Technologies, Inc., Directed Energy, Inc., IXYS Buckeye, LLC, IXYS Integrated Circuits Division AV Inc., IXYS Integrated Circuits Divisions Inc., IXYS Long Beach, Inc., IXYS USA, Inc., Microwave Technology, Inc., Pele Technology, Inc., Reaction Technology Incorporation and Zilog, Inc. in favor of the note purchasers and the other holders.	10-Q	10.3	05/02/2018	0-20388
10.97	Note Purchase Agreement Subsidiary Guarantor Supplement, dated as of March 14, 2018, made by Clare Capital, Inc., Clare Components, Inc., Clare Electronics, Inc., Clare Instruments, Inc., Clare Services, Inc., Clare Technologies, Inc., Directed Energy, Inc., IXYS Buckeye, LLC, IXYS Integrated Circuits Division AV Inc., IXYS Integrated Circuits Divisions Inc., IXYS Long Beach, Inc., IXYS USA, Inc., Microwave Technology, Inc., Pele Technology, Inc., Reaction Technology Incorporation and Zilog, Inc. in favor of the note purchasers and the other holders.	10-Q	10.4	05/02/2018	0-20388
10.98	Consulting Agreement between Nathan Zommer and Littelfuse, Inc., effective August 1, 2018.	10-Q	10.1	10/31/2018	0-20388
10.99	Joinder Agreement, dated as of August 22, 2018, by and between Reaction Technology Epi, LLC and Reaction Tech RE, LLC and Bank of America, N.A., as agent.	10-Q	10.2	10/31/2018	0-20388

96

10.100	U.S. Subsidiary Guarantor Supplement, dated as of August 22, 2018, made by Reaction Technology Epi, LLC and Reaction Tech RE, LLC in favor of the note purchasers and the other holders.	10-Q	10.3	10/31/2018	0-20388
10.101	Cross Border Subsidiary Guarantor Supplement, dated as of August 22, 2018, made by Reaction Technology Epi, LLC and Reaction Tech RE, LLC in favor of the note purchasers and the other holders.	10-Q	10.4	10/31/2018	0-20388
10.102	Note Purchase Agreement Subsidiary Guarantor Supplement, dated as of August 22, 2018, made by Reaction Technology Epi, LLC and Reaction Tech RE, LLC in favor of the note purchasers and the other holders.	10-Q	10.5	10/31/2018	0-20388
10.103*	Joinder Agreement, dated as of October 22, 2018, by and between each of (i) Littelfuse International Holding, LLC, (ii) Littelfuse Holding, LLC and (iii) Monolith Semiconductor Inc. and Bank of America, N.A., as agent.
10.104*	U.S. Subsidiary Guarantor Supplement, dated as of October 22, 2018, made by Littelfuse International Holding, LLC, Littelfuse Holding, LLC and Monolith Semiconductor, Inc. in favor of the note purchasers and the other holders.
10.105*	U.S. (November 2017) Subsidiary Guarantor Supplement, dated as of October 22, 2018, made by Littelfuse International Holding, LLC, Littelfuse Holding, LLC and Monolith Semiconductor, Inc. in favor of the note purchasers and the other holders.
10.106*	Cross Border Assumption Agreement, dated as of October 3, 2018, made by each of New Dutch B.V. and IXYS Dutch B.V. in favor of the note purchasers and the other holders.
10.107*	Cross Border Subsidiary Guarantor Supplement, dated as of October 22, 2018, made by Littelfuse International Holding, LLC, Littelfuse Holding, LLC and Monolith Semiconductor, Inc. in favor of the note purchasers and the other holders.
10.108*	Summary of Non-Employee Director Compensation.++
21.1*	Subsidiaries.
23.1*	Consent of Independent Registered Public Accounting Firm.
31.1*	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+++	Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.

97

* Filed with this Report.

+ Exhibits and schedules omitted pursuant to Item 601(b)(2) of Regulation S-K. Littelfuse agrees to furnish a supplemental copy of an omitted exhibit or schedule to the SEC upon request.

++ Management contract or compensatory plan or arrangement.

+++ Furnished with this Report.

98

EX-10.103

JOINDER AGREEMENT THIS JOINDER AGREEMENT (the “Agreement”), dated as of October 22, 2018, is by and between (i) each of LITTELFUSE INTERNATIONAL HOLDING, LLC, a Delaware limited liability company, LITTELFUSE HOLDING, LLC, a Delaware limited liability company, and MONOLITH SEMICONDUCTOR INC., a Delaware corporation (each, a “Subsidiary”), and (ii) BANK OF AMERICA, N.A., in its capacity as Agent under that certain Credit Agreement (as it may be amended, modified, restated or supplemented from time to time, the “Credit Agreement”), dated as of March 4, 2016, by and among Littelfuse, Inc., a Delaware corporation, the Designated Borrowers, the Guarantors, the Lenders, and Bank of America, N.A., as Agent. All of the defined terms in the Credit Agreement are incorporated herein by reference. The Loan Parties are required by Section 6.12 of the Credit Agreement to cause each Subsidiary to become a “Guarantor”. Accordingly, each Subsidiary hereby agrees as follows with the Agent, for the benefit of the Lenders: 1. The Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the Subsidiary will be deemed to be a party to the Credit Agreement and a “Guarantor” for all purposes of the Credit Agreement, and shall have all of the obligations of a Guarantor thereunder as if it had executed the Credit Agreement. The Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions applicable to the Guarantors contained in the Credit Agreement. Without limiting the generality of the foregoing terms of this paragraph 1, the Subsidiary hereby jointly and severally together with the other Guarantors, guarantees to each Lender and the Agent, as provided in Article XI of the Credit Agreement, the prompt payment of the Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, a mandatory cash collateralization or otherwise) strictly in accordance with the terms thereof. 2. The address of the Subsidiary for purposes of all notices and other communications is c/o Littelfuse, Inc., 8755 W. Higgins Road, Chicago, Illinois 60631, Attention: Assistant Treasurer (Facsimile No. 847-512-0340). 3. The Subsidiary hereby waives acceptance by the Agent and the Lenders of the guaranty by the Subsidiary under Article XI of the Credit Agreement upon the execution of this Agreement by the Subsidiary. 4. This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute one contract. 5. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of New York. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, each Subsidiary has caused this Agreement to be duly executed by its authorized officer, and the Agent, for the benefit of the Lenders, has caused the same to be accepted by its authorized officer, as of the day and year first above written. LITTELFUSE INTERNATIONAL HOLDING, LLC By: /s/ Ryan K. Stafford Name: Ryan K. Stafford Title: Manager LITTELFUSE HOLDING, LLC By: /s/ Ryan K. Stafford Name: Ryan K. Stafford Title: Manager MONOLITH SEMICONDUCTOR INC. By: /s/ Hans Weinburger Name: Hans Weinburger Title: Assistant Secretary Acknowledged and accepted: BANK OF AMERICA, N.A., as Agent By:/s/ Melissa Mullis Name: Melissa Mullis Title: Assistant Vice President JOINDER AGREEMENT

Schedule 1 TO JOINDER AGREEMENT

EX-10.104

SUBSIDIARY GUARANTOR SUPPLEMENT THIS SUBSIDIARY GUARANTOR SUPPLEMENT (the “Subsidiary Guarantor Supplement”), dated as of October 22, 2018 is made by each of LITTELFUSE INTERNATIONAL HOLDING, LLC, a Delaware limited liability company, LITTELFUSE HOLDING, LLC, a Delaware limited liability company, and MONOLITH SEMICONDUCTOR INC., a Delaware corporation (each, an “Additional Subsidiary Guarantor”), in favor of the holders from time to time of the Notes issued pursuant to the Note Agreement described below: PRELIMINARY STATEMENTS: I. Pursuant to the Note Purchase Agreement dated as of December 8, 2016 (as amended, modified, supplemented or restated from time to time, the “Note Agreement”), by and among LITTELFUSE, INC., a Delaware corporation (together with any successor thereto that becomes a party to the Note Agreement pursuant to Section 10.2, the “Company”) and the Persons listed on the signature pages thereto (the “Purchasers”), the Company has issued and sold (i) $25,000,000 aggregate principal amount of its 3.03% Senior Notes, Series A, due February 15, 2022 (the “Series A Notes”) and (ii) $100,000,000 aggregate principal amount of its 3.74% Senior Notes, Series B, due February 15, 2027 (the “Series B Notes” and together with the Series A Notes as amended, restated or otherwise modified from time to time and including any such notes issued in substitution therefor, the “Notes” and individually a “Note”). II. The Company is required pursuant to the Note Agreement to cause each Additional Subsidiary Guarantor to deliver this Subsidiary Guarantor Supplement in order to cause each Additional Subsidiary Guarantor to become a Subsidiary Guarantor under the Subsidiary Guaranty Agreement dated as of February 15, 2017 executed by certain Subsidiaries of the Company (together with each entity that from time to time becomes a party thereto by executing a Subsidiary Guarantor Supplement pursuant to Section 14.1 thereof, collectively, the “Subsidiary Guarantors”) in favor of each holder from time to time of any of the Notes (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Subsidiary Guaranty Agreement”). III. Each Additional Subsidiary Guarantor has received and will receive substantial direct and indirect benefits from the Company’s compliance with the terms and conditions of the Note Agreement and the Notes issued thereunder. IV. Capitalized terms used and not otherwise defined herein have the definitions set forth in the Note Agreement. Now therefore, in consideration of the funds advanced to the Company by the Purchasers under the Note Agreement and to enable the Company to comply with the terms of the Note Agreement, each Additional Subsidiary Guarantor hereby covenants, represents and warrants to the holders as follows: 4833-2142-8856.2

The Additional Subsidiary Guarantor hereby becomes a Subsidiary Guarantor (as defined in the Subsidiary Guaranty Agreement) for all purposes of the Subsidiary Guaranty Agreement. Without limiting the foregoing, the Additional Subsidiary Guarantor hereby (a) jointly and severally with the other Subsidiary Guarantors under the Subsidiary Guaranty Agreement (including the other Additional Subsidiary Guarantors party to this Subsidiary Guarantor Supplement), guarantees to the holders from time to time of the Notes the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) and the full and prompt performance and observance of all Guaranteed Obligations (as defined in Section 1 of the Subsidiary Guaranty Agreement) in the same manner and to the same extent as is provided in the Subsidiary Guaranty Agreement, (b) accepts and agrees to perform and observe all of the covenants set forth therein, (c) waives the rights set forth in Section 3 of the Subsidiary Guaranty Agreement, (d) agrees to perform and observe the covenants contained in Section 8 of the Subsidiary Guaranty Agreement, (e) makes the representations and warranties set forth in Section 9 of the Subsidiary Guaranty Agreement and (f) waives the rights, submits to jurisdiction, and waives service of process as described in Section 14.6 of the Subsidiary Guaranty Agreement. Notice of acceptance of this Subsidiary Guarantor Supplement and of the Subsidiary Guaranty Agreement, as supplemented hereby, is hereby waived by the Additional Subsidiary Guarantor. The address for notices and other communications to be delivered to the Additional Subsidiary Guarantor pursuant to Section 13 of the Subsidiary Guaranty Agreement is set forth on the signature page below. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 4833-2142-8856.2

IN WITNESS WHEREOF, each Additional Subsidiary Guarantor has caused this Subsidiary Guarantor Supplement to be duly executed and delivered as of the date and year first above written. LITTELFUSE INTERNATIONAL HOLDING, LLC By: /s/ Ryan Stafford Name: Ryan Stafford Title: Manager LITTELFUSE HOLDING, LLC By: /s/ Ryan Stafford Name: Ryan Stafford Title: Manager MONOLITH SEMICONDUCTOR INC. By: /s/ Hans Weinburger Name: Hans Weinburger Title: Assistant Secretary Notice Address for each Additional Subsidiary Guarantor: c/o Littelfuse, Inc. Attention: Legal Department 8755 W. Higgins Road, Suite 500 Chicago, IL 60631 SIGNATURE PAGE TO SUBSIDIARY GUARANTOR SUPPLEMENT

EX-10.105

SUBSIDIARY GUARANTOR SUPPLEMENT THIS SUBSIDIARY GUARANTOR SUPPLEMENT (the “Subsidiary Guarantor Supplement”), dated as of October 22, 2018 is made by each of LITTELFUSE INTERNATIONAL HOLDING, LLC, a Delaware limited liability company, LITTELFUSE HOLDING, LLC, a Delaware limited liability company, and MONOLITH SEMICONDUCTOR INC., a Delaware corporation (each, an “Additional Subsidiary Guarantor”), in favor of the holders from time to time of the Notes issued pursuant to the Note Agreement described below: PRELIMINARY STATEMENTS: I. Pursuant to the Note Purchase Agreement dated as of November 15, 2017 (as amended, modified, supplemented or restated from time to time, the “Note Agreement”), by and among LITTELFUSE, INC., a Delaware corporation (together with any successor thereto that becomes a party to the Note Agreement pursuant to Section 10.2, the “Company”) and the Persons listed on the signature pages thereto (the “Purchasers”), the Company has issued and sold (i) $50,000,000 aggregate principal amount of its 3.48% Senior Notes, Series A, due February 15, 2025 (the “Series A Notes”) and (ii) $125,000,000 aggregate principal amount of its 3.78% Senior Notes, Series B, due February 15, 2030 (the “Series B Notes” and together with the Series A Notes as amended, restated or otherwise modified from time to time and including any such notes issued in substitution therefor, the “Notes” and individually a “Note”). II. The Company is required pursuant to the Note Agreement to cause each Additional Subsidiary Guarantor to deliver this Subsidiary Guarantor Supplement in order to cause each Additional Subsidiary Guarantor to become a Subsidiary Guarantor under the Subsidiary Guaranty Agreement dated as of January 16, 2018 executed by certain Subsidiaries of the Company (together with each entity that from time to time becomes a party thereto by executing a Subsidiary Guarantor Supplement pursuant to Section 14.1 thereof, collectively, the “Subsidiary Guarantors”) in favor of each holder from time to time of any of the Notes (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Subsidiary Guaranty Agreement”). III. Each Additional Subsidiary Guarantor has received and will receive substantial direct and indirect benefits from the Company’s compliance with the terms and conditions of the Note Agreement and the Notes issued thereunder. IV. Capitalized terms used and not otherwise defined herein have the definitions set forth in the Note Agreement. Now therefore, in consideration of the funds advanced to the Company by the Purchasers under the Note Agreement and to enable the Company to comply with the terms of the Note Agreement, each Additional Subsidiary Guarantor hereby covenants, represents and warrants to the holders as follows: 4829-7507-1096.1

The Additional Subsidiary Guarantor hereby becomes a Subsidiary Guarantor (as defined in the Subsidiary Guaranty Agreement) for all purposes of the Subsidiary Guaranty Agreement. Without limiting the foregoing, the Additional Subsidiary Guarantor hereby (a) jointly and severally with the other Subsidiary Guarantors under the Subsidiary Guaranty Agreement (including the other Additional Subsidiary Guarantors party to this Subsidiary Guarantor Supplement), guarantees to the holders from time to time of the Notes the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) and the full and prompt performance and observance of all Guaranteed Obligations (as defined in Section 1 of the Subsidiary Guaranty Agreement) in the same manner and to the same extent as is provided in the Subsidiary Guaranty Agreement, (b) accepts and agrees to perform and observe all of the covenants set forth therein, (c) waives the rights set forth in Section 3 of the Subsidiary Guaranty Agreement, (d) agrees to perform and observe the covenants contained in Section 8 of the Subsidiary Guaranty Agreement, (e) makes the representations and warranties set forth in Section 9 of the Subsidiary Guaranty Agreement and (f) waives the rights, submits to jurisdiction, and waives service of process as described in Section 14.6 of the Subsidiary Guaranty Agreement. Notice of acceptance of this Subsidiary Guarantor Supplement and of the Subsidiary Guaranty Agreement, as supplemented hereby, is hereby waived by the Additional Subsidiary Guarantor. The address for notices and other communications to be delivered to the Additional Subsidiary Guarantor pursuant to Section 13 of the Subsidiary Guaranty Agreement is set forth on the signature page below. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 2 4829-7507-1096.1

IN WITNESS WHEREOF, each Additional Subsidiary Guarantor has caused this Subsidiary Guarantor Supplement to be duly executed and delivered as of the date and year first above written. LITTELFUSE INTERNATIONAL HOLDING, LLC By: /s/ Ryan Stafford Name: Ryan Stafford Title: Manager LITTELFUSE HOLDING, LLC By: /s/ Ryan Stafford Name: Ryan Stafford Title: Manager MONOLITH SEMICONDUCTOR INC. By: /s/ Hans Weinburger Name: Hans Weinburger Title: Assistant Secretary Notice Address for each Additional Subsidiary Guarantor: c/o Littelfuse, Inc. Attention: Legal Department 8755 W. Higgins Road, Suite 500 Chicago, IL 60631 SIGNATURE PAGE TO SUBSIDIARY GUARANTOR SUPPLEMENT

EX-10.106

ASSUMPTION AGREEMENT THIS ASSUMPTION AGREEMENT (the “Assumption”), dated as of October 3, 2018, is made by each of NEW DUTCH B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands and having its registered seat (statutaire zetel) in Amsterdam, the Netherlands and registered with the trade register of the Chamber of Commerce under number 72412720 (the “New Dutch B.V.”), and NEW IXYS DUTCH B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands and having its registered seat (statutaire zetel) in Amsterdam, the Netherlands and registered with the trade register of the Chamber of Commerce under number 72434341 (“New IXYS Dutch B.V.”; together with the New Dutch B.V., the “Successor Companies” and each, a “Successor Company”), in favor of the holders from time to time of the Notes issued pursuant to the Note Agreement described below: PRELIMINARY STATEMENTS: I. Pursuant to the Note Purchase Agreement dated as of December 8, 2016 (as amended, modified, supplemented or restated from time to time, the “Note Agreement”), by and among LITTELFUSE NETHERLAND C.V., a limited partnership (commanditaire vennootschap) established under the laws of the Netherlands (the “Original Company”), Littelfuse, Inc., a Delaware corporation (the “Parent Guarantor”), and the Persons listed on the signature pages thereto (the “Purchasers”), the Original Company has issued and sold (i) €117,000,000 aggregate principal amount of its 1.14% Senior Notes, Series A, due December 8, 2023 (the “Series A Notes”), and (ii) €95,000,000 aggregate principal amount of its 1.83% Senior Notes, Series B, due December 8, 2028 (the “Series B Notes” and together with the Series A Notes as amended, restated or otherwise modified from time to time and including any such notes issued in substitution therefor, the “Notes” and individually a “Note”). II. In connection with a series of transactions undertaken or to be undertaken by the Parent Guarantor and certain of its subsidiaries and affiliates, (a) the Original Company will be dissolved and the net assets of the Original Company will be distributed to the New Dutch B.V. pursuant to a transfer, assignment and assumption agreement (the “Dutch Dissolution and Distribution”), (b) following the Dutch Dissolution and Distribution, the New Dutch B.V. will merge into New IXYS Dutch B.V. with New IXYS Dutch B.V. remaining in existence as the surviving entity of such merger (the “Dutch Merger”), and (c) following the Dutch Merger, New IXYS Dutch B.V. will legally change its name to Littelfuse Netherlands B.V. (the “Dutch Name Change” and, collectively with the Dutch Dissolution and Distribution and the Dutch Merger, the “Dutch Reorganization”). III. In connection with the Dutch Reorganization, which is otherwise permitted by Section 10.2 of the Note Agreement, this Assumption is being delivered pursuant to the Section 10.2(b)(i) of the Note Agreement by each Successor Company.

IV. Each Successor Company has received and will receive substantial direct and indirect benefits from the Note Agreement and the Notes issued thereunder and this Assumption. V. Capitalized terms used and not otherwise defined herein have the definitions set forth in the Note Agreement. Now therefore, in consideration of the funds advanced to the Original Company by the Purchasers under the Note Agreement and to enable the Original Company to comply with the terms of the Note Agreement, each Successor Company hereby covenants, represents and warrants to the holders from time to time of any of the Notes as follows: 1. Assumption of Obligations. a. Assumption by New Dutch B.V. The New Dutch B.V., by its signature hereto, hereby assumes in full and agrees to perform and observe, immediately concurrent with the Dutch Dissolution and Distribution (the “Dutch Dissolution and Distribution Effective Date”), each and every one of the covenants, rights, promises, agreements, terms, conditions, obligations, duties and liabilities of the Original Company under the Note Agreement and the Notes (collectively, the “Obligations”) as though the Note Agreement and the Notes to which the Original Company is a party had originally been made, executed and delivered by the New Dutch B.V.; provided, however, that it is understood that the New Dutch B.V. shall cease to be in existence upon the Dutch Merger Effective Date (as defined below). b. Assumption by New IXYS Dutch B.V. New IXYS Dutch B.V., by its signature hereto, hereby assumes in full and agrees to perform and observe, immediately concurrent with the effectiveness of the Dutch Merger (the “Dutch Merger Effective Date”), the Obligations as though the Note Agreement and the Notes to which the Original Company is a party had originally been made, executed and delivered by New IXYS Dutch B.V. 2. Indorsement of Notes. Subject to Section 1, the execution of this Assumption by each Successor Company shall constitute each Successor Company’s indorsement on each Note at the applicable time set forth in Section 1, and each Successor Company authorizes the holders of the Notes to attach, at the applicable time set forth in Section 1, a counterpart of this Assumption to any such Notes as evidence of such indorsement. 3. Identity of Company. The Successor Companies acknowledge that all references to the “Company” in the Note Agreement and the Notes shall be deemed to mean (i) as of the Dutch Dissolution and Distribution Effective Date and until the Dutch Merger Effective Date, the New Dutch B.V., and (ii) as of the Dutch Merger Effective Date, New IXYS Dutch B.V. until the legal name change thereof described in the Preliminary Statements and thereafter, Littelfuse Netherlands B.V. 4. Representations. The Successor Companies confirm that each Successor Company will be a solvent entity existing under the laws of the Netherlands, which is a Permitted Jurisdiction under the Note Agreement. 2

5. Miscellaneous. a. Captions. Section captions used in this Assumption are for convenience only, and shall not affect the construction of this Assumption. b. Counterparts. This Assumption may be executed in any number of counterparts (including by facsimile transmission or other electronic transmission upon confirmed authentication thereof) and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Assumption. c. Successors and Assigns. This Assumption shall be binding upon each Successor Company and their respective successors and assigns, and shall inure to the benefit of such successors and assigns and the holders of the Notes and their respective successors and assigns. d. Governing Law. This Assumption shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State. e. Continued Effectiveness. The terms of the Note Agreement and the Notes remain in full force and effect. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 3

IN WITNESS WHEREOF, each Successor Company has caused this Assumption to be duly executed and delivered as of the date and year first above written. NEW DUTCH B.V. By: /s/ Roger van Hal Name: Roger van Hal Title: Director B NEW IXYS DUTCH B.V. By: /s/ Edwin van Erk Name: Edwin van Erk Title: Director B SIGNATURE PAGE TO ASSUMPTION

EX-10.107

SUBSIDIARY GUARANTOR SUPPLEMENT THIS SUBSIDIARY GUARANTOR SUPPLEMENT (the “Subsidiary Guarantor Supplement”), dated as of October 22, 2018 is made by each of Littelfuse International Holding, LLC, a Delaware limited liability company, Littelfuse Holding, LLC, a Delaware limited liability company, and Monolith Semiconductor Inc., a Delaware corporation (each, an “Additional Subsidiary Guarantor”), in favor of the holders from time to time of the Notes issued pursuant to the Note Agreement described below: PRELIMINARY STATEMENTS: I. Pursuant to the Note Purchase Agreement dated as of December 8, 2016 (as amended, modified, supplemented or restated from time to time, the “Note Agreement”), by and among Littelfuse Netherland C.V., a limited partnership (commanditaire vennootschap) established under the laws of the Netherlands (together with any successor thereto that becomes a party to the Note Agreement pursuant to Section 10.2, the “Company”) and Littelfuse, Inc., a Delaware corporation (the “Parent Guarantor” and, together with the Company, the “Obligors”), and the Persons listed on the signature pages thereto (the “Purchasers”), the Obligors have issued and sold (i) €117,000,000 aggregate principal amount of its 1.14% Senior Notes, Series A, due December 8, 2023 (the “Series A Notes”) and (ii) €95,000,000 aggregate principal amount of its 1.83% Senior Notes, Series B, due December 8, 2028 (the “Series B Notes” and together with the Series A Notes as amended, restated or otherwise modified from time to time and including any such notes issued in substitution therefor, the “Notes” and individually a “Note”). II. The Obligors are required pursuant to the Note Agreement to cause each Additional Subsidiary Guarantor to deliver this Subsidiary Guarantor Supplement in order to cause each Additional Subsidiary Guarantor to become a Subsidiary Guarantor under the Subsidiary Guaranty Agreement dated as of December 8, 2016 executed by certain Subsidiaries of the Obligors (together with each entity that from time to time becomes a party thereto by executing a Subsidiary Guarantor Supplement pursuant to Section 15.1 thereof, collectively, the “Subsidiary Guarantors”) in favor of each holder from time to time of any of the Notes (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Subsidiary Guaranty Agreement”). III. Each Additional Subsidiary Guarantor has received and will receive substantial direct and indirect benefits from the Obligors’ compliance with the terms and conditions of the Note Agreement and the Notes issued thereunder. IV. Capitalized terms used and not otherwise defined herein have the definitions set forth in the Note Agreement. Now therefore, in consideration of the funds advanced to the Company by the Purchasers under the Note Agreement and to enable the Obligors to comply with the terms of the Note Agreement, 839-9939-7752.2

each Additional Subsidiary Guarantor hereby covenants, represents and warrants to the holders as follows: The Additional Subsidiary Guarantor hereby becomes a Subsidiary Guarantor (as defined in the Subsidiary Guaranty Agreement) for all purposes of the Subsidiary Guaranty Agreement. Without limiting the foregoing, the Additional Subsidiary Guarantor hereby (a) jointly and severally with the other Subsidiary Guarantors under the Subsidiary Guaranty Agreement (including the other Additional Subsidiary Guarantors party to this Subsidiary Guarantor Supplement), guarantees to the holders from time to time of the Notes the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) and the full and prompt performance and observance of all Guaranteed Obligations (as defined in Section 1 of the Subsidiary Guaranty Agreement) in the same manner and to the same extent as is provided in the Subsidiary Guaranty Agreement, (b) accepts and agrees to perform and observe all of the covenants set forth therein, (c) waives the rights set forth in Section 3 of the Subsidiary Guaranty Agreement, (d) agrees to perform and observe the covenants contained in Section 8 of the Subsidiary Guaranty Agreement, (e) makes the representations and warranties set forth in Section 9 of the Subsidiary Guaranty Agreement and (f) waives the rights, submits to jurisdiction, and waives service of process as described in Section 15.6 of the Subsidiary Guaranty Agreement. Notice of acceptance of this Subsidiary Guarantor Supplement and of the Subsidiary Guaranty Agreement, as supplemented hereby, is hereby waived by the Additional Subsidiary Guarantor. The address for notices and other communications to be delivered to the Additional Subsidiary Guarantor pursuant to Section 14 of the Subsidiary Guaranty Agreement is set forth on the signature page below. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 4839-9939-7752.2

IN WITNESS WHEREOF, each Additional Subsidiary Guarantor has caused this Subsidiary Guarantor Supplement to be duly executed and delivered as of the date and year first above written. LITTELFUSE INTERNATIONAL HOLDING, LLC By: /s/ Ryan Stafford Name: Ryan Stafford Title: Manager LITTELFUSE HOLDING, LLC By: /s/ Ryan Stafford Name: Ryan Stafford Title: Manager MONOLITH SEMICONDUCTOR INC. By: /s/ Hans Weinburger Name: Hans Weinburger Title: Assistant Secretary Notice Address for each Additional Subsidiary Guarantor: c/o Littelfuse, Inc. Attention: Legal Department 8755 W. Higgins Road, Suite 500 Chicago, IL 60631 SIGNATURE PAGE TO SUBSIDIARY GUARANTOR SUPPLEMENT

EX-10.108

Exhibit 10.108 Littelfuse, Inc. Summary of Non-Employee Director Compensation For the 2018 fiscal year, non-employee directors were paid an annual retainer of $70,000, paid in quarterly installments, plus reimbursement of reasonable expenses relating to attendance at meetings. No fees are paid to directors who are employee directors. Additional annual retainers are paid to our Board leadership, as shown below: Board Leadership Role Annual Retainer Lead Director $20,000 Board Chairman $50,000 Audit Committee Chairperson $20,000 Compensation Committee Chairperson $15,000 Nominating and Governance Committee Chairperson $10,000 Technology Committee Chairperson $10,000 In addition to cash compensation, each non-employee director receives an annual equity grant under the Amended and Restated Littelfuse, Inc. Long-Term Incentive Plan (the “Long-Term Plan”) valued at approximately $120,000. The equity grant is comprised of (1) one-third stock options that vest equally on the first three annual anniversaries of the grant date, have an exercise price equal to the fair market value of our common stock on the date of grant, and expire seven years from the grant date, and (2) two-thirds restricted stock units (“RSUs”) that are granted upon the non-employee director’s election or reelection to the Board at the Company’s annual meeting that vest equally on the first three annual anniversaries of the grant date. For the fiscal 2019 year, in consultation with our independent compensation consultant, the following changes were made to non-employee director compensation to better align with peer group practices: ■ Non-employee annual retainer increased to $75,000 ■ Annual equity grant value increased to $140,000

EX-21.1

EXHIBIT 21.1

SUBSIDIARIES

Name	Jurisdiction of Organization
Accel AB	Sweden
Dongguan Littelfuse Electronics Co., Ltd.	China
H.I. Verwaltungs GmbH	Germany
Hamlin Electronics (Suzhou) Ltd.	China
Hamlin Electronics Europe Ltd.	United Kingdom
Hamlin Electronics GmbH	Germany
IXYS, LLC	Delaware
LF Consorcio S. de R.L. de C.V.	Mexico
LFUS LLC	Delaware
Littelfuse Mexico Services, S. de R.L. de C.V.	Mexico
Littelfuse Asia Holding B.V.	Netherlands
Littelfuse Asia Sales B.V.	Netherlands
Littelfuse B.V.	Netherlands
Littelfuse Commercial Vehicle LLC	Delaware
Littelfuse Commercial Vehicle Products, Italy S.r.l.	Italy
Littelfuse Concord Semiconductor, Inc.	Taiwan
Littelfuse da Amazonia, Ltda.	Brazil
Littelfuse Electronics (Kunshan) Co., Ltd.	China
Littelfuse Electronics (Shanghai) Co., Ltd.	China
Littelfuse Electronics Taiwan Co., Ltd.	Taiwan
Littelfuse Europe GmbH	Germany
Littelfuse Far East Pte. Ltd.	Singapore
Littelfuse GmbH	Germany
Littelfuse HK Limited	Hong Kong
Littelfuse Holding GmbH	Germany
Littelfuse Holding IV B.V.	Netherlands
Littelfuse Holding Limited	Ireland
Littelfuse Italian Holdings S.r.l.	Italy
Littelfuse Italy S.r.l.	Italy
Littelfuse Japan G.K.	Japan
Littelfuse KK	Japan
Littelfuse LT, UAB	Lithuania
Littelfuse Mexico Distribution S. de R.L. de C.V.	Mexico
Littelfuse Mexico Holding LLC	Delaware
Littelfuse Mexico Manufacturing B.V.	Netherlands
Littelfuse Phils, Inc.	Philippines
Littelfuse S. de R.L. de C.V.	Mexico
Littelfuse Semiconductor (Wuxi) Co., Ltd.	China
Littelfuse Triad, Inc.	Korea
Productos Electromecanicos BAC, S. de R.L. de C.V.	Mexico
Startco Engineering ULC	Canada
Suzhou Littelfuse OVS Co., Ltd.	China
SymCom, Inc.	South Dakota
Clare N.V.	Belgium

IXYS Clare (Taiwan) Corporation	Taiwan
IXYS Buckeye, LLC	Delaware
IXYS CH GmbH	Switzerland
IXYS Global Services GmbH	Germany
IXYS Holdings Limited	United Kingdom
IXYS Integrated Circuits Division, LLC	Massachusetts
IXYS Integrated Circuits Division AV Inc.	California
IXYS Intl Limited	Cayman Islands
IXYS Korea Ltd.	Korea
IXYS IP Holding (Cayman) Limited	Cayman Islands
IXYS Long Beach, Inc.	California
IXYS San Sabastian, S.A.	Spain
IXYS Semiconductor GmbH	Germany
IXYS Investment Holdings GmbH	Germany
IXYS UK Limited	United Kingdom
IXYS UK Westcode Ltd.	United Kingdom
IXYS Unterstuetzungseinrichtung GmbH	Germany
IXYS USA, LLC	Delaware
Microwave Technology, Inc.	California
Pele Technology, Inc.	Delaware
RadioPulse, Inc.	Korea
Reaction Technology Incorporated	California
Westcode Industries Limited	United Kingdom
Zilog Electronics Philippines, Inc.	Philippines
Zilog, Inc.	Delaware
Zilog International Pte. Ltd.	Singapore
Zilog Japan KK	Japan
Zilog Philippines, Inc.	Philippines
Cole Hersee S de RL de CV	Mexico
CSP-Componentes Semiconductores de Portugal LDA	Portugal
LFUS DEI, Inc.	Colorado
Littelfuse Asia Technology B.V.	Netherlands
Littelfuse France S.A.S.	France
Littelfuse Holding, LLC	Delaware
Littelfuse International (Barbados) Inc.	Barbados
Littelfuse International Holding, LLC	Delaware
Littelfuse Netherlands B.V.	Netherlands
Littelfuse Operations India Private Limited (formerly known as LFUSE Solutions India Private Limited)	India
Littelfuse Singapore (Finance) Pte. Ltd.	Singapore
Monolith Semiconductor Inc.	Delaware
Reaction Tech RE, LLC	Delaware
Reaction Technology Epi, LLC	Delaware

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have issued our reports dated February 22, 2019, with respect to the consolidated financial statements, schedule, and internal control over financial reporting incorporated by reference in the Annual Report of Littelfuse, Inc. on Form 10-K for the fiscal year ended December 29, 2018. We consent to the incorporation by reference of said reports in the Registration Statements of Littelfuse, Inc. on Form S-4 (File No. 333-221147) and on Forms S-8 (File Nos. 333-226707, 333-221147, 333-217632, 333-03260, 033-95020, 333-209865, 333-166953, 333-134699, 333-134700, and 333-64285).

/s/ GRANT THORNTON LLP

Chicago, Illinois

February 22, 2019

EX-31.1

EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, David W. Heinzmann, certify that:

1. I have reviewed this Annual Report on Form 10-K of Littelfuse Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 22, 2019

/s/ DAVID W HEINZMANN

David W. Heinzmann,

President and Chief Executive Officer  

EX-31.2

EXHIBIT 31.2

SECTION 302 CERTIFICATION

I, Meenal A. Sethna, certify that:

1. I have reviewed this Annual Report on Form 10-K of Littelfuse Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 22, 2019

/s/ MEENAL A SETHNA

Meenal A. Sethna

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

LITTELFUSE, INC.

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of title 18, United States Code), each of the undersigned officers of Littelfuse, Inc. (“the Company”) does hereby certify that to his knowledge:

The Annual Report of the Company on Form 10-K for the fiscal year ended December 29, 2018 (“the Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ DAVID W. HEINZMANN	/s/ MEENAL A. SETHNA
David W. Heinzmann	Meenal A Sethna
President and Chief Executive	Executive Vice President and
Officer	Chief Financial Officer
Dated: February 22, 2019	Dated: February 22, 2019

XML

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 29, 2018	Feb. 18, 2019	Jun. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	LITTELFUSE INC /DE
Entity Central Index Key	0000889331
Current Fiscal Year End Date	--12-29
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		24,706,335
Entity Public Float			$ 4,409,178,694
Document Type	10-K
Document Period End Date	Dec. 29, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 489,733	$ 429,676
Short-term investments	34	35
Trade receivables, less allowances of $36,038 and $27,516 at December 29, 2018 and December 30, 2017, respectively	232,892	182,699
Inventories	258,228	140,789
Prepaid income taxes and income taxes receivable	2,339	1,689
Prepaid expenses and other current assets	49,291	37,452
Total current assets	1,032,517	792,340
Net property, plant, and equipment	339,894	250,577
Intangible assets, net of amortization	361,474	203,850
Goodwill	826,715	453,414
Investments	25,405	10,993
Deferred income taxes	7,330	11,858
Other assets	20,971	17,070
Total assets	2,614,306	1,740,102
Current liabilities:
Accounts payable	126,323	101,844
Accrued liabilities	138,405	100,415
Accrued income taxes	20,547	16,285
Current portion of long-term debt	10,000	6,250
Total current liabilities	295,275	224,794
Long-term debt, less current portion	684,730	489,361
Deferred income taxes	51,853	17,069
Accrued post-retirement benefits	31,874	18,742
Other long-term liabilities	72,232	62,580
Shareholders’ equity:
Common stock, par value $0.01 per share: 34,000,000 shares authorized; shares issued, 25,641,959 and 23,153,396 in 2018 and 2017, respectively	254	229
Treasury stock, at cost: 868,045 and 439,598 shares, respectively	(116,454)	(41,294)
Additional paid-in capital	835,828	310,012
Accumulated other comprehensive loss	(97,924)	(63,668)
Accumulated other comprehensive loss	856,507	722,140
Littelfuse, Inc. shareholders’ equity	1,478,211	927,419
Non-controlling interest	131	137
Total equity	1,478,342	927,556
Total liabilities and equity	$ 2,614,306	$ 1,740,102

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 36,038	$ 27,516
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	34,000,000	34,000,000
Common stock, shares issued (in shares)	25,641,959	23,153,396
Treasury stock, shares (in shares)	868,045	439,598

XML

Consolidated Statements of Net Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net sales	$ 1,718,468	$ 1,221,534	$ 1,056,159
Cost of sales	1,065,927	715,001	643,042
Gross profit	652,541	506,533	413,117
Selling, general, and administrative expenses	288,001	212,833	206,129
Research and development expenses	87,301	50,489	42,198
Amortization of intangibles	52,190	24,700	19,337
Impairment of goodwill and intangible assets	0	0	14,809
Total operating expenses	427,492	288,022	282,473
Operating income	225,049	218,511	130,644
Interest expense	22,569	13,380	8,628
Foreign exchange (gain) loss	(863)	2,376	472
Other income, net	(1,599)	(1,282)	(1,730)
Income before income taxes	204,942	204,037	123,274
Income taxes	40,377	84,518	18,786
Net income	$ 164,565	$ 119,519	$ 104,488
Income per share:
Basic (in dollars per share)	$ 6.62	$ 5.27	$ 4.63
Diluted (in dollars per share)	$ 6.52	$ 5.21	$ 4.60
Weighted average shares and equivalent shares outstanding:
Basic (in shares)	24,870	22,687	22,559
Diluted (in shares)	25,235	22,931	22,727

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 164,565	$ 119,519	$ 104,488
Other comprehensive income (loss):
Pension and postemployment adjustments, net of tax	877	1,147	(3,261)
Unrealized loss on investments	0	(974)	(815)
Foreign currency translation adjustments	(25,338)	10,738	(24,832)
Comprehensive income	$ 140,104	$ 130,430	$ 75,580

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
OPERATING ACTIVITIES
Net income	$ 164,565	$ 119,519	$ 104,488
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	51,003	38,311	33,800
Amortization of intangibles	52,190	24,700	19,337
Impairment charges	2,218	0	14,809
Deferred revenue	3,965	0	0
Non-cash inventory charges	36,927	1,607	7,834
Stock-based compensation	27,431	16,315	11,987
Excess tax benefit on share-based compensation	0	0	(3,421)
Deferred income taxes	(4,679)	17,063	(5,269)
Other	(50)	6,048	3,973
Changes in operating assets and liabilities:
Trade receivables	(3,539)	(11,087)	(22,779)
Inventories	(33,971)	(20,180)	8,539
Accounts payable	13,708	6,494	19,190
Accrued liabilities and income taxes	29,329	50,626	(9,644)
Prepaid expenses and other assets	(7,269)	19,754	(2,711)
Net cash provided by operating activities	331,828	269,170	180,133
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired	(318,474)	(38,512)	(471,118)
Proceeds from sales and maturities of short-term investments	1,407	3,739	345
Decrease in entrusted loan	0	3,599	5,510
Purchases of property, plant, and equipment	(74,753)	(65,925)	(46,228)
Proceeds from sale of property, plant, and equipment	9,572	962	248
Net cash used in investing activities	(382,248)	(96,137)	(511,243)
FINANCING ACTIVITIES
Proceeds of revolving credit facility	60,000	15,000	367,000
Proceeds of term loan	75,000	9,375	125,000
Proceeds from senior notes payable	175,000	125,000	226,428
Payments of term loan	(42,500)	(7,188)	(89,688)
Payments of revolving credit facility	(60,000)	(127,500)	(331,500)
Net proceeds (payments) related to stock-based award activities	18,857	(2,373)	20,494
Payments of entrusted loan	0	(3,599)	(5,510)
Cash dividends paid	(39,993)	(31,770)	(27,866)
Purchases of common stock	(63,564)	0	0
Other	(903)	(1,626)	(162)
Net cash provided by (used in) financing activities	121,897	(24,681)	284,196
Effect of exchange rate changes on cash and cash equivalents	(11,420)	6,200	(6,748)
Increase (decrease) in cash and cash equivalents	60,057	154,552	(53,662)
Cash and cash equivalents at beginning of year	429,676	275,124	328,786
Cash and cash equivalents at end of year	$ 489,733	$ 429,676	$ 275,124

XML

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Addl. Paid in Capital	Treasury Stock	Accum. Other Comp. Inc. (Loss)	Retained Earnings	Non-controlling Interest
Balance at Jan. 02, 2016	$ 739,252	$ 224	$ 259,553	$ (32,766)	$ (45,671)	$ 557,769	$ 143
Net income	104,488					104,488
Other comprehensive income, net of tax	(28,908)				(28,908)
Stock-based compensation	7,471		7,471
Withheld shares on restricted share units for withholding taxes	(3,744)			(3,744)
Stock options exercised	24,238	4	24,234
Cash dividends paid	(27,866)					(27,866)
Balance at Dec. 31, 2016	814,931	228	291,258	(36,510)	(74,579)	634,391	143
Net income	119,519					119,519
Other comprehensive income, net of tax	10,911				10,911
Stock-based compensation	16,315		16,315
Non-controlling interest	(6)						(6)
Withheld shares on restricted share units for withholding taxes	(4,784)			(4,784)
Stock options exercised	2,440	1	2,439
Cash dividends paid	(31,770)					(31,770)
Balance at Dec. 30, 2017	927,556	229	310,012	(41,294)	(63,668)	722,140	137
Net income	164,565					164,565
Other comprehensive income, net of tax	(24,461)				(24,461)
Cumulative effect adjustment	0				(9,795)	9,795
Stock-based compensation	27,431		27,431
Non-controlling interest	(6)						(6)
Withheld shares on restricted share units for withholding taxes	(7,252)			(7,252)
Stock options exercised	26,109	4	26,105
Issuance of common stock	472,301	21	472,280
Repurchases of common stock	(67,908)			(67,908)
Cash dividends paid	(39,993)					(39,993)
Balance at Dec. 29, 2018	$ 1,478,342	$ 254	$ 835,828	$ (116,454)	$ (97,924)	$ 856,507	$ 131

XML

Consolidated Statements of Equity (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Treasury Stock
Shares withheld on restricted stock grants for withholding taxes (in shares)	36,482	30,459	31,040
Common Stock
Stock options exercised, tax impact			$ (7,400)
Retained Earnings
Cash dividends paid, per share (in dollars per share)	$ 1.6	$ 1.40	$ 1.24

XML

Summary of Significant Accounting Policies and Other Information

12 Months Ended

Dec. 29, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Other Information

Summary of Significant Accounting Policies and Other Information

Nature of Operations

Littelfuse, Inc. and subsidiaries (the “Company”) is a global manufacturer of leading technologies in circuit protection, power control and sensing. The company's products are found in automotive and commercial vehicles, industrial applications, data and telecommunications, medical devices, consumer electronics and appliances. With its broad product portfolio of fuses, semiconductors, polymers, ceramics, relays and sensors, and extensive global infrastructure, the Company’s worldwide associates partner with its customers to design, manufacture and deliver innovative, high-quality solutions for a safer, greener and increasingly connected world.

Fiscal Year

References herein to “2018”, “fiscal 2018” or “fiscal year 2018” refer to the fiscal year ended December 29, 2018. References herein to “2017”, “fiscal 2017” or “fiscal year 2017” refer to the fiscal year ended December 30, 2017. References herein to “2016”, “fiscal 2016” or “fiscal year 2016” refer to the fiscal year ended December 31, 2016. The Company operates on a 52-53 week fiscal year (4-4-5 basis) ending on the Saturday closest to December 31.

Basis of Presentation

The Consolidated Financial Statements include the accounts of Littelfuse, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The company’s Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles in the United States of America and include the assets, liabilities, sales and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control.

Use of Estimates

The process of preparing financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses and the accompanying notes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in its evaluation, as considered necessary. Actual results could differ from those estimates.

Cash Equivalents

All highly liquid investments, with an original maturity of three months or less when purchased, are considered to be cash equivalents.

Short-Term and Long-Term Investments

As of December 29, 2018, the Company has an investment in Polytronics Technology Corporation Ltd. (“Polytronics”). The Company’s Polytronics shares held at the end of fiscal 2018 and 2017 represent approximately 7.2% of total Polytronics shares outstanding. The Polytronics investment is classified as available-for-sale and is carried at fair value. The fair value of the Polytronics investment was €8.9 million (approximately $10.2 million) at December 29, 2018 and €9.2 million (approximately $11.0 million) at December 30, 2017.

As a result of the Company’s acquisition of IXYS, the Company has equity ownerships in various investments that are accounted for under the equity method. The Company owns 45% of the outstanding equity of Powersem GmbH, a module manufacturer based in Germany, approximately 20% of the outstanding equity of EB Tech Ltd., a company with expertise in radiation technology based in South Korea, and approximately 24% of the outstanding common shares of Automated Technology, Inc., a supplier located in the Philippines that provides assembly and test services. All equity-level investments are less than majority owned. The Company recognized $0.7 million in gains from its equity method investments for the fiscal year ended December 29, 2018. The balance of these investments under the equity method was $11.6 million as of the fiscal year ended December 29, 2018. See Note 18, Related Party Transactions, for further discussion.

The Company has certain investments that are accounted for under the cost method that have a balance of investments under the cost method was $7.9 million as of the fiscal year ended December 29, 2018.

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” which addressed certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The ASU requires the Company to recognize any changes in the fair value of certain equity investments in net income. Previously these changes were recognized in other comprehensive income ("OCI"). The Company adopted the new standard on December 31, 2017, on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. As a result of the adoption of the new standard and change in fair value of our equity investments, for the twelve months ended December 29, 2018, the Company recognized an unrealized loss of $0.7 million in Other income, net in the Consolidated Statements of Net Income.

The Company has investments related to its non-qualified Supplemental Retirement and Savings Plan. The Company maintains accounts for participants through which participants make investment elections. The investment securities are subject to the claims of the Company’s creditors. The investment securities are all mutual funds with readily determinable fair values and are classified as trading securities. The investment securities are measured at fair value. As of December 29, 2018 and December 30, 2017, there was $9.1 million and $8.0 million of marketable securities, respectively, related to the plan included in Other assets on the Consolidated Balance Sheets.

Trade Receivables

The Company performs credit evaluations of customers’ financial condition and generally does not require collateral. Credit losses are provided for in the financial statements based upon specific knowledge of a customer’s inability to meet its financial obligations to the Company. Historically, credit losses have consistently been within management’s expectations and have not been a material amount. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Write-offs are recorded at the time a customer receivable is deemed uncollectible.

The Company also maintains allowances against trade receivables for the settlement of rebates and sales discounts to customers. These allowances are based upon specific customer sales and sales discounts as well as actual historical experience.

Inventories

Inventories are stated at the lower of cost or net realizable value, which approximates current replacement cost. Cost is principally determined using the first-in, first-out method. The Company maintains excess and obsolete allowances against inventory to reduce the carrying value to the expected net realizable value. These allowances are based upon a combination of factors including historical sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory.

Property, Plant,and Equipment

Land, buildings, and equipment are carried at cost. Depreciation is calculated using the straight-line method with useful lives of 21 years for buildings, seven to ten years for equipment, seven years for furniture and fixtures, five years for tooling and three years for computer equipment. Leasehold improvements are depreciated over the lesser of their useful life or the lease term. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized.

Goodwill

The Company annually tests goodwill for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

The Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. For the seven reporting units with goodwill, the Company compared the estimated fair value of each reporting unit to its carrying value. The results of the goodwill impairment test as of October 1, 2018 indicated that the estimated fair values for each of the seven reporting units exceeded their respective carrying values. As of the most recent annual test conducted on October 1, 2018, the Company noted that the excess of fair value over the carrying value, was 176%, 80%, 233%, 202%, 63%, 114%, and 370% for its reporting units; Electronics-Passive Products and Sensors, Electronics-Semiconductor, Passenger Car Products, Commercial Vehicle Products, Automotive Sensors, Relays, and Power Fuse, respectively. Relatively small changes in the Company’s key assumptions would not have resulted in any reporting units failing the goodwill impairment test. See Note 5, Goodwilland Other Intangible Assets, for additional information.

The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test, could be impacted by changes in market conditions and economic events. Based on the interim assessments as of December 29, 2018, management concluded that no events or changes in circumstances indicated that it was more likely than not that the fair value for any reporting unit had declined below its carrying value.

Long-Lived Assets

Customer relationships, trademarks and tradenames are amortized using the straight-line method over estimated useful lives that have a range of five to 20 years. Patents, licenses and software are amortized using the straight-line method or an accelerated method over estimated useful lives that have a range of five to 17 years. The distribution networks are amortized on either a straight-line or accelerated basis over estimated useful lives that have a range of three to 20 years.

The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of carrying value or the fair market value less the estimated cost to sell.

During the fiscal year ended December 31, 2016, the Company recognized non-cash impairment charges totaling $6.0 million, of which $2.2 million related to the impairment of certain customer relationship intangible assets in the Custom Products reporting unit within the Industrial segment and $3.8 million related to the impairment of the Custom Products tradename. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships while the tradename impairment resulted from lower expectations of future cash flows of the Custom Products reporting unit.

Environmental Liabilities

Environmental liabilities are accrued based on engineering studies estimating the cost of remediating sites. Expenses related to on-going maintenance of environmental sites are expensed as incurred. If actual or estimated probable future losses exceed the Company’s recorded liability for such claims, the Company would record additional charges during the period in which the actual loss or change in estimate occurred.

Pension and Other Post-retirement Benefits

The Company records annual income and expense amounts relating to its pension and post-retirement benefits plans based on calculations which include various actuarial assumptions including discount rates, expected long-term rates of return and compensation increases. The Company reviews its actuarial assumptions on an annual basis as of the fiscal year-end balance sheet date (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumption based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the Consolidated Balance Sheets, but are generally amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive income (loss). The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors.

Revenue Recognition

Adoption

On December 31, 2017, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method. The adoption did not have a significant impact on the Company’s consolidated financial statements.

Revenue Disaggregation

The following table disaggregates the Company’s revenue by primary business units for the fiscal year ended December 29, 2018:

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Semiconductor	$	648,967	$	—	$	—	$	648,967
Electronics – Passive Products and Sensors	475,329		—		—		475,329
Passenger Car Products	—		240,501		—		240,501
Commercial Vehicle Products	—		121,562		—		121,562
Automotive Sensors	—		117,728		—		117,728
Industrial Products	—		—		114,381		114,381
Total	$	1,124,296	$	479,791	$	114,381	$	1,718,468

See Note 16, Segment Information, for net sales by segment and countries.

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

The Company has elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. This is similar to the Company’s prior practice and therefore the effect of the new guidance is immaterial.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

Return to Stock

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Allowance for Doubtful Accounts

The Company evaluates the collectability of its trade receivables based on a combination of factors. The Company regularly analyzes its significant customer accounts and, when the Company becomes aware of a specific customer’s inability to meet its financial obligations, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also records allowances for all other customers based on a variety of factors including the length of time the receivables are past due, the financial health of the customer, macroeconomic considerations and past experience. Historically, the allowance for doubtful accounts has been adequate to cover bad debts. If circumstances related to specific customers change, the estimates of the recoverability of receivables could be further adjusted.

Advertising Costs

The Company expenses advertising costs as incurred, which amounted to $2.8 million in fiscal year 2018 and $2.9 million in both fiscal year 2017 and 2016, respectively, and are included as a component of selling, general, and administrative expenses.

Shipping and Handling Fees and Costs

Amounts billed to customers related to shipping and handling is classified as revenue. Costs incurred for shipping and handling of $12.3 million, $10.9 million, and $9.1 million in fiscal year 2018, 2017, and 2016, respectively, are classified in selling, general, and administrative expenses.

Foreign Currency Translation/Remeasurement

The Company’s foreign subsidiaries use the local currency or the U.S. dollar as their functional currency, as appropriate. Assets and liabilities are translated using exchange rates at the balance sheet date, and revenues and expenses are translated at weighted average rates. The amount of foreign currency gain or loss from remeasurement recognized in the income statement was a gain of $0.9 million in fiscal year 2018, a loss of $2.4 million in fiscal year 2017, and a loss of $0.5 million in fiscal year 2016. Adjustments from the translation process are recognized in “Shareholders’ equity” as a component of “Accumulated other comprehensive loss.”

Stock-based Compensation

The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method. Benefits of tax deductions in excess of recognized compensation expense are reported as operating cash flows. See Note 12, Stock-Based Compensation, for additional information on stock-based compensation.

Coal Mining Liability

Included in other long-term liabilities is an accrual related to former coal mining operations at Littelfuse GmbH (formerly known as Heinrich Industries, AG) for the amounts of €1.1 million ($1.3 million) and €0.9 million ($1.1 million) at December 29, 2018 and December 30, 2017, respectively. Management, in conjunction with an independent third-party, performs an annual evaluation of the former coal mining operations in order to develop an estimate of the probable future obligations in regard to remediating the dangers (such as a shaft collapse) of abandoned coal mine shafts in the former coal mining operations. Management accrues for costs associated with such remediation efforts based on management's best estimate when such costs are probable and reasonably able to be estimated. The ultimate determination can only be done after respective investigations because the concrete conditions are mostly unknown at this time.

Other Income, Net

Other income, net generally consists of interest income, royalties, change in fair value of available-for-sale securities, pension non-service costs and other non-operating expense (income).

Income Taxes

The Company accounts for income taxes using the liability method. Deferred taxes are recognized for the future effects of temporary differences between financial and income tax reporting using enacted tax rates in effect for the years in which the differences are expected to reverse. The Company recognizes deferred taxes for temporary differences, operating loss carryforwards, and tax credit and other tax attribute carryforwards (excluding carryforwards where usage has been determined to be remote). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. U.S. state and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to the U.S. and be taxable (and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to an upper-tier non-U.S. entity). Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Deferred U.S. income taxes and non-U.S. taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. Management regularly evaluates whether non-U.S. earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its non-U.S. subsidiaries.  Changes in economic and business conditions, non-U.S. or U.S. tax laws, or the Company’s financial situation could result in changes to these judgments and the need to record additional tax liabilities.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

On December 22, 2017, the U.S. enacted legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). Among other things, the Tax Act reduces the U.S. corporate federal income tax rate from 35% to 21%, adds base broadening provisions which limit deductions and address excessive international tax planning, imposes a one-time tax (the “Toll Charge”) on accumulated earnings of certain non-U.S. subsidiaries and enables repatriation of earnings of non-U.S. subsidiaries free of U.S. federal income tax. Other than the Toll Charge (which, except for the IXYS impact, was applicable to the Company for 2017), the provisions are generally applicable to the Company in 2018 and beyond.

In accordance with the guidance provided in SEC Staff Accounting Bulletin (“SAB”) No. 118, in the fourth quarter of 2017 the Company recorded a charge of $47.0 million as a provisional reasonable estimate of the impact of the Tax Act, including $49.0 million for the Toll Charge net of $2.0 million for other net tax benefits. In the fourth quarter of 2018, within the measurement period outlined in SAB No. 118, the Company finalized its estimates of the impact of the Tax Act as of December 30, 2017 and recorded a charge of $3.2 million, including $2.3 million for the Toll Charge and $0.9 million for the net impact of other items. In addition, the Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation. This was reflected in the opening balance sheet as an increase to goodwill and other long-term liabilities.

Although certain administrative guidance has been issued, including final and proposed regulations, the appropriate application of many provisions of the Tax Act remain uncertain. The Company used its best judgment as to the application of these provisions in determining its final estimates of the impact of the Tax Act as of December 30, 2017, the Toll Charge associated with the IXYS acquisition as well as the Company’s income tax expense for the year ended December 29, 2018. Adjustments to income tax expense may be necessary in future periods if provisions of the Tax Act, and their interaction with other provisions of the U.S. Internal Revenue Code, are interpreted differently than interpretations made by the Company, whether through issuance of additional administrative guidance, or through further review of the Tax Act by the Company and its advisors. In this regard, on January 15, 2019, final regulations were issued addressing the Toll Charge (replacing the proposed regulations issued in August of 2018). The Company is evaluating these final regulations and has yet to determine their impact.

The Company has elected to pay the 2017 Littelfuse Toll Charge and will elect to pay the 2018 IXYS Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of these Toll Charges totaling $28.8 million (which includes the Littelfuse and IXYS Toll Charges, partially offset by foreign tax credits, the tax benefit of current year losses and the actual 2018 and anticipated 2019 annual installment payments) is recorded in Other long-term liabilities on the Consolidated Balance Sheet as of December 29, 2018. The anticipated 2019 annual installment payments are included in accrued income taxes.

One of the base broadening provisions of the Tax Act is the tax on the global intangible low-taxed income ("GILTI") commonly referred to as the “GILTI” provisions. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

Fair Value Measurements

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its available-for-sale securities and pension plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 – Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 – Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

RecentlyAdoptedAccounting Standards

In January 2018, the FASB released guidance on the accounting for the GILTI provisions of the 2017 U.S. Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period cost are both acceptable methods subject to an accounting policy election. The Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

In March 2017, the FASB issued ASU No. 2017-07 “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost,” which changed the presentation of net periodic pension and post-retirement benefit cost (net benefit cost) within the Statement of Income. Under the previous guidance, net benefit cost was reported as an employee cost within operating income. The amendment required the bifurcation of net benefit cost, with the service cost component to be presented with other employee compensation costs in operating income while the other components will be reported separately outside of income from operations. ASU No. 2017-07 was effective for the first quarter of 2018 with the Company adopting the new standard on December 31, 2017.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” which addressed certain aspects of the recognition, measurement, presentation and disclosure of financial instruments.The ASU requires the Company to recognize any changes in the fair value of certain equity investments in net income. Previously these changes were recognized in other comprehensive income ("OCI"). The Company adopted the new standard on December 31, 2017, on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. As a result of the adoption of the new standard and change in fair value of our equity investments, for the twelve months ended December 29, 2018, the Company recognized an unrealized loss of $0.7 million in Other income, net in the Consolidated Statements of Net Income.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606) which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” This ASU provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company adopted the new standard on December 31, 2017 using the modified retrospective method, however, no adjustment to retained earnings was needed. The new guidance did not have a material effect on the Company’s Consolidated Statements of Net Income. See the Revenue Recognition section above for further discussion.

In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes” (Topic 740). This ASU update requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred. The Company adopted the new standard on December 31, 2017 and it did not have a material impact.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Adoption requires using a modified retrospective transition with either 1) periods prior to the adoption date being recast or 2) a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast.The Company adopted the standard on December 30, 2018 under the modified retrospective transition method with the cumulative-effect adjustment recognized to the retained earnings. The new standard provides a number of optional practical expedients in transition. The Company has elected the ‘package of practical expedients’, which permits it not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company has not elected the use-of-hindsight.The Company assessed its portfolio of leases and compiled a central repository of all active leases. Key lease data elements have been evaluated including developing a methodology for determining the incremental borrowing rate across all countries where we have operations. The Company has implemented a new leasing software and is in the process of assessing the design of the future lease process and drafting a policy to address the new standard requirements. While the Company is continuing to assess the potential impacts of ASU 2016-02, the Company estimates that the adoption of ASU 2016-02 will result in the recognition of right-of-use assets of approximately $27 million and related lease liabilities for operating leases on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Net Income.

In February 2018, the FASB issued ASU No. 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the Tax Act. The standard also requires entities to disclose whether or not they elected to reclassify the tax effects related to the Tax Act as well as their policy for releasing income tax effects from accumulated other comprehensive income. The standard allows the option of applying either a retrospective adoption, meaning the standard is applied to all periods in which the effect of the Tax Act is recognized, or applying the amendments in the period of adoption, meaning an adjustment is made to shareholder’s equity as of the beginning of the reporting period. ASU 2018-02 will be effective in the first quarter of 2019; however early adoption is permitted for interim and annual periods, including the reporting period in which the Tax Act was enacted. The adoption of this guidance will not have a material effect on our Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 modified the disclosure requirements in Topic 820, "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The company is currently evaluating the potential effects of this guidance on its Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-14 "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in OCI expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. This guidance will be effective for financial statements issued for fiscal years ending after December 15, 2020. The adoption of this guidance will modify our disclosures but will not have a material effect on our Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating this guidance on its Consolidated Financial Statements.

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Acquisitions and Dispositions

12 Months Ended

Dec. 29, 2018

Business Combinations [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, “Business Combinations,” in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired business are included in the Company’s Consolidated Financial Statements from the date of the acquisition.

IXYS Corporation

On January 17, 2018, the Company acquired IXYS Corporation (“IXYS”), a global pioneer in the power semiconductor and integrated circuit markets with a focus on medium to high voltage power semiconductors across the industrial, communications, consumer and medical markets. IXYS has a broad customer base, serving more than 3,500 customers through its direct sales force and global distribution partners. The acquisition of IXYS is expected to accelerate the Company’s growth across the power control market driven by IXYS’s extensive power semiconductor portfolio and technology expertise. With IXYS, the Company will be able to diversify and expand its presence within industrial electronics markets, leveraging the strong IXYS industrial OEM customer base. The Company also expects to increase long-term penetration of its power semiconductor portfolio in automotive markets, expanding its global content per vehicle.

Upon completion of the acquisition, at IXYS stockholders’ election and subject to proration, each share of IXYS common stock, par value $0.01 per share, owned immediately prior to the effective time were canceled and extinguished and automatically converted into the right to receive: (i) $23.00 in cash (subject to applicable withholding tax), without interest (referred to as the cash consideration), or (ii) 0.1265 of a share of common stock, par value $0.01 per share, of Littelfuse (referred to as the stock consideration). IXYS stockholders received cash in lieu of any fractional shares of Littelfuse common stock that the IXYS stockholders would otherwise have been entitled to receive. Additionally, each outstanding option to purchase shares of IXYS common stock granted under an IXYS equity plan were assumed by Littelfuse and converted into an option to acquire (i) a number of shares of Littelfuse common stock equal to the number of shares of IXYS common stock subject to such option immediately prior to the effective time multiplied by 0.1265, rounded down to the nearest whole share, with (ii) an exercise price per share of Littelfuse common stock equal to the exercise price of such IXYS stock option immediately prior to the effective time divided by 0.1265, rounded up to the nearest whole cent.

Based on the $207.5 per share opening price of Littelfuse common stock on January 17, 2018, the consideration IXYS stockholders received in exchange of their IXYS common stock in the acquisition had a value of $814.8 million comprised of $380.6 million of cash and $434.2 million of Littelfuse stock. In addition to the consideration transferred related to IXYS common stock, the value of consideration transferred, and included in the purchase price, related to IXYS stock options that were converted to Littelfuse stock options, or cash settled, had a value of $41.7 million. As a result, total consideration was valued at $856.5 million.

The total purchase price of $856.5 million has been allocated to assets acquired and liabilities assumed, as of the completion of the acquisition, based on estimated fair values. The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the IXYS acquisition: 

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired	302,865
Cash settled stock options	3,622
Littelfuse stock	434,192
Converted stock options	38,109
Total purchase consideration	778,788
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	155,930
Property, plant, and equipment	77,442
Intangible assets	212,720
Goodwill	382,360
Other non-current assets	28,706
Other non-current liabilities	(78,370	)
	778,788

Approximately $49.1 million of net receivables was included in IXYS’s current assets, All IXYS goodwill, other assets and liabilities were recorded in the Electronics segment and primarily reflected in the Americas and European geographic areas. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining IXYS’s products and technology with the Company’s existing electronics product portfolio. Goodwill resulting from the IXYS acquisition is not expected to be deductible for tax purposes. The Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation (this reflects a reduction of $1.0 million recorded in the fourth quarter of 2018 and $2.0 million recorded in the third quarter of 2018 as a consequence of revisions to the Company’s original estimates. For additional information, see Note 14, Income Taxes. As a result of the Company completing its fair value analysis, in the fourth quarter of 2018, the company recorded a reduction of $2.6 million in certain investments held by IXYS.

Included in the Company’s Consolidated Statements of Net Income for the fiscal year ended December 29, 2018 are net sales of approximately $378.2 million, and loss before income taxes of $22.2 million, since the January 17, 2018 acquisition of IXYS. The Company recognized approximately $11.9 million of stock compensation expense related to IXYS stock options converted to Littelfuse stock options during the fiscal year ended December 29, 2018, of which $4.5 million was recognized immediately as it related to prior service periods.

As required by purchase accounting rules, the Company recorded a $36.9 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was fully amortized as a non-cash charge to cost of goods sold during the first and second quarters of 2018, as the acquired inventory was sold, and reflected as other non-segment costs.

During the fiscal year ended December 29, 2018, the Company incurred approximately $11.0 million of legal and professional fees related to this acquisition which were primarily recognized as selling, general, and administrative expenses. These costs were reflected as other non-segment costs.

2017 Acquisitions

U.S. Sensor

On July 7, 2017, the Company acquired the assets of U.S. Sensor Corporation (“U.S. Sensor”). The acquisition purchase price of $24.3 million, net of the finalization of an income tax gross up which was settled in the fourth quarter of 2017, was funded with available cash. The acquired business expands the Company’s existing sensor portfolio in several key electronics and industrial end markets. U.S. Sensor manufactures a variety of high quality negative temperature coefficient thermistors as well as thermistor probes and assemblies. Product lines also include thin film platinum resistance temperature detectors (“RTDs”) and RTD assemblies.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the U.S. Sensor acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash	$	24,340
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	4,635
Patented and unpatented technologies	1,090
Trademarks and tradenames	200
Non-compete agreement	50
Customer relationships	2,830
Goodwill	16,075
Current liabilities	(540		)
	$	24,340

Included in U.S. Sensor’s current assets, net was approximately $1.5 million of receivables. All U.S. Sensor goodwill, other assets and liabilities were recorded in the Electronics segment and reflected in the United States geographic area. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining U.S. Sensor’s products and technology with the Company’s existing electronics product portfolio. Goodwill for the above acquisition is expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $1.6 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during the third quarter of 2017, as the acquired inventory was sold, and reflected as other non-segment costs.

Monolith

In December 2015, the Company invested $3.5 million in the preferred stock of Monolith Semiconductor Inc. (“Monolith”), a U.S. start-up Company developing silicon carbide technology, which represented approximately 12% of the common stock of Monolith on an as-converted basis. The Company accounted for its investment in Monolith under the cost method with any changes in value recorded in other comprehensive income. The value of the Monolith investment was $3.5 million at December 31, 2016.

On February 28, 2017, pursuant to a Securities Purchase Agreement between the Company and the stockholders of Monolith (“Securities Purchase Agreement”) and conditioned on Monolith achieving a product development milestone and other provisions, the Company acquired 62% of the outstanding common stock of Monolith for $15.0 million. The Securities Purchase Agreement includes provisions whereby the Company will acquire the remaining outstanding stock of Monolith (“non-controlling interest”) at a time or times based on Monolith meeting certain technical and sales targets. During the first quarter of 2018, Monolith met the next set of technical and sales targets. As a result, and pursuant to the Securities Purchase Agreement, in April 2018 the Company acquired an additional 19% of the outstanding common stock of Monolith for $5.0 million, of which $4.0 million was paid to the stockholders of Monolith. On October 5, 2018, the Company acquired the remaining 19% outstanding common stock for $5.0 million.

The additional investment, in the first quarter of 2017, resulted in the Company gaining control of Monolith and was accounted for as a step-acquisition with the fair value of the original investment immediately before the acquisition estimated to be approximately $3.5 million. As the fair value of the investment immediately prior to the transaction equaled the carrying value, there was no impact on the Company’s Consolidated Statements of Net Income. As the Securities Purchase Agreement includes an obligation of the Company to mandatorily redeem the non-controlling interest for cash, the fair value of the non-controlling interest was recognized as a liability on the Company’s Consolidated Balance Sheets. The original investment of $3.5 million, additional cash consideration of $14.2 million (net of cash acquired), and the non-cash consideration of the fair value of the commitment to purchase the non-controlling interest of $9.0 million resulted in a purchase price of $26.7 million. Changes in the fair value of the non-controlling interest are recognized in the Company’s Consolidated Statements of Net Income.

Commencing March 1, 2017, Monolith was reflected as a consolidated subsidiary within the Company’s Consolidated Financial Statements. Had the acquisition occurred as of January 1, 2017, the impact on the Company’s consolidated results of operations would not have been material.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the Monolith acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Original investment	$	3,500
Cash, net of cash acquired	14,172
Non-cash, fair value of commitment to purchase non-controlling interest	9,000
Total purchase consideration	$	26,672
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	891
Property, plant, and equipment	789
Patented and unpatented technologies	6,720
Non-compete agreement	140
Goodwill	20,641
Current liabilities	(639		)
Other non-current liabilities	(1,870		)
	$	26,672

Included in Monolith’s current assets, net was approximately $0.7 million of receivables. All Monolith goodwill, other assets and liabilities were recorded in the Electronics segment and reflected in the United States geographic area. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Monolith’s products and technology with the Company’s existing electronics product portfolio. Goodwill for the above acquisition is not expected to be deductible for tax purposes.

2016 Acquisitions

ON Portfolio

On August 29, 2016, the Company acquired certain assets of select businesses (the “ON Portfolio”) of ON Semiconductor Corporation for $104.0 million. The Company funded the acquisition with available cash and proceeds from its credit facility. The acquired business, which is included in the Electronics segment, consists of a product portfolio that includes transient voltage suppression (“TVS”) diodes, switching thyristors and insulated gate bipolar transistors (“IGBTs”) for automotive ignition applications. The acquisition expands the Company’s offerings in power semiconductor applications as well as increases its presence in the automotive electronics market. The ON Portfolio products have strong synergies with the Company’s existing circuit protection business and will strengthen its channel partnerships and customer engagement.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the ON Portfolio acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash	$	104,000
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	4,816
Customer relationships	31,800
Patented and unpatented technologies	8,800
Non-compete agreement	2,500
Goodwill	56,084
	$	104,000

All the ON Portfolio business goodwill and other assets were recorded in the Electronics segment and are reflected in the Americas and Europe geographic areas. The customer relationships are being amortized over 13.5 years. The patented and unpatented technologies are being amortized over 6-8.5 years. The non-compete agreement is being amortized over 4 years. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining the ON Portfolio products with the Company’s existing power semiconductor product portfolio. $7.3 million of goodwill for the above acquisition is expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $0.7 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. All of the step-up was amortized as a non-cash charge to cost of goods sold during 2016, as the acquired inventory was sold, and reflected as other non-segment costs.

Included in the Company’s Consolidated Statements of Net Income for the year ended December 31, 2016 are net sales of approximately $21.8 million since the August 29, 2016 acquisition of the ON Portfolio business.

Menber’s

On April 4, 2016, the Company completed the acquisition of Menber’s S.p.A. (“Menber’s”) headquartered in Legnago, Italy for $19.2 million, net of acquired cash and after settlement of a working capital adjustment. The Company funded the acquisition with cash on hand and borrowings under the Company’s revolving credit facility. The acquired business is part of the Company's commercial vehicle product business within the Automotive segment and specializes in the design, manufacturing, and selling of manual and electrical high current switches and trailer connectors for commercial vehicles. The acquisition expands the Company’s commercial vehicle products business globally.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the Menber’s acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of acquired cash	$	19,162
Preliminary allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	12,919
Property, plant, and equipment	1,693
Customer relationships	3,050
Patented and unpatented technologies	224
Trademarks and tradenames	1,849
Goodwill	8,091
Current liabilities	(7,220		)
Other non-current liabilities	(1,444		)
	$	19,162

All Menber’s goodwill and other assets and liabilities were recorded in the Automotive segment and reflected in the Europe geographic area. The customer relationships are being amortized over 10 years. The patented and unpatented technologies are being amortized over 5 years. The trademarks and tradenames are being amortized over 10 years. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining Menber’s products with the Company’s existing automotive product portfolio. Goodwill for the above acquisition is not expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $0.2 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during 2016, as the acquired inventory was sold, with the charge reflected as other non-segment costs.

Included in the Company’s Consolidated Statements of Net Income for the year ended December 31, 2016 are net sales of approximately $17.3 million since the April 4, 2016 acquisition of Menber’s.

PolySwitch

On March 25, 2016, the Company acquired 100% of the circuit protection business (“PolySwitch”) of TE Connectivity Ltd. for $348.3 million, net of acquired cash and after settlement of certain post-closing adjustments. The Company funded the acquisition with available cash on hand and borrowings under the Company’s revolving credit facility. The PolySwitch business, which is split between the Automotive and Electronics segments, has a leading position in polymer based resettable circuit protection devices, with a strong global presence in the automotive, battery, industrial, communications and mobile computing markets. PolySwitch has manufacturing facilities in Shanghai and Kunshan, China and Tsukuba, Japan. The acquisition allows the Company to strengthen its global circuit protection product portfolio, as well as strengthen its presence in the automotive electronics and battery protection end markets. The acquisition also significantly increases the Company’s presence in Japan.

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the PolySwitch acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Original consideration	$	350,000
Post closing consideration adjustment received	(1,708		)
Acquired cash	(3,810		)
Acquired cash to be returned to seller	3,810
Total purchase consideration	$	348,292
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	60,228
Property, plant, and equipment	51,613
Land lease	4,290
Patented and unpatented technologies	56,425
Customer relationships	39,720
Goodwill	165,088
Other long-term assets	11,228
Current liabilities	(35,280		)
Other non-current liabilities	(5,020		)
	$	348,292

All PolySwitch goodwill and other assets and liabilities were recorded in the Electronics and Automotive segments and reflected in all geographic areas. The customer relationships are being amortized over 15 years. The patented and unpatented technologies are being amortized over 10 years. The goodwill resulting from this acquisition consists largely of the Company’s expected future product sales and synergies from combining PolySwitch products with the Company’s existing automotive and electronics product portfolio. $103.8 million and $61.3 million of the goodwill for the above acquisition has been assigned to the Electronics and Automotive segments, respectively, with $64.9 million expected to be deductible for tax purposes.

As required by purchase accounting rules, the Company recorded a $6.9 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold during the second quarter of 2016, as the acquired inventory was sold, and reflected as other non-segment costs.

Included in the Company’s Consolidated Statements of Net Income for the year ended December 31, 2016 are net sales of approximately $126.5 million since the March 25, 2016 acquisition of PolySwitch.

2016 Dispositions

During the first quarter of 2016, the Company sold its tangible and intangible assets relating to a marine product line that it acquired as part of its acquisition of Selco A/S in 2011. In connection with this sale, the Company recorded a loss on sale of the product line of $1.4 million reflected within selling, general, and administrative expenses for the year ended December 31, 2016. This loss was recognized as an “other” charge for segment reporting purposes.

Pro Forma Results

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and IXYS as though the acquisition had occurred as of January 1, 2017. The Company has not included pro forma results of operations for U.S. Sensor or Monolith as these results were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the IXYS acquisition occurred as of January 1, 2017 or of future consolidated operating results.

	For the Fiscal Year Ended
(in thousands, except per share amounts)	December 29, 2018		December 30, 2017
Net sales	$	1,735,181	$	1,564,956
Income before income taxes	272,724		142,150
Net income	215,228		75,604
Net income per share — basic	8.61		3.05
Net income per share — diluted	8.53		3.00

Pro forma results presented above primarily reflect the following adjustments:

	For the Fiscal Year Ended
(in thousands)	December 29, 2018			December 30, 2017
Amortization(a)	$	12,009		$	(25,203	)
Depreciation	—			556
Transaction costs(b)	9,976			(9,976		)
Amortization of inventory step-up(c)	36,927			(36,927		)
Stock compensation(d)	5,845			(6,635		)
Interest expense(e)	—			(10,326		)
Income tax impact of above items	(15,446		)	29,336

(a) The amortization adjustment for the twelve months ended December 29, 2018 primarily reflects the reduction of amortization expense in the period related to the Order backlog intangible asset. The Order backlog has a useful life of twelve months and will be fully amortized in the fiscal 2017 pro forma results. The amortization adjustment for the twelve months ended December 30, 2017 reflects incremental amortization resulting for the measurement of intangibles at their fair values.

(b) The transaction cost adjustments reflect the reversal of certain bank and attorney fees from the twelve months ended December 29, 2018 and recognition of those fees during the twelve months ended December 30, 2017.

(c) The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the twelve months ended December 29, 2018 and the recognition of the full amortization during the twelve months ended December 30, 2017. The inventory step-up was amortized over five months as the inventory was sold.

(d) The stock compensation adjustment reflects the reversal of the portion of stock compensation for IXYS stock options that were converted to Littelfuse stock options and expensed immediately during the twelve months ended December 29, 2018. The adjustment for the twelve months ended December 30, 2017 reflect the incremental stock compensation for the converted stock options.

(e) The interest expense adjustment reflects incremental interest expense related to the financing of the transaction.

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and the acquired PolySwitch and the ON Portfolio businesses as though the acquisitions had occurred as of December 28, 2014. The Company has not included pro forma results of operations for Menber’s as these results were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the PolySwitch or ON Portfolio acquisitions occurred as of December 28, 2014 or of future consolidated operating results.

	For the Fiscal Year Ended
(in thousands, except per share amounts)	December 31, 2016
Net sales	$	1,130,645
Income before income taxes	143,110
Net income	124,388
Net income per share — basic	5.51
Net income per share — diluted	5.47

Pro forma results presented above primarily reflect: (i) incremental depreciation relating to fair value adjustments to property, plant, and equipment; (ii) amortization adjustments relating to fair value estimates of intangible assets; (iii) incremental interest expense on assumed indebtedness; and (iv) additional cost of goods sold relating to the capitalization of gross profit as part of purchase accounting recognized for purposes of the pro forma as if it was recognized during the Company’s first quarter of 2015. Pro forma adjustments described above have been tax affected using the Company's effective rate during the respective periods.

The historical PolySwitch and ON Portfolio business results for the year ended December 31, 2016 does not include a provision for income taxes. Income tax expense for the historical ON Portfolio business was not provided on a standalone basis.

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Inventories

12 Months Ended

Dec. 29, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories

The components of inventories at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018		2017
Raw materials	$	69,883	$	39,030
Work in process	88,505		27,454
Finished goods	99,840		74,305
Total	$	258,228	$	140,789

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Property, Plant, and Equipment

12 Months Ended

Dec. 29, 2018

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, Plant, and Equipment

The components of net property, plant, and equipment at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018			2017
Land	$	25,630		$	9,547
Building	114,636			86,599
Equipment	583,043			505,838
Accumulated depreciation and amortization	(383,415		)	(351,407		)
Total	$	339,894		$	250,577

The Company recorded depreciation expense of $51.0 million, $38.3 million, and $33.8 million for the fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively.

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 29, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The amounts for goodwill and changes in the carrying value by segment are as follows:

(in thousands)	Electronics			Automotive			Industrial			Total
As of December 31, 2016	$	215,765		$	144,585		$	43,194		$	403,544
Additions(a)	36,716			—			—			36,716
Foreign currency translation and other adjustments(b)	26,478			(8,756		)	(4,568		)	13,154
As of December 30, 2017	$	278,959		$	135,829		$	38,626		$	453,414
Additions(c)	382,903			—			—			382,903
Foreign currency translation adjustments	(5,823		)	(3,497		)	(282		)	(9,602		)
As of December 29, 2018	$	656,039		$	132,332		$	38,344		$	826,715

(a)The 2017 additions resulted from the acquisitions of U.S. Sensor and Monolith.

(b)Adjustments in 2017 reflect adjustments to reclass goodwill by segment as well as the impact of changes in foreign exchange rates. The impact of the reclassification was an increase in goodwill to the Electronics segment of $21.6 million and a decrease of goodwill of $16.8 million and $4.8 million to the Automotive segment and the Industrial segment, respectively.

(c)The 2018 additions resulted primarily from the acquisition of IXYS.

The components of other intangible assets at December 29, 2018 and December 30, 2017 are as follows:

	As of December 29, 2018
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	139,413	$	69,431	$	69,982
Distribution network	12.6	43,876		34,564		9,312
Customer relationships, trademarks,tradenames, and other	17.5	374,246		92,066		282,180
Total		$	557,535	$	196,061	$	361,474

	As of December 30, 2017
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	141,520	$	59,609	$	81,911
Distribution network	12.1	46,233		33,361		12,872
Customer relationships, trademarks, and tradenames	15.6	162,679		53,612		109,067
Total		$	350,432	$	146,582	$	203,850

During the years ended December 29, 2018 and December 30, 2017, the Company recorded additions to other intangible assets of $212.7 million and $11.0 million, respectively, for acquisitions during those years, the components of which were as follows:

	2018			2017
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Amount		Weighted Average Useful Life (Years)	Amount
Patents, licenses and software	8.0	$	51,500	9.6	$	7,810
Customer relationships, trademarks, and tradenames	17.2	148,800		9.0	3,220
Order backlog	1.0	12,420		0.0	—
Total		$	212,720		$	11,030

For intangible assets with definite lives, the Company recorded amortization expense of $52.2 million, $24.7 million, and $19.3 million in 2018, 2017, and 2016, respectively.

Estimated annual amortization expense related to intangible assets with definite lives at December 29, 2018 is as follows:

(inthousands)	Amount
2019	$	39,440
2020	39,162
2021	37,164
2022	36,368
2023	31,906
2024 and thereafter	177,434
Total	$	361,474

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Accrued Liabilities

12 Months Ended

Dec. 29, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

The components of accrued liabilities at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018		2017
Employee-related liabilities	$	60,640	$	51,239
Other non-income taxes	21,523		15,207
Professional services	6,169		2,214
Interest	5,137		2,477
Accrued share repurchases	4,349		—
Restructuring liability	3,887		1,459
Other	36,700		27,819
Total	$	138,405	$	100,415

Employee-related liabilities consist primarily of payroll, sales commission, bonus, employee benefit accruals and workers’ compensation. Bonus accruals include amounts earned pursuant to the Company’s primary employee incentive compensation plans. Other accrued liabilities include miscellaneous operating accruals and other client-related liabilities.

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Lease Commitments

12 Months Ended

Dec. 29, 2018

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

Lease Commitments

The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $9.6 million, $11.6 million, and $12.6 million in 2018, 2017, and 2016, respectively.

Rent expense is recognized on a straight-line basis over the term of the leases. The difference between straight-line basis rent and the amount paid has been recorded as accrued lease obligations. The Company also has leases that have lease renewal provisions. As of December 29, 2018, all operating leases outstanding were with third parties. The Company did not have any capital leases as of December 29, 2018.

Future minimum payments for all non-cancellable operating leases with initial terms of one year or more at December 29, 2018 are as follows:

(inthousands)	Future Minimum Payments
2019	$	9,133
2020	7,590
2021	5,574
2022	4,590
2023	2,946
2024 and thereafter	2,774
Total	$	32,607

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Restructuring, Impairment and Other Charges

12 Months Ended

Dec. 29, 2018

Restructuring and Related Activities [Abstract]

Restructuring, Impairment, and Other Charges

Restructuring, Impairment and Other Charges

The Company recorded restructuring, impairment and other charges-net for fiscal years 2018, 2017, and 2016 as follows:

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	8,742	$	634	$	127	$	9,503
Other restructuring charges	670		192		—		862
Total restructuring charges	9,412		826		127		10,365
Impairment	—		88		2,130		2,218
Total	$	9,412	$	914	$	2,257	$	12,583

	Fiscal Year Ended December 30, 2017
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	1,244	$	371	$	378	$	1,993
Other restructuring charges	234		—		—		234
Total restructuring charges	1,478		371		378		2,227
Impairment	—		—		—		—
Total	$	1,478	$	371	$	378	$	2,227

	Fiscal Year Ended December 31, 2016
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	135	$	299	$	1,094	$	1,528
Other restructuring charges	1,609		75		783		2,467
Total restructuring charges	1,744		374		1,877		3,995
Impairment	—		—		14,809		14,809
Total	$	1,744	$	374	$	16,686	$	18,804

2018

For the year ended December 29, 2018, the Company recorded total restructuring charges of $10.4 million for employee termination costs and other restructuring charges related to lease termination and facility closure. These charges primarily related to the integration of IXYS and the reorganization of the IXYS Radio Pulse business within the Electronics segment and the reorganization of operations in the Commercial Vehicle Products business within the Automotive segment.

For the year ended December 29, 2018, the Company recorded impairment charges of $2.2 million primarily related to the impairment of a building and a trade name associated with the exit of the Custom business within the Industrial segment.

2017

For the year ended December 30, 2017, the Company recorded total restructuring charges of $2.2 million for employee termination costs and other restructuring charges. The Company recorded $2.0 million for employee termination costs primarily related to the reorganization of selling, general, and administrative functions within the Electronics segments as well as the reorganization of certain operations.

2016

For the year ended December 31, 2016, the Company recorded total restructuring charges of $4.0 million for employee termination costs and other restructuring charges, of which $1.6 million related to a manufacturing product line relocation within the Electronics segment. The Company recorded $1.5 million for employee termination costs primarily related to the reorganization of certain operations in the Industrial and Automotive segments.

Additionally, the Company recognized a charge for goodwill impairment of $8.8 million for its Custom Products reporting unit

within the Industrial segment, and non-cash impairment charges of $6.0 million, of which $3.8 million related to the impairment of the Custom Products tradename and $2.2 million related to the impairment of certain customer relationship intangible assets in the Custom Products reporting unit within the Industrial segment.

The restructuring reserves as of December 29, 2018 and December 30, 2017 are $3.9 million and $1.5 million, respectively. The restructuring reserves are included within accrued liabilities. Payments associated with employee terminations reflected in the above table were substantially completed by December 29, 2018. The Company anticipates the remaining payments associated with employee terminations will be completed in the first quarter of fiscal 2019.

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Debt

12 Months Ended

Dec. 29, 2018

Debt Disclosure [Abstract]

Debt

Debt

The carrying amounts of debt at December 29, 2018 and December 30, 2017 are as follows:

(inthousands)	2018			2017
Term Loan	$	155,000		$	122,500
Euro Senior Notes, Series A due 2023	133,417			139,623
Euro Senior Notes, Series B due 2028	108,330			113,369
U.S. Senior Notes, Series A due 2022	25,000			25,000
U.S. Senior Notes, Series B due 2027	100,000			100,000
U.S. Senior Notes, Series A due 2025	50,000			—
U.S. Senior Notes, Series B due 2030	125,000			—
Other	2,619			—
Unamortized debt issuance costs	(4,636		)	(4,881		)
Total debt	694,730			495,611
Less: Current maturities	(10,000		)	(6,250		)
Total long-term debt	$	684,730		$	489,361

Revolving Credit Facility / Term Loan

On March 4, 2016, the Company entered into a five-year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million. The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million. In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million, in the aggregate, in each case in minimum increments of $25.0 million, subject to certain conditions and the agreement of participating lenders.

On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022. The Credit Agreement also includes the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million, in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans may be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company is required to make quarterly principal payments of 1.25% of the original term loan ($2.5 million with the second advance on January 16, 2018) through maturity, with the remaining balance due on October 13, 2022. In addition to the quarterly principal payments, the Company paid $35.0 million of principal on the term loan during the fiscal year ended December 29, 2018.

Outstanding borrowings under the Credit Agreement bear interest, at the Company’s option, at either LIBOR(fixed for interest periods of one, two, three or six-month periods) plus 1.00% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.00% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25%, based on the Consolidated Leverage Ratio, as defined in the agreement. The credit agreement includes representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 3.59% at December 29, 2018.

As of December 29, 2018, the Company had $0.1 million outstanding in letters of credit and had available $699.9 million of borrowing capacity under the Revolving Credit Facility. At December 29, 2018, the Company was in compliance with all covenants under the Credit Agreement.

Senior Notes

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 (“Euro Senior Notes, Series A due 2023”), and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 (“Euro Senior Notes, Series B due 2028”) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017.

On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 (“U.S. Senior Notes, Series A due 2022”), and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 (“U.S. Senior Notes, Series B due 2027”) (together, the “U.S. Senior Notes due 2022 and 2027”) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017.

On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025”) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 (“U.S. Senior Notes, Series B due 2030”) (together, the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 will be payable on February 15 and August 15, commencing on August 15, 2018.

The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company.

The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At December 29, 2018, the Company was in compliance with all covenants under the Senior Notes.

The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders, and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control.

Interest paid on all Company debt was approximately $18.5 million, $13.4 million, and $8.6 million in fiscal year ended 2018, 2017, and 2016, respectively.

Debt Issuance Costs

The Company paid debt issuance costs of $0.9 million in relation to the $175 million Note Purchase Agreement that was entered on November 15, 2017. The Company incurred debt issuance costs of $1.6 million in relation to the 2017 amendment to the Credit Agreement which, along with the remaining balance of debt issuance costs of the previous credit facility, are being amortized over the life of the Credit Agreement. The Company incurred aggregate debt issuance costs of $1.8 million in relation to the Senior Notes issued previously which are being amortized over the respective lives of the Series A and B notes.

Debt Maturities

Scheduled maturities of the Company’s long-term debt for each of the five years succeeding December 29, 2018 and thereafter are summarized as follows:

(inthousands)	Scheduled Maturities
2019	$	10,000
2020	10,000
2021	10,000
2022	152,619
2023	133,417
2024 and thereafter	383,330
	$	699,366

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Fair Value of Assets and Liabilities

12 Months Ended

Dec. 29, 2018

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, the Company classifies each fair value measurement as follows:

Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;

Level 2—Valuations based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

Level 3—Valuations based upon one or more significant unobservable inputs.

Following is a description of the valuation methodologies used for instruments measured at fair value and their classification in the valuation hierarchy.

Investments in Equity Securities

Investments in equity securities listed on a national market or exchange are valued at the last sales price and classified within Level 1 of the valuation hierarchy. Such securities are further detailed in Note 1, Summary of Significant Accounting Policies and Other Information.

Defined Benefit Plan Assets / Non-qualified Supplemental Retirement and Savings PlanInvestments

See Note 11, Benefit Plans, for description of valuation methodologies and investment balances for defined benefit plan assets and investments related to the Company’s Non-Qualified Supplemental Retirement and Savings Plan.

There were no changes during 2018 to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. As of December 29, 2018 and December 30, 2017, the Company held no non-financial assets or liabilities that are required to be measured at fair value on a recurring basis.

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 29, 2018:

	Fair Value Measurements Using
(inthousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,312	$	—	$	—	$	10,312
Mutual funds	9,112		—		—		9,112

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:

	Fair Value Measurements Using
(inthousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,993	$	—	$	—	$	10,993
Mutual funds	7,962		—		—		7,962

In addition to the methods and assumptions used for the financial instruments recorded at fair value as discussed above, the following methods and assumptions are used to estimate the fair value of other financial instruments that are not marked to market on a recurring basis. The Company’s other financial instruments include cash and cash equivalents, short-term investments, trade receivables and its long-term debt. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, short-term investments and trade receivables approximate their fair values. The Company’s revolving and term loan debt facilities’ fair values approximate book value at December 29, 2018 and December 30, 2017, as the rates on these borrowings are variable in nature.

The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of December 29, 2018 and December 30, 2017 were as follows:

	December 29, 2018				December 30, 2017
(inthousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	133,417	$	130,888	$	139,623	$	138,294
Euro Senior Notes, Series B due 2028	108,330		103,774		113,369		111,579
USD Senior Notes, Series A due 2022	25,000		24,115		25,000		24,737
USD Senior Notes, Series B due 2027	100,000		94,458		100,000		99,992
USD Senior Notes, Series A due 2025	50,000		47,434		—		—
USD Senior Notes, Series B due 2030	125,000		114,731		—		—

The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the fiscal years ended December 31, 2016 were as follows:

	Fiscal Year Ended December 31, 2016
(inthousands)	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Goodwill	$	8,794	$	—	$	—
Other intangible assets	6,015		680		660
Total	$	14,809	$	680	$	660

Further information regarding the impairment charges of goodwill and intangible assets is provided in Note 8, Restructuring, Impairment and Other Charges, of the Notes to Consolidated Financial Statements included in this Annual Report.

The company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs. The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the fiscal year ended December 31, 2016:

(inthousands, except rates data)	Fair Value		Valuation Technique	Unobservable Inputs	Rates
Tradename	$	680	Relief from royalty	Discount rate:	18%
				Royalty rate:	1%
Customer relationships	$	—	Excess earnings	Discount rate:	18%
				Attrition rate:	5%

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Benefit Plans

12 Months Ended

Dec. 29, 2018

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

The Company has Company-sponsored defined benefit pension plans covering employees in the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay.

IXYS Acquisition

During 2018, as a result of the IXYS acquisition, pension liabilities were assumed by the Company in Germany, Philippines, and U.K.

Benefit plan related information is as follows for the years 2018 and 2017:

(inthousands)	2018			2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	67,268		$	55,606
Service cost	2,266			2,037
Interest cost	3,104			1,887
Net actuarial gain	(7,321		)	(433		)
Benefits paid from the trust	(2,479		)	(1,405		)
Benefits paid directly by the Company	(1,802		)	(1,098		)
Settlements	(1,291		)	(31		)
Acquisitions	48,358			—
Effect of exchange rate movements	(6,918		)	5,477
Other	1,648			5,228
Benefit obligation at end of year	$	102,833		$	67,268
Change in plan assets at fair value:
Fair value of plan assets at beginning of year	$	48,123		$	42,208
Actual return on plan assets	(2,847		)	2,962
Employer contributions	2,341			264
Benefits paid	(2,479		)	(1,405		)
Settlements	(1,291		)	—
Acquisitions	31,954			—
Effect of exchange rate movements	(5,125		)	4,094
Fair value of plan assets at end of year	70,676			48,123
Net amount recognized/(unfunded status)	$	(32,157	)	$	(19,145	)

Amounts recognized in the Consolidated Balance Sheets as of December 29, 2018 and December 30, 2017 consist of the following:

(inthousands)	2018			2017
Amounts recognized in the Consolidated Balance Sheets consist of:
Noncurrent assets	$	811		$	78
Current benefit liability	(1,094		)	(481		)
Noncurrent benefit liability	(31,874		)	(18,742		)
Net liability recognized	$	(32,157	)	$	(19,145	)

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net period cost as of December 29, 2018 and December 30, 2017 were as following:

(inthousands)	2018		2017
Net actuarial loss	$	9,777	$	12,261
Prior service cost	1,607		—
Total	$	11,384	$	12,261

The estimated net actuarial loss which will be amortized from accumulated other comprehensive income (loss) into benefit cost in 2019 is approximately $0.2 million.

The pre-tax amounts recognized in other comprehensive income loss in 2018 as components of net periodic benefit costs were as follows:

(inthousands)	2018
Amortization of:
Prior service cost	$	291
Amount arising during the period:
Net actuarial loss	(396		)
Settlement loss	238
Foreign currency adjustments	744
Total	$	877

The components of pension expense for the fiscal years 2018, 2017, and 2016 are as follows: 

(inthousands)	2018			2017			2016
Components of net periodic benefit cost:
Service cost	$	2,266		$	2,037		$	1,509
Interest cost	3,104			1,887			1,662
Expected return on plan assets	(3,222		)	(1,990		)	(1,935		)
Amortization of prior service	291			337			306
Net periodic benefit cost	2,439			2,271			1,542
Settlement loss / curtailment (gain)	238			(25		)	(36		)
Total expense for the year	$	2,677		$	2,246		$	1,506

Weighted average assumptions used to determine net periodic benefit cost for the fiscal years 2018, 2017, and 2016 are as follows:

	2018		2017		2016
Discount rate	2.8	%	3.0	%	3.7	%
Expected return on plan assets	4.2	%	4.5	%	4.9	%
Compensation increase rate	5.0	%	4.5	%	5.3	%

The accumulated benefit obligation for the foreign plans was $99.6 million and $60.5 million at December 29, 2018 and December 30, 2017, respectively.

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 29, 2018 and December 30, 2017:

(inthousands)	2018		2017
Projected benefit obligation	$	70,579	$	28,515
Fair value of plan assets	37,611		9,292

The following table provides a summary of under-funded or unfunded pension benefit plans with accumulated benefit obligations in excess of plan assets as of December 29, 2018 and December 30, 2017:

(inthousands)	2018		2017
Accumulated benefit obligation	$	66,049	$	18,990
Fair value of plan assets	36,003		6,003

Weighted average assumptions used to determine benefit obligations as of December 29, 2018, December 30, 2017 and December 31, 2016 are as follows:

	2018		2017		2016
Discount rate	3.1	%	3.1	%	2.6	%
Compensation increase rate	4.6	%	5.0	%	4.5	%

Expected benefit payments to be paid to participants for the fiscal year ending are as follows:

(in thousands)	Expected Benefit Payments
2019	$	4,210
2020	4,243
2021	4,691
2022	4,547
2023	4,884
2024-2028	27,047

The Company expects to make approximately $2.3 million of contributions to the plans in 2019.

Defined Benefit Plan Assets

Based upon analysis of the target asset allocation and historical returns by type of investment, the Company has assumed that the expected long-term rate of return will be 4.5% on plan assets. Assets are invested to maximize long-term return taking into consideration timing of settlement of the retirement liabilities and liquidity needs for benefits payments. Pension plan assets were invested as follows, and were not materially different from the target asset allocation:

	Asset Allocation
	2018		2017
Equity securities	30	%	35	%
Debt securities	66	%	64	%
Cash and cash equivalents, and other	4	%	1	%
	100	%	100	%

The Company segregated its plan assets by the following major categories and level for determining their fair value as of December 29, 2018 and December 30, 2017. All plan assets that are valued using the net asset value per share (“NAV”) practical expedient have not been included within the fair value hierarchy but are separately disclosed.

Cash and cash equivalents – Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method and at NAV.

Equity – The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. Additionally, the Company invests in certain equity funds that are valued at calculated NAV.

Fixed income – Fixed income securities are typically priced based on a last trade basis and are exchange-traded. Accordingly, the Company classified fixed income securities as Level 1. The Company also invests in certain fixed income funds which are valued at NAV.

Insurance Contracts and other – This category includes insurance contracts that are valued by the re-insurer with the valuation inputs being not highly observable and traded on an open market. Accordingly, insurance contracts was categorized as Level 3. Additionally, this category includes other assets and liabilities including futures or swaps valued at NAV.

For any Level 2 and Level 3 plan assets, management reviews significant investments on a periodic basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates.

The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV.

The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 29, 2018:

	Fair Value Measurements Using
(inthousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,361	$	—	$	—	$	19,528	$	20,889
Fixed income	3,336		—		—		43,134		46,470
Insurance contracts and other	—		—		632		1,161		1,793
Cash and cash equivalents	702		—		—		823		1,525
Total pension plan assets	$	5,399	$	—	$	632	$	64,645	$	70,676

The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:

	Fair Value Measurements Using
(inthousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,031	$	—	$	—	$	16,032	$	17,063
Fixed income	8,088		—		—		22,568		30,656
Cash and cash equivalents	173		—		—		231		404
Total pension plan assets	$	9,292	$	—	$	—	$	38,831	$	48,123

Defined Contribution Plan

The Company also maintains a 401(k) savings plan covering substantially all U.S. employees. The Company matches 100% of the employee’s annual contributions for the first 4% of the employee’s eligible compensation. The Company may provide an additional discretionary match to participants and made discretionary matches of 2% of the employee’s eligible compensation for each of the years ended December 29, 2018, December 30, 2017 and December 31, 2016. Employees are immediately vested in their contributions plus actual earnings thereon, as well as the Company contributions. Company matching contributions amounted to $4.5 million, $3.5 million, and $3.2 million in 2018, 2017, and 2016, respectively.

Non-qualified Supplemental Retirement and Savings Plan

The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The investments are subject to the claims of the Company’s creditors and the Company is responsible for the payment of all benefits under the plan from its general assets. As of December 29, 2018, there was $9.1 million of marketable securities related to the plan included in Other assets and $9.1 million of accrued compensation benefits included in Other long-term liabilities. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value. The Company made matching contributions to the plan of $0.4 million in 2018.

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Stock-Based Compensation

12 Months Ended

Dec. 29, 2018

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

Stock-Based Compensation

Stock-Based Compensation

Equity Plans: The Company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, performance shares and other stock rights to employees and directors. As of December 29, 2018, there were 1.4 million shares available for issuance of future awards under the Company’s equity-based compensation plans.

Stock options generally vest over a three, four or five-year period and are exercisable over either a seven or ten-year period commencing from the date of the grant. Restricted shares and share units granted by the Company generally vest over three to four years. Stock options and restricted share units may have accelerated vesting upon meeting certain qualified conditions.

Upon completion of the IXYS acquisition, IXYS outstanding options were assumed by the Company and converted into options of 499,027 shares. The Company recognized approximately $11.9 million of stock compensation expense related to IXYS stock options converted to Littelfuse stock options during the fiscal year ended December 29, 2018, of which $4.5 million was recognized immediately as it related to prior service periods. See Note 2, Acquisitions and Dispositions, for further discussion.

The following table provides a reconciliation of outstanding stock options for the fiscal year ended December 29, 2018.

	Shares Under Option		Weighted Average Price		Weighted Average Remaining Contract Life (Years)	Aggregate Intrinsic Value (000’s)
Outstanding December 30, 2017	404,301		$	110.04
Granted	78,721		192.59
IXYS converted awards	499,027		92.52
Exercised	(296,914	)	87.85
Forfeited	(15,779	)	120.59
Outstanding December 29, 2018	669,356		116.29		5.4	$	36,494
Exercisable December 29, 2018	420,422		100.14		4.8	28,542

The following table provides a reconciliation of non-vested restricted share and share unit awards for the fiscal year ended December 29, 2018.

	Shares		Weighted Average Grant-Date Fair Value
Nonvested December 30, 2017	199,693		$	130.40
Granted	77,430		194.39
Vested	(104,062	)	123.45
Forfeited	(12,267	)	144.84
Nonvested December 29, 2018	160,794		164.61

The total intrinsic value of options exercised during 2018, 2017, and 2016 was $38.3 million, $2.2 million, and $13.3 million, respectively. The total fair value of shares vested was $20.8 million, $15.0 million, and $10.7 million for 2018, 2017, and 2016, respectively. The total amount of share-based liabilities paid was $1.1 million, $0.9 million and $0.6 million for 2018, 2017, and 2016, respectively.

The Company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At December 29, 2018, the unrecognized compensation cost for options and restricted shares was $22.0 million before tax, and will be recognized over a weighted average period of 1.8 years. Compensation cost included as a component of cost of sales, research and development and selling, general, and administrative expenses for all equity compensation plans discussed above was $28.2 million, $17.3 million, and $12.8 million for 2018, 2017, and 2016, respectively. The total income tax benefit recognized in the Consolidated Statements of Net Income was $6.0 million, $6.0 million and $4.4 million for 2018, 2017, and 2016, respectively.

The Company uses the Black-Scholes option valuation model to determine the fair value of awards granted. The weighted average fair value of and related assumptions for options granted are as follows:

	2018	2017	2016
Weighted average fair value of options granted	$45.19	$30.77	$26.06
Assumptions:
Risk-free interest rate	2.79%	1.79%	1.37%
Expected dividend yield	0.77%	0.86%	0.97%
Expected stock price volatility	25.0%	23.0%	26.0%
Expected life of options (years)	4.4	4.4	4.6

Expected volatilities are based on the historical volatility of the Company’s stock price. The expected life of options is based on historical data for options granted by the Company. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption.

Preferred Stock: The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board may fix by resolution.

Share Repurchase Program

The Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock under a program for the period May 1, 2018 to April 30, 2019. During the fiscal year 2018, the Company repurchased 391,972 shares of its common stock.

As of February 18, 2019, the Company has repurchased 79,916 shares of its common stock since the fiscal year ended December 29, 2018.

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Other Comprehensive Income (Loss)

12 Months Ended

Dec. 29, 2018

Equity [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive (Loss) Income

Changes in other comprehensive (loss) income by component for fiscal years 2018, 2017, and 2016 were as follows:

	Fiscal Year Ended
	December 29, 2018								December 30, 2017								December 31, 2016
(in thousands)	Pre-tax			Tax		Net of tax			Pre-tax			Tax		Net of tax			Pre-tax			Tax			Net of tax
Defined benefit pension plan adjustments	$	924		$	47	$	877		$	1,532		$	385	$	1,147		$	(4,563	)	$	(1,302	)	$	(3,261	)
Unrealized loss on investments	—			—		—			(974		)	—		(974		)	(815		)	—			(815		)
Foreign currency translation adjustments	(25,338		)	—		(25,338		)	10,738			—		10,738			(24,832		)	—			(24,832		)
Total change in other comprehensive (loss) income	$	(24,414	)	$	47	$	(24,461	)	$	11,296		$	385	$	10,911		$	(30,210	)	$	(1,302	)	$	(28,908	)

Accumulated Other Comprehensive Income (Loss) (“AOCI”): The following table sets forth the changes in the components of AOCI by component for fiscal years 2018, 2017, and 2016:

(inthousands)	Pension and postretirement liability and reclassification adjustments			Gain (loss) on investments			Foreign currency translation adjustments			Accumulated other comprehensive income (loss)
Balance at January 2, 2016	$	(8,722	)	$	11,584		$	(48,533	)	$	(45,671	)
2016 activity	(3,261		)	(815		)	(24,832		)	(28,908		)
Balance at December 31, 2016	(11,983		)	10,769			(73,365		)	(74,579		)
2017 activity	1,147			(974		)	10,738			10,911
Balance at December 30, 2017	(10,836		)	9,795			(62,627		)	(63,668		)
Cumulative effect adjustment (a)	—			(9,795		)	—			(9,795		)
2018 activity	877			—			(25,338		)	(24,461		)
Balance at December 29, 2018	$	(9,959	)	$	—		$	(87,965	)	$	(97,924	)

(a) The Company adopted ASU 2016-01 on December 31, 2017 on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. See Note 1, Summary of Significant Accounting Policies and Other Information, for further discussion.

Amounts reclassified from accumulated other comprehensive (loss) income to earnings for fiscal years 2018, 2017, and 2016 were as follows:

	Fiscal Year Ended
(in thousands)	December 29, 2018		December 30, 2017			December 31, 2016
Pension and postemployment plans:
Amortization of prior service	$	291	$	337		$	306
Settlement loss/curtailment (gain)	238		(25		)	(36		)
Total	$	529	$	312		$	270

The Company recognizes the amortization of prior service costs and settlement loss and curtailment gain in other income, net within the Consolidated Statements of Net Income.

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Income Taxes

12 Months Ended

Dec. 29, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

On December 22, 2017, the U.S. enacted legislation referred to as the "Tax Act". Among other things, the Tax Act reduces the U.S. corporate federal income tax rate from 35% to 21%, adds base broadening provisions which limit deductions and address excessive international tax planning, imposes a Toll Charge on accumulated earnings of certain non-U.S. subsidiaries and enables repatriation of earnings of non-U.S. subsidiaries free of U.S. federal income tax. Other than the Toll Charge (which, except for the IXYS impact, was applicable to the Company for 2017), the provisions are generally applicable to the Company in 2018 and beyond.

In accordance with the guidance provided in SEC SAB No. 118, in the fourth quarter of 2017 the Company recorded a charge of $47.0 million as a provisional reasonable estimate of the impact of the Tax Act, including $49.0 million for the Toll Charge net of $2.0 million for other net tax benefits. In the fourth quarter of 2018, within the measurement period outlined in SAB No. 118, the Company finalized its estimates of the impact of the Tax Act as of December 30, 2017 and recorded a charge of $3.2 million, including $2.3 million for the Toll Charge and $0.9 million for the net impact of other items. In addition, the Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation. This was reflected in the opening balance sheet as an increase to goodwill and other long-term liabilities.

Although certain administrative guidance has been issued, including final and proposed regulations, the appropriate application of many provisions of the Tax Act remain uncertain. The Company used its best judgment as to the application of these provisions in determining its final estimates of the impact of the Tax Act as of December 30, 2017, the Toll Charge associated with the IXYS acquisition as well as the Company’s income tax expense for the year ended December 29, 2018. Adjustments to income tax expense may be necessary in future periods if provisions of the Tax Act, and their interaction with other provisions of the U.S. Internal Revenue Code, are interpreted differently than interpretations made by the Company, whether through issuance of additional administrative guidance, or through further review of the Tax Act by the Company and its advisors. In this regard, on January 15, 2019, final regulations were issued addressing the Toll Charge (replacing the proposed regulations issued in August of 2018). The Company is evaluating these final regulations and has yet to determine their impact.

The Company has elected to pay the 2017 Littelfuse Toll Charge and will elect to pay the 2018 IXYS Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of these Toll Charges totaling $28.8 million (which includes the Littelfuse and IXYS Toll Charges, partially offset by foreign tax credits, the tax benefit of current year losses and the actual 2018 and anticipated 2019 annual installment payments) is recorded in Other long-term liabilities on the Consolidated Balance Sheet as of December 29, 2018. The anticipated 2019 annual installment payments are included in accrued income taxes.

One of the base broadening provisions of the Tax Act is commonly referred to as the “GILTI” provisions. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

Domestic and foreign income (loss) before income taxes is as follows:

(inthousands)	2018			2017			2015
Domestic	$	(49,995	)	$	(20,496	)	$	(9,563	)
Foreign	254,937			224,533			132,837
Income before income taxes	$	204,942		$	204,037		$	123,274

Federal, state and foreign income tax expense (benefit) consists of the following:

(inthousands)	2018			2017		2016
Current:
Federal	$	(3,193	)	$	34,060	$	(3,992	)
State	119			450		(648		)
Foreign	48,130			32,945		28,695
Subtotal	45,056			67,455		24,055
Deferred:
Federal and State	(3,896		)	16,562		(1,594		)
Foreign	(783		)	501		(3,675		)
Subtotal	(4,679		)	17,063		(5,269		)
Provision for income taxes	$	40,377		$	84,518	$	18,786

The current federal tax benefit for 2018 includes the benefit of current year losses (which served to partially offset the amount of the IXYS Toll Charge that would otherwise have been payable).

The current federal and state income tax expense for 2017 includes the preliminary estimate of $49 million for the Toll Charge as discussed above, partially offset by $13.0 million of foreign tax credits.

The current federal tax benefit for 2016 includes an estimated $3.0 million benefit as a result of the carry-back of the 2016 U.S. federal net operating loss to the 2014 tax year.

A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:

(inthousands)	2018			2017			2016
Tax expense at statutory rate of 21% (35% for 2017 and 2016)	$	43,038		$	71,413		$	43,146
2017 Toll Charge (and 2018 adjustment)	2,278			49,000			—
Provisional Tax Act impact other than Toll Charge (and 2018 adjustment)	966			(1,962		)	—
Net impact associated with the GILTI tax provisions	5,075			—			—
State and local taxes, net of federal tax benefit	(1,238		)	292			(415		)
Non-U.S. income tax rate differential	(20,472		)	(47,077		)	(25,471		)
Impairment of goodwill without tax benefit	—			—			3,088
Tax on unremitted earnings	4,660			12,202			2,747
Non-U.S. losses and expenses with no tax benefit	3,107			—			—
Nondeductible professional fees	1,001			1,240			313
Tax deduction for stock of foreign subsidiary	—			—			(3,896		)
Other, net	1,962			(590		)	(726		)
Provision for income taxes	$	40,377		$	84,518		$	18,786

Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting bases and the tax bases of the company’s assets and liabilities. Significant components of the company’s deferred tax assets and liabilities at December 29, 2018 and December 30, 2017, are as follows:

(in thousands)	2018			2017
Deferred tax assets:
Accrued expenses and reserves	$	35,597		$	24,094
Foreign tax credit carryforwards	1,506			1,053
Other U.S. tax attribute carryforwards	1,539			—
Accrued restructuring	60			156
Capital loss carryforwards	47			3,165
Domestic and non-U.S. net operating loss and credit carryforwards	8,613			5,778
Gross deferred tax assets	47,362			34,246
Less: Valuation allowance	(4,794		)	(6,203		)
Total deferred tax assets	42,568			28,043
Deferred tax liabilities:
Excess of book basis over the tax basis of assets	74,410			21,254
Tax on unremitted earnings	12,681			12,000
Total deferred tax liabilities	87,091			33,254
Net deferred tax liabilities	$	44,523		$	5,211

The deferred tax asset valuation allowance is related to certain net operating loss and credit carryforwards which are not expected to be realized. The remaining net operating loss and credit carryforwards either have no expiration date or are expected to be utilized prior to expiration (which begin expiring in 2021). The deferred tax asset valuation allowance as of December 30, 2017 also included amounts related to a capital loss carryforward which expired in 2018. No deferred tax asset nor valuation allowance has been recorded for certain U.S. and non-U.S. net operating loss carryforwards for which the possibility of usage has been determined to be remote.

The Company paid income taxes of $46.2 million, $31.8 million, and $35.6 million in 2018, 2017, and 2016, respectively, and received income tax refunds of and $4.3 million and $13.7 million in 2018 and 2017, respectively.

Deferred income taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. The Company believes the determination of the amount of such deferred income taxes is impractical as it would depend upon income tax laws and circumstances at the time of the hypothetical distributions or dispositions. As of December 29, 2018, unremitted earnings of the Company’s non-U.S. subsidiaries was approximately $815 million. A distribution of such earnings will generally not be subject to U.S. federal income tax. The Company recognized deferred tax liabilities of $12.7 million ($12.5 million for non-U.S. taxes net of related U.S. foreign tax credits, and $0.2 million for U.S. state taxes) as of December 29, 2018 and $12.0 million ($11.8 million for non-U.S. taxes and $0.2 million for U.S. state taxes) as of December 30, 2017, related to taxes on certain non-U.S. earnings which are not considered to be permanently reinvested. Some of these non-U.S. taxes will provide a U.S. federal income tax benefit as a foreign tax credit, and the amounts as of December 29, 2018 are net of such benefit (some of which was recorded as part of finalizing the provisional reasonable estimate of the impact of the Tax Act). Due to the uncertainty in regard to the Tax Act’s provisions, no benefit was recorded for these foreign tax credits as of December 30, 2017.

The Company has three subsidiaries in China which benefit from lowered income tax rates due to “tax holidays” which apply for three-year periods, subject to extension. One such tax holiday, which had expired in 2018, was extended in the fourth quarter of 2018, retroactive to the beginning of the year. Such tax holidays contributed $6.1 million in tax benefits, or $0.24 per diluted share, during 2018, with similar amounts expected in future years while such tax holidays are in effect.

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 29, 2018, December 30, 2017, and December 31, 2016 is as follows:

(inthousands)	Unrecognized Tax Benefits
Balance at December 31, 2016	$	8,617
Additions for tax positions taken in the current year	370
Other	(1,327		)
Balance at December 30, 2017	$	7,660
Additions for tax positions taken in the current year	2,929
Additions for tax positions related to the pre-acquisition periods of acquired subsidiaries	9,394
Decreases due to a lapse in the statute of limitations	(1,257		)
Other	(467		)
Balance at December 29, 2018	$	18,259

The company recognizes accrued interest and penalties associated with uncertain tax positions as part of income tax expense. The company recognized interest expense of $1.5 million (net of a $0.3 million decrease due to a lapse in the statute of limitations), $0.9 million, and $0.9 million in 2018, 2017, and 2016, respectively. Accrued interest included in Other long-term liabilities within the Consolidated Balance Sheets was $5.9 million and $3.3 million as of December 29, 2018 and December 30, 2017, respectively.

The amount of unrecognized tax benefits at December 29, 2018 was $18.3 million. This total represents the net amount of tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. Of this amount, approximately $3.5 million may be recognized in 2019 based upon the possible lapse in the statute of limitations. None of the positions included in unrecognized tax benefits are related to tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility.

The U.S. federal statute of limitations remains open for the Company for the 2014 tax year and later years, although the Company has been audited for the 2014 through 2016 tax years and the audit concluded in 2018 with no significant adjustments. The U.S. federal statute of limitations remains open for IXYS pre-acquisition tax periods ending March 31, 2016, March 31, 2017 andJanuary 17, 2018. Non-U.S. and U.S. state statutes of limitations generally range from three to seven years, although certain jurisdictions do not have a statute expiration. Non-U.S. tax examinations occur from time to time, including examinations currently in process in Italy, the Philippines and Hong Kong. The company does not expect to recognize a significant amount of additional tax expense as a result of concluding these examinations.

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Earnings Per Share

12 Months Ended

Dec. 29, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

(inthousands, except per share amounts)	2018		2017		2016
Numerator:
Net income as reported	$	164,565	$	119,519	$	104,488
Denominator:
Weighted average shares outstanding
Basic	24,870		22,687		22,559
Effect of dilutive securities	365		244		168
Diluted	25,235		22,931		22,727
Earnings Per Share:
Basic earnings per share	$	6.62	$	5.27	$	4.63
Diluted earnings per share	$	6.52	$	5.21	$	4.60

Potential shares of common stock attributable to stock options excluded from the earnings per share calculation because their effect would be anti-dilutive were 42,305, 37,443, and 53,448 shares in 2018, 2017, and 2016, respectively.

On January 17, 2018, the Company acquired IXYS through a combination of cash, Littelfuse common stock, and the value of converted, or cash settled IXYS equity awards. The Company issued approximately 2.1 million shares of Littelfuse common stock and converted IXYS equity awards into approximately 0.5 million Littelfuse equity awards.

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Segment Information

12 Months Ended

Dec. 29, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing, and research and development expenses are charged directly into each operating segment. Manufacturing, purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it.  Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.

• Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor and power semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon carbide, metal-oxide-semiconductor field-effect transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial and automotive electronics, electric vehicle infrastructure, data and telecommunications, medical devices, LED lighting, consumer electronics and appliances.

• Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle industries. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain, emissions, speed and suspension.

• Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy - solar and wind, electric vehicle infrastructure, construction, HVAC systems, elevator and other industrial equipment.

The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows:

(inthousands)	2018			2017			2016
Net sales
Electronics	$	1,124,296		$	661,928		$	535,191
Automotive	479,791			453,227			415,200
Industrial	114,381			106,379			105,768
Total net sales	$	1,718,468		$	1,221,534		$	1,056,159
Depreciation and amortization
Electronics	$	61,779		$	35,215		$	29,141
Automotive	23,333			22,459			18,107
Industrial	5,661			5,337			5,889
Other	12,420			—			—
Total depreciation and amortization	$	103,193		$	63,011		$	53,137
Operating income (loss)
Electronics	$	241,426		$	155,880		$	117,088
Automotive	54,982			62,571			59,905
Industrial	17,335			10,334			3,615
Other(a)	(88,694		)	(10,274		)	(49,964		)
Total operating income	225,049			218,511			130,644
Interest expense	22,569			13,380			8,628
Foreign exchange (gain) loss	(863		)	2,376			472
Other income, net	(1,599		)	(1,282		)	(1,730		)
Income before income taxes	$	204,942		$	204,037		$	123,274

(a) Included in “Other” Operating income (loss) for 2018 is $88.7 million of charges primarily related to the IXYS acquisition, which include $36.9 million of purchase accounting inventory step-up charges, $18.7 million in acquisition-related and integration costs primarily related to legal, accounting and other expenses, $12.4 million in backlog amortization costs, $8.3 million of employee termination costs, impairment and other restructuring charges, and $4.5 million in stock compensation expense recognized immediately upon close for converted IXYS options related to prior service periods and $2.1 million change in control expense related to IXYS. In addition, there were $5.8 million of employee termination costs, impairment and other restructuring charges and acquisition-related expenses for other contemplated acquisitions which included $1.1 million of charges associated with the exit of the Custom business in the second quarter.

Included in “Other” Operating income (loss) for 2017 are costs related to acquisition and integration costs associated with the Company’s completed and pending acquisitions in 2017 ($8.0 million in Cost of sales ("COS") and Selling, general, and administrative expenses (“SG&A”), and charges related to restructuring and production transfers in the Company’s Asia operations ($2.2 million in SG&A).

Included in “Other” Operating income (loss) for 2016 are costs related to the impairment of the Custom Products reporting unit ($14.8 million), acquisition and integration costs associated with the Company’s 2016 acquisitions ($29.2 million in COS and SG&A), transfer of the Company’s reed switch manufacturing operations from its Lake Mills, Wisconsin and Suzhou, China locations to the Philippines ($1.6 million in COS), impairment and severance costs related to the closure of the Company’s manufacturing facility in Denmark ($1.9 million in SG&A), and restructuring costs ($2.5 million in SG&A and Research and development expenses).

The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2018, 2017, and 2016 are as follows:

(inthousands)	2018		2017		2016
Net sales
United States	$	511,544	$	383,025	$	356,674
China	468,174		321,111		263,701
Other countries(a)	738,750		517,398		435,784
Total net sales	$	1,718,468	$	1,221,534	$	1,056,159
Long-lived assets
United States	$	58,691	$	23,490	$	23,731
China	95,806		86,866		65,345
Mexico	70,495		62,510		52,262
Germany	36,548		1,082		1,313
Philippines	32,459		31,129		33,345
Other countries	45,895		45,500		41,179
Total long-lived assets	$	339,894	$	250,577	$	217,175
Additions to long-lived assets
United States	$	5,567	$	3,518	$	4,694
China	29,286		32,775		13,181
Mexico	18,723		19,395		15,667
Germany	5,208		93		965
Philippines	7,605		2,979		5,096
Other countries	8,364		7,165		6,625
Total additions to long-lived assets	$	74,753	$	65,925	$	46,228

(a) Each country included in other countries are less than 10% of net sales.

For the year ended December 29, 2018, approximately 70% of the Company’s net sales were to customers outside the United States (exports and foreign operations), including approximately 27% to China. For the year ended December 30, 2017, approximately 69% of the Company's net sales were to customers outside the United States (exports and foreign operations), including approximately 26% to China. For the year ended December 31, 2016, approximately 66% of the Company's net sales were to customers outside the United States (exports and foreign operations), including approximately 25% to China. Sales to Arrow Electronics, Inc., which were included in the Electronics, Automotive, and Industrial segments, were 10.7% and 10.6% of consolidated net sales in 2018 and 2017, respectively, but less than 10% for 2016. No other single customer accounted for more than 10% of net sales during the last three years.

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Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 29, 2018

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited)

The quarterly periods for 2018 are for the 13-weeks ended December 29, 2018, September 29, 2018, June 30, 2018, and March 31, 2018, respectively. The quarterly periods for 2017 are for the 13-weeks ended December 30, 2017, September 30, 2017, July 1, 2017, and April 1, 2017, respectively.

(inthousands, except per share data)
	2018								2017
	4Q(a)		3Q(b)		2Q(c)		1Q(d)		4Q(e)			3Q(f)		2Q(g)		1Q(h)
Net sales	$	402,281	$	439,191	$	459,183	$	417,813	$	304,849		$	317,889	$	313,355	$	285,441
Gross profit	154,337		179,594		168,987		149,623		126,624			133,651		132,608		113,650
Operating income	51,628		76,228		59,622		37,571		50,780			58,609		60,270		48,852
Net income/(loss)	32,665		53,546		42,326		36,029		(10,819		)	42,808		48,638		38,891
Net income/(loss) per share
Basic	$	1.31	$	2.13	$	1.69	$	1.48	$	(0.48	)	$	1.88	$	2.13	$	1.71
Diluted	$	1.29	$	2.10	$	1.67	$	1.45	$	(0.48	)	$	1.87	$	2.11	$	1.69

(a)In the fourth quarter of 2018, the Company recorded an estimated one-time tax charge of $3.2 million related to the finalization of 2017 provisional reasonable estimate in connection with the Tax Act, partially offset by a $1.5 million benefit for previously unrecognized tax benefits in respect of which the statute of limitation has expired, $3.7 million in backlog amortization expense from the IXYS acquisition, $3.2 million in acquisition-related and integration costs and $2.4 million in restructuring, impairment and other costs.

(b)In the third quarter of 2018, the Company recorded $5.2 million in restructuring and impairment charges, $3.1 million in backlog amortization expense from the IXYS acquisition and $2.9 million in acquisition-related and integration costs.

(c)In the second quarter of 2018, the Company recorded $19.0 million for purchase accounting inventory adjustments associated with the acquisition of IXYS, $4.2 million in restructuring and impairment charges, $3.1 million in backlog amortization expense from the IXYS acquisition and $2.4 million in acquisition-related and integration costs.

(d)In the first quarter of 2018, the Company recorded $17.9 million for purchase accounting inventory adjustments associated with the acquisition of IXYS, $11.7 million in acquisition-related and integration costs, $4.5 million of stock compensation expense recognized immediately upon close for converted IXYS options related to prior services periods, $2.5 million in backlog amortization expense, $2.1 million expense related to change in control and $0.8 million in restructuring costs.

(e)In the fourth quarter of 2017, the Company recorded an estimated one-time tax charge of $49.0 million for the enactment of the Tax Act for deemed repatriation of unremitted earnings of foreign subsidiaries, $1.4 million in acquisition-related and integration costs and $0.7 million in restructuring and production costs related to the transfer of Asian operations.

(f)In the third quarter of 2017, the Company recorded $4.8 million in acquisition-related and integration costs and $1.5 million in restructuring and production costs related to the transfer of Asian operations.

(g)In the second quarter of 2017, the Company recorded $0.3 million in acquisition-related and integration costs.

(h)In the first quarter of 2017, the Company recorded $1.5 million in acquisition-related and integration costs.

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Related Party Transactions

12 Months Ended

Dec. 29, 2018

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

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

Powersem GmbH: The Company owns 45% of the outstanding equity of Powersem GmbH (“Powersem”), a module manufacturer based in Germany. For the year ended December 29, 2018, the Company recorded revenues of $0.7 million from sales of products to Powersem for use as components in their products. For the fiscal year ended December 29, 2018, the Company purchased $4.5 million of products from Powersem. At December 29, 2018, the trade receivable balance from Powersem was $0.1 million and the accounts payable balance to Powersem was $0.2 million.

EB Tech Ltd.: The Company owns approximately 20% of the outstanding equity of EB Tech Ltd. (“EB Tech”), a company with expertise in radiation technology based in South Korea. For the year ended December 29, 2018, EB Tech rendered processing services for the Company totaling $0.5 million. As of December 29, 2018, the Company’s accounts payable balance to EB Tech was $0.1 million.

Automated Technology, Inc.: The Company owns approximately 24% of the outstanding common shares of Automated Technology, Inc. (“ATEC”), a supplier located in the Philippines that provides assembly and test services. For the year ended December 29, 2018, ATEC rendered assembly and test services to the Company totaling $9.9 million. As of December 29, 2018, the Company’s accounts payable balance to ATEC was $0.5 million.

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Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Dec. 29, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

Description	Balance at Beginning of Year		Charged to Costs and Expenses (a)		Deductions (b)			Other (c)		Balance at End of Year
(inthousands)
Fiscal year ended December 29, 2018
Allowance for losses on accounts receivable	$	1,172	$	319	$	(557	)	$	128	$	1,062
Reserves for sales discounts and allowances	$	26,344	$	124,638	$	(118,438	)	$	2,432	$	34,976
Fiscal year ended December 30, 2017
Allowance for losses on accounts receivable	$	2,079	$	3,068	$	(4,070	)	$	95	$	1,172
Reserves for sales discounts and allowances	$	23,825	$	106,781	$	(104,941	)	$	679	$	26,344
Fiscal year ended December 31, 2016
Allowance for losses on accounts receivable	$	319	$	1,769	$	(42	)	$	33	$	2,079
Reserves for sales discounts and allowances	$	17,168	$	91,632	$	(90,837	)	$	5,862	$	23,825

(a) Includes provision for doubtful accounts, sales returns and sales discounts granted to customers.

(b) Represents uncollectible accounts written off, net of recoveries and credits issued to customers.

(c) Represents business acquisitions and foreign currency translation adjustments.

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Summary of Significant Accounting Policies and Other Information (Policies)

12 Months Ended

Dec. 29, 2018

Accounting Policies [Abstract]

Fiscal Year

Fiscal Year

References herein to “2018”, “fiscal 2018” or “fiscal year 2018” refer to the fiscal year ended December 29, 2018. References herein to “2017”, “fiscal 2017” or “fiscal year 2017” refer to the fiscal year ended December 30, 2017. References herein to “2016”, “fiscal 2016” or “fiscal year 2016” refer to the fiscal year ended December 31, 2016. The Company operates on a 52-53 week fiscal year (4-4-5 basis) ending on the Saturday closest to December 31.

Basis of Presentation

Basis of Presentation

The Consolidated Financial Statements include the accounts of Littelfuse, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The company’s Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles in the United States of America and include the assets, liabilities, sales and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control.

Use of Estimates

Use of Estimates

The process of preparing financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses and the accompanying notes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in its evaluation, as considered necessary. Actual results could differ from those estimates.

Cash Equivalents

Cash Equivalents

All highly liquid investments, with an original maturity of three months or less when purchased, are considered to be cash equivalents.

Short-Term and Long-Term Investments

Short-Term and Long-Term Investments

As of December 29, 2018, the Company has an investment in Polytronics Technology Corporation Ltd. (“Polytronics”). The Company’s Polytronics shares held at the end of fiscal 2018 and 2017 represent approximately 7.2% of total Polytronics shares outstanding. The Polytronics investment is classified as available-for-sale and is carried at fair value. The fair value of the Polytronics investment was €8.9 million (approximately $10.2 million) at December 29, 2018 and €9.2 million (approximately $11.0 million) at December 30, 2017.

As a result of the Company’s acquisition of IXYS, the Company has equity ownerships in various investments that are accounted for under the equity method. The Company owns 45% of the outstanding equity of Powersem GmbH, a module manufacturer based in Germany, approximately 20% of the outstanding equity of EB Tech Ltd., a company with expertise in radiation technology based in South Korea, and approximately 24% of the outstanding common shares of Automated Technology, Inc., a supplier located in the Philippines that provides assembly and test services. All equity-level investments are less than majority owned. The Company recognized $0.7 million in gains from its equity method investments for the fiscal year ended December 29, 2018. The balance of these investments under the equity method was $11.6 million as of the fiscal year ended December 29, 2018. See Note 18, Related Party Transactions, for further discussion.

The Company has certain investments that are accounted for under the cost method that have a balance of investments under the cost method was $7.9 million as of the fiscal year ended December 29, 2018.

In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” which addressed certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The ASU requires the Company to recognize any changes in the fair value of certain equity investments in net income. Previously these changes were recognized in other comprehensive income ("OCI"). The Company adopted the new standard on December 31, 2017, on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. As a result of the adoption of the new standard and change in fair value of our equity investments, for the twelve months ended December 29, 2018, the Company recognized an unrealized loss of $0.7 million in Other income, net in the Consolidated Statements of Net Income.

The Company has investments related to its non-qualified Supplemental Retirement and Savings Plan. The Company maintains accounts for participants through which participants make investment elections. The investment securities are subject to the claims of the Company’s creditors. The investment securities are all mutual funds with readily determinable fair values and are classified as trading securities. The investment securities are measured at fair value. As of December 29, 2018 and December 30, 2017, there was $9.1 million and $8.0 million of marketable securities, respectively, related to the plan included in Other assets on the Consolidated Balance Sheets.

Trade Receivables

Trade Receivables

The Company performs credit evaluations of customers’ financial condition and generally does not require collateral. Credit losses are provided for in the financial statements based upon specific knowledge of a customer’s inability to meet its financial obligations to the Company. Historically, credit losses have consistently been within management’s expectations and have not been a material amount. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Write-offs are recorded at the time a customer receivable is deemed uncollectible.

The Company also maintains allowances against trade receivables for the settlement of rebates and sales discounts to customers. These allowances are based upon specific customer sales and sales discounts as well as actual historical experience.

Inventories

Inventories

Inventories are stated at the lower of cost or net realizable value, which approximates current replacement cost. Cost is principally determined using the first-in, first-out method. The Company maintains excess and obsolete allowances against inventory to reduce the carrying value to the expected net realizable value. These allowances are based upon a combination of factors including historical sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory.

Property, Plant and Equipment

Property, Plant,and Equipment

Land, buildings, and equipment are carried at cost. Depreciation is calculated using the straight-line method with useful lives of 21 years for buildings, seven to ten years for equipment, seven years for furniture and fixtures, five years for tooling and three years for computer equipment. Leasehold improvements are depreciated over the lesser of their useful life or the lease term. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized.

Goodwill

Goodwill

The Company annually tests goodwill for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

The Company compares each reporting unit’s fair value, estimated based on comparable company market valuations and expected future discounted cash flows to be generated by the reporting unit, to its carrying value. For the seven reporting units with goodwill, the Company compared the estimated fair value of each reporting unit to its carrying value. The results of the goodwill impairment test as of October 1, 2018 indicated that the estimated fair values for each of the seven reporting units exceeded their respective carrying values. As of the most recent annual test conducted on October 1, 2018, the Company noted that the excess of fair value over the carrying value, was 176%, 80%, 233%, 202%, 63%, 114%, and 370% for its reporting units; Electronics-Passive Products and Sensors, Electronics-Semiconductor, Passenger Car Products, Commercial Vehicle Products, Automotive Sensors, Relays, and Power Fuse, respectively. Relatively small changes in the Company’s key assumptions would not have resulted in any reporting units failing the goodwill impairment test. See Note 5, Goodwilland Other Intangible Assets, for additional information.

The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test, could be impacted by changes in market conditions and economic events. Based on the interim assessments as of December 29, 2018, management concluded that no events or changes in circumstances indicated that it was more likely than not that the fair value for any reporting unit had declined below its carrying value.

Long-Lived Assets

Long-Lived Assets

Customer relationships, trademarks and tradenames are amortized using the straight-line method over estimated useful lives that have a range of five to 20 years. Patents, licenses and software are amortized using the straight-line method or an accelerated method over estimated useful lives that have a range of five to 17 years. The distribution networks are amortized on either a straight-line or accelerated basis over estimated useful lives that have a range of three to 20 years.

The Company assesses potential impairments to its long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impaired asset is written down to its estimated fair value based upon the most recent information available. Estimated fair market value is generally measured by discounting estimated future cash flows. Long-lived assets, other than goodwill and other intangible assets, that are held for sale are recorded at the lower of carrying value or the fair market value less the estimated cost to sell.

During the fiscal year ended December 31, 2016, the Company recognized non-cash impairment charges totaling $6.0 million, of which $2.2 million related to the impairment of certain customer relationship intangible assets in the Custom Products reporting unit within the Industrial segment and $3.8 million related to the impairment of the Custom Products tradename. The impairment of the customer relationship intangible assets resulted from lower expectations of future revenue to be derived from those relationships while the tradename impairment resulted from lower expectations of future cash flows of the Custom Products reporting unit.

Environmental Liabilities

Environmental Liabilities

Environmental liabilities are accrued based on engineering studies estimating the cost of remediating sites. Expenses related to on-going maintenance of environmental sites are expensed as incurred. If actual or estimated probable future losses exceed the Company’s recorded liability for such claims, the Company would record additional charges during the period in which the actual loss or change in estimate occurred.

Pension and Other Post-retirement Benefits

Pension and Other Post-retirement Benefits

The Company records annual income and expense amounts relating to its pension and post-retirement benefits plans based on calculations which include various actuarial assumptions including discount rates, expected long-term rates of return and compensation increases. The Company reviews its actuarial assumptions on an annual basis as of the fiscal year-end balance sheet date (or more frequently if a significant event requiring remeasurement occurs) and modifies the assumption based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the Consolidated Balance Sheets, but are generally amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive income (loss). The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience, market conditions and input from its actuaries and investment advisors.

Revenue Recognition, Revenue and Billing, Ship and Debit Program, Return to Stock, Volume Rebates

Revenue Recognition

Adoption

On December 31, 2017, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method. The adoption did not have a significant impact on the Company’s consolidated financial statements.

Revenue Disaggregation

The following table disaggregates the Company’s revenue by primary business units for the fiscal year ended December 29, 2018:

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Semiconductor	$	648,967	$	—	$	—	$	648,967
Electronics – Passive Products and Sensors	475,329		—		—		475,329
Passenger Car Products	—		240,501		—		240,501
Commercial Vehicle Products	—		121,562		—		121,562
Automotive Sensors	—		117,728		—		117,728
Industrial Products	—		—		114,381		114,381
Total	$	1,124,296	$	479,791	$	114,381	$	1,718,468

See Note 16, Segment Information, for net sales by segment and countries.

The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, for those shipments where title to the products and the risk of loss and rewards of ownership do not transfer until the product has been received by the customer, the Company adjusts revenues and cost of sales for the delay between the time that the products are shipped and when they are received by the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance, rebates and price adjustments. The Company’s distribution channels are primarily through direct sales and independent third-party distributors.

The Company has elected the practical expedient under Accounting Standards Codification ("ASC") 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Revenue and Billing

The Company generally accepts orders from customers through receipt of purchase orders or electronic data interchange based on written sales agreements and purchasing contracts. Contract pricing and selling agreement terms are based on market factors, costs, and competition. Pricing is often negotiated as an adjustment (premium or discount) from the Company’s published price lists. The customer is invoiced when the Company’s products are shipped to them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. This is similar to the Company’s prior practice and therefore the effect of the new guidance is immaterial.

Ship and Debit Program

Some of the terms of the Company’s sales agreements and normal business conditions provide customers (distributors) the ability to receive price adjustments on products previously shipped and invoiced. This practice is common in the industry and is referred to as a “ship and debit” program. This program allows the distributor to debit the Company for the difference between the distributors’ contracted price and a lower price for specific transactions. Under certain circumstances (usually in a competitive situation or large volume opportunity), a distributor will request authorization for pricing allowances to reduce its price. When the Company approves such a reduction, the distributor is authorized to “debit” its account for the difference between the contracted price and the lower approved price. The Company establishes reserves for this program based on historic activity and actual authorizations for the debit and recognizes these debits as a reduction of revenue.

Return to Stock

The Company has a return to stock policy whereby certain customers, with prior authorization from Littelfuse management, can return previously purchased goods for full or partial credit. The Company establishes an estimated allowance for these returns based on historic activity. Sales revenue and cost of sales are reduced to anticipate estimated returns.

Volume Rebates

The Company offers volume based sales incentives to certain customers to encourage greater product sales. If customers achieve their specific quarterly or annual sales targets, they are entitled to rebates. The Company estimates the projected amount of rebates that will be achieved by the customer and recognizes this estimated cost as a reduction to revenue as products are sold.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The Company evaluates the collectability of its trade receivables based on a combination of factors. The Company regularly analyzes its significant customer accounts and, when the Company becomes aware of a specific customer’s inability to meet its financial obligations, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also records allowances for all other customers based on a variety of factors including the length of time the receivables are past due, the financial health of the customer, macroeconomic considerations and past experience. Historically, the allowance for doubtful accounts has been adequate to cover bad debts. If circumstances related to specific customers change, the estimates of the recoverability of receivables could be further adjusted.

Advertising Costs

Advertising Costs

The Company expenses advertising costs as incurred, which amounted to $2.8 million in fiscal year 2018 and $2.9 million in both fiscal year 2017 and 2016, respectively, and are included as a component of selling, general, and administrative expenses.

Shipping and Handling Fees and Costs

Shipping and Handling Fees and Costs

Amounts billed to customers related to shipping and handling is classified as revenue. Costs incurred for shipping and handling of $12.3 million, $10.9 million, and $9.1 million in fiscal year 2018, 2017, and 2016, respectively, are classified in selling, general, and administrative expenses.

Foreign Currency Translation / Remeasurement

Foreign Currency Translation/Remeasurement

The Company’s foreign subsidiaries use the local currency or the U.S. dollar as their functional currency, as appropriate. Assets and liabilities are translated using exchange rates at the balance sheet date, and revenues and expenses are translated at weighted average rates. The amount of foreign currency gain or loss from remeasurement recognized in the income statement was a gain of $0.9 million in fiscal year 2018, a loss of $2.4 million in fiscal year 2017, and a loss of $0.5 million in fiscal year 2016. Adjustments from the translation process are recognized in “Shareholders’ equity” as a component of “Accumulated other comprehensive loss.”

Stock-based Compensation

Stock-based Compensation

The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method. Benefits of tax deductions in excess of recognized compensation expense are reported as operating cash flows. See Note 12, Stock-Based Compensation, for additional information on stock-based compensation.

Coal Mining Liability

Coal Mining Liability

Included in other long-term liabilities is an accrual related to former coal mining operations at Littelfuse GmbH (formerly known as Heinrich Industries, AG) for the amounts of €1.1 million ($1.3 million) and €0.9 million ($1.1 million) at December 29, 2018 and December 30, 2017, respectively. Management, in conjunction with an independent third-party, performs an annual evaluation of the former coal mining operations in order to develop an estimate of the probable future obligations in regard to remediating the dangers (such as a shaft collapse) of abandoned coal mine shafts in the former coal mining operations. Management accrues for costs associated with such remediation efforts based on management's best estimate when such costs are probable and reasonably able to be estimated. The ultimate determination can only be done after respective investigations because the concrete conditions are mostly unknown at this time.

Other Income, Net

Other Income, Net

Other income, net generally consists of interest income, royalties, change in fair value of available-for-sale securities, pension non-service costs and other non-operating expense (income).

Income Taxes

Income Taxes

The Company accounts for income taxes using the liability method. Deferred taxes are recognized for the future effects of temporary differences between financial and income tax reporting using enacted tax rates in effect for the years in which the differences are expected to reverse. The Company recognizes deferred taxes for temporary differences, operating loss carryforwards, and tax credit and other tax attribute carryforwards (excluding carryforwards where usage has been determined to be remote). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. U.S. state and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to the U.S. and be taxable (and non-U.S. income taxes are provided on the portion of non-U.S. income that is expected to be remitted to an upper-tier non-U.S. entity). Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Deferred U.S. income taxes and non-U.S. taxes are not provided on the excess of the investment value for financial reporting over the tax basis of investments in those non-U.S. subsidiaries for which such excess is considered to be permanently reinvested in those operations. Management regularly evaluates whether non-U.S. earnings are expected to be permanently reinvested. This evaluation requires judgment about the future operating and liquidity needs of the Company and its non-U.S. subsidiaries.  Changes in economic and business conditions, non-U.S. or U.S. tax laws, or the Company’s financial situation could result in changes to these judgments and the need to record additional tax liabilities.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

On December 22, 2017, the U.S. enacted legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). Among other things, the Tax Act reduces the U.S. corporate federal income tax rate from 35% to 21%, adds base broadening provisions which limit deductions and address excessive international tax planning, imposes a one-time tax (the “Toll Charge”) on accumulated earnings of certain non-U.S. subsidiaries and enables repatriation of earnings of non-U.S. subsidiaries free of U.S. federal income tax. Other than the Toll Charge (which, except for the IXYS impact, was applicable to the Company for 2017), the provisions are generally applicable to the Company in 2018 and beyond.

In accordance with the guidance provided in SEC Staff Accounting Bulletin (“SAB”) No. 118, in the fourth quarter of 2017 the Company recorded a charge of $47.0 million as a provisional reasonable estimate of the impact of the Tax Act, including $49.0 million for the Toll Charge net of $2.0 million for other net tax benefits. In the fourth quarter of 2018, within the measurement period outlined in SAB No. 118, the Company finalized its estimates of the impact of the Tax Act as of December 30, 2017 and recorded a charge of $3.2 million, including $2.3 million for the Toll Charge and $0.9 million for the net impact of other items. In addition, the Company recorded $7.0 million for the Toll Charge associated with IXYS as part of the IXYS acquisition purchase price allocation. This was reflected in the opening balance sheet as an increase to goodwill and other long-term liabilities.

Although certain administrative guidance has been issued, including final and proposed regulations, the appropriate application of many provisions of the Tax Act remain uncertain. The Company used its best judgment as to the application of these provisions in determining its final estimates of the impact of the Tax Act as of December 30, 2017, the Toll Charge associated with the IXYS acquisition as well as the Company’s income tax expense for the year ended December 29, 2018. Adjustments to income tax expense may be necessary in future periods if provisions of the Tax Act, and their interaction with other provisions of the U.S. Internal Revenue Code, are interpreted differently than interpretations made by the Company, whether through issuance of additional administrative guidance, or through further review of the Tax Act by the Company and its advisors. In this regard, on January 15, 2019, final regulations were issued addressing the Toll Charge (replacing the proposed regulations issued in August of 2018). The Company is evaluating these final regulations and has yet to determine their impact.

The Company has elected to pay the 2017 Littelfuse Toll Charge and will elect to pay the 2018 IXYS Toll Charge over the eight-year period prescribed by the Tax Act. The long-term portion of these Toll Charges totaling $28.8 million (which includes the Littelfuse and IXYS Toll Charges, partially offset by foreign tax credits, the tax benefit of current year losses and the actual 2018 and anticipated 2019 annual installment payments) is recorded in Other long-term liabilities on the Consolidated Balance Sheet as of December 29, 2018. The anticipated 2019 annual installment payments are included in accrued income taxes.

One of the base broadening provisions of the Tax Act is the tax on the global intangible low-taxed income ("GILTI") commonly referred to as the “GILTI” provisions. In accordance with guidance issued by the FASB staff, the Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

Fair Value Measurements

Fair Value Measurements

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company records the fair value of its available-for-sale securities and pension plan assets on a recurring basis. Assets measured at fair value on a nonrecurring basis include long-lived assets held and used, long-lived assets held for sale, goodwill and other intangible assets. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The three-tier value hierarchy, which prioritizes valuation methodologies based on the reliability of the inputs, is:

Level 1 – Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 – Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants.

Recently Adopted and Issued Accounting Standards

RecentlyAdoptedAccounting Standards

In January 2018, the FASB released guidance on the accounting for the GILTI provisions of the 2017 U.S. Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period cost are both acceptable methods subject to an accounting policy election. The Company has adopted an accounting policy to treat any GILTI inclusions as a period cost if and when incurred. Thus, for the year ended December 29, 2018, deferred taxes were computed without consideration of the possible future impact of the GILTI provisions, and any current year impact was recorded as a part of the current portion of income tax expense.

In March 2017, the FASB issued ASU No. 2017-07 “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost,” which changed the presentation of net periodic pension and post-retirement benefit cost (net benefit cost) within the Statement of Income. Under the previous guidance, net benefit cost was reported as an employee cost within operating income. The amendment required the bifurcation of net benefit cost, with the service cost component to be presented with other employee compensation costs in operating income while the other components will be reported separately outside of income from operations. ASU No. 2017-07 was effective for the first quarter of 2018 with the Company adopting the new standard on December 31, 2017.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” which addressed certain aspects of the recognition, measurement, presentation and disclosure of financial instruments.The ASU requires the Company to recognize any changes in the fair value of certain equity investments in net income. Previously these changes were recognized in other comprehensive income ("OCI"). The Company adopted the new standard on December 31, 2017, on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. As a result of the adoption of the new standard and change in fair value of our equity investments, for the twelve months ended December 29, 2018, the Company recognized an unrealized loss of $0.7 million in Other income, net in the Consolidated Statements of Net Income.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606) which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” This ASU provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company adopted the new standard on December 31, 2017 using the modified retrospective method, however, no adjustment to retained earnings was needed. The new guidance did not have a material effect on the Company’s Consolidated Statements of Net Income. See the Revenue Recognition section above for further discussion.

In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes” (Topic 740). This ASU update requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred. The Company adopted the new standard on December 31, 2017 and it did not have a material impact.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Adoption requires using a modified retrospective transition with either 1) periods prior to the adoption date being recast or 2) a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast.The Company adopted the standard on December 30, 2018 under the modified retrospective transition method with the cumulative-effect adjustment recognized to the retained earnings. The new standard provides a number of optional practical expedients in transition. The Company has elected the ‘package of practical expedients’, which permits it not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company has not elected the use-of-hindsight.The Company assessed its portfolio of leases and compiled a central repository of all active leases. Key lease data elements have been evaluated including developing a methodology for determining the incremental borrowing rate across all countries where we have operations. The Company has implemented a new leasing software and is in the process of assessing the design of the future lease process and drafting a policy to address the new standard requirements. While the Company is continuing to assess the potential impacts of ASU 2016-02, the Company estimates that the adoption of ASU 2016-02 will result in the recognition of right-of-use assets of approximately $27 million and related lease liabilities for operating leases on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Net Income.

In February 2018, the FASB issued ASU No. 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the Tax Act. The standard also requires entities to disclose whether or not they elected to reclassify the tax effects related to the Tax Act as well as their policy for releasing income tax effects from accumulated other comprehensive income. The standard allows the option of applying either a retrospective adoption, meaning the standard is applied to all periods in which the effect of the Tax Act is recognized, or applying the amendments in the period of adoption, meaning an adjustment is made to shareholder’s equity as of the beginning of the reporting period. ASU 2018-02 will be effective in the first quarter of 2019; however early adoption is permitted for interim and annual periods, including the reporting period in which the Tax Act was enacted. The adoption of this guidance will not have a material effect on our Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 modified the disclosure requirements in Topic 820, "Fair Value Measurement," based on the FASB Concepts Statement, "Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements," including consideration of costs and benefits. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The company is currently evaluating the potential effects of this guidance on its Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-14 "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in OCI expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. This guidance will be effective for financial statements issued for fiscal years ending after December 15, 2020. The adoption of this guidance will modify our disclosures but will not have a material effect on our Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating this guidance on its Consolidated Financial Statements.

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Summary of Significant Accounting Policies and Other Information (Tables)

12 Months Ended

Dec. 29, 2018

Accounting Policies [Abstract]

Revenue Disaggregation

Revenue Disaggregation

The following table disaggregates the Company’s revenue by primary business units for the fiscal year ended December 29, 2018:

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics Segment		Automotive Segment		Industrial Segment		Total
Electronics – Semiconductor	$	648,967	$	—	$	—	$	648,967
Electronics – Passive Products and Sensors	475,329		—		—		475,329
Passenger Car Products	—		240,501		—		240,501
Commercial Vehicle Products	—		121,562		—		121,562
Automotive Sensors	—		117,728		—		117,728
Industrial Products	—		—		114,381		114,381
Total	$	1,124,296	$	479,791	$	114,381	$	1,718,468

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Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 29, 2018

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the Monolith acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Original investment	$	3,500
Cash, net of cash acquired	14,172
Non-cash, fair value of commitment to purchase non-controlling interest	9,000
Total purchase consideration	$	26,672
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	891
Property, plant, and equipment	789
Patented and unpatented technologies	6,720
Non-compete agreement	140
Goodwill	20,641
Current liabilities	(639		)
Other non-current liabilities	(1,870		)
	$	26,672

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the Menber’s acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of acquired cash	$	19,162
Preliminary allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	12,919
Property, plant, and equipment	1,693
Customer relationships	3,050
Patented and unpatented technologies	224
Trademarks and tradenames	1,849
Goodwill	8,091
Current liabilities	(7,220		)
Other non-current liabilities	(1,444		)
	$	19,162

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the ON Portfolio acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash	$	104,000
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	4,816
Customer relationships	31,800
Patented and unpatented technologies	8,800
Non-compete agreement	2,500
Goodwill	56,084
	$	104,000

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the PolySwitch acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Original consideration	$	350,000
Post closing consideration adjustment received	(1,708		)
Acquired cash	(3,810		)
Acquired cash to be returned to seller	3,810
Total purchase consideration	$	348,292
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	60,228
Property, plant, and equipment	51,613
Land lease	4,290
Patented and unpatented technologies	56,425
Customer relationships	39,720
Goodwill	165,088
Other long-term assets	11,228
Current liabilities	(35,280		)
Other non-current liabilities	(5,020		)
	$	348,292

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the IXYS acquisition: 

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired	302,865
Cash settled stock options	3,622
Littelfuse stock	434,192
Converted stock options	38,109
Total purchase consideration	778,788
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	155,930
Property, plant, and equipment	77,442
Intangible assets	212,720
Goodwill	382,360
Other non-current assets	28,706
Other non-current liabilities	(78,370	)
	778,788

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the U.S. Sensor acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash	$	24,340
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	$	4,635
Patented and unpatented technologies	1,090
Trademarks and tradenames	200
Non-compete agreement	50
Customer relationships	2,830
Goodwill	16,075
Current liabilities	(540		)
	$	24,340

Business Acquisition, Pro Forma Information

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and IXYS as though the acquisition had occurred as of January 1, 2017. The Company has not included pro forma results of operations for U.S. Sensor or Monolith as these results were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the IXYS acquisition occurred as of January 1, 2017 or of future consolidated operating results.

	For the Fiscal Year Ended
(in thousands, except per share amounts)	December 29, 2018		December 30, 2017
Net sales	$	1,735,181	$	1,564,956
Income before income taxes	272,724		142,150
Net income	215,228		75,604
Net income per share — basic	8.61		3.05
Net income per share — diluted	8.53		3.00

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company and the acquired PolySwitch and the ON Portfolio businesses as though the acquisitions had occurred as of December 28, 2014. The Company has not included pro forma results of operations for Menber’s as these results were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the PolySwitch or ON Portfolio acquisitions occurred as of December 28, 2014 or of future consolidated operating results.

	For the Fiscal Year Ended
(in thousands, except per share amounts)	December 31, 2016
Net sales	$	1,130,645
Income before income taxes	143,110
Net income	124,388
Net income per share — basic	5.51
Net income per share — diluted	5.47

Business Acquisition, Pro Forma Information, Nonrecurring Adjustments

Pro forma results presented above primarily reflect the following adjustments:

	For the Fiscal Year Ended
(in thousands)	December 29, 2018			December 30, 2017
Amortization(a)	$	12,009		$	(25,203	)
Depreciation	—			556
Transaction costs(b)	9,976			(9,976		)
Amortization of inventory step-up(c)	36,927			(36,927		)
Stock compensation(d)	5,845			(6,635		)
Interest expense(e)	—			(10,326		)
Income tax impact of above items	(15,446		)	29,336

(a) The amortization adjustment for the twelve months ended December 29, 2018 primarily reflects the reduction of amortization expense in the period related to the Order backlog intangible asset. The Order backlog has a useful life of twelve months and will be fully amortized in the fiscal 2017 pro forma results. The amortization adjustment for the twelve months ended December 30, 2017 reflects incremental amortization resulting for the measurement of intangibles at their fair values.

(b) The transaction cost adjustments reflect the reversal of certain bank and attorney fees from the twelve months ended December 29, 2018 and recognition of those fees during the twelve months ended December 30, 2017.

(c) The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the twelve months ended December 29, 2018 and the recognition of the full amortization during the twelve months ended December 30, 2017. The inventory step-up was amortized over five months as the inventory was sold.

(d) The stock compensation adjustment reflects the reversal of the portion of stock compensation for IXYS stock options that were converted to Littelfuse stock options and expensed immediately during the twelve months ended December 29, 2018. The adjustment for the twelve months ended December 30, 2017 reflect the incremental stock compensation for the converted stock options.

(e) The interest expense adjustment reflects incremental interest expense related to the financing of the transaction.

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Inventories (Tables)

12 Months Ended

Dec. 29, 2018

Inventory Disclosure [Abstract]

Schedule of Inventory

The components of inventories at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018		2017
Raw materials	$	69,883	$	39,030
Work in process	88,505		27,454
Finished goods	99,840		74,305
Total	$	258,228	$	140,789

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Property, Plant, and Equipment (Tables)

12 Months Ended

Dec. 29, 2018

Property, Plant and Equipment [Abstract]

Components of net property, plant, and equipment

The components of net property, plant, and equipment at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018			2017
Land	$	25,630		$	9,547
Building	114,636			86,599
Equipment	583,043			505,838
Accumulated depreciation and amortization	(383,415		)	(351,407		)
Total	$	339,894		$	250,577

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 29, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The amounts for goodwill and changes in the carrying value by segment are as follows:

(in thousands)	Electronics			Automotive			Industrial			Total
As of December 31, 2016	$	215,765		$	144,585		$	43,194		$	403,544
Additions(a)	36,716			—			—			36,716
Foreign currency translation and other adjustments(b)	26,478			(8,756		)	(4,568		)	13,154
As of December 30, 2017	$	278,959		$	135,829		$	38,626		$	453,414
Additions(c)	382,903			—			—			382,903
Foreign currency translation adjustments	(5,823		)	(3,497		)	(282		)	(9,602		)
As of December 29, 2018	$	656,039		$	132,332		$	38,344		$	826,715

(a)The 2017 additions resulted from the acquisitions of U.S. Sensor and Monolith.

(b)Adjustments in 2017 reflect adjustments to reclass goodwill by segment as well as the impact of changes in foreign exchange rates. The impact of the reclassification was an increase in goodwill to the Electronics segment of $21.6 million and a decrease of goodwill of $16.8 million and $4.8 million to the Automotive segment and the Industrial segment, respectively.

(c)The 2018 additions resulted primarily from the acquisition of IXYS.

Schedule of Finite-Lived Intangible Assets

During the years ended December 29, 2018 and December 30, 2017, the Company recorded additions to other intangible assets of $212.7 million and $11.0 million, respectively, for acquisitions during those years, the components of which were as follows:

	2018			2017
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Amount		Weighted Average Useful Life (Years)	Amount
Patents, licenses and software	8.0	$	51,500	9.6	$	7,810
Customer relationships, trademarks, and tradenames	17.2	148,800		9.0	3,220
Order backlog	1.0	12,420		0.0	—
Total		$	212,720		$	11,030

The components of other intangible assets at December 29, 2018 and December 30, 2017 are as follows:

	As of December 29, 2018
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	139,413	$	69,431	$	69,982
Distribution network	12.6	43,876		34,564		9,312
Customer relationships, trademarks,tradenames, and other	17.5	374,246		92,066		282,180
Total		$	557,535	$	196,061	$	361,474

	As of December 30, 2017
(in thousands, except weighted average useful life)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value
Patents, licenses and software	11.4	$	141,520	$	59,609	$	81,911
Distribution network	12.1	46,233		33,361		12,872
Customer relationships, trademarks, and tradenames	15.6	162,679		53,612		109,067
Total		$	350,432	$	146,582	$	203,850

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated annual amortization expense related to intangible assets with definite lives at December 29, 2018 is as follows:

(inthousands)	Amount
2019	$	39,440
2020	39,162
2021	37,164
2022	36,368
2023	31,906
2024 and thereafter	177,434
Total	$	361,474

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Accrued Liabilities (Tables)

12 Months Ended

Dec. 29, 2018

Payables and Accruals [Abstract]

Components of accrued liabilities

The components of accrued liabilities at December 29, 2018 and December 30, 2017 are as follows:

(in thousands)	2018		2017
Employee-related liabilities	$	60,640	$	51,239
Other non-income taxes	21,523		15,207
Professional services	6,169		2,214
Interest	5,137		2,477
Accrued share repurchases	4,349		—
Restructuring liability	3,887		1,459
Other	36,700		27,819
Total	$	138,405	$	100,415

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Lease Commitments (Tables)

12 Months Ended

Dec. 29, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum payments for all non-cancellable operating leases

Future minimum payments for all non-cancellable operating leases with initial terms of one year or more at December 29, 2018 are as follows:

(inthousands)	Future Minimum Payments
2019	$	9,133
2020	7,590
2021	5,574
2022	4,590
2023	2,946
2024 and thereafter	2,774
Total	$	32,607

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Restructuring, Impairment and Other Charges (Tables)

12 Months Ended

Dec. 29, 2018

Restructuring and Related Activities [Abstract]

Restructuring, impairment and other charges

The Company recorded restructuring, impairment and other charges-net for fiscal years 2018, 2017, and 2016 as follows:

	Fiscal Year Ended December 29, 2018
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	8,742	$	634	$	127	$	9,503
Other restructuring charges	670		192		—		862
Total restructuring charges	9,412		826		127		10,365
Impairment	—		88		2,130		2,218
Total	$	9,412	$	914	$	2,257	$	12,583

	Fiscal Year Ended December 30, 2017
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	1,244	$	371	$	378	$	1,993
Other restructuring charges	234		—		—		234
Total restructuring charges	1,478		371		378		2,227
Impairment	—		—		—		—
Total	$	1,478	$	371	$	378	$	2,227

	Fiscal Year Ended December 31, 2016
(in thousands)	Electronics		Automotive		Industrial		Total
Employee terminations	$	135	$	299	$	1,094	$	1,528
Other restructuring charges	1,609		75		783		2,467
Total restructuring charges	1,744		374		1,877		3,995
Impairment	—		—		14,809		14,809
Total	$	1,744	$	374	$	16,686	$	18,804

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Debt (Tables)

12 Months Ended

Dec. 29, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The carrying amounts of debt at December 29, 2018 and December 30, 2017 are as follows:

(inthousands)	2018			2017
Term Loan	$	155,000		$	122,500
Euro Senior Notes, Series A due 2023	133,417			139,623
Euro Senior Notes, Series B due 2028	108,330			113,369
U.S. Senior Notes, Series A due 2022	25,000			25,000
U.S. Senior Notes, Series B due 2027	100,000			100,000
U.S. Senior Notes, Series A due 2025	50,000			—
U.S. Senior Notes, Series B due 2030	125,000			—
Other	2,619			—
Unamortized debt issuance costs	(4,636		)	(4,881		)
Total debt	694,730			495,611
Less: Current maturities	(10,000		)	(6,250		)
Total long-term debt	$	684,730		$	489,361

Schedule of Maturities of Long-term Debt

Scheduled maturities of the Company’s long-term debt for each of the five years succeeding December 29, 2018 and thereafter are summarized as follows:

(inthousands)	Scheduled Maturities
2019	$	10,000
2020	10,000
2021	10,000
2022	152,619
2023	133,417
2024 and thereafter	383,330
	$	699,366

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Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 29, 2018

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 29, 2018:

	Fair Value Measurements Using
(inthousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,312	$	—	$	—	$	10,312
Mutual funds	9,112		—		—		9,112

The following table presents assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:

	Fair Value Measurements Using
(inthousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in equity securities	$	10,993	$	—	$	—	$	10,993
Mutual funds	7,962		—		—		7,962

Fair Value, by Balance Sheet Grouping

The carrying value and estimated fair values of the Company’s Euro Senior Notes, Series A and Series B and USD Senior Notes, Series A and Series B, as of December 29, 2018 and December 30, 2017 were as follows:

	December 29, 2018				December 30, 2017
(inthousands)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Euro Senior Notes, Series A due 2023	$	133,417	$	130,888	$	139,623	$	138,294
Euro Senior Notes, Series B due 2028	108,330		103,774		113,369		111,579
USD Senior Notes, Series A due 2022	25,000		24,115		25,000		24,737
USD Senior Notes, Series B due 2027	100,000		94,458		100,000		99,992
USD Senior Notes, Series A due 2025	50,000		47,434		—		—
USD Senior Notes, Series B due 2030	125,000		114,731		—		—

Details of Impairment of Long-Lived Assets Held and Used by Asset

The fair value as of the measurement date, net book value as of the end of the year and related impairment charge for assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the fiscal years ended December 31, 2016 were as follows:

	Fiscal Year Ended December 31, 2016
(inthousands)	Impairment Charge		Fair Value Measurement (Level 3)		Net Book Value
Goodwill	$	8,794	$	—	$	—
Other intangible assets	6,015		680		660
Total	$	14,809	$	680	$	660

Fair Value Measurement Inputs and Valuation Techniques

The following table presents the fair value, valuation techniques and related unobservable inputs for these Level 3 measurements for the fiscal year ended December 31, 2016:

(inthousands, except rates data)	Fair Value		Valuation Technique	Unobservable Inputs	Rates
Tradename	$	680	Relief from royalty	Discount rate:	18%
				Royalty rate:	1%
Customer relationships	$	—	Excess earnings	Discount rate:	18%
				Attrition rate:	5%

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Benefit Plans (Tables)

12 Months Ended

Dec. 29, 2018

Retirement Benefits [Abstract]

Schedule of Defined Benefit Plans Disclosures

Benefit plan related information is as follows for the years 2018 and 2017:

(inthousands)	2018			2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	67,268		$	55,606
Service cost	2,266			2,037
Interest cost	3,104			1,887
Net actuarial gain	(7,321		)	(433		)
Benefits paid from the trust	(2,479		)	(1,405		)
Benefits paid directly by the Company	(1,802		)	(1,098		)
Settlements	(1,291		)	(31		)
Acquisitions	48,358			—
Effect of exchange rate movements	(6,918		)	5,477
Other	1,648			5,228
Benefit obligation at end of year	$	102,833		$	67,268
Change in plan assets at fair value:
Fair value of plan assets at beginning of year	$	48,123		$	42,208
Actual return on plan assets	(2,847		)	2,962
Employer contributions	2,341			264
Benefits paid	(2,479		)	(1,405		)
Settlements	(1,291		)	—
Acquisitions	31,954			—
Effect of exchange rate movements	(5,125		)	4,094
Fair value of plan assets at end of year	70,676			48,123
Net amount recognized/(unfunded status)	$	(32,157	)	$	(19,145	)

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the Consolidated Balance Sheets as of December 29, 2018 and December 30, 2017 consist of the following:

(inthousands)	2018			2017
Amounts recognized in the Consolidated Balance Sheets consist of:
Noncurrent assets	$	811		$	78
Current benefit liability	(1,094		)	(481		)
Noncurrent benefit liability	(31,874		)	(18,742		)
Net liability recognized	$	(32,157	)	$	(19,145	)

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net period cost as of December 29, 2018 and December 30, 2017 were as following:

(inthousands)	2018		2017
Net actuarial loss	$	9,777	$	12,261
Prior service cost	1,607		—
Total	$	11,384	$	12,261

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The pre-tax amounts recognized in other comprehensive income loss in 2018 as components of net periodic benefit costs were as follows:

(inthousands)	2018
Amortization of:
Prior service cost	$	291
Amount arising during the period:
Net actuarial loss	(396		)
Settlement loss	238
Foreign currency adjustments	744
Total	$	877

Schedule of Net Benefit Costs

The components of pension expense for the fiscal years 2018, 2017, and 2016 are as follows: 

(inthousands)	2018			2017			2016
Components of net periodic benefit cost:
Service cost	$	2,266		$	2,037		$	1,509
Interest cost	3,104			1,887			1,662
Expected return on plan assets	(3,222		)	(1,990		)	(1,935		)
Amortization of prior service	291			337			306
Net periodic benefit cost	2,439			2,271			1,542
Settlement loss / curtailment (gain)	238			(25		)	(36		)
Total expense for the year	$	2,677		$	2,246		$	1,506

Schedule of Assumptions Used

Weighted average assumptions used to determine net periodic benefit cost for the fiscal years 2018, 2017, and 2016 are as follows:

	2018		2017		2016
Discount rate	2.8	%	3.0	%	3.7	%
Expected return on plan assets	4.2	%	4.5	%	4.9	%
Compensation increase rate	5.0	%	4.5	%	5.3	%

Weighted average assumptions used to determine benefit obligations as of December 29, 2018, December 30, 2017 and December 31, 2016 are as follows:

	2018		2017		2016
Discount rate	3.1	%	3.1	%	2.6	%
Compensation increase rate	4.6	%	5.0	%	4.5	%

Schedule of Net Funded Status

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 29, 2018 and December 30, 2017:

(inthousands)	2018		2017
Projected benefit obligation	$	70,579	$	28,515
Fair value of plan assets	37,611		9,292

Schedule of Expected Benefit Payments

Expected benefit payments to be paid to participants for the fiscal year ending are as follows:

(in thousands)	Expected Benefit Payments
2019	$	4,210
2020	4,243
2021	4,691
2022	4,547
2023	4,884
2024-2028	27,047

The following table provides a summary of under-funded or unfunded pension benefit plans with accumulated benefit obligations in excess of plan assets as of December 29, 2018 and December 30, 2017:

(inthousands)	2018		2017
Accumulated benefit obligation	$	66,049	$	18,990
Fair value of plan assets	36,003		6,003

Schedule of Allocation of Plan Assets

Pension plan assets were invested as follows, and were not materially different from the target asset allocation:

	Asset Allocation
	2018		2017
Equity securities	30	%	35	%
Debt securities	66	%	64	%
Cash and cash equivalents, and other	4	%	1	%
	100	%	100	%

Pension Plan Assets Measured at Fair Value

The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 29, 2018:

	Fair Value Measurements Using
(inthousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,361	$	—	$	—	$	19,528	$	20,889
Fixed income	3,336		—		—		43,134		46,470
Insurance contracts and other	—		—		632		1,161		1,793
Cash and cash equivalents	702		—		—		823		1,525
Total pension plan assets	$	5,399	$	—	$	632	$	64,645	$	70,676

The following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:

	Fair Value Measurements Using
(inthousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,031	$	—	$	—	$	16,032	$	17,063
Fixed income	8,088		—		—		22,568		30,656
Cash and cash equivalents	173		—		—		231		404
Total pension plan assets	$	9,292	$	—	$	—	$	38,831	$	48,123

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 29, 2018

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

Share-based Compensation, Stock Options, Activity

The following table provides a reconciliation of outstanding stock options for the fiscal year ended December 29, 2018.

	Shares Under Option		Weighted Average Price		Weighted Average Remaining Contract Life (Years)	Aggregate Intrinsic Value (000’s)
Outstanding December 30, 2017	404,301		$	110.04
Granted	78,721		192.59
IXYS converted awards	499,027		92.52
Exercised	(296,914	)	87.85
Forfeited	(15,779	)	120.59
Outstanding December 29, 2018	669,356		116.29		5.4	$	36,494
Exercisable December 29, 2018	420,422		100.14		4.8	28,542

Schedule of Nonvested Restricted Stock Units Activity

The following table provides a reconciliation of non-vested restricted share and share unit awards for the fiscal year ended December 29, 2018.

	Shares		Weighted Average Grant-Date Fair Value
Nonvested December 30, 2017	199,693		$	130.40
Granted	77,430		194.39
Vested	(104,062	)	123.45
Forfeited	(12,267	)	144.84
Nonvested December 29, 2018	160,794		164.61

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The Company uses the Black-Scholes option valuation model to determine the fair value of awards granted. The weighted average fair value of and related assumptions for options granted are as follows:

	2018	2017	2016
Weighted average fair value of options granted	$45.19	$30.77	$26.06
Assumptions:
Risk-free interest rate	2.79%	1.79%	1.37%
Expected dividend yield	0.77%	0.86%	0.97%
Expected stock price volatility	25.0%	23.0%	26.0%
Expected life of options (years)	4.4	4.4	4.6

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Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 29, 2018

Equity [Abstract]

Schedule of Components of Comprehensive Income (Loss)

Changes in other comprehensive (loss) income by component for fiscal years 2018, 2017, and 2016 were as follows:

	Fiscal Year Ended
	December 29, 2018								December 30, 2017								December 31, 2016
(in thousands)	Pre-tax			Tax		Net of tax			Pre-tax			Tax		Net of tax			Pre-tax			Tax			Net of tax
Defined benefit pension plan adjustments	$	924		$	47	$	877		$	1,532		$	385	$	1,147		$	(4,563	)	$	(1,302	)	$	(3,261	)
Unrealized loss on investments	—			—		—			(974		)	—		(974		)	(815		)	—			(815		)
Foreign currency translation adjustments	(25,338		)	—		(25,338		)	10,738			—		10,738			(24,832		)	—			(24,832		)
Total change in other comprehensive (loss) income	$	(24,414	)	$	47	$	(24,461	)	$	11,296		$	385	$	10,911		$	(30,210	)	$	(1,302	)	$	(28,908	)

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss) (“AOCI”): The following table sets forth the changes in the components of AOCI by component for fiscal years 2018, 2017, and 2016:

(inthousands)	Pension and postretirement liability and reclassification adjustments			Gain (loss) on investments			Foreign currency translation adjustments			Accumulated other comprehensive income (loss)
Balance at January 2, 2016	$	(8,722	)	$	11,584		$	(48,533	)	$	(45,671	)
2016 activity	(3,261		)	(815		)	(24,832		)	(28,908		)
Balance at December 31, 2016	(11,983		)	10,769			(73,365		)	(74,579		)
2017 activity	1,147			(974		)	10,738			10,911
Balance at December 30, 2017	(10,836		)	9,795			(62,627		)	(63,668		)
Cumulative effect adjustment (a)	—			(9,795		)	—			(9,795		)
2018 activity	877			—			(25,338		)	(24,461		)
Balance at December 29, 2018	$	(9,959	)	$	—		$	(87,965	)	$	(97,924	)

(a) The Company adopted ASU 2016-01 on December 31, 2017 on a modified retrospective basis, recognizing the cumulative effect as a $9.8 million increase to retained earnings. See Note 1, Summary of Significant Accounting Policies and Other Information, for further discussion.

Reclassification out of Accumulated Other Comprehensive Income

Amounts reclassified from accumulated other comprehensive (loss) income to earnings for fiscal years 2018, 2017, and 2016 were as follows:

	Fiscal Year Ended
(in thousands)	December 29, 2018		December 30, 2017			December 31, 2016
Pension and postemployment plans:
Amortization of prior service	$	291	$	337		$	306
Settlement loss/curtailment (gain)	238		(25		)	(36		)
Total	$	529	$	312		$	270

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Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Domestic and foreign income (loss) before income taxes is as follows:

(inthousands)	2018			2017			2015
Domestic	$	(49,995	)	$	(20,496	)	$	(9,563	)
Foreign	254,937			224,533			132,837
Income before income taxes	$	204,942		$	204,037		$	123,274

Federal, state and foreign income tax expense (benefit) consists of the following:

(inthousands)	2018			2017		2016
Current:
Federal	$	(3,193	)	$	34,060	$	(3,992	)
State	119			450		(648		)
Foreign	48,130			32,945		28,695
Subtotal	45,056			67,455		24,055
Deferred:
Federal and State	(3,896		)	16,562		(1,594		)
Foreign	(783		)	501		(3,675		)
Subtotal	(4,679		)	17,063		(5,269		)
Provision for income taxes	$	40,377		$	84,518	$	18,786

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between income taxes computed on income before income taxes at the federal statutory rate and the provision for income taxes is provided below:

(inthousands)	2018			2017			2016
Tax expense at statutory rate of 21% (35% for 2017 and 2016)	$	43,038		$	71,413		$	43,146
2017 Toll Charge (and 2018 adjustment)	2,278			49,000			—
Provisional Tax Act impact other than Toll Charge (and 2018 adjustment)	966			(1,962		)	—
Net impact associated with the GILTI tax provisions	5,075			—			—
State and local taxes, net of federal tax benefit	(1,238		)	292			(415		)
Non-U.S. income tax rate differential	(20,472		)	(47,077		)	(25,471		)
Impairment of goodwill without tax benefit	—			—			3,088
Tax on unremitted earnings	4,660			12,202			2,747
Non-U.S. losses and expenses with no tax benefit	3,107			—			—
Nondeductible professional fees	1,001			1,240			313
Tax deduction for stock of foreign subsidiary	—			—			(3,896		)
Other, net	1,962			(590		)	(726		)
Provision for income taxes	$	40,377		$	84,518		$	18,786

Schedule of Deferred Tax Assets and Liabilities

Significant components of the company’s deferred tax assets and liabilities at December 29, 2018 and December 30, 2017, are as follows:

(in thousands)	2018			2017
Deferred tax assets:
Accrued expenses and reserves	$	35,597		$	24,094
Foreign tax credit carryforwards	1,506			1,053
Other U.S. tax attribute carryforwards	1,539			—
Accrued restructuring	60			156
Capital loss carryforwards	47			3,165
Domestic and non-U.S. net operating loss and credit carryforwards	8,613			5,778
Gross deferred tax assets	47,362			34,246
Less: Valuation allowance	(4,794		)	(6,203		)
Total deferred tax assets	42,568			28,043
Deferred tax liabilities:
Excess of book basis over the tax basis of assets	74,410			21,254
Tax on unremitted earnings	12,681			12,000
Total deferred tax liabilities	87,091			33,254
Net deferred tax liabilities	$	44,523		$	5,211

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 29, 2018, December 30, 2017, and December 31, 2016 is as follows:

(inthousands)	Unrecognized Tax Benefits
Balance at December 31, 2016	$	8,617
Additions for tax positions taken in the current year	370
Other	(1,327		)
Balance at December 30, 2017	$	7,660
Additions for tax positions taken in the current year	2,929
Additions for tax positions related to the pre-acquisition periods of acquired subsidiaries	9,394
Decreases due to a lapse in the statute of limitations	(1,257		)
Other	(467		)
Balance at December 29, 2018	$	18,259

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Earnings Per Share (Tables)

12 Months Ended

Dec. 29, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted earnings per share:

(inthousands, except per share amounts)	2018		2017		2016
Numerator:
Net income as reported	$	164,565	$	119,519	$	104,488
Denominator:
Weighted average shares outstanding
Basic	24,870		22,687		22,559
Effect of dilutive securities	365		244		168
Diluted	25,235		22,931		22,727
Earnings Per Share:
Basic earnings per share	$	6.62	$	5.27	$	4.63
Diluted earnings per share	$	6.52	$	5.21	$	4.60

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Segment Information (Tables)

12 Months Ended

Dec. 29, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows:

(inthousands)	2018			2017			2016
Net sales
Electronics	$	1,124,296		$	661,928		$	535,191
Automotive	479,791			453,227			415,200
Industrial	114,381			106,379			105,768
Total net sales	$	1,718,468		$	1,221,534		$	1,056,159
Depreciation and amortization
Electronics	$	61,779		$	35,215		$	29,141
Automotive	23,333			22,459			18,107
Industrial	5,661			5,337			5,889
Other	12,420			—			—
Total depreciation and amortization	$	103,193		$	63,011		$	53,137
Operating income (loss)
Electronics	$	241,426		$	155,880		$	117,088
Automotive	54,982			62,571			59,905
Industrial	17,335			10,334			3,615
Other(a)	(88,694		)	(10,274		)	(49,964		)
Total operating income	225,049			218,511			130,644
Interest expense	22,569			13,380			8,628
Foreign exchange (gain) loss	(863		)	2,376			472
Other income, net	(1,599		)	(1,282		)	(1,730		)
Income before income taxes	$	204,942		$	204,037		$	123,274

(a) Included in “Other” Operating income (loss) for 2018 is $88.7 million of charges primarily related to the IXYS acquisition, which include $36.9 million of purchase accounting inventory step-up charges, $18.7 million in acquisition-related and integration costs primarily related to legal, accounting and other expenses, $12.4 million in backlog amortization costs, $8.3 million of employee termination costs, impairment and other restructuring charges, and $4.5 million in stock compensation expense recognized immediately upon close for converted IXYS options related to prior service periods and $2.1 million change in control expense related to IXYS. In addition, there were $5.8 million of employee termination costs, impairment and other restructuring charges and acquisition-related expenses for other contemplated acquisitions which included $1.1 million of charges associated with the exit of the Custom business in the second quarter.

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country

The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2018, 2017, and 2016 are as follows:

(inthousands)	2018		2017		2016
Net sales
United States	$	511,544	$	383,025	$	356,674
China	468,174		321,111		263,701
Other countries(a)	738,750		517,398		435,784
Total net sales	$	1,718,468	$	1,221,534	$	1,056,159
Long-lived assets
United States	$	58,691	$	23,490	$	23,731
China	95,806		86,866		65,345
Mexico	70,495		62,510		52,262
Germany	36,548		1,082		1,313
Philippines	32,459		31,129		33,345
Other countries	45,895		45,500		41,179
Total long-lived assets	$	339,894	$	250,577	$	217,175
Additions to long-lived assets
United States	$	5,567	$	3,518	$	4,694
China	29,286		32,775		13,181
Mexico	18,723		19,395		15,667
Germany	5,208		93		965
Philippines	7,605		2,979		5,096
Other countries	8,364		7,165		6,625
Total additions to long-lived assets	$	74,753	$	65,925	$	46,228

(a) Each country included in other countries are less than 10% of net sales.

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Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 29, 2018

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

(inthousands, except per share data)
	2018								2017
	4Q(a)		3Q(b)		2Q(c)		1Q(d)		4Q(e)			3Q(f)		2Q(g)		1Q(h)
Net sales	$	402,281	$	439,191	$	459,183	$	417,813	$	304,849		$	317,889	$	313,355	$	285,441
Gross profit	154,337		179,594		168,987		149,623		126,624			133,651		132,608		113,650
Operating income	51,628		76,228		59,622		37,571		50,780			58,609		60,270		48,852
Net income/(loss)	32,665		53,546		42,326		36,029		(10,819		)	42,808		48,638		38,891
Net income/(loss) per share
Basic	$	1.31	$	2.13	$	1.69	$	1.48	$	(0.48	)	$	1.88	$	2.13	$	1.71
Diluted	$	1.29	$	2.10	$	1.67	$	1.45	$	(0.48	)	$	1.87	$	2.11	$	1.69

(a)In the fourth quarter of 2018, the Company recorded an estimated one-time tax charge of $3.2 million related to the finalization of 2017 provisional reasonable estimate in connection with the Tax Act, partially offset by a $1.5 million benefit for previously unrecognized tax benefits in respect of which the statute of limitation has expired, $3.7 million in backlog amortization expense from the IXYS acquisition, $3.2 million in acquisition-related and integration costs and $2.4 million in restructuring, impairment and other costs.

(b)In the third quarter of 2018, the Company recorded $5.2 million in restructuring and impairment charges, $3.1 million in backlog amortization expense from the IXYS acquisition and $2.9 million in acquisition-related and integration costs.

(c)In the second quarter of 2018, the Company recorded $19.0 million for purchase accounting inventory adjustments associated with the acquisition of IXYS, $4.2 million in restructuring and impairment charges, $3.1 million in backlog amortization expense from the IXYS acquisition and $2.4 million in acquisition-related and integration costs.

(d)In the first quarter of 2018, the Company recorded $17.9 million for purchase accounting inventory adjustments associated with the acquisition of IXYS, $11.7 million in acquisition-related and integration costs, $4.5 million of stock compensation expense recognized immediately upon close for converted IXYS options related to prior services periods, $2.5 million in backlog amortization expense, $2.1 million expense related to change in control and $0.8 million in restructuring costs.

(e)In the fourth quarter of 2017, the Company recorded an estimated one-time tax charge of $49.0 million for the enactment of the Tax Act for deemed repatriation of unremitted earnings of foreign subsidiaries, $1.4 million in acquisition-related and integration costs and $0.7 million in restructuring and production costs related to the transfer of Asian operations.

(f)In the third quarter of 2017, the Company recorded $4.8 million in acquisition-related and integration costs and $1.5 million in restructuring and production costs related to the transfer of Asian operations.

(g)In the second quarter of 2017, the Company recorded $0.3 million in acquisition-related and integration costs.

(h)In the first quarter of 2017, the Company recorded $1.5 million in acquisition-related and integration costs.

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Schedule II - Valuation and Qualifying Accounts and Reserves (Tables)

12 Months Ended

Dec. 29, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

Description	Balance at Beginning of Year		Charged to Costs and Expenses (a)		Deductions (b)			Other (c)		Balance at End of Year
(inthousands)
Fiscal year ended December 29, 2018
Allowance for losses on accounts receivable	$	1,172	$	319	$	(557	)	$	128	$	1,062
Reserves for sales discounts and allowances	$	26,344	$	124,638	$	(118,438	)	$	2,432	$	34,976
Fiscal year ended December 30, 2017
Allowance for losses on accounts receivable	$	2,079	$	3,068	$	(4,070	)	$	95	$	1,172
Reserves for sales discounts and allowances	$	23,825	$	106,781	$	(104,941	)	$	679	$	26,344
Fiscal year ended December 31, 2016
Allowance for losses on accounts receivable	$	319	$	1,769	$	(42	)	$	33	$	2,079
Reserves for sales discounts and allowances	$	17,168	$	91,632	$	(90,837	)	$	5,862	$	23,825

(a) Includes provision for doubtful accounts, sales returns and sales discounts granted to customers.

(b) Represents uncollectible accounts written off, net of recoveries and credits issued to customers.

(c) Represents business acquisitions and foreign currency translation adjustments.

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Summary of Significant Accounting Policies and Other Information - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Net sales	$ 402,281	$ 439,191	$ 459,183	$ 417,813	$ 304,849	$ 317,889	$ 313,355	$ 285,441	$ 1,718,468	$ 1,221,534	$ 1,056,159
Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales									648,967
Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales									475,329
Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales									240,501
Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales									121,562
Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales									117,728
Industrial Products
Disaggregation of Revenue [Line Items]
Net sales									114,381
Electronics Segment
Disaggregation of Revenue [Line Items]
Net sales									1,124,296	661,928	535,191
Electronics Segment | Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales									648,967
Electronics Segment | Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales									475,329
Electronics Segment | Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales									0
Electronics Segment | Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales									0
Electronics Segment | Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales									0
Electronics Segment | Industrial Products
Disaggregation of Revenue [Line Items]
Net sales									0
Automotive Segment
Disaggregation of Revenue [Line Items]
Net sales									479,791	453,227	415,200
Automotive Segment | Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales									0
Automotive Segment | Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales									0
Automotive Segment | Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales									240,501
Automotive Segment | Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales									121,562
Automotive Segment | Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales									117,728
Automotive Segment | Industrial Products
Disaggregation of Revenue [Line Items]
Net sales									0
Industrial Segment
Disaggregation of Revenue [Line Items]
Net sales									114,381	$ 106,379	$ 105,768
Industrial Segment | Electronics – Passive Products and Sensors
Disaggregation of Revenue [Line Items]
Net sales									0
Industrial Segment | Electronics – Semiconductor
Disaggregation of Revenue [Line Items]
Net sales									0
Industrial Segment | Passenger Car Products
Disaggregation of Revenue [Line Items]
Net sales									0
Industrial Segment | Automotive Sensors
Disaggregation of Revenue [Line Items]
Net sales									0
Industrial Segment | Commercial Vehicle Products
Disaggregation of Revenue [Line Items]
Net sales									0
Industrial Segment | Industrial Products
Disaggregation of Revenue [Line Items]
Net sales									$ 114,381

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Summary of Significant Accounting Policies and Other Information - Narrative (Details) $ in Thousands, € in Millions		3 Months Ended			12 Months Ended
	Jan. 17, 2018 USD ($)	Dec. 29, 2018 USD ($)	Sep. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 29, 2018 USD ($) unit	Jan. 17, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 29, 2018 EUR (€)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 EUR (€)	Dec. 30, 2017 USD ($)	Oct. 01, 2017
Summary of Significant Accounting Policies and Other Information [Line Items]
Investments in equity securities										$ 10,312		$ 10,993
Gain from equity method investments					$ (700)
Equity method investments										11,600
Cost method investments										7,900
Number of reporting units | unit					7
Foreign exchange (gain) loss					$ 863		$ (2,376)	$ (472)
Loss contingency accrual									€ 1.1	1,300	€ 0.9	1,100
Provisional estimate of Tax Act				$ 47,000
Preliminary estimate of toll charge				49,000			49,000
Other net tax benefits				(2,000)
Income taxes					40,377		84,518	18,786
TCJA one-time charge		$ 3,200		$ 49,000
Toll charge, noncurrent		28,800
ASU 2016-01
Summary of Significant Accounting Policies and Other Information [Line Items]
Cumulative effect adjustment					(9,800)
Gain recognized on statement of income					700
ASU 2016-02
Summary of Significant Accounting Policies and Other Information [Line Items]
Estimated recognition of right-of-use assets and lease liabilities for operating leases										27,000
Selling, General and Administrative Expenses
Summary of Significant Accounting Policies and Other Information [Line Items]
Advertising expense					2,800			2,900
Shipping and handling fees and costs					$ 12,300		$ 10,900	9,100
Industrial
Summary of Significant Accounting Policies and Other Information [Line Items]
Impairment of intangible assets								6,000
Patents, licenses and software
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					11 years 4 months 24 days		11 years 146 days
Distribution network
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					12 years 7 months 6 days		12 years 36 days
Customer relationships | Industrial
Summary of Significant Accounting Policies and Other Information [Line Items]
Impairment of intangible assets								2,200
Trade Name | Industrial
Summary of Significant Accounting Policies and Other Information [Line Items]
Impairment of intangible assets								3,800
Electronics Non Silicon Unit [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Excess fair value over carrying value													175.60%
Electronics (Silicon) Unit [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Excess fair value over carrying value													79.80%
Passenger Car [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Excess fair value over carrying value													233.00%
Commercial Vehicle Products
Summary of Significant Accounting Policies and Other Information [Line Items]
Excess fair value over carrying value													202.10%
Sensors [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Excess fair value over carrying value													63.10%
Relay Unit [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Excess fair value over carrying value													113.80%
Fuse Unit [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Excess fair value over carrying value													370.00%
Custom Products Reporting Unit [Member] | Industrial
Summary of Significant Accounting Policies and Other Information [Line Items]
Impairment of intangible assets								6,000
Custom Products Reporting Unit [Member] | Customer relationships | Industrial
Summary of Significant Accounting Policies and Other Information [Line Items]
Impairment of intangible assets								2,200
Custom Products Reporting Unit [Member] | Trade Name | Industrial
Summary of Significant Accounting Policies and Other Information [Line Items]
Impairment of intangible assets								$ 3,800
Minimum | Trademarks and tradenames
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					5 years
Minimum | Patents, licenses and software
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					5 years
Minimum | Distribution network
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					3 years
Maximum | Trademarks and tradenames
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					20 years
Maximum | Patents, licenses and software
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					17 years
Maximum | Distribution network
Summary of Significant Accounting Policies and Other Information [Line Items]
Weighted Average Useful Life (Years)					20 years
Building
Summary of Significant Accounting Policies and Other Information [Line Items]
Useful life					21 years
Equipment | Minimum
Summary of Significant Accounting Policies and Other Information [Line Items]
Useful life					7 years
Equipment | Maximum
Summary of Significant Accounting Policies and Other Information [Line Items]
Useful life					10 years
Furniture and Fixtures [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Useful life					7 years
Tools, Dies and Molds [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Useful life					5 years
Computer Equipment [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Useful life					3 years
Other Noncurrent Assets [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Marketable securities										$ 9,100		8,000
ATEC
Summary of Significant Accounting Policies and Other Information [Line Items]
Ownership percentage									24.00%	24.00%
EB Tech
Summary of Significant Accounting Policies and Other Information [Line Items]
Ownership percentage									20.00%	20.00%
Powersem
Summary of Significant Accounting Policies and Other Information [Line Items]
Ownership percentage									45.00%	45.00%
Polytronics [Member]
Summary of Significant Accounting Policies and Other Information [Line Items]
Investments in equity securities									€ 8.9	$ 10,200	€ 9.2	$ 11,000
Ownership percentage									7.20%	7.20%
Toll Charge
Summary of Significant Accounting Policies and Other Information [Line Items]
TCJA one-time charge		2,300
Other Items
Summary of Significant Accounting Policies and Other Information [Line Items]
TCJA one-time charge		900
IXYS Corporation | Toll Charge
Summary of Significant Accounting Policies and Other Information [Line Items]
TCJA one-time charge	$ 7,000	$ (1,000)	$ (2,000)			$ 7,000

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Acquisitions and Dispositions - Narrative (Details) $ / shares in Units, $ in Thousands									1 Months Ended	3 Months Ended								12 Months Ended
	Oct. 05, 2018 USD ($)	Jan. 17, 2018 USD ($) customer $ / shares	Jul. 07, 2017 USD ($)	Mar. 01, 2017 USD ($)	Feb. 28, 2017 USD ($)	Aug. 29, 2016 USD ($)	Apr. 04, 2016 USD ($)	Mar. 25, 2016 USD ($)	Apr. 30, 2018 USD ($)	Dec. 29, 2018 USD ($) $ / shares	Sep. 29, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 30, 2017 USD ($) $ / shares	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Dec. 29, 2018 USD ($) $ / shares	Jan. 17, 2018 USD ($) $ / shares	Dec. 30, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Business Acquisition [Line Items]
Common stock, par value (in dollars per share) | $ / shares										$ 0.01				$ 0.01				$ 0.01		$ 0.01
Share price (in dollars per share) | $ / shares		$ 207.50																	$ 207.50
TCJA one-time charge										$ 3,200				$ 49,000
Allocated share based compensation																		$ 28,200		$ 17,300	$ 12,800
Non-cash inventory charges																		36,927		1,607	7,834
Acquisition related costs										3,200	$ 2,900	$ 2,400	$ 11,700	$ 1,400	$ 4,800	$ 300	$ 1,500
Cost method investments										7,900								7,900
Cash, net of cash acquired																		$ 318,474		38,512	471,118
Inventory amortization period																		5 months
Additions																		$ 382,903		36,716
Order backlog
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)																		12 months
PolySwitch
Business Acquisition [Line Items]
Consideration transferred								$ 348,300
Revenue of acquiree since acquisition																				126,500
Inventory adjustment								$ 6,900
Voting interest acquired								100.00%
Total purchase consideration								$ 348,292
Expected tax deductible amount								$ 64,900
PolySwitch | Customer relationships
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)								15 years
PolySwitch | Patented and unpatented technologies
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)								10 years
IXYS Corporation
Business Acquisition [Line Items]
Share price (in dollars per share) | $ / shares		$ 23																	$ 23
Share exchange ratio		0.1265																	0.1265
Consideration excluding value of stock options converted																			$ 814,800
Cash		$ 380,600
Littelfuse stock		434,192
Value of options converted		41,700
Consideration transferred		856,500
Reduction in certain investments										2,600
Revenue of acquiree since acquisition																		$ 378,200
Earnings (loss) of acquiree since acquisition																		22,200
Acquisition related costs																		11,000
Cash, net of cash acquired		302,865
Total purchase consideration		$ 778,788
U.S. Sensor
Business Acquisition [Line Items]
Cash			$ 24,340
Receivables			1,500
Inventory adjustment			$ 1,600
Monolith
Business Acquisition [Line Items]
Consideration transferred	$ 5,000				$ 15,000								$ 5,000
Receivables				$ 700
Cost method investments																					3,500	$ 3,500
Ownership percentage by noncontrolling owners																						12.00%
Voting interest acquired	19.00%				62.00%								19.00%
Original investment				3,500
Cash, net of cash acquired				14,172	$ 14,200
Non-cash, fair value of commitment to purchase non-controlling interest				9,000	9,000
Total purchase consideration				$ 26,672	$ 26,700
Monolith | Stockholders of Monolith
Business Acquisition [Line Items]
Consideration transferred									$ 49,100				$ 4,000
ON Portfolio
Business Acquisition [Line Items]
Cash						$ 104,000
Consideration transferred						104,000
Revenue of acquiree since acquisition																				21,800
Inventory adjustment						700
Expected tax deductible amount						$ 7,300
ON Portfolio | Customer relationships
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)						13 years 182 days
ON Portfolio | Non-compete agreement
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)						4 years
Menber's S.p.A.
Business Acquisition [Line Items]
Consideration transferred							$ 19,200
Revenue of acquiree since acquisition																				17,300
Inventory adjustment							200
Cash, net of cash acquired							$ 19,162
Menber's S.p.A. | Customer relationships
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)							10 years
Menber's S.p.A. | Patented and unpatented technologies
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)							5 years
Menber's S.p.A. | Trademarks and tradenames
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)							10 years
Other | Selling, General and Administrative Expenses
Business Acquisition [Line Items]
Acquisition related costs																				8,000	$ 29,200
Other | Operating Income (Loss)
Business Acquisition [Line Items]
Acquisition related costs																		88,700
Inventory adjustment																		36,900
Electronics
Business Acquisition [Line Items]
Additions								$ 103,800										382,903		36,716
Automotive
Business Acquisition [Line Items]
Additions								$ 61,300										$ 0		0
Marine Product Line
Business Acquisition [Line Items]
Loss on disposition of business																				$ 1,400
IXYS Corporation
Business Acquisition [Line Items]
Number of customers | customer		3,500
Common stock, par value (in dollars per share) | $ / shares		$ 0.01																	$ 0.01
Minimum | Trademarks and tradenames
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)																		5 years
Minimum | ON Portfolio | Patented and unpatented technologies
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)						6 years
Maximum | Trademarks and tradenames
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)																		20 years
Maximum | ON Portfolio | Patented and unpatented technologies
Business Acquisition [Line Items]
Weighted Average Useful Life (Years)						8 years 182 days
Toll Charge
Business Acquisition [Line Items]
TCJA one-time charge										2,300
Toll Charge | IXYS Corporation
Business Acquisition [Line Items]
TCJA one-time charge		$ 7,000								$ (1,000)	$ (2,000)								$ 7,000
Options | IXYS Corporation
Business Acquisition [Line Items]
Allocated share based compensation																		$ 11,900
Options | IXYS Corporation | Selling, General and Administrative Expenses
Business Acquisition [Line Items]
Allocated share based compensation																		$ 4,500

XML

Acquisitions and Dispositions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands								12 Months Ended
	Jan. 17, 2018	Jul. 07, 2017	Mar. 01, 2017	Feb. 28, 2017	Aug. 29, 2016	Apr. 04, 2016	Mar. 25, 2016	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Total purchase consideration:
Cash, net of cash acquired								$ 318,474	$ 38,512	$ 471,118
IXYS Corporation
Total purchase consideration:
Cash	$ 380,600
Cash, net of cash acquired	302,865
Cash settled stock options	3,622
Littelfuse stock	434,192
Converted stock options	38,109
Total purchase consideration	778,788
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net	155,930
Property, plant, and equipment	77,442
Intangible assets	212,720
Goodwill	382,360
Other non-current assets	28,706
Other non-current liabilities	(78,370)
Assets acquired and liabilities assumed	$ 778,788
U.S. Sensor
Total purchase consideration:
Cash		$ 24,340
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net		4,635
Goodwill		16,075
Current liabilities		(540)
Assets acquired and liabilities assumed		24,340
U.S. Sensor | Patented and unpatented technologies
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets		1,090
U.S. Sensor | Trademarks and tradenames
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets		200
U.S. Sensor | Non-compete agreement
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets		50
U.S. Sensor | Customer relationships
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets		$ 2,830
Monolith
Total purchase consideration:
Original investment			$ 3,500
Cash, net of cash acquired			14,172	$ 14,200
Non-cash, fair value of commitment to purchase non-controlling interest			9,000	9,000
Total purchase consideration			26,672	$ 26,700
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net			891
Property, plant, and equipment			789
Goodwill			20,641
Other non-current liabilities			(1,870)
Current liabilities			(639)
Assets acquired and liabilities assumed			26,672
Monolith | Patented and unpatented technologies
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets			6,720
Monolith | Non-compete agreement
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets			$ 140
ON Portfolio
Total purchase consideration:
Cash					$ 104,000
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net					4,816
Goodwill					56,084
Assets acquired and liabilities assumed					104,000
ON Portfolio | Patented and unpatented technologies
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets					8,800
ON Portfolio | Non-compete agreement
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets					2,500
ON Portfolio | Customer relationships
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets					$ 31,800
Menber's S.p.A.
Total purchase consideration:
Cash, net of cash acquired						$ 19,162
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net						12,919
Property, plant, and equipment						1,693
Goodwill						8,091
Current liabilities						(7,220)
Other non-current liabilities						(1,444)
Assets acquired and liabilities assumed						19,162
Menber's S.p.A. | Patented and unpatented technologies
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets						224
Menber's S.p.A. | Trademarks and tradenames
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets						1,849
Menber's S.p.A. | Customer relationships
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets						$ 3,050
PolySwitch
Total purchase consideration:
Original consideration							$ 350,000
Post closing consideration adjustment received							(1,708)
Acquired cash							(3,810)
Acquired cash to be returned to seller							3,810
Total purchase consideration							348,292
Allocation of consideration to assets acquired and liabilities assumed:
Current assets, net							60,228
Property, plant, and equipment							51,613
Land lease							4,290
Goodwill							165,088
Other long-term assets							11,228
Current liabilities							(35,280)
Other non-current liabilities							(5,020)
Assets acquired and liabilities assumed							348,292
PolySwitch | Patented and unpatented technologies
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets							56,425
PolySwitch | Customer relationships
Allocation of consideration to assets acquired and liabilities assumed:
Intangible assets							$ 39,720

XML

Acquisitions and Dispositions - Business Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Business Combinations [Abstract]
Net sales	$ 1,735,181	$ 1,564,956	$ 1,130,645
Income before income taxes	272,724	142,150	143,110
Net income	$ 215,228	$ 75,604	$ 124,388
Net income per share — basic (in dollars per share)	$ 8.61	$ 3.05	$ 5.51
Net income per share — diluted (in dollars per share)	$ 8.53	$ 3.00	$ 5.47

XML

Acquisitions and Dispositions - Pro Forma Information Adjustments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	$ 215,228	$ 75,604	$ 124,388
Amortization
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	12,009	(25,203)
Depreciation
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	0	556
Transaction costs
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	9,976	(9,976)
Amortization of inventory step-up
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	36,927	(36,927)
Stock compensation
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	5,845	(6,635)
Interest expense
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	0	(10,326)
Income tax impact of above items
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income	$ (15,446)	$ 29,336

XML

Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 69,883	$ 39,030
Work in process	88,505	27,454
Finished goods	99,840	74,305
Total	$ 258,228	$ 140,789

XML

Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Accumulated depreciation and amortization	$ (383,415)	$ (351,407)
Net property, plant, and equipment	339,894	250,577
Depreciation	51,003	38,311	$ 33,800
Land
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	25,630	9,547
Building
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	114,636	86,599
Equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 583,043	$ 505,838

XML

Goodwill and Other Intangible Assets - Amounts for Goodwill and Changes in Carrying Value by Operating Segment (Details) - USD ($) $ in Thousands		12 Months Ended
	Mar. 25, 2016	Dec. 29, 2018	Dec. 30, 2017
Goodwill [Roll Forward]
Balance		$ 453,414	$ 403,544
Additions		382,903	36,716
Foreign currency translation and other adjustments		(9,602)	13,154
Balance		826,715	453,414
Electronics
Goodwill [Roll Forward]
Balance		278,959	215,765
Additions	$ 103,800	382,903	36,716
Foreign currency translation and other adjustments		(5,823)	26,478
Balance		656,039	278,959
Goodwill adjustments		21,600
Automotive
Goodwill [Roll Forward]
Balance		135,829	144,585
Additions	$ 61,300	0	0
Foreign currency translation and other adjustments		(3,497)	(8,756)
Balance		132,332	135,829
Goodwill adjustments		(16,800)
Industrial
Goodwill [Roll Forward]
Balance		38,626	43,194
Additions		0	0
Foreign currency translation and other adjustments		(282)	(4,568)
Balance		38,344	$ 38,626
Goodwill adjustments		$ (4,800)

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles acquired	$ 212,720	$ 11,030
Amortization of intangibles	$ 52,190	$ 24,700	$ 19,337

XML

Goodwill and Other Intangible Assets - Details of Other Intangible Assets and Related Future Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 557,535	$ 350,432
Accumulated Amortization	196,061	146,582
Total	361,474	203,850
Amount	$ 212,720	$ 11,030
Patents, licenses and software
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (Years)	11 years 4 months 24 days	11 years 146 days
Gross Carrying Value	$ 139,413	$ 141,520
Accumulated Amortization	69,431	59,609
Total	$ 69,982	$ 81,911
Weighted Average Useful Life (Years)	8 years	9 years 219 days
Amount	$ 51,500	$ 7,810
Distribution network
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (Years)	12 years 7 months 6 days	12 years 36 days
Gross Carrying Value	$ 43,876	$ 46,233
Accumulated Amortization	34,564	33,361
Total	$ 9,312	$ 12,872
Customer relationships, trademarks, tradenames and other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (Years)	17 years 6 months	15 years 219 days
Gross Carrying Value	$ 374,246	$ 162,679
Accumulated Amortization	92,066	53,612
Total	$ 282,180	$ 109,067
Weighted Average Useful Life (Years)	17 years 2 months 12 days	9 years
Amount	$ 148,800	$ 3,220
Order backlog
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (Years)	12 months
Weighted Average Useful Life (Years)	1 year	0 years
Amount	$ 12,420	$ 0

XML

Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 39,440
2020	39,162
2021	37,164
2022	36,368
2023	31,906
2024 and thereafter	177,434
Total	$ 361,474	$ 203,850

XML

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Payables and Accruals [Abstract]
Employee-related liabilities	$ 60,640	$ 51,239
Other non-income taxes	21,523	15,207
Professional services	6,169	2,214
Interest	5,137	2,477
Accrued share repurchases	4,349	0
Restructuring liability	3,887	1,459
Other	36,700	27,819
Total	$ 138,405	$ 100,415

XML

Lease Commitments - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 9.6	$ 11.6	$ 12.6

XML

Lease Commitments - Future Minimum Payments for All Non-cancelable Operating Leases (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 9,133
2020	7,590
2021	5,574
2022	4,590
2023	2,946
2024 and thereafter	2,774
Total	$ 32,607

XML

Restructuring, Impairment and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				$ 10,365	$ 2,227	$ 3,995
Impairment charges				2,218	0	14,809
Total	$ 2,400	$ 5,200	$ 4,200	12,583	2,227	18,804
Restructuring reserves	$ 3,900			3,900	1,500
Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				9,503	1,993	1,528
Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				862	234	2,467
Electronics
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				9,412	1,478	1,744
Impairment charges				0	0	0
Total				9,412	1,478	1,744
Electronics | Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				8,742	1,244	135
Electronics | Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				670	234	1,609
Automotive
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				826	371	374
Impairment charges				88	0	0
Total				914	371	374
Automotive | Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				634	371	299
Automotive | Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				192	0	75
Industrial
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				127	378	1,877
Impairment charges				2,130	0	14,809
Total				2,257	378	16,686
Goodwill impairment						8,800
Impairment of intangible assets						6,000
Industrial | Trade Name
Restructuring Cost and Reserve [Line Items]
Impairment of intangible assets						3,800
Industrial | Customer relationships
Restructuring Cost and Reserve [Line Items]
Impairment of intangible assets						2,200
Industrial | Employee terminations
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				127	378	1,094
Industrial | Other restructuring charges
Restructuring Cost and Reserve [Line Items]
Total restructuring charges				$ 0	$ 0	$ 783

XML

Debt - Carrying Amounts of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Debt Instrument [Line Items]
Long-term debt, gross	$ 699,366
Unamortized debt issuance costs	(4,636)	$ (4,881)
Total debt	694,730	495,611
Less: Current maturities	(10,000)	(6,250)
Total long-term debt	684,730	489,361
Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	155,000	122,500
Euro Senior Notes, Series A due 2023
Debt Instrument [Line Items]
Long-term debt, gross	133,417	139,623
Euro Senior Notes, Series B due 2028
Debt Instrument [Line Items]
Long-term debt, gross	108,330	113,369
USD Senior Notes, Series A due 2022
Debt Instrument [Line Items]
Long-term debt, gross	25,000	25,000
USD Senior Notes, Series B due 2027
Debt Instrument [Line Items]
Long-term debt, gross	100,000	100,000
USD Senior Notes, Series A due 2025
Debt Instrument [Line Items]
Long-term debt, gross	50,000	0
USD Senior Notes, Series B due 2030
Debt Instrument [Line Items]
Long-term debt, gross	125,000	0
Other
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,619	$ 0

XML

Debt - Narrative (Details)					12 Months Ended
	Jan. 16, 2018 USD ($)	Nov. 15, 2017 USD ($)	Oct. 13, 2017 USD ($) advance	Mar. 04, 2016 USD ($)	Dec. 29, 2018 USD ($) series	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Oct. 12, 2017 USD ($)	Feb. 15, 2017 USD ($)	Dec. 08, 2016 EUR (€)	Dec. 08, 2016 USD ($)
Debt Instrument [Line Items]
Number of series | series					2
Interest paid					$ 18,500,000	$ 13,400,000	$ 8,600,000
Credit Agreement
Debt Instrument [Line Items]
Debt term				5 years
Maximum borrowing capacity				$ 700,000,000
Additional uncommitted borrowing capacity			$ 300,000,000	150,000,000
Additional uncommitted borrowing capacity, minimum increments				25,000,000
Number of advances | advance			2
Effective interest rate					3.59%
Letter of credit oustanding					$ 100,000
Credit Agreement | Minimum
Debt Instrument [Line Items]
Commitment fee					0.15%
Credit Agreement | Maximum
Debt Instrument [Line Items]
Commitment fee					0.25%
Credit Agreement | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate					1.00%
Credit Agreement | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate					2.00%
Credit Agreement | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate					0.00%
Credit Agreement | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate					1.00%
Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity, credit facility			$ 700,000,000.0	575,000,000.0				$ 575,000,000.0
Remaining borrowing capacity					$ 699,900,000
Credit Agreement | Term Loan Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity, credit facility			200,000,000.0	$ 125,000,000.0				$ 125,000,000.0
Proceeds from issuance of debt	$ 75,000,000		$ 125,000,000
Quarterly payments, percentage of loan					1.25%
Periodic payment	2,500,000
Repayments of debt					$ 35,000,000
Bank of America
Debt Instrument [Line Items]
Payments of debt issuance costs						$ 1,600,000
Bank of America
Debt Instrument [Line Items]
Payments of debt issuance costs					$ 1,800,000
Euro Senior Notes, Series A and B
Debt Instrument [Line Items]
Face amount of debt | €										€ 212,000,000
Euro Senior Notes, Series A due 2023
Debt Instrument [Line Items]
Face amount of debt | €										€ 117,000,000
Stated interest rate										1.14%	1.14%
Euro Senior Notes, Series B due 2028
Debt Instrument [Line Items]
Face amount of debt | €										€ 95,000,000
Stated interest rate										1.83%	1.83%
U.S. Senior Notes, Series A and B
Debt Instrument [Line Items]
Face amount of debt											$ 125,000,000
U.S. Senior Notes, Series A
Debt Instrument [Line Items]
Face amount of debt									$ 25,000,000
Stated interest rate									3.03%
U.S. Senior Notes, Series B
Debt Instrument [Line Items]
Face amount of debt									$ 100,000,000
Stated interest rate									3.74%
US Senior Notes A and B Due 2025 and 2030
Debt Instrument [Line Items]
Face amount of debt		$ 175,000,000
Payments of debt issuance costs		$ 900,000
US Senior Notes A Due 2025
Debt Instrument [Line Items]
Face amount of debt	$ 50,000,000
Stated interest rate	3.48%
US Senior Notes B Due 2030
Debt Instrument [Line Items]
Face amount of debt	$ 125,000,000
Stated interest rate	3.78%

XML

Debt - Scheduled Maturities of the Company's Long Term Debt (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Debt Disclosure [Abstract]
2018	$ 10,000
2019	10,000
2020	10,000
2021	152,619
2022	133,417
2024 and thereafter	383,330
Total	$ 699,366

XML

Fair Value of Assets and Liabilities - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in equity securities	$ 10,312	$ 10,993
Mutual funds	9,112	7,962
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in equity securities	10,312	10,993
Mutual funds	9,112	7,962
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in equity securities	0	0
Mutual funds	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in equity securities	0	0
Mutual funds	$ 0	$ 0

XML

Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Senior Notes (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Carrying Value | Euro Senior Notes, Series A due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	$ 133,417	$ 139,623
Carrying Value | Euro Senior Notes, Series B due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	108,330	113,369
Carrying Value | USD Senior Notes, Series A due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	25,000	25,000
Carrying Value | USD Senior Notes, Series B due 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	100,000	100,000
Carrying Value | USD Senior Notes, Series A due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	50,000	0
Carrying Value | USD Senior Notes, Series B due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	125,000	0
Estimated Fair Value | Euro Senior Notes, Series A due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	130,888	138,294
Estimated Fair Value | Euro Senior Notes, Series B due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	103,774	111,579
Estimated Fair Value | USD Senior Notes, Series A due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	24,115	24,737
Estimated Fair Value | USD Senior Notes, Series B due 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	94,458	99,992
Estimated Fair Value | USD Senior Notes, Series A due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	47,434	0
Estimated Fair Value | USD Senior Notes, Series B due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt fair value	$ 114,731	$ 0

XML

Fair Value of Assets and Liabilities - Impairment of Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and intangible assets	$ 0	$ 0	$ 14,809
Goodwill	826,715	453,414	403,544
Other intangible assets	$ 361,474	$ 203,850
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment			8,794
Impairment of intangible assets			6,015
Impairment of goodwill and intangible assets			14,809
Goodwill			0
Other intangible assets			660
Total			660
Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill			0
Other intangible assets			680
Total			$ 680

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Fair Value of Assets and Liabilities - Level 3 Measurements (Details) - Level 3 $ in Thousands	Dec. 31, 2016 USD ($)
Trade Name
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value	$ 680
Trade Name | Relief from royalty | Discount rate:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	0.18
Trade Name | Relief from royalty | Royalty rate:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	0.01
Customer relationships
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value	$ 0
Customer relationships | Excess earnings | Discount rate:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	0.18
Customer relationships | Excess earnings | Attrition rate:
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	0.05

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Benefit Plans - Benefit Plan Related Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Change in benefit obligation:
Benefit obligation at beginning of year	$ 67,268	$ 55,606
Service cost	2,266	2,037	$ 1,509
Interest cost	3,104	1,887	1,662
Net actuarial gain	(7,321)	(433)
Benefits paid from the trust	(2,479)	(1,405)
Benefits paid directly by the Company	(1,802)	(1,098)
Settlements	(1,291)	(31)
Acquisitions	48,358	0
Effect of exchange rate movements	(6,918)	5,477
Other	1,648	5,228
Benefit obligation at end of year	102,833	67,268	55,606
Change in plan assets at fair value:
Fair value of plan assets at beginning of year	48,123	42,208
Actual return on plan assets	(2,847)	2,962
Employer contributions	2,341	264
Benefits paid	(2,479)	(1,405)
Settlements	(1,291)	0
Acquisitions	31,954	0
Effect of exchange rate movements	(5,125)	4,094
Fair value of plan assets at end of year	70,676	48,123	$ 42,208
Net amount recognized/(unfunded status)	(32,157)	(19,145)
Amounts recognized in the Consolidated Balance Sheets consist of:
Noncurrent assets	811	78
Current benefit liability	(1,094)	(481)
Noncurrent benefit liability	(31,874)	(18,742)
Net liability recognized	$ (32,157)	$ (19,145)

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Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Pre-tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Net actuarial loss	$ 9,777	$ 12,261
Prior service (cost)	1,607	0
Net amount recognized, pre-tax	11,384	12,261
Estimated net actuarial loss which will be amortized from accumulated other comprehensive income (loss) into benefit cost in 2019	200
Amortization of prior service	291	337	$ 306
Net actuarial loss	(396)
Settlement loss	238	$ (25)	$ (36)
Foreign currency adjustments	744
Total	$ 877

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Benefit Plans - Benefit Plan Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Components of net periodic benefit cost:
Service cost	$ 2,266	$ 2,037	$ 1,509
Interest cost	3,104	1,887	1,662
Expected return on plan assets	(3,222)	(1,990)	(1,935)
Amortization of prior service	291	337	306
Net periodic benefit cost	2,439	2,271	1,542
Settlement loss / curtailment (gain)	238	(25)	(36)
Total expense for the year	$ 2,677	$ 2,246	$ 1,506

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Benefit Plans - Weighted Average Assumptions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.80%	3.00%	3.70%
Expected return on plan assets	4.20%	4.50%	4.90%
Compensation increase rate	5.00%	4.50%	5.30%
Discount rate	3.10%	3.10%	2.60%
Compensation increase rate	4.60%	5.00%	4.50%
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 99.6	$ 60.5

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Benefit Plans - Funded Status of Plans (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Retirement Benefits [Abstract]
Projected benefit obligation	$ 70,579	$ 28,515
Fair value of plan assets	37,611	9,292
Accumulated benefit obligation	66,049	18,990
Fair value of plan assets	$ 36,003	$ 6,003

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Benefit Plans - Expected Benefit Payments to Be Paid to Participants (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Retirement Benefits [Abstract]
2019	$ 4,210
2020	4,243
2021	4,691
2022	4,547
2023	4,884
2024-2028	27,047
Expected contributions	$ 2,300

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Benefit Plans - Allocation of Plan Assets (Details)	Dec. 29, 2018	Dec. 30, 2017
Asset Allocation	100.00%	100.00%
Equity securities
Asset Allocation	30.00%	35.00%
Debt securities
Asset Allocation	66.00%	64.00%
Cash and cash equivalents, and other
Asset Allocation	4.00%	1.00%

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Benefit Plans - The Company's Pension Plan Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 70,676	$ 48,123	$ 42,208
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	20,889	17,063
Fixed income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	46,470	30,656
Insurance contracts and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,793
Cash and cash equivalents, and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,525	404
Level 1
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	5,399	9,292
Level 1 | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,361	1,031
Level 1 | Fixed income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	3,336	8,088
Level 1 | Insurance contracts and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0
Level 1 | Cash and cash equivalents, and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	702	173
Level 2
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Level 2 | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Level 2 | Fixed income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Level 2 | Insurance contracts and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0
Level 2 | Cash and cash equivalents, and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Level 3
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	632	0
Level 3 | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Level 3 | Fixed income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
Level 3 | Insurance contracts and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	632
Level 3 | Cash and cash equivalents, and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0	0
NAV
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	64,645	38,831
NAV | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	19,528	16,032
NAV | Fixed income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	43,134	22,568
NAV | Insurance contracts and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,161
NAV | Cash and cash equivalents, and other
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 823	$ 231

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Benefit Plans - Defined Contribution and Other Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
401(K) Savings Plan
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution	100.00%
Discretionary matching contribution	4.00%
Discretionary matching contribution	2.00%
Discretionary contribution amount	$ 4.5	$ 3.5	$ 3.2
Supplemental Employee Retirement Plan
Defined Contribution Plan Disclosure [Line Items]
Discretionary contribution amount	0.4
Other Long-term Liabilities
Defined Contribution Plan Disclosure [Line Items]
Recorded liability	9.1
Other Assets
Defined Contribution Plan Disclosure [Line Items]
Plan assets	$ 9.1

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Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
	Feb. 18, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016	May 01, 2017
Authorized (in shares)		1,400,000
IXYS converted awards (in shares)		499,027
Allocated share based compensation		$ 28.2	$ 17.3	$ 12.8
Options intrinsic value		38.3	2.2	13.3
Options vested fair value		20.8	15.0	10.7
Share-based liabilities paid		1.1	0.9	0.6
Unrecognized compensation cost		$ 22.0
Unrecognized compensation cost, period for recognition		1 year 9 months 18 days
Income tax benefit		$ 6.0	$ 6.0	$ 4.4
Share repurchase program authorized (in shares)					1,000,000
Purchase of common stock (in shares)		391,972
Options
Award vesting period		4 years
IXYS Corporation | Options
Allocated share based compensation		$ 11.9
Minimum | Options
Award vesting period		3 years
Award expiration period		7 years
Minimum | Non-vested restricted share and share unit awards
Award vesting period		3 years
Maximum | Options
Award vesting period		5 years
Award expiration period		10 years
Maximum | Non-vested restricted share and share unit awards
Award vesting period		4 years
Subsequent Event [Member]
Purchase of common stock (in shares)	79,916

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Stock-Based Compensation - Reconciliation of Outstanding Stock Options (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 29, 2018 USD ($) $ / shares shares
Shares Under Option
Outstanding (in shares) | shares	404,301
Granted (in shares) | shares	78,721
IXYS converted awards (in shares) | shares	499,027
Exercised (in shares) | shares	(296,914)
Forfeited (in shares) | shares	(15,779)
Outstanding (in shares) | shares	669,356
Exercisable (in shares) | shares	420,422
Weighted Average Price
Outstanding (in dollars per share) | $ / shares	$ 110.04
Granted (in dollars per share) | $ / shares	192.59
IXYS converted awards (in dollars per share) | $ / shares	92.52
Exercised (in dollars per share) | $ / shares	87.85
Forfeited (in dollars per share) | $ / shares	120.59
Outstanding (in dollars per share) | $ / shares	116.29
Exercisable (in dollars per share) | $ / shares	$ 100.14
Weighted Average Remaining Contract Life and Aggregate Intrinsic Value
Outstanding (Years)	5 years 4 months 24 days
Outstanding | $	$ 36,494
Exercisable (Years)	4 years 9 months 18 days
Exercisable | $	$ 28,542

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Stock-Based Compensation - Reconciliation of Nonvested Restricted Share and Share Unit Awards (Details) - Non-vested restricted share and share unit awards	12 Months Ended
	Dec. 29, 2018 $ / shares shares
Shares
Nonvested (in shares) | shares	199,693
Granted (in shares) | shares	77,430
Vested (in shares) | shares	(104,062)
Forfeited (in shares) | shares	(12,267)
Nonvested (in shares) | shares	160,794
Weighted Average Grant-Date Fair Value
Nonvested (in dollars per share) | $ / shares	$ 130.4
Granted (in dollars per share) | $ / shares	194.39
Vested (in dollars per share) | $ / shares	123.45
Forfeited (in dollars per share) | $ / shares	144.84
Nonvested (in dollars per share) | $ / shares	$ 164.61

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Stock-Based Compensation - Weighted Average Fair Value of Options Granted and Black-Scholes Option Valuation Model Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average fair value of options granted (in dollars per share)	$ 45.19	$ 30.77	$ 26.06
Assumptions:
Risk-free interest rate	2.79%	1.79%	1.37%
Expected dividend yield	0.77%	0.86%	0.97%
Expected stock price volatility	25.00%	23.00%	26.00%
Expected life of options (years)	4 years 4 months 24 days	4 years 4 months 24 days	4 years 219 days

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Other Comprehensive Income (Loss) - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Other Comprehensive Income (Loss) [Line Items]
Pre-tax	$ (24,414)	$ 11,296	$ (30,210)
Tax	47	385	(1,302)
Total change in other comprehensive (loss) income	(24,461)	10,911	(28,908)
Pension and postretirement liability and reclassification adjustments
Other Comprehensive Income (Loss) [Line Items]
Pre-tax	924	1,532	(4,563)
Tax	47	385	(1,302)
Total change in other comprehensive (loss) income	877	1,147	(3,261)
Unrealized gain (loss) on investments
Other Comprehensive Income (Loss) [Line Items]
Pre-tax	0	(974)	(815)
Tax	0	0	0
Total change in other comprehensive (loss) income	0	(974)	(815)
Foreign currency translation adjustment
Other Comprehensive Income (Loss) [Line Items]
Pre-tax	(25,338)	10,738	(24,832)
Tax	0	0	0
Total change in other comprehensive (loss) income	$ (25,338)	$ 10,738	$ (24,832)

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Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	$ 927,556	$ 814,931	$ 739,252
Activity in the period	(24,461)	10,911	(28,908)
Balance	1,478,342	927,556	814,931
ASU 2016-01
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Cumulative effect adjustment	9,800
Pension and postretirement liability and reclassification adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(10,836)	(11,983)	(8,722)
Cumulative effect adjustment	0
Activity in the period	877	1,147	(3,261)
Balance	(9,959)	(10,836)	(11,983)
Unrealized gain (loss) on investments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	9,795	10,769	11,584
Cumulative effect adjustment	(9,795)
Activity in the period	0	(974)	(815)
Balance	0	9,795	10,769
Foreign currency translation adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(62,627)	(73,365)	(48,533)
Cumulative effect adjustment	0
Activity in the period	(25,338)	10,738	(24,832)
Balance	(87,965)	(62,627)	(73,365)
Accumulated other comprehensive income (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(63,668)	(74,579)	(45,671)
Cumulative effect adjustment	(9,795)
Activity in the period	(24,461)	10,911	(28,908)
Balance	$ (97,924)	$ (63,668)	$ (74,579)

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Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total	$ 529	$ 312	$ 270
Amortization of prior service
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total	291	337	306
Settlement loss/curtailment (gain)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total	$ 238	$ (25)	$ (36)

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Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended			12 Months Ended
	Jan. 17, 2018	Dec. 29, 2018	Sep. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Jan. 17, 2018	Dec. 30, 2017	Dec. 31, 2016
Income Tax Contingency [Line Items]
Provisional estimate of Tax Act				$ 47,000
Preliminary estimate of toll charge				49,000			$ 49,000
Other net tax benefits				(2,000)
TCJA one-time charge		$ 3,200		49,000
Toll charge, noncurrent		28,800
Foreign tax credits							13,000
Tax benefit for net operating losses								$ (3,000)
Income taxes paid					$ 46,200		31,800	35,600
Income tax refunds					4,300		13,700
Unremitted earnings of the Company’s non-U.S. subsidiaries		815,000			815,000
Deferred tax liabilities recognized on foreign earnings		12,700		12,000	$ 12,700		12,000
Income tax holiday per diluted share (in dollars per share)					$ 0.24
Interest expense					$ 1,500		900	900
Decrease due to a lapse in the statute of limitations					300
Interest accrued		5,900		3,300	5,900		3,300
Unrecognized tax benefits		18,259		7,660	18,259		7,660	$ 8,617
Unrecognized tax benefits that may be recognized in next fiscal year		3,500			3,500
China
Income Tax Contingency [Line Items]
Tax holidays					6,100
Foreign Tax Authority
Income Tax Contingency [Line Items]
Deferred tax liabilities recognized on foreign earnings		12,500		11,800	12,500		11,800
Domestic Tax Authority
Income Tax Contingency [Line Items]
Deferred tax liabilities recognized on foreign earnings		200		$ 200	$ 200		$ 200
Toll Charge
Income Tax Contingency [Line Items]
TCJA one-time charge		2,300
Toll Charge | IXYS Corporation
Income Tax Contingency [Line Items]
TCJA one-time charge	$ 7,000	(1,000)	$ (2,000)			$ 7,000
Other Items
Income Tax Contingency [Line Items]
TCJA one-time charge		$ 900

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Income Taxes - Federal, State, and Foreign Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Domestic	$ (49,995)	$ (20,496)	$ (9,563)
Foreign	254,937	224,533	132,837
Income before income taxes	204,942	204,037	123,274
Current:
Federal	(3,193)	34,060	(3,992)
State	119	450	(648)
Foreign	48,130	32,945	28,695
Subtotal	45,056	67,455	24,055
Deferred:
Federal and State	(3,896)	16,562	(1,594)
Foreign	(783)	501	(3,675)
Subtotal	(4,679)	17,063	(5,269)
Provision for income taxes	$ 40,377	$ 84,518	$ 18,786

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Income Taxes - Effective Income Tax Reconciliation and Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Tax expense at statutory rate of 21% (35% for 2017 and 2016)	$ 43,038	$ 71,413	$ 43,146
2017 Toll Charge (and 2018 adjustment)	2,278	49,000	0
Provisional Tax Act impact other than Toll Charge (and 2018 adjustment)	966	(1,962)	0
Net impact associated with the GILTI tax provisions	5,075	0	0
State and local taxes, net of federal tax benefit	(1,238)	292	(415)
Non-U.S. income tax rate differential	(20,472)	(47,077)	(25,471)
Impairment of goodwill without tax benefit	0	0	3,088
Tax on unremitted earnings	4,660	12,202	2,747
Non-U.S. losses and expenses with no tax benefit	3,107	0	0
Nondeductible professional fees	1,001	1,240	313
Tax deduction for stock of foreign subsidiary	0	0	(3,896)
Other, net	1,962	(590)	(726)
Provision for income taxes	$ 40,377	$ 84,518	$ 18,786

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Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Deferred tax assets:
Accrued expenses and reserves	$ 35,597	$ 24,094
Foreign tax credit carryforwards	1,506	1,053
Other U.S. tax attribute carryforwards	1,539	0
Accrued restructuring	60	156
Capital loss carryforwards	47	3,165
Domestic and non-U.S. net operating loss and credit carryforwards	8,613	5,778
Gross deferred tax assets	47,362	34,246
Less: Valuation allowance	(4,794)	(6,203)
Total deferred tax assets	42,568	28,043
Deferred tax liabilities:
Excess of book basis over the tax basis of assets	74,410	21,254
Tax on unremitted earnings	12,681	12,000
Total deferred tax liabilities	87,091	33,254
Net deferred tax liabilities	$ 44,523	$ 5,211

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Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 29, 2018	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Unrecognized tax benefits		$ 7,660	$ 8,617
Additions for tax positions taken in the current year		2,929	370
Additions for tax positions related to the pre-acquisition periods of acquired subsidiaries		9,394
Decreases due to a lapse in the statute of limitations	$ (1,500)	(1,257)
Other		(467)	(1,327)
Unrecognized tax benefits	$ 18,259	$ 18,259	$ 7,660

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Earnings Per Share - Narrative (Details) - shares		12 Months Ended
	Jan. 17, 2018	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded (in shares)		42,305	37,443	53,448
IXYS Corporation
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock issues for acquisitions (in shares)	2,100,000
IXYS Corporation | Conversion of IXYS Equity Awards Into Littlefuse Equity Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion of stock (in shares)	500,000

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Numerator:
Net income (loss)	$ 32,665	$ 53,546	$ 42,326	$ 36,029	$ (10,819)	$ 42,808	$ 48,638	$ 38,891	$ 164,565	$ 119,519	$ 104,488
Weighted average shares outstanding
Basic (in shares)									24,870	22,687	22,559
Effect of dilutive securities (in shares)									365	244	168
Diluted (in shares)									25,235	22,931	22,727
Earnings Per Share:
Basic earnings per share (in dollars per share)									$ 6.62	$ 5.27	$ 4.63
Diluted earnings per share (in dollars per share)									$ 6.52	$ 5.21	$ 4.60

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Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 402,281	$ 439,191	$ 459,183	$ 417,813	$ 304,849	$ 317,889	$ 313,355	$ 285,441	$ 1,718,468	$ 1,221,534	$ 1,056,159
Depreciation and amortization									103,193	63,011	53,137
Operating income (loss)	$ 51,628	$ 76,228	$ 59,622	$ 37,571	$ 50,780	$ 58,609	$ 60,270	$ 48,852	225,049	218,511	130,644
Interest expense									22,569	13,380	8,628
Foreign exchange loss (gain)									(863)	2,376	472
Other expense (income), net									(1,599)	(1,282)	(1,730)
Income before income taxes									204,942	204,037	123,274
Electronics
Segment Reporting Information [Line Items]
Net sales									1,124,296	661,928	535,191
Depreciation and amortization									61,779	35,215	29,141
Operating income (loss)									241,426	155,880	117,088
Automotive
Segment Reporting Information [Line Items]
Net sales									479,791	453,227	415,200
Depreciation and amortization									23,333	22,459	18,107
Operating income (loss)									54,982	62,571	59,905
Industrial
Segment Reporting Information [Line Items]
Net sales									114,381	106,379	105,768
Depreciation and amortization									5,661	5,337	5,889
Operating income (loss)									17,335	10,334	3,615
Other
Segment Reporting Information [Line Items]
Depreciation and amortization									12,420	0	0
Operating income (loss)									$ (88,694)	$ (10,274)	$ (49,964)

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Segment Information - Narrative (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018 USD ($)	Sep. 29, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Dec. 29, 2018 USD ($) segment	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment									3
Acquisition related costs	$ 3,200	$ 2,900	$ 2,400	$ 11,700	$ 1,400	$ 4,800	$ 300	$ 1,500
Backlog amortization costs	$ 3,700	$ 3,100	$ 3,100	2,500
Change in control expense				$ 2,100
Total restructuring charges									$ 10,365	$ 2,227	$ 3,995
Allocated share based compensation									28,200	17,300	12,800
Impairment charges									$ 2,218	$ 0	$ 14,809
Net sales | Geographic Concentration Risk | Outside the United States
Segment Reporting Information [Line Items]
Concentration risk (less than)									70.00%	69.00%	66.00%
Net sales | Geographic Concentration Risk | China
Segment Reporting Information [Line Items]
Concentration risk (less than)									27.00%	26.00%	25.00%
Net sales | Customer Concentration Risk | Arrow Electronics Inc.
Segment Reporting Information [Line Items]
Concentration risk (less than)									10.70%	10.60%
Other | Operating Income (Loss)
Segment Reporting Information [Line Items]
Acquisition related costs									$ 88,700
Inventory adjustment									36,900
Legal, accounting and other expenses									18,700
Backlog amortization costs									12,400
Change in control expense									2,100
Total restructuring charges									8,300
Impairment charges									5,800		$ 14,800
Other asset impairment charges									1,100
Other | Selling, General and Administrative Expenses
Segment Reporting Information [Line Items]
Acquisition related costs										$ 8,000	29,200
Total restructuring charges										$ 2,200	1,900
Other | Cost of Sales
Segment Reporting Information [Line Items]
Total restructuring charges											1,600
Other | SG&A and Research and development expenses
Segment Reporting Information [Line Items]
Total restructuring charges											$ 2,500
IXYS Corporation
Segment Reporting Information [Line Items]
Acquisition related costs									$ 11,000

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Segment Information - Revenues and Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 402,281	$ 439,191	$ 459,183	$ 417,813	$ 304,849	$ 317,889	$ 313,355	$ 285,441	$ 1,718,468	$ 1,221,534	$ 1,056,159
Long-lived assets	339,894				250,577				339,894	250,577	217,175
Additions to long-lived assets									74,753	65,925	46,228
United States
Segment Reporting Information [Line Items]
Net sales									511,544	383,025	356,674
Long-lived assets	58,691				23,490				58,691	23,490	23,731
Additions to long-lived assets									5,567	3,518	4,694
China
Segment Reporting Information [Line Items]
Net sales									468,174	321,111	263,701
Long-lived assets	95,806				86,866				95,806	86,866	65,345
Additions to long-lived assets									29,286	32,775	13,181
Mexico
Segment Reporting Information [Line Items]
Long-lived assets	70,495				62,510				70,495	62,510	52,262
Additions to long-lived assets									18,723	19,395	15,667
Germany
Segment Reporting Information [Line Items]
Long-lived assets	36,548				1,082				36,548	1,082	1,313
Additions to long-lived assets									5,208	93	965
Philippines
Segment Reporting Information [Line Items]
Long-lived assets	32,459				31,129				32,459	31,129	33,345
Additions to long-lived assets									7,605	2,979	5,096
Other countries
Segment Reporting Information [Line Items]
Net sales									738,750	517,398	435,784
Long-lived assets	$ 45,895				$ 45,500				45,895	45,500	41,179
Additions to long-lived assets									$ 8,364	$ 7,165	$ 6,625

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Selected Quarterly Financial Data (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 402,281	$ 439,191	$ 459,183	$ 417,813	$ 304,849	$ 317,889	$ 313,355	$ 285,441	$ 1,718,468	$ 1,221,534	$ 1,056,159
Gross profit	154,337	179,594	168,987	149,623	126,624	133,651	132,608	113,650	652,541	506,533	413,117
Operating income (loss)	51,628	76,228	59,622	37,571	50,780	58,609	60,270	48,852	225,049	218,511	130,644
Net income (loss)	$ 32,665	$ 53,546	$ 42,326	$ 36,029	$ (10,819)	$ 42,808	$ 48,638	$ 38,891	$ 164,565	$ 119,519	$ 104,488
Basic (in dollars per share)	$ 1.31	$ 2.13	$ 1.69	$ 1.48	$ (0.48)	$ 1.88	$ 2.13	$ 1.71
Diluted (in dollars per share)	$ 1.29	$ 2.1	$ 1.67	$ 1.45	$ (0.48)	$ 1.87	$ 2.11	$ 1.69

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Selected Quarterly Financial Data - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
TCJA one-time charge	$ 3,200				$ 49,000
Benefit for previously unrecognized tax benefits in respect of which the statute of limitation has expired	1,500								$ 1,257
Backlog amortization costs	3,700	$ 3,100	$ 3,100	$ 2,500
Acquisition related costs	3,200	2,900	2,400	11,700	1,400	$ 4,800	$ 300	$ 1,500
Restructuring, impairment and other costs	$ 2,400	$ 5,200	4,200						12,583	$ 2,227	$ 18,804
Purchase accounting inventory adjustments			$ 19,000	17,900
Stock compensation expense				4,500					$ 27,431	$ 16,315	$ 11,987
Change in control expense				2,100
Restructuring costs				$ 800	$ 700	$ 1,500

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Related Party Transactions (Details Textual) $ in Millions	12 Months Ended
	Dec. 29, 2018 USD ($)
Powersem
Related Party Transaction [Line Items]
Revenue from related parties	$ 0.7
Purchase from related party	4.5
Receivable from related parties	0.1
Payables to related parties	0.2
EB Tech
Related Party Transaction [Line Items]
Payables to related parties	0.1
Amount of transaction	0.5
ATEC
Related Party Transaction [Line Items]
Payables to related parties	0.5
Amount of transaction	$ 9.9
Powersem
Related Party Transaction [Line Items]
Ownership percentage	45.00%
EB Tech
Related Party Transaction [Line Items]
Ownership percentage	20.00%
ATEC
Related Party Transaction [Line Items]
Ownership percentage	24.00%

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Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Allowance for losses on accounts receivable
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ 1,172	$ 2,079	$ 319
Charged to Costs and Expenses	319	3,068	1,769
Deductions	(557)	(4,070)	(42)
Other	128	95	33
Balance at End of Year	1,062	1,172	2,079
Reserves for sales discounts and allowances
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	26,344	23,825	17,168
Charged to Costs and Expenses	124,638	106,781	91,632
Deductions	(118,438)	(104,941)	(90,837)
Other	2,432	679	5,862
Balance at End of Year	$ 34,976	$ 26,344	$ 23,825